UNION STAR METALS LTD — Capital/Financing Update 2017

Oct 12, 2017

THRED LIMITED ASX Release

13 October 2017

THRED LIMITED ACN 124 541 466

24/483 Riley Street, Surry Hills, NSW 2010

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

Tel: +61 8 6141 3394

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

Contacts:

Geoff Marshall Managing Director geoffm@thred.im

Erik Tyler Investor Relations erikt@thred.im

Directors:

David Wheeler Geoff Marshall Sol Majteles Robyn Foyster

ASX Code: THD

Quoted Shares:

831,539,387

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Thred Exceeds User Acquisition Targets and Finalises Messaging Feature Updates

• Thred App Downloads Increase by 84% during the Period

• All Core Platform Features Complete Ahead of Transition to Sweep

• Evolution to Sweep App on Schedule for End of October 2017

User Acquisition Update

Thred Ltd (ASX: THD, Thred or the Company ) is pleased to apprise Shareholders of its user acquisition update and report on product feature completion in conjunction with our evolution to the Sweep app this month.

In the period since the last metrics update:

• Cumulative downloads increased by 84%

• Daily new iOS users have increased by 400%

The table below summarises the cumulative app downloads since launch, shown against the application of marketing and the number of updated versions of the Thred app.

Period	Cumulative App Downloads	Growth (%)	Cumulative Marketing Days	No of App Updates
May to June	2,420	-	-	4
June to July	2,586	7%	-	2
July to Aug	3,050	18%	5	2
Aug to Sept	8,538	180%	34	3

At the present download rate, Thred expects to exceed its end of November download target of 18,000 , following a temporary dip as it shifts its target audience.

With finite resources, an increasing focus on the transition to Sweep and a priority to commercialise via the recruitment of partners, Thred will now shift its user acquisition reporting from monthly to quarterly.

The Company will however update shareholders with pertinent progress between quarterly updates. Quarterly reporting is planned to be more granular in nature and will distinguish between the Thred and Sweep app user acquisition movements.

Marketing Update

Sweep will launch towards the end of October, releasing geo-locked chats as the first feature . Our marketing strategy will broaden to include a mixture of online direct marketing such as Google install ads and YouTube pre-roll ads, and an offline awareness campaign that includes activations with bars and similar venues.

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The nature of geo-locked chats at its launch will require event and venue specific partners to promote the Sweep app for free, as it facilitates a unique and exciting communications portal for the recruited venue. Once initial trials have successfully concluded and in support of its commercial model, Thred expects fixed and variable fees from these venue and event specific activations .

The Sweep team has established several test locations in Sydney which include Surry Hills, Newtown and Darlinghurst as well as selected venues on the Gold Coast. Following this, Sweep will employ an evidencebased method to deliver the rollout of geo-locked chats in a way that will yield the greatest uptake of users. We will then use crowdsourced suggested locations, generated from users and data on venues.

Once these trials have satisfactorily finished, the team will progressively on-board additional localities. Thred will report these trial results as it moves to a broader and controlled rollout across Australia.

With awareness campaigns, (which include partnerships with The Urban List and other popular media companies) activations and influencer incentives, Sweep is confident that it will create a stronger brand presence and thereby decrease its long-term Cost Per Install (CPI). Extensive effort is being applied to venue-based partnership acquisition with a positive feedback already from recruited partners to the geolocked chats value proposition.

Over the short-term and further to previous guidance, geo-locked chats will not be available to general users and shareholders outside of selected test venues. Sweep will aim to quickly advance the localities in which geo-locked chats are available and advise shareholders accordingly.

Product Update

Analysis undertaken by our team of the 15,000 plus downloads acquired has allowed us to determine precise usage of the Thred platform features. This information allows Thred to make informed decisions surrounding the removal of features that are not popular and enhance those which are.

In our announcement to the ASX on the 4[th] of October the Company provided an illustration of the Sweep app features, reiterated opposite:

Sweep is leveraging the core Thred messaging platform (in red box) and adding several new Sweep features (called hero features) namely: geolocked chats; AR Camera, Magnet Feed and the ability to enable integrations and in-app purchases.

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Sweep
App
Active User Engagement Passive User Engagement
Geo-locked Chats AR Camera Magnet Feed Messaging
Integrations & In-
App Purchases
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To facilitate this transition several important actions will occur to deliver the features and required functionality:

1. Updates to the app, including: groups feature, user profiles (to allow users to find fellow users); friends networks; global messaging to allow Thred to communicate with all users, in addition to other improvements which Thred has been implementing over ensuing weeks.

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1. Thred app designs, fonts and user interfaces will change to the Sweep app branding.

2. Addition of the ‘geo-locked’ chats feature allowing users and partners to chat to each other while in

3. proximity.

4. Detachment of other features that have minimal use following detailed analysis of users’ in-app habits, as stated above. These include Microthreds, Channels and Guest Threding. This will also have the effect of making the Sweep platform faster and easier to use.

The new geo-locked chats and augmented reality features are targeted at a specific and validated target market that, our research has indicated will embrace these new ‘hero features’, creating deep and ongoing engagement with the Sweep app. Once these changes are in delivered and refined, we are confident that Sweep will be a highly competitive app.

Summary

We advise that next week the Company will also launch 2 new websites and update the main Thred website. The 3 websites will be:

1. Thred Corporate Website – this will be modified, providing a portal for shareholders and investors only. It will reference our user and enterprise portals however, it is not intended to cater for users or enterprise clients.

2. Sweep App Website – this is intended for users of the Sweep app who require a point of reference and, if required, additional information and material surrounding the Sweep app. It will not reference the Thred Limited website or Agent Reality website.

3. Agent Reality Website – this is intended for enterprise clients of our white label and commercial models. It will not reference the Thred Limited or Sweep app websites.

Further to our last announcement, Thred confirms that next week it will release a consumer focussed video intended for placement on our Thred Ltd and Sweep app websites. This video is designed to illustrate the features and applications of Sweep from a target users’ perspective. Following this video release, Thred will provide an overview of its Agent Reality business model and rollout plans. Focus will be to provide insight into our commercial models and how they underpin our future revenue plans .

The coming months will be a busy time for Thred as we engineer the evolution to the new Sweep app and validate its rollout prior to adding AR features.

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About Thred: Thred Limited (ASX: THD) is a technology company with particular expertise in geo-location and Augmented Reality and new communication technologies which yield big data. Thred has developed an in-market version of its core messaging platform that aims to provide social messaging, along with content creation and sharing, in one simple app.

Thred intends to continually innovate features in the near-term to leverage important new technologies such as, but not limited to, Augmented Reality and geo-location. Thred plans to progressively integrate these new features over the coming months to increase its user audience and drive revenue growth via a new and effective business model. Some of the existing features of the Thred platform will be removed as Thred rebrands its app to a new brand called ‘Sweep’.

Thred has launched an ‘in market’ testing phase through iTunes & Play Store. All of the downloads and marketing effort in the existing platform will be leveraged to increase user base as it makes the evolution to the Sweep app, allowing us to increase user engagement and sentiment. Following a period of user feedback around Sweep features, Thred will periodically release a schedule of features and improvements to increase its user uptake.

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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