VECTION TECHNOLOGIES LTD — Capital/Financing Update 2017

Mar 15, 2017

Updated Statement of Commitments

Following the Offers, it is anticipated that the following funds will be available to the Company:

Source of funds	$
Existing cash as at the date of this Prospectus	484,000
Proceeds from Offers	6,000,000
TOTAL FUNDS AVAILABLE	6,484,000

The following table shows the intended use of funds in the two year period following Admission:

Proposed use of funds1	$	%
Development and intellectual property costs	400,000	6.17
Business expansion costs2	870,000	13.42
Sales and marketing	300,000	4.63
Business development3	2,030,000	31.31
General administration fees and working capital4	2,064,000	31.83
Estimated expenses of the Offers5	820,000	12.65
TOTAL FUNDS ALLOCATED	6,484,000	100.00

Notes:

1. For further information on the proposed use of funds and sources of expenses, see Sections 2.9 and 2.10.

2. Business expansion costs includes costs associated with the acquisition and rental of new offices in New South Wales, Queensland, Victoria and Western Australia.

3. Business development includes human resource costs associated with salaries and fees payable to new business development managers and recruitment personnel tasked with attracting and employing suitable talent in the existing real estate businesses.

4. Working capital includes the general costs associated with the management and operation of the business including but not limited to salaries and fees payable to Directors and existing key management personnel, administration expenses, rent and other associated costs.

5. Expenses paid or payable by the Company in relation to the Offers are set out in Section 11.11.

Shareholders should note that the above estimated expenditures will be subject to modification on an ongoing basis depending on the results obtained from the Company's activities. Due to market conditions, the development of new

opportunities and/or any number of other factors (including the risk factors outlined in Section 9), actual expenditure levels may differ significantly from the above estimates.

The Company proposes to actively pursue further acquisitions which complement its existing focus. If and when a viable investment opportunity is identified, the Board may elect to acquire or exploit such opportunity by way of acquisition, joint venture or earn-in arrangement which may involve the payment of consideration in cash, equity or a combination of both.

The Board believes that the funds raised from the Offers, as well as revenue generated by the Company's existing activities, will provide the Company with sufficient working capital to achieve its stated objectives as detailed in this Prospectus.

The use of further equity funding or Share placements will be considered by the Board where it is appropriate to accelerate a specific project or strategy.