SKIN ELEMENTS LIMITED — Capital/Financing Update 2018

Jun 28, 2018

==> picture [593 x 87] intentionally omitted <==

==> picture [593 x 87] intentionally omitted <==

29 June 2018

SKIN ELEMENTS PLACEMENT AND ENTITLEMENT ISSUE TO RAISE $1.225M

Australian natural skincare company Skin Elements Limited ( SKN ) is pleased to announce completion of the first stage of its capital raising program to raise $1.225 million (before costs) to fund SKN's business development program and for working capital purposes.

SKN has today issued 6,000,000 ordinary fully paid shares and 1,500,000 free attaching options (exercisable at $0.10 each and expiring on 31 December 2020) at an issue price of $0.025 each to private sophisticated and professional investors raising $150,000 cash (before costs). This placement is made within SKN’s placement capacity under Listing Rule 7.1.

SKN also announces a fully underwritten non-renounceable pro-rata rights issue to existing shareholders at an issue price of $0.025 per new share on the basis of one (1) new share for every two (2) ordinary shares held ( Entitlement Offer ). Shareholders will also receive one (1) new free option for every four (4) new shares, exercisable at $0.10 each expiring on 31 December 2020. Under the Entitlement Offer, 43,026,501 shares and 10,756,626 options will be issued to raise $1,075,663 (before costs).

The Entitlement Offer is co-lead managed by Gloucester & Portman Capital Pty Ltd and MMR Corporate Services Pty Ltd and is fully underwritten.

Shareholders who hold Shares at 5:00pm WST on 11 July 2018 and have a registered address in Australia, New Zealand, Hong Kong or China will be eligible to participate in the Entitlement Offer ( Eligible Shareholders ).

The proposed timetable for the Entitlement Offer is set out below. This timetable is indicative only. The Company reserves the right to amend this indicative timetable at any time, subject to the Corporations Act 2001 (Cth) ( Corporations Act ) and the Listing Rules.

The Entitlement Offer will be made by way of a prospectus pursuant to section 713 of the Corporations Act (Prospectus). The Company expects to dispatch the Prospectus to Eligible Shareholders on or about 16 July 2018 will be available from SKN's website: http://skinelementslimited.com/. The Prospectus will provide further details of the Entitlement Offer.

32 ORD STREET, WEST PERTH, WESTERN AUSTRALIA 6005

PH 08 6311 1900

INDICATIVE TIMETABLE

Lodge Prospectus with ASIC 6 July 2018 Notification to Securityholders 6 July 2018 Ex Date 10 July 2018 Record Date 11 July 2018 (5.00pm WST) Prospectus Dispatched to Shareholders 16 July 2018 Entitlement Offer Opens 16 July 2018 Entitlement Offer Closes 9 August 2018 (5.00pm WST) Notification of Shortfall 14 August 2018 Anticipated issue date of new securities 16 August 2018 Dispatch of Holding Statements 20 August 2018

ENDS

For further information, please contact:

Peter Malone Media and Investor Inquiries Executive Chairman James Moses Skin Elements Limited Mandate Corporate T: +61 439 430 770 T: +61 420 991 574 E: peter@senatural.com E: james@manadatecorporate.com.au

About Skin Elements

Skin Elements is an ASX-listed skin care company focused on the development of natural and organic skin care products, as an alternative to current chemical-based products. It has developed a portfolio of products which includes its lead product, the Soléo Organics 100% natural and organic sunscreen, pawpaw based McArthur natural therapeutic skincare, and the Elizabeth Jane Natural Cosmetics brand. The Company has completed a highly successful test marketing phase in major international markets for Soléo Organics and has regulatory approval with the USA FDA, TGA and other significant regulators. Skin Elements aims to become the number one recognised national and international sunscreen brand.

Further information is available via the Company website: http://skinelementslimited.com

32 ORD STREET, WEST PERTH, WESTERN AUSTRALIA 6005

PH 08 6311 1900