SKIN ELEMENTS LIMITED — Capital/Financing Update 2017

Jan 2, 2017

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Update Use of Funds Statement

(Based on closing funds raised)

Skin Elements Limited ACN 608 047 794 ( Skin Elements or Company) intends to apply funds raised from the public offer (the Public Offer ) over the two year period following Admission of the Company to the official list of ASX as follows:

Item	Closingsubscriptions**under the Offer **	%
**Funds raised from the Offer **	3,710,000	100%
Marketing – increase brand awareness ofSoléo via physical and digital marketing,strengthen marketing team	400,000	11%
Production – build stock of Soléoto meet target sales, strengthenproductionteam	700,000	19%
Sales – develop local sales channels,recruit key individuals for foreignmarkets	400,000	11%
Research & Development – broadenSoléo range through productextensions, continuedworkon EJNC	650,000	17%
Cash Reserves and Working Capital andrepayment ofOfficer Loans as applicable	1,100,00	30%
Remaining estimated expenses of theOffer	460,000	12%
Total funds allocated	3,710,000	100%

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