UNION STAR METALS LTD — Capital/Financing Update 2017

Dec 14, 2017

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Thred confirms revenue models for Sweep and Agent Reality

Company seeks to maximise earnings with nine diverse revenue streams

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Thred Ltd ( ASX : THD, Thred or the Company ) is pleased to announce that it has established several revenue models for its two pioneering technology platforms, Sweep and Agent Reality.

The management team have identified clear pathways to build strategic value and revenue with nine viable and deliverable revenue models. While some of these revenue models are straightforward and quickly realisable, others will require scalability and product-market fit testing before they can be fully validated and enacted. The nine expanded models include:

1. Sweep GeoChats Portal GeoChats allow Sweep to provide venue owners with access to the participants in their Geo-Fence (a GPS fence controlled by Sweep). Value is provided in the form of data and customer communication. This revenue model has commenced and we anticipate that it will scale quickly in CY 2018.

2. Sweep Sponsored Venue Venue owners and their associated suppliers are able to promote their products and location through the Sweep app via a digital advertising model. This revenue model is expected to commence in early CY 2018.

3. Sweep In-App Purchases At scale, Sweep will deliver in-app purchases (purchases made by users inside the app) as integrations for enterprise clients, priced at between $0.99 and $9.99 per download, by way of example. We expect this revenue model to commence in mid CY 2018, in line with anticipated volumes of Monthly Active Users (MAUs).

4. Sweep Sponsored Posts

This feature is a traditional content feed that Sweep will introduce towards the end of Q2 CY 2018. Advertisers pay Sweep on a traditional per 1,000 impressions (when a user views an ad) basis. This model will see growth in line with increases in MAUs.

5. Sweep Enterprise Data Warehouse

Sweep will be able to sell data derived from users at an aggregated level (to protect privacy) to targeted third parties. We believe this model becomes saleable when triggered by a minimum 20,000 MAUs. Revenue is anticipated to be ongoing due to the uniqueness of Sweep’s geolocated and venue specific data.

6. Sweep AR Advertising

Sweep will deliver AR advertising following a typical Cost Per Install (CPI) model coupled with optional add-ons to the advertisements. Advertisers pay for specific ads based on the number of impressions plus additional items like enticements or sophistication of ads.

7. Agent Reality White-Label GeoChats

Sweep will provide its technology platform to generate revenue via bespoke GeoChat development as well as ongoing licensing to enterprises. This revenue is realisable in the short term with the expectation of agreements being finalised in the near future.

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8. Agent Reality White-Label Augmented Reality

Sweep will provide its technology platform to generate revenue via bespoke augmented reality development as well as ongoing licensing to enterprises. This revenue is similarly realisable in the shortterm.

9. Agent Reality Compiled Code Licensing

Sweep provides is platform in the form of software libraries of its code. This revenue model works for brands or companies who have their own developer and simply wish to get ahead of the AR commercialisation curve before their competition. This is model is monetisable in the short-term.

Thred Managing Director, Geoff Marshall, said: “We have made significant progress developing these models and the products that underpin them. We are confident this strategy will deliver sustainable earnings in the future and have clear internal forecasts for CY’s 2018 and 2019.”

Thred: Thred Limited (ASX: THD) is a technology company with expertise in geo-location, augmented reality and new communication technologies which yield big data. Thred has developed an in-market version of its new augmented reality and geo-locked chats platform, called Sweep .

Sweep will continually innovate features to leverage important new technologies such as, but not limited to, augmented reality and geolocation. The Company will also progressively integrate proven and tested AR and geo-locked features over the coming months to increase its user audience and drive revenue growth via a new and effective business model. Sweep is now available through iTunes & Play Store. Following a period of user feedback around Sweep features, Thred will periodically release a schedule of updates to Sweep, delivering new features and improvements to increase its user uptake and retention.

Thred has also established an enterprise version of its business model called Agent Reality . This is intended to leverage the Sweep platform technology and capabilities and provide them to brands and 3[rd] party distribution channels. This model delivers the duality of mutual learnings across both consumer and enterprise models while establishing multiple monetisation channels for our Company.

Forward Looking Statements

The material in this document has been prepared by Thred & is general background information about Thred’s activities. The material may contain forward looking statements including statements regarding Thred’s current situation, intent or current expectations with respect to Thred’s business.

While Thred has taken all reasonable care in compiling & producing the material, the material has not been verified; is given in summary form & any forecasts & hypothetical examples may be subject to uncertainty & contingencies outside Thred’s control.

Sweep and Agent Reality are Thred Innovations

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Investor and Media Enquiries: Georgie Morell 0438 008 383

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