VECTION TECHNOLOGIES LTD — Capital/Financing Update 2020

May 17, 2020

18 May 2020 | Australia

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ASX RELEASE

Real-time software company Vection Technologies Ltd ( ASX:VR1 ) ( Vection Technologies or the Company ) is pleased to advise on the receipt of ~$300,0001 in research and development ( R&D ) fiscal credits for its overseas R&D expenditure.

Highlights:

• 1

• ● Receipt of ~$300k in R&D fiscal credits for its overseas R&D expenditure

• Achievement of additional milestone in the Company’s smart capital strategy

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• Advancement of smart capital strategy to ensure a robust framework for future growth above the current ~$1.5M cash at bank[2]

• Divisional focussed treasury strategy underway, with further smart-capital funding initiatives totalling up to ~$3M

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R&D Fiscal Credits:

Vection Technologies has received ~$300k1 in R&D fiscal credits. Under the current legislation, the approval process required assessment and validation by an independent expert of the Company’s Mindesk software suite R&D expenditure incurred during the 2018 and 2019 calendar years.

Following the approval, Vection Technologies is now entitled to claim up to ~$300k1 in fiscal credits to be offset against a multitude of periodical fiscal obligations.

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Smart Capital Initiatives Update:

overarching smart capital initiatives strategy to secure a stronger cash position (above the ~$1.5M current cash at bank[2] ) across each of the Company’s international subsidiaries to ensure a robust framework for future growth.

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Following the achievement of this additional milestone, Vection Technologies is now progressing on the finalisation of the below additional smart capital activities:

• European Commission Grant: ~$0.5M, non-repayable;

• ● Italian Government Loan: up to ~$2.0M, 30% non-repayable and 70% repayable after 10 years at nil interest;

• ● Commercial Loan: ~$0.4M, long-term at commercial interest rates;

1 AUD/€ exchange rate of 0.5974 at 15 May 2020 (Source: Reserve Bank of Australia)

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2 At 31 March 2020 Vection Technologies Ltd (ASX:VR1) ACN: 614 814 041

Europe North America Address: Via Isonzo 61 Address: 785 Market Street, #600 40033 Casalecchio di Reno (BO), San Francisco CA 94103 Italy USA

Media Enquiries AUpress@vection.com.au EUpress@vection.com.au

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Address: Suite 1, 437 Roberts Road Subiaco WA 6008, Australia Phone: +618 6380 2555

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Gianmarco Biagi, Managing Director of Vection Technologies, commented:

overarching smart capital strategy to ensure a robust framework for future growth.

Vection Technologies’ management remains strongly focussed on progressing the smart capital strategy, in addition to accelerating its commercial strategy across geographies and industries, in particular the healthcare and automotive segments.”

Investor Relations Contact Details

Gianmarco Biagi - Managing Director (Europe Based) Email: gianmarco.biagi@vection.com.au Phone: +39 051 0142248

Gianmarco Orgnoni - Director and COO (Australia Based) Email: gianmarco.orgnoni@vection.com.au Phone: +61 8 6380 2555

ENDS

About Vection Technologies:

Vection Technologies Ltd (ASX:VR1) is a multinational software company that focuses on real-time technologies for industrial companies’ digital transformation.

Through a combination of our 3D, Virtual Reality, Augmented Reality, Industrial IoT and CAD solutions, Vection Technologies helps companies and organisations to innovate, collaborate and create value.

For more information please visit the Company’s websites: vection.com.au mindeskvr.com

About the Mindesk software:

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Vection Technologies’ Mindesk, is a real-time 3D design platform that integrates with existing commercial CAD software to extend their operations to the third-dimension: virtual reality, augmented reality, real-time rendering, and multi-user collaboration. Mindesk introduces the possibility to design a CAD project from scratch in Virtual Reality: while the majority of VR CAD software commercially available require time consuming project exportation, Mindesk enables users to switch from VR to desktop seamlessly, while editing the project in real-time on either platform. Mindesk provides the bi-directional, real-time live link across multiple commercial CAD and design software, including McNeel Rhinoceros 6, Dassault Solidworks 2018 and 2019 and Epic Games Unreal Editor.

ASX release authorised by the Board of Directors of Vection Technologies Ltd.

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Vection Technologies Ltd (ASX:VR1) ACN: 614 814 041

Address: Suite 1, 437 Roberts Road Subiaco WA 6008, Australia Phone: +618 6380 2555

Europe Address: Via Isonzo 61 40033 Casalecchio di Reno (BO), Italy

North America Address: 785 Market Street, #600 San Francisco CA 94103 USA

Media Enquiries AUpress@vection.com.au EUpress@vection.com.au

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