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TZ LIMITED Capital/Financing Update 2017

Nov 5, 2017

65975_rns_2017-11-05_09433e08-73f4-4fe5-b411-b62fef0ccafc.pdf

Capital/Financing Update

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TZ Limited ABN 26 073 979 272

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6 November 2017

Lodged by ASX Online

The Manager Company Announcements Office ASX Limited Level 4, 20 Bridge Street Sydney, NSW 2000

Dear Sir/Madam

NOTIFICATION OF SHORTFALL FROM RIGHTS ISSUE

On 6 October 2017, TZ Limited (ASX Code: TZL) (the " Company ") announced a fully underwritten 2 for 5 non-renounceable rights issue (" Rights Issue ") to raise approximately $5.5 million.

The Rights Issue closed on 1 November 2017 with eligible shareholders subscribing approximately $1.89 million for 68,878,563 of the 199,114,982 new shares offered to eligible shareholders. In addition, 2,478,725 new shares are to be issued to the Nominee on behalf of the Ineligible Shareholders.

This has resulted in a shortfall of 130,236,419 new shares under the Rights Issue.

The balance of 130,236,419 new shares (approximately $3.58 million) not taken up by eligible shareholders will be allocated to the Underwriter (First Samuel Limited).

The scheduled issue date for the 201,593,707 Rights Issue shares is Wednesday, 8 November 2017. Normal (T+2) trading in the shares is expected to start Thursday, 9 November 2017.

Yours faithfully TZ Limited

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Craig Sowden COMPANY SECRETARY

About TZ Limited

TZ Limited (“ TZ ”) is a technology company that is listed on the Australian Securities Exchange. TZ is the leader in SMArt Device™ technology combining state-of-the-art SMA actuated intelligent fastening and locking devices with TZ remote software control. TZ’s systems deliver asset level protection and compelling solutions for security, monitoring and control applications across a number of market segments. The Company currently supplies market leading solutions to major corporations worldwide to the Data Centre industry and in the Automated Parcel Locker and E-Commerce market.

For additional information on TZ Limited, please visit www.tz.net.

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TZ LIMITED