SKIN ELEMENTS LIMITED — Capital/Financing Update 2020

Jan 20, 2020

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21 January 2020

SKIN ELEMENTS ENTITLEMENT ISSUE TO RAISE $1.0M

Australian natural skincare company Skin Elements Limited ( SKN ) is pleased to announce a fully underwritten non-renounceable pro-rata rights issue to existing shareholders at an issue price of $0.01 per new share on the basis of five (5) new shares for every nine (9) ordinary shares held ( Entitlement Offer ). Shareholders will also receive one (1) new free unlisted option for every three (3) new shares, exercisable at $0.03 each expiring on 31 December 2020. Under the Entitlement Offer, 100,479,601 shares and 33,493,200 options will be issued to raise $1,004,796 (before costs).

The Entitlement Offer is lead managed by Titan Securities Pty Ltd and fully underwritten by State Securities Pty Ltd.

The working capital raised will be used by the Company to expand the production of its Soleo Organics natural suncare range and its PapayaActivs skincare range, with this production to be sold into Australian, European and American markets.

Shareholders who hold Shares at 5:00pm WST on 31 January 2020 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 4 February 2020 will be available from SKN's website: http://skinelementslimited.com/. The Prospectus will provide further details of the Entitlement Offer.

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INDICATIVE TIMETABLE

Lodge Prospectus with ASIC 24 January 2020 Notification to Securityholders 24 January 2020 Ex Date 30 January 2020 Record Date 31 January 2020 (5.00pm WST) Prospectus Dispatched to Shareholders 4 February 2020 Entitlement Offer Opens 4 February 2020 Entitlement Offer Closes 13 February 2020 (5.00pm WST) Notification of Shortfall 16 February 2020 Anticipated issue date of new securities 20 February 2020 (12.00pm EST) and lodge an Appendix 2A with ASX Dispatch of Holding Statements 21 February 2020

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 PapayaActiv 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

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