VYSARN LIMITED — Capital/Financing Update 2020

May 17, 2020

Proposed issue of securities

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Announcement Summary

Entity name

VYSARN LIMITED

Announcement Type

New announcement

Date of this announcement

Monday May 18, 2020

The Proposed issue is:

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A standard pro rata issue (including non-renounceable or renounceable)

Total number of +securities proposed to be issued for a standard pro rata issue (including non-renounceable or renounceable)

ASX +Security Code

+Security Description

Maximum Number of +securities to be issued

VYS ORDINARY FULLY PAID 89,297,474

Ex date

Tuesday June 2, 2020

+Record date

Wednesday June 3, 2020

Offer closing date

Tuesday June 23, 2020

Issue date

Tuesday June 30, 2020

Refer to next page for full details of the announcement

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Part 1 - Entity and announcement details

1.1 Name of +Entity

VYSARN LIMITED

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2 Registered Number Type

Registration Number

ABN 41124212175

1.3 ASX issuer code

VYS

1.4 The announcement is

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New announcement

1.5 Date of this announcement

Monday May 18, 2020

1.6 The Proposed issue is:

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A standard +pro rata issue (non-renounceable or renounceable)

1.6a The proposed standard +pro rata issue is:

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• Non-renounceable

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Part 3 - Details of proposed entitlement offer issue

Part 3A - Conditions

3A.1 - Are any of the following approvals required for the entitlement offer to be unconditional? +Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval Another approval/condition external to the entity

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No

Part 3B - Offer details

Class or classes of +securities that will participate in the proposed issue and class or classes of +securities proposed to be issued

ASX +Security Code and Description

VYS : ORDINARY FULLY PAID

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)? Existing class

Will the proposed issue of this +security include an offer of attaching +securities? No

If the entity has quoted company options, do the terms entitle option holders to participate on exercise? No

Details of +securities proposed to be issued

ASX +Security Code and Description

VYS : ORDINARY FULLY PAID

ISIN Code (if Issuer is a foreign company and +securities are non CDIs)

Offer ratio (ratio to existing holdings at which the proposed +securities will be issued)

The quantity of additional +securities For a given quantity of +securities to be issued held 3 10

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What will be done with fractional Maximum Number of +securities entitlements? proposed to be issued Fractions rounded up to the next 89,297,474 whole number

Purpose of the issue

Funds raised will provide the Company optionality to either execute growth strategies, to pay down debt or to provide valuable cash reserves should the core business see a contraction in work in the short to mid term. Further details of the proposed use of funds will be set out in the prospectus

Offer price details for retail security holders

Issue Currency Offer Price per +security AUD - Australian Dollar AUD 0.04500

Estimated or Actual? Actual

Oversubscription & Scale back details

Are +security holders allowed to oversubscribe? Yes

Provide the oversubscription details

There will be no limit to the number of shares shareholders will be able to apply for, however the allocation of shortfall shares will be subject to an allocation policy to be described in the prospectus.

May a scale back be applied to this event?

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Yes

Provide the scale back details

Certain executive management of the Company will have priority to subscribe for shortfall shares up to a prescribed amount, with remaining shares to be allocated to shareholders who apply for shortfall shares pro rata to the amount they have taken up under the rights issue. Full details of the allocation policy will be described in the prospectus.

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes

Part 3C - Timetable

3C.1 +Record date

Wednesday June 3, 2020

3C.2 Ex date

Tuesday June 2, 2020

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3C.4 Record date

Wednesday June 3, 2020

3C.5 Date on which offer documents will be sent to +security holders entitled to participate in the +pro rata issue Tuesday June 9, 2020

3C.6 Offer closing date

Tuesday June 23, 2020

3C.7 Last day to extend the offer closing date

Thursday June 18, 2020

3C.9 Trading in new +securities commences on a deferred settlement basis

Wednesday June 24, 2020

3C.10 Last day for entity to announce the results of the offer to ASX, including the number and percentage of +securities taken up by existing +security holders and any shortfall taken up by underwriters or other investors

Friday June 26, 2020

3C.11 Issue date

Tuesday June 30, 2020

3C.12 Date trading starts on a normal T+2 basis

Wednesday July 1, 2020

3C.13 First settlement date of trades conducted on a +deferred settlement basis and on a normal T+2 basis

Friday July 3, 2020

Part 3E - Fees and expenses

3E.1 Will there be a lead manager or broker to the proposed offer? No

3E.2 Is the proposed offer to be underwritten? No

3E.3 Will brokers who lodge acceptances or renunciations on behalf of eligible +security holders be paid a handling fee or commission? No

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3E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed offer

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Part 3F - Further Information 3F.1 The purposes for which the entity intends to use the cash raised by the proposed issue Funds raised will provide the Company optionality to either execute growth strategies, to pay down debt or to provide valuable cash reserves should the core business see a contraction in work in the short to mid term. 3F.2 Will holdings on different registers or subregisters be aggregated for the purposes of determining entitlements to the issue? No 3F.3 Will the entity be changing its dividend/distribution policy if the proposed issue is successful? No 3F.4 Countries in which the entity has security holders who will not be eligible to participate in the proposed issue Spain United States United Kingdom 3F.5 Will the offer be made to eligible beneficiaries on whose behalf eligible nominees or custodians hold existing +securities Yes 3F.5a Please provide further details Eligible shareholders resident in Australia and New Zealand who are custodians/nominees will be responsible for ensuring that the taking up of any shares under the offer does breach any regulations in the relevant jurisdictions of the beneficiaries. 3F.6 URL on the entity's website where investors can download information about the proposed issue https://vysarn.com.au/ 3F.7 Any other information the entity wishes to provide about the proposed issue Further details of the offer will be set out in the prospectus.

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