TALIUS GROUP LIMITED — Capital/Financing Update 2020

Dec 20, 2020

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21 December 2020

HSC Technology Group Ltd Successfully Undertakes $3 million Placement

HSC Technology Group Ltd (ASX:HSC) (“HSC Technology” or the “Company”) is pleased to announce that it has successfully undertaken a placement to institutional and sophisticated investors to raise approximately $3 million before costs (“Placement”).

The Company has entered into placement subscription agreements with a number of new and existing institutions and sophisticated investors for the issue of approximately 176,470,588 Placement shares at an issue price of $0.0170 per share, representing a 7.1% discount to the 5-day VWAP of $0.0183 per share and an 5.6% discount to HSC Technology’s last closing price of A$0.0180 per share (as at Thursday, 17 December 2020).

Commenting on the outcome of the over-subscribed Placement, Managing Director Graham Russell said “the strong demand for the Placement demonstrates the market's confidence in HSC, and how we are ideally positioned to take advantage of the growing demand for health technology.”

The proceeds of the Placement, along with existing cash holdings, will be used to bolster working capital for an increased sales pipeline, strengthen the balance sheet, and position HSC for future growth opportunities.

Upon settlement, the Placement shares will be issued within the Company’s ASX Listing Rule 7.1 placement capacity. It is expected that the Placement shares will be allotted by Thursday, 24 December 2020. The Placement shares will rank equally with the Company’s existing securities.

The Company entered into a trading halt prior to the commencement of trading on the ASX on Friday 18 December 2020, pending the announcement of the Placement. Trading of the shares of the Company is expected to re-commence on the ASX prior to 10:00am AEDT on Monday, 21 December 2020. The Company knows of no reason why the trading halt should not be lifted.

Morgans Financial Limited acted as Lead Manager and Bookrunner to the Placement.

This announcement was released with the authority of the Board.

Investor Enquiries Marcus Fraumano Joint Company Secretary investors@hsctg.com.au

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FORWARD LOOKING STATEMENTS

Certain statements contained in this ASX release, including information as to the future financial or operating performance of the Company and its projects, are forward looking statements. Such forward looking statements:

• (a) are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies;

• (b) involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward looking statements; and

• (c) may include, among other things, statements regarding estimates and assumptions in respect of prices, costs, results and capital expenditure, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. The Company disclaims any intent or obligation to publicly update any forward-looking statements, whether as a result of new information, future events or results or otherwise.

The words “believe”, “expect”, "contracted”, “anticipate”, “indicate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”,

“may”, “will”, “schedule”, “planned” and similar expressions identify forward looking statements. All forward looking statements contained in this ASX release are qualified by the foregoing cautionary statements. Recipients are cautioned that forward looking statements are not guarantees of future performance and accordingly recipients are cautioned not to put undue reliance on forward looking statements due to the inherent uncertainty therein.

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