VECTUS BIOSYSTEMS LIMITED — Capital/Financing Update 2016

Feb 28, 2016

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29 February 2016

Company Announcements Office Australian Securities Exchange

Update Following Debut on ASX

Vectus Biosystems Limited (ASX:VBS) (Vectus or the Company), which is developing a treatment for fibrosis and high blood pressure, successfully completed its first day trading on the Australian Securities Exchange (ASX) on 23 February 2016, after raising A$5.1 million in its recently-completed Initial Public Offering (IPO). During the first four days of trading, VBS shares achieved a high of A$1.56 and a low of A$1.50, compared to its IPO issue price of A$1.55.

Vectus is developing a treatment for three of the largest diseases in the fibrotic market, namely heart, kidney and liver disease. The current global market value of medication to treat these diseases currently stands at over A$70 billion.

Commenting on the successful listing on the ASX, Vectus Non-Executive Chairman, Prof Graham Macdonald, said, “We are pleased to have reached another key milestone in the evolution of our Company. With funds now secured and listing occurring we can rapidly progress a range of technical and operational activities.”

Funds from the IPO will be used to develop the Company’s lead compound VB0004, which aims to treat the hardening of functional tissue and high blood pressure. The Company has conducted a range of successful pre-clinical trials, which have shown that VB0004 slows down the advances of fibrosis, potentially repairs damaged cell tissue and reduces high blood pressure.

Prof Macdonald notes that VB0004 is now progressing towards a number of important milestones, including pharmaceutical scale-up and additional toxicity studies. “Successful results will provide Vectus with a clear path to Human Phase 1 and 2a Clinical Trials,” he said. “These trials may support opportunities for engagement with mid to large-size pharmaceutical companies. These companies are constantly looking for new drugs that address widelyprevalent disease states, and utilise a business model that can provide co-funding and licensing arrangements that broaden their own drug development pipelines. Our strategy is to develop and perform early validation of our drug candidates to the point where they may become commercially attractive to potential pharmaceutical partners.”

The Company has also developed technology aimed at improving the speed and accuracy of measuring the amount of DNA and RNA in samples tested in laboratories. The technology, called Accugen, is owned by Vectus’ wholly-owned subsidiary Accugen Pty Limited. The technology potentially offers a time, cost and accuracy benefit compared to currently available systems. Vectus’ next stage of investment in Accugen will focus on an Alpha-phase test program during 2016 before moving to a commercialisation program that may include direct sales, distribution partnerships and licensing opportunities.

Vectus Biosystems Limited

Karen Duggan

Chief Executive Officer and Executive Director

VECTUS BIOSYSTEMS LIMITED ABN 54 117 526 137

3-11 Primrose Avenue, Rosebery, NSW 2018 Telephone: +61 2 9662 4144 Facsimile: +61 2 9697 0933 Website: www.vectusbiosystems.com.au