SKIN ELEMENTS LIMITED — M&A Activity 2017

Oct 16, 2017

17 October 2017

Skin Elements enters into MOU with Ageless Products

Australian natural skin care company Skin Elements Limited (ASX: SKN) (Skin Elements, the Company) is pleased to announce it has entered into a Memorandum of Understanding (MoU) with Australian, Chinafocused health care export business Ageless Products Pty Ltd (Ageless) to explore the opportunity to form an incorporated joint venture to distribute the Skin Elements’ product range into China and other major global markets.

This represents a significant milestone for Skin Elements and the execution of its business plan to become a leading, recognised national and international skin care company.

Ageless is a Melbourne-headquartered business focused on the distribution, sales and marketing of high quality Australian health care and food products into China, South East Asia and other major global markets. The business is led by Managing Director Brett Greene, a highly successful international health care sector product marketer, and director Andrew Robb, the former Federal Minister for Trade and Investment who was responsible for the landmark China-Australia Free Trade Agreement.

Further information on Ageless is included at the end of this announcement.

Pursuant to the MoU, Skin Elements and Ageless propose to work together to explore the opportunity to establish an incorporated joint venture for the purpose of utilising the specialist sales, marketing, distribution and regulatory services of Ageless to secure the distribution, sales and marketing of Skin Elements’ Elizabeth Jane Natural Cosmetics product range, as well as the Soléo Organics 100% natural and organic sunscreen and its McArthur Skincare therapeutic and cosmetic skin care products, in China and other key global markets.

Key terms of the MoU

Specifically, under the MoU, the parties have agreed to work together to explore the opportunity to establish an incorporated joint venture as follows:

• The joint venture company will be called Elizabeth Jane International Pty Ltd (EJ JV) and will initially focus on the distribution, sales and marketing of the Elizabeth Jane product range;

• EJ JV will be owned 50:50 by Skin Elements and Ageless and incorporated in Australia;

• The EJ JV may also cover the Soléo Organics sunscreen and McArthur Skincare product ranges;

• The EJ JV will evaluate the capital, manufacturing, sales and marketing, and regulatory requirements needed to establish the Elizabeth Jane product range in China and other targeted international markets; and

• Will assist Skin Elements in achieving it sales and distribution objectives in these markets across its full product range.

The MoU is proposed to remain in effect until 30 November 2017, by which time it is proposed that EJ JV will be established and long-form binding legal documentation will be executed.

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About the Elizabeth Jane Natural Cosmetics Product Range

Skin Elements is committed to expanding its product range and the Company’s immediate product development focus is on the Elizabeth Jane Natural Cosmetics skincare range. There are 10 products in the Elizabeth Jane range and it is currently the subject of a rigorous test marketing program, similar to that undertaken by the Soléo Organics product range, in preparation for a proposed commercial launch.

The Company has adopted the same successful approach to its development of the Elizabeth Jane product range as it did with the Soléo Organics sunscreen – to offer consumers an alternative to synthetic-based skin care products via a cosmetics skin care range that use only organic and natural ingredients.

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Image: Skin Elements’ Elizabeth Jane Natural Cosmetics Product Range

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

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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, McArthur pawpaw based natural therapeutic skincare products, and the Elizabeth Jane Natural Cosmetics brand. The Company has completed a highly successful test marketing phase in major international markets 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 all natural skincare brand. Further information is available via the Company website: http://soleoorganics.com/

About Ageless Products Pty Ltd

Ageless Products Pty Ltd (Ageless) is an Australian health care sector export and distribution business with a specific focus and expertise on China and the Asia-Pacific region. The business is headquartered in Melbourne and led by founder and Managing Director Brett Greene, who is a highly successful international health care sector senior executive, and director Andrew Robb, the former Federal Minister for trade and Investment who was responsible for the China-Australia Free Trade Agreement (as well as similar agreements with Japan and South Korea) and now provides investment, trade and projects counsel to organisations seeking to operate in global markets - with a focus on the Asia-Pacific region.

The Ageless business is focused on sourcing and securing distribution, sales and marketing of high quality, high demand Australian health care products into China, South East Asia and other major global markets. It operates in five major product segments; vitamin and mineral supplements, skin care, dairy-based foods, super foods and other high demand foods. It has developed strong, synergistic relationships across all its product segments and has a track record of delivering successful outcomes for the companies and organisations it represents.

Further information on Ageless Products is available via: http://agelessproducts.global/index.html

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