SPECTUR LIMITED — Capital/Financing Update 2021

Apr 26, 2021

ASX Announcement

Spectur Secures \$1.5 Million Loan Facility

Tuesday 27 April 2021: Solar security, sensing and visual AI solutions and platforms company Spectur Limited (ASX: SP3) (Spectur or the Company) is pleased to announce that it has entered into binding terms for a A\$1.5 million loan facility (Facility) with its largest shareholder EGP Capital (Lender).

Debt Facility positions Spectur for growth

The Facility will support the Company's estimated capital requirements by providing the availability of working capital required for growth. With a strengthened cash position, the Company will continue to deliver on its sales initiatives and product investment while working to create further efficiencies within the business. The Facility is subject to execution of a Long Form Loan Facility Agreement with the Lender, anticipated to occur in May 2021.

Spectur Managing Director, Gerard Dyson, said:

"The current equity valuation being ascribed to Spectur is, in the view of The Board, not reflective of the renewed vitality of the businesses prospects post-COVID. The Board feel it is important to demonstrate to our investors that we are adequately funded to take the business to the point of selfsustaining commercialisation. Issuing further equity at the current depressed valuation was deemed by the Board to not be in the best interests of shareholders."

"We are pleased to partner with EGP Capital to ensure the necessary capital is in place to take the business to the point of self-funding. It is tremendous to work with a lender that not only is a shareholder, but who understands our business and is fully supportive of our growth initiatives and investments."

Material Terms of the Facility

• Draw down of up to A\$1.5 million. Drawdowns at the election of the borrower, to be in minimum amounts of \$100,000 and multiples of \$50,000 with 30 days' notice.
• No security Negative pledge obligation only;
• Fixed interest rate of 7.0% p.a. on drawn amounts;
• Line fee of 3% p.a. on total value of facility;
• 30-month term, with flexibility to repay at an earlier date;
• the Company will issue the following options to the Lender, subject to approval by shareholders at the Company's Annual General Meeting:

• o 2.25 million unquoted options to acquire fully paid ordinary shares in Spectur, exercisable at \$0.12, on or before 31 December 2023. Should shareholder approval not be obtained, the outstanding loan principal and any fees / interest outstanding will be repaid within 45 days.

• Financial Covenants. At all times, the amount of the drawn Facility is not to exceed the aggregate of:

• o Spectur's cash at bank;
• o 50% of Spectur's <90 day debtors;
• o 50% of the value of Spectur's rental fleet and finished stock; and
• o 50% of the value of Spectur's other inventory.

Spectur is to report to the financier on these matters for each month by the 21st day of the following month.

• Repayment election Subject to obtaining the necessary shareholder approvals, if required, Spectur may, at its election, elect to repay all or part (in multiples of \$100,000) of outstanding amount under the Facility in the form of fully paid ordinary shares in lieu of cash. Each share will be issued at a 20% discount to the 30-day volume-weighted average price of Spectur shares traded on ASX leading up to the repayment date.
• in addition, the transaction documents are subject to warranties, indemnities, fees, default fees and terms which the Company considers usual for a transaction of this size and scope.

Note that Condition Precedent to this Facility is the execution of a Long Form Loan Facility Agreement in accordance with the binding terms listed.

About EGP Capital

EGP Capital is a Sydney based private investment company with an unconstrained investment mandate that currently focuses its investments in Australian listed businesses. Formerly known as Eternal Growth Partners, EGP Capital was established in 2011.

Ends.

This ASX release is authorised by the Board of Directors of Spectur Limited

For further information, please contact:

Corporate enquiries

Spectur Limited Gerard Dyson p: +61 (08) 9414 9059 e: investors@spectur.com.au

About Spectur Limited

Spectur Limited (ASX:SP3 – www.spectur.com.au) is an Australian-based developer of security, surveillance and warning solutions powered by solar, IoT [Internet of Things], camera and cloud-based technology. The Company owns the rights to its innovative hardware and disruptive cloud-based systems which are deployed to provide solutions to industries including government and utilities, and the building, construction and civil sector.

Spectur's core products are solar powered warning, deterrence and surveillance systems and associated cloud-based platforms. These systems incorporate cameras, lighting, audible warnings and a hardware IoT platform, remotely accessed and connected via 3G/4G technology to a cloud-based platform. The offering is complemented by a longer distance, 24-hour thermal camera deterrence solution, suitable for customers with long perimeters.

Spectur is used and trusted by small business to multinationals and the Company is currently implementing a strategic growth plan to build market dominance in the Australian government and utilities sector to meet demand for innovative, remote camera and IoT solutions.