UNION STAR METALS LTD — Capital/Financing Update 2017

Nov 20, 2017

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Sweep and Agent Reality Progress Update

ASX RELEASE

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• Early data and positive feedback for Sweep app

21 November 2017

• Sweep app feature release guidance

Thred Limited

• Agent Reality business development evolving rapidly

ACN 124 541 466

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Thred Ltd ( ASX : THD, Thred or the Company ) is pleased to update the market with the progress of Sweep and Agent Reality.

24/483 Riley Street, Surry Hills, NSW 2010

Sweep App Launch Update

Level 24 Allendale Square, 77 St Georges Terrace, Perth WA 6000

In the period since Sweep’s launch in early November the Company is delighted with initial feedback from its in-market testing. We report that Sweep is meeting our expectations for the initial post launch phase and has provided:

Tel: +61 8 6141 3394

• Over 430% increase in user dwell time (avg. user time spent per day using the Sweep app)

E: ir@thred.im W: http://thred.im

• Over 400% increase in daily active users

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• 800% increase in private message usage

Contact:

• 90% of users engage in Geochats

Geoff Marshall Managing Director geoffm@thred.im

• Average messages sent per user, per day is 11. This compares to 4 to 5 messages or snaps per user per day for Snapchat, reported in Sept 2016 by Statistic Brain. This is early data supporting new designs and additional functionality.

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In addition, we’ve received very positive feedback regarding the simplicity of the Sweep designs and the app’s speed and reliability.

Directors:

David Wheeler Geoff Marshall Sol Majteles Robyn Foyster

As of 17[th] of November 4,430 Thred app users have converted to the Sweep app via the app store updates (Google Play and App Store) . We expect this to increase further.

These results are fantastic and give us great confidence that we are on the right track, given the infancy of Sweep. “The team has worked tirelessly to deliver a truly pioneering app,” said Geoff Marshall, MD of Thred Limited.

ASX Code:

THD

Preliminary rollout of Geochats has commenced with 14 venues in Sydney, 3 in Melbourne and one on the Gold Coast for “Schoolies” the following week. Sweep is one of only two authorised external apps being promoted at the Schoolies event , which is a strong indicator of its alignment with our target audience.

Quoted Shares:

831,539,387

The Australia-wide Geochat, introduced for shareholders to test, has now been removed. The focus will now shift to the experience for our target users.

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Sweep App Feature Release Guidance

Sweep has 3 ‘hero’ features: Geochats, AR Content Discovery and AR Content Creation .

Phase 1 Geochats – this phase has commenced with testing and trials being conducted over the next two to three months. During this period, data feedback and user testing will drive the product enhancements. Notwithstanding the trial nature of this phase, revenue will be generated by several venues as the business offerings expand.

Phase 2 AR Discovery – this important feature allows Sweep users to discover augmented reality content generated by Sweep. Thred reiterates that the AR discovery feature will be made available to prospective Agent Reality customers by the end of this calendar year , but strategically is not released in Sweep until user and market testing shows appropriate product-market fit. Thred estimates the launch of phase 2 towards the end of first quarter CY 2018 or early second quarter, based on user feedback and market readiness.

Phase 3 AR Content Creation – This feature allows Sweep app users to create their own media content (photos & reviews) and post it in Sweep for other users to discover in augmented reality. This feature is estimated for release towards the end of second quarter CY 2018 or early third quarter CY 2018, contingent on user feedback and market readiness.

The rollout of these feature releases is researched, strategically planned and coordinated to ensure users learn and understand each feature before the next is introduced. It is also necessary to get the timing correct on the release of each feature to ensure the best position for virality and scale.

Sweep is underpinned by a decision methodology known as data driven decision making . This methodology prescribes a high level of rigour and quantitative support before any feature decision is made. While AR is an exciting proposition, Sweep will use data driven decision making to release augmented reality for Sweep at a time which has the biggest positive impact on users and accrues the most value for the Company.

Agent Reality Update

Thred has commenced and is quickly progressing the business development process for Agent Reality, with continuous discussions with prospective clients.

From discussions, it is clear that interest and demand for augmented reality applications in the enterprise area in marketing, consumer engagement and retention, is very strong and growing .

To enhance the Company’s capabilities, an experienced business development executive has been appointed to lead and drive the Agent Reality revenue plans. His skills are allied to our needs with a direct background in the commercialisation of Virtual Reality and Augmented Reality services . This appointment accelerates our customer acquisition process by bringing existing VR and AR sector customer relationships to Agent Reality.

Thred has planned the commercialisation of Agent Reality to target customers who can make rapid decisions and build strong and sustainable revenue to underpin shareholder value growth.

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Management are delighted with the progress being made across Sweep and Agent Reality. The addition of new features and enhancements to Sweep is frequent and we therefore remind shareholders to update often to experience these enhancements. We are now shifting Thred’s management attention to Agent Reality sales revenue and Sweep app user acquisition and look forward to updating shareholders soon with pertinent news around these key activities.

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 geo-location. 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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