REMSENSE TECHNOLOGIES LIMITED — Capital/Financing Update 2023

Apr 2, 2023

TARGET MARKET DETERMINATION

Made by:

RemSense Technologies Limited (ACN 648 834 771) of Suite 166, Level 3, 580 Hay Street PERTH WA 6000 ( Company )

Product: Free attaching quoted options to acquire fully paid ordinary share in the capital of the Company ( Share ) in connection with a non-renounceable entitlement issue under a prospectus dated 3 April 2023 ( Options ). The Options are exercisable at $0.15 on or before 15 December 2025 ( Option Term ).

Effective date: 3 April 2023

This target market determination ( TMD ) has been prepared by the Company in relation to an offer to issue the Options made by the Company under a prospectus dated 3 April 2023 ( Prospectus ). A copy of the Prospectus is available on the Company’s website, www.remsense.com.au. Copeak Corporate Pty Ltd (ACN 632 277 144) trading as Peak Asset Management (AFSL 382 585) ( Peak Asset ) has been appointed as the lead manager to the offer.

The offer will be made under, or accompanied by, a copy of the Prospectus. Any recipient of this TMD should carefully read and consider the Prospectus in full and consult their professional adviser if they have any questions regarding the contents of the Prospectus. Any recipient of this TMD who wants to acquire Options under the offer will need to complete the application form that will be in, or will accompany, the Prospectus. There is no cooling off period in respect of the issue of the Options. This TMD is not a disclosure document for the purposes of the Corporations Act 2001 (Cth), and therefore has not been lodged, and does not require lodgement, with the Australian Securities and Investments Commission ( ASIC ) nor does it contain a full summary of the terms and conditions of the Options.

This TMD does not take into account what you currently have, or what you want and need, for your financial future. It is important for you to consider these matters and read the Prospectus before you make an investment decision. The Company is not licensed to provide financial product advice in relation to the Options.

1. TARGET MARKET

Factor	Target market
Investment	The Company expects that an investment in Options will
Objective	be suitable to investors who wish to gain exposure to
	equities in a small-cap tech company listed on the
	Australian Securities Exchange (ASX).
Investment	The target market of investors will take a medium term
Timeframe	outlook on their investment. Investors with a medium-
	term outlook will benefit from an ability to exercise the
	Options within the Option Term and increase their
	shareholding and exposure to the potential upside in
	the Company’s Shares into the future.
	Given the need to pay the exercise price in order to
	acquire Shares, Investors in the target market are in a
	financialposition that is sufficient for them to invest their

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	funds on exercise of the Options within the Option Term.
	Any decision to exercise the Options is likely to be based
	on the trading price of the Shares.
Investment Metrics	While the Company does not have an established
	eligibility framework for investors based on metrics such
	as age, expected return or volatility, it is expected that
	the target market of investors will be able to withstand
	potential fluctuations in the value of their investment.
	An exercise price is required to be paid to acquire
	shares on exercise of Options. As such, the capacity to
	realise the underlying value of the Options would
	require that they be exercised on or before the expiry
	date. Investors in the target market will need to be in a
	financial position to have sufficient available funds so as
	to facilitate an exercise of the Options prior to the expiry
	date. Prior to the expiry date, investors’ ability to
	liquidate the Options may be limited by a lack of
	liquidity in the trading of Options and Shares and the
	price of the Shares.
	The Options offer no guaranteed income or capital
	protection.
Risk	The Company considers that an investment in the
	Options is highly speculative, such that an investment in
	the Company is not appropriate for an investor who
	would not be able to bear a loss of some or all of the
	investment. Investors should also have a sufficient level
	of financial literacy and resources (either alone or in
	conjunction with an appropriate adviser) to understand
	and appreciate the risks of investing in Options as an
	asset class generally and the more specific risks of
	investing in an Australian listed tech company.

2. DISTRIBUTION CONDITIONS

The offer of Options under the Prospectus is being made to those shareholders in the Company registered at the record date specified in the Prospectus ( Eligible Shareholders ).

Any entitlement not taken up under the offer will form a shortfall offer ( Shortfall Offer ). Eligible Shareholders may also subscribe for Options above their entitlement under the Shortfall Offer. In addition, Peak Asset, as lead manager to the offer, may subscribe, or procure that subscriptions are made by third party investors, under the Shortfall pursuant to the lead manager mandate.

The prospectus contains an offer of Shares and free attaching Options, which is being extended to investors in certain jurisdictions. The investors are being offered one Option for every one fully paid ordinary share in the capital of the Company subscribed for and issued.

The prospectus will include jurisdictional conditions on eligibility. The Company will also include on its web landing page for the offer of Options a copy of this TMD

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and require that retail clients confirm that they meet the eligibility criteria of the expected target market outlined in this TMD before they apply for Options.

The Company considers that these distribution conditions will ensure that persons who invest in Options fall within the target market in circumstances where personal advice is not being provided to those persons by the Company.

3. REVIEW TRIGGERS

The Options are being offered for a limited offer period set out in the Prospectus, after the conclusion of which the Options will no longer be available for investment by way of issue. It follows that the TMD will only apply in the period between the commencement of the offer of the Options and the issue of the Options shortly after the close of the offer ( Offer Period ).

To allow the Company to determine whether circumstances exist that indicate this TMD is no longer appropriate to the Options and should be reviewed, the following review triggers apply for the Offer Period:

• (a) a new offer of Options that requires preparation of a disclosure document is made after completion of the Offer Period;

• (b) any event or circumstance that would materially change a factor taken into account in making this TMD;

• (c) the existence of a significant dealing of the Options that is not consistent with this TMD. The Company does not consider that an on-sale of the Options on market is a significant dealing;

• (d) ASIC raises concerns with the Company regarding the adequacy of the design or distribution of the Options or this TMD; and

• (e) material changes to the regulatory environment that applies to an investment in the Options.

4. REVIEW PERIOD

If a review trigger occurs during the Offer Period, the Company will undertake a review of the TMD in light of the review trigger.

The Company will otherwise complete a review of the TMD immediately prior to the issue of Options under the Offer.

5. INFORMATION REPORTING

The reporting requirements of all distributors is set out in the table below.

Reporting requirement	Period for reporting to the Company by the distributor	Information to be provided
Whether the distributor received complaints about the Options.	• For such time as the Offer Period remains open, within 10 business days after the end of each quarter.	• The number of complaints received. • A summary of the nature of each complaint or a copy of each complaint.

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Reporting requirement	Period for reporting to the Company by the distributor	Information to be provided
	• Within 10 business days after the end of the Offer Period.
A significant dealing of the Options that is not consistent with this TMD	As soon as reasonably practicable after the significant dealing occurs, but in any event no later than 10 business days after the significant dealing occurs.	• Details of the significant dealing. • Reasons why the distributor considers that the significant dealing is not consistent with this TMD.
A summary of the steps taken by the distributor to ensure that its conduct was consistent with this TMD.	Within 10 business days after the end of the close of the offer of Options in accordance with the Prospectus.	A summary of the steps taken by the distributor to ensure that its conduct was consistent with this TMD.

6. CONTACT DETAILS

Contact details in respect of this TMD for the Company are:

David McArthur Company Secretary Phone: +61 8 6118 5610 Email: rem@remsense.com.au

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