SKIN ELEMENTS LIMITED — Capital/Financing Update 2022

Oct 18, 2022

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19 October 2022

Market Updated

Australian natural skin care company Skin Elements Limited (ASX: SKN) (the ‘Company’) is pleased to provide the following market update on its business plans including the commercialisation of its all-natural plant-based SE Formula[TM] anti-microbial technology.

Key Highlights

• With more than 15 years research and development, Skin Elements is at the forefront with its SE Formula[TM] , a revolutionary leading proprietary all-natural antimicrobial technology.

• Pacific Health is developing wholesale distribution opportunities for SuprCuvr, with a focus on registering SuprCuvr for use by government departments, and submissions to mining, education, transport and retail sectors.

• Skin Elements is entered in other commercial opportunities in a number of new markets including public transport and cleaning services internationally.

• Skin Elements is actively seeking to expand the SE Formula[TM] product range into agricultural and horticultural applications.

• Its proprietary brands including Invisi-Shield SuprCuvr plant-based hospital grade disinfectant range, the Soléo Organics natural sunscreen brand, the PapayaActivs therapeutic skincare are all registered with TGA.

The SE Formula Natural Revolution

Skin Elements is at the forefront of this revolution with SE Formula[TM] , a high performance proprietary all-natural antimicrobial technology.

With global economies emerging from lockdown measures, the focus is on sustainability and environmental impact and increased knowledge and greater awareness of the effects of harmful and aggressive toxic chemical ingredients. People globally are now demanding eco-friendly and biodegradable solutions with improved efficacy and anti-bacterial properties.

The SE Formula[TM] is the result of more than 15 years research and development by the Skin Elements’ team in the area of plant-based ingredients and antimicrobials. It is Australian made from a 100% plant-based proprietary formula that is biodegradable, vegan, non-corrosive, nonflammable and cruelty free. The product does not contain any synthetic chemicals including benzoates, benzalkonium chloride, hydrogen peroxides, quaternary ammonium compounds, bleach/chlorine compounds or other chemical ingredients.

The SE Formula[TM] is used in the Company’s proprietary brands including Invisi-Shield SuprCuvr plant-based hospital grade disinfectant range, the Soléo Organics natural sunscreen brand, the PapayaActivs therapeutic skincare range and the Elizabeth Jane Natural Cosmetics.

SuprCuvr (Log 7 / Log 3)

SuprCuvr is a TGA registered hospital-grade disinfectant made from a 100% plant-based formula. Independent laboratory tests have confirmed that SuprCuvr has achieved very high effectiveness (99.99999% or 7 log reduction) against COVID 19 and other germs. SuprCuvr is also approved by NASAA as a Certified Organic input which confirms the products use around humans and certified organic food.

Skin Elements is ready to play an active role in helping global communities to recover, survive and thrive. With Australia now emerging from COVID-19, SuprCuvr has been positioned as a high performance broad spectrum disinfectant that is safe to use with humans, animals and plants.

Furthermore, Skin Elements is providing SuprCuvr at (Log 3 or 99.9%) effective against germs making SuprCuvr extremely price competitive compared to existing chemical disinfectant products.

SuprCuvr Distribution Agreement with Pacific Health

Pacific Health Care Pty Ltd (Pacific Health) has made strong progress in establishing a broad-based distributor network in Australia and New Zealand for SuprCuvr, with a focus on the government, corporate and retail sectors.

Established in Perth in 1987, Pacific Health Care has a successful track record of selling and distributing a range of consumable medical products into the Australian medical industry.

Its customers include, state governments (NSW Health, WA Health, Queensland Health and Tasmania Health), hospitals (St John of God Hospitals and Perth Children’s Hospital), clinics, aged care facilities, general practitioners and dentists, surgical and medical sub-distributors, veterinary clinics, and at home patients selling in excess of 600,000 litres of disinfectant in 2021.

Pacific Health has submitted SuprCuvr on the formal tender lists for broad scale adoption by government departments in Western Australia and Queensland and is pursuing sales and distribution opportunities with the New South Wales and Victoria governments. The outcome of tender list process is expected in the coming months, and once secured, Pacific Health will be able to deliver SuprCuvr contracts with these government departments.

Pacific Health also made presentations to key private hospitals in WA, including St John of God, and other states, and has undertaken trials with major sporting venues, mining companies, education campuses, and transport and logistics centres in WA.

SKN and Pacific Health has continued to work together to evaluate the initial market responses and update the formula potency, packaging presentation and competitive pricing structure.

In the retail space, SuprCuvr is currently stocked in 168 IGA and 15 Good Grocer IGA supermarkets in Western Australia, and is also available through Pacific Health’s online store; www.pacifichealthcare.com.au.

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Other Commercialisation Opportunities

Western Australian based Thomson Coachlines has recently adopted SuprCuvr for use in its bus fleet saving significant time and money. Thomson now disinfects a coach daily in less than ten minutes with no damage to the bus interior whilst achieve high levels of protection against COVID-19, bacteria and germs.

With over 97,000 buses and coaches operated in Australia by 2,000 registered bus operators transporting over 1.5 million passengers each year, the results achieved by Thompson demonstrate a significant market opportunity for SuprCuvr in this application.

Hong Kong cleaning company Healthy Giant Limited has recently started both using and retailing SuprCuvr hospital grade disinfectant including treatment services for the Hong Kong government and several global companies based in Hong Kong.

Healthy Giant Limited sell their cleaning products and disinfectants direct to 5,000 customers and service over 300 schools, 100 elderly centers, and 5 top-tier property companies in addition to Government departments in Hong Kong and Macau.

Expanding the SE Formula[TM] Product Range

Skin Elements is actively seeking to expand the SuprCuvr product range beyond its use as a hospital-grade disinfectant and by offering new products at different price points.

Testing results of SuprCuvr have also shown its ability to kill other potentially-dangerous pathogenic bacteria, including E.coli and Staph.aureus that can be present in-hospital settings, and independent laboratory tests were conducted on the anti-fungal capacity of SuprCuvr. Specifically, it was tested for efficacy against black mould (Aspergillus niger) and Candida albicans, highly prevalent sources of fungal infections in humans.

Further trials are currently underway in Australia and New Zealand for treatment of livestock and crops. This positive outcome has the potential to open up new product applications in agriculture and horticulture for SuprCuvr, and the Company plans to progress these opportunities to expand the SE Formula[TM] product range.

Soléo Organics

The Soléo Organics sunscreen range including face moisturising is now fully available, with a new baby range in production. The range is available through the Company’s updated and optimised online store websites www.soleoorganics.com and www.sknlife.com.

During the year the Soléo Organics’ High Performance Coconut Sunscreen and Face Moisturising Sunscreen were both selected as finalists in the Clean Beauty Awards for 2022.

Skin Elements’ mission is to improve the health and well-being of people globally, by providing a natural alternative to typical mass-produced chemical sunscreens, and the Soléo Organics range is now shipped to international markets across the globe. The product is suitable for use by all ages and skin types, in fresh water and salt water, and is non comedogenic.

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PapayaActivs Therapeutics

Production is underway to deliver the full range of PapayaActivs therapeutic skincare products that combine the power of Papaya with proven traditional natural ingredients that help relieve the symptoms of skin conditions, like psoriasis, rashes, eczema, assist in healing of minor burns and wounds, and relieve mild muscle, joint and arthritic pain.

Listed with the TGA’s Australian Register of Therapeutic Goods, the range is available through the Company’s updated and optimised online store website www.sknlife.com.

Skin Elements’ Executive Chairman Mr Peter Malone said:

“With the SE Formula now being developed into high performance products with Therapeutic Good Administration registrations in place, the Company is now focused on sales and distribution, with the aim of delivering significant revenues to the Company, and value for shareholders over the coming year.”

This announcement is authorised by the Board of Directors of Skin Elements Limited.

END

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@skinelementslimited.com E: james@mandatecorporate.com.au

About Skin Elements

Skin Elements (ASX: SKN) is an award winning Australian owned and operated ASX-listed health care company focused on the development of natural and organic health care products. Skin Elements innovative approach to plant-based and organic personal care and skincare products has enabled the creation of a portfolio of products that have been sold and distributed across the world. Its flagship products include the SuprCuvr TGA-registered, hospital-grade plant-based disinfectant, Invisi Shield alcohol free natural sanitiser, Soléo Organics natural and organic sunscreen, PapayaActivs natural therapeutics skincare and Elizabeth Jane Natural Cosmetics brand.

Further information is available via the Company website: www.skinelementslimited.com and on the Company online store: www.sknlife.com.au

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