UNION STAR METALS LTD — Capital/Financing Update 2017

Jun 13, 2017

(ASX: THD)

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ASX Announcement

13 June 2017

Thred Market Update

• Thred Releases Initial Platform Metrics from Start of ‘In Market’ Testing Phase

• Update on Microsoft Word ‘Add In’

The Board and Management of Thred is pleased to provide initial metrics from the first 30 days of its ‘in market’ testing phase.

In line with previous announcements, this initial period post-launch is being used as an ‘in market’ testing cycle. The purpose in the short-term is to validate and refine the Thred platform, with no plans to increase user downloads via traditional or active marketing.

Once the platform has achieved a broader level of stability and user acceptance (which is anticipated to occur in the very near term), a comprehensive user acquisition and marketing plan will be executed.

Thred is also pleased to report that user feedback across Apple and Google App Stores continues to track at 4.5 out of 5 stars, and this is organic downloads derived without any formal marketing activity.

The diagram below illustrates the process that the Company will follow over the short to medium term to enhance platform performance and user growth.

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When formal Marketing begins towards the end of the first step above, it will take the form of industry standard ‘test and learn’ marketing that is intended to validate the messaging of the

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Thred brand and clarify the early adopters and audiences of our App. The Company does not anticipate the need for traditional ‘Above the Line’ marketing in the next phase, instead, spend will be more focused in the social media and other digital spaces.

Initial Platform Metrics

Thred reports the following results against the 3-key metrics for first 30-day period from launch:

No	Measure	30 day In-Market Test Phase	Notes
1.	Total cumulative App Downloads	2,420	Total number of App Downloads from the Apple and Android Stores
2.	Avg No of Integrated Contactsper user	469	The average number of contacts each Thred user integrates into Thred
3.	Total number ofThred Connected Contacts	1,050,250	Total # of Thred Connect Contacts in platform & therefore user pipeline

Commentary on Above:

1. Downloads : Thred reports, through the sole activity of announcing to the ASX on the 10[th] of May, the number of downloads cited above. We are delighted to have acquired this number as it now allows the Company to undertake ‘in market’ testing under ‘live conditions’. We estimate that 60% of the downloads are from shareholders who are not considered to be Thred’s target market.

This is not an overtly difficult number to increase with appropriate Marketing. As previously stated, Management will undertake marketing when it is comfortable it has stabilised the platform and delivered a minimum viable set of features to underpin “messaging” as the hero feature.

1. Integrated Contacts : Early this year Thred reported that during early beta trials with external focus groups, the average number of contacts per user was around 500. This figure reported above pleasingly validates previous initial insights. This external validation in a ‘live environment’ allows us to now work through identity engine improvements that result in removal of duplicated contacts (which most users have) and helping our users aggregate and understand their contacts different profiles across their cluttered digital landscape.

2. Connected Contacts: Shareholders will recall the wording used by Thred earlier this year around “the world’s biggest address book”. The reporting of over 1 million Connected Contacts in Thred underpins this unique value proposition and previous assumptions by the Company.

There is significant potential in understanding contact relationships & networks across platforms in order to leverage big data insights. These contact numbers also represent potential reach of the App and make up part of the core outbound growth strategy.

Note : The Company has decided not to report Session Times per user as previously foreshadowed. The main reason for this is that the base line data is not yet sufficient for a statistically significant calculation. The company requires more time to provide a valid measure, and will update the market in due course. Further, Management believes this figure is competitively confidential. Once our base line denominator generates the right statistical baseline, and Thred can determine how to articulate the revealing nature of the Session Times, Thred may include this metric in future reports.

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Microsoft Integration Update

Thred is pleased to provide the following update on the lodgement of the Microsoft Word Plug In. Microsoft has approved the feature set and coding elements of the Plug In, and are currently approving the final elements of the User Interface for inclusion in the Microsoft App Store.

Formal approval is anticipated within the next few days, at which time the Word Plug In will be available to all 60 million Microsoft Office users, globally .

Thred plans to schedule regular reporting to the Market, approximately each 30-days from the launch date anniversary. Management will add further relevant metrics once marketing begins to demonstrate platform development and user adoption.

Geoff Marshall	or	Erik Tyler
Executive Chair		Investor Relations
geoffm@thred.im		erikt@thred.im

About Thred: Thred Limited (ASX: THD) has developed a globally relevant software platform that aims to provide unified social messaging, along with content creation and sharing, in one simple and intuitive consumer App. Thred intends to uniquely deliver the ability for consumers to unite their messaging, mail, connections, SMS and more, into one simple ‘thred’ where they can connect, talk, transact, play, attach, watch, buy and listen with awesome simplicity and relevance. Thred plans to aggregate incumbent social, mail, content, media and 3[rd] party transactional platforms, empowering a universal, unified and amazingly simple place to connect with anyone, anywhere, anytime, regardless of what platform they’re on. Thred aims to facilitate cross platform communications with ease and steps this up a gear by putting all device and media tools in one unique and powerful ‘ thred’ . Thred has launched an ‘in market’ testing phase through iTunes & Play Store. Following a period of User feedback and honing platform operations, Thred will gradually release a program of improvements and enhancements to increase its usefulness. Ultimately, Thred will compete on the world-stage, delivering integrations that include Facebook, Twitter, Instagram, LinkedIn, Uber, Microsoft, Google, Airbnb and more.

FORWARD LOOKING STATEMENTS

The material in this document has been prepared by Thred and 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 and producing the material, the material has not been verified; is given in summary form and any forecasts and hypothetical examples may be subject to uncertainty and contingencies outside Thred’s control.

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