UNION STAR METALS LTD — Capital/Financing Update 2017

Feb 21, 2017

(ASX: THD)

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ASX Announcement

22[nd] of February 2017

$3.1M RIGHTS ISSUE FINALISED & SHAREHOLDER UPDATE

Rights Issue

Thred is please to report that it has completed its fully under-written rights issue to raise $3.1m, led by Hunter Capital Advisors. The Board extends its thanks to its underwriters and shareholders for their support and participation. This important funding round will help facilitate delivery of the commercial version 1 release of it platform in late April of this year.

As previously announced, our technology partner Lateral (who was not a shareholder on the record date for the rights issue), proactively demonstrated their confidence in Thred by becoming a sub-underwriter and investing $400k AUD in Thred. Lateral's investment is a clear sign of their belief in Thred’s potential and value proposition

Platform Development

Your Board is delighted to report the rapid and evolving progress of the Beta phase of the commercial version 1.0 of the Thred Platform.

Since the Company’s last shareholder update, your Board has undertaken steps to increase the velocity and quality of its product development. These include:

• Consolidating all technology development under one roof, resulting in the engagement of Lateral Labs Pty Ltd (“Lateral”) as the Company’s core technology partner;

• Aligning the Lateral specifications and work priorities with our business objectives, and;

• Adding to and honing of the key feature sets of Thred to ensure delivery of our global product launch, which is on track for late April 2017

• Recruiting a new CTO & directors with broader & deeper technology skills & experience.

Importantly, Thred continues to test its core value propositions with key consumers, as its Beta testing phase adds more and more users to the development ring.

The next phase will involve broadening our user groups to reflect several new demographics. These groups are engaged via a certified third-party user-group and testing firm on a commercial basis, to provide formal and informed feedback so that Thred can effect changes that reflect user reaction and patterns. This is a common but crucial process to ensure version 1.0 of Thred is aligned, within cash and time constraints, with users views and opinion, as well as providing valuable insights into future features and functionality which we can incorporate into our product roadmap.

After integration with only 5 social and mail platforms and SMS, Beta trials have so far delivered, on average, over 500 unique contacts per Thred App tester. The implications of this are profound, as every contact integrated into the Thred Platform has an auto-generated guest-user account, which instantly creates a massive pipeline of potential Thred users and downloads.

a: 8/55 Hampden Road, Nedlands WA 6009 m: PO Box 994, Subiaco WA 6904

t: +61 8 9389 5885 e: ir@thred.im

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Thred, together with Lateral, are creating and will deliver ‘world-first’ technology solutions to previously insolvable consumer challenges. We remain confident that the universal appeal of one App for all will quickly transform Thred it into a household name, solving users’ obvious and frustrating problems. The Thred consumer App will be globally relevant and immediately applicable.

The only aspect of Thred technology delivery that is not under the Lateral masthead is the Company’s UI and design component. The Company believes an outstanding and compelling user experience is critical to consumer adoption. For this reason, Thred will incorporate work already commenced with Josephmark in the version 1.0 release of the Thred Platform. Josephmark are renowned for their work with companies like MySpace and Commonwealth Bank and sector-leading platforms and Apps such as Vest, Airsickness and Hash. Josephmark are highly regarded in the technology design world.

Management and Board

Further to the announcement on 5 December 2016, Geoff Marshall has assumed the role of Managing Director, switching into the full executive role earlier than previously expected. The board is actively seeking the appointment of a new Chair.

Geoff has instituted several important changes since commencing in his executive capacity, including: consolidating the Company’s technology focus and resources, securing Lateral as a strategic partner and investor, honing the company’s focus on the core Thred product and growth strategy. This has resulted in cost reductions and rationalisation of some employees and contractors.

Summary

Because Thred is designed to be sector, content and vertically agnostic, it will be an App without peer. Underpinning this vision, we have recently enhanced Thred's value proposition with the inclusion of media Channel Feeds, conceived to allow users to start or participate in threds from content feeds and increase user fulfilment by not having to ‘tile out’ of threds , or ‘cut & paste’ to find and insert syndicated or streamed media content. We are aiming to include this functionality in the version 1.0 release in late April.

Once launched, Thred will have instant and global relevance with no regional boundaries. We are confident that Thred will form the basis of new digital content and therefore become a media channel in its own right.

The Company is also scoping the next iterations of the Thred platform that it expects to launch with consumers as a version 2 release in or about September 2017. As is standard, between the version 1 release and the version 2 release there will be multiple updates and upgrades as additional features and functionality are delivered. Roadmaps and feature lists are being designed for further releases into CY 2018.

Thred’s challenge is to provide solutions to known and acknowledged consumer and business problems on a global scale. Those problems are at the core of what frustrates our use of digital technology today. This means Thred will need innovative and creative new technology solutions to be conceived, deciphered and engineered into a robust, scalable and highly relevant consumer product. This is and will continue to be our core objective over the coming months and we are confident that this objective is ever closer to being achieved.

a: 8/55 Hampden Road, Nedlands WA 6009 m: PO Box 994, Subiaco WA 6904

t: +61 8 9389 5885 e: ir@thred.im

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Thred believes its platform, once released, will enable it to attract significant interest and enquiry from the global tech investment community. As reported on Bloomberg recently, there is increased attention on, and improved conditions for, digital and consumer technology companies. There is an expected increase in investment and M&A activity in the sector for companies which can prove strong value propositions and delivery credentials. More information can be found at Bloomberg on Fund Managers Target Tech Deals as Key Trend for 2017. Thred is confident that the release of a viable and acceptable product will attract significant international interest, not presently reflected in the current market valuation of Thred.

For more information, please contact:

Geoff Marshall or Chris Adams Managing Director Director geoffm@thred.im chrisa@thred.im

About Thred:

Thred Limited (ASX: THD) has developed a globally relevant software platform that seamlessly provides unified social messaging, along with content creation and sharing, in one simple and intuitive consumer App. Thred uniquely delivers 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 aggregates 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 facilitates 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 is powering through its beta launch phases in preparation for its global launch in iTunes & Play Store. Thred will compete on the worldstage, 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.

a: 8/55 Hampden Road, Nedlands WA 6009 m: PO Box 994, Subiaco WA 6904

t: +61 8 9389 5885 e: ir@thred.im