WEEBIT NANO LTD — Interim / Quarterly Report 2017

Jul 27, 2017

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Q4 FY2017 Activities Update

Progressing towards 40nm target by end of 2017

Highlights

• Miniaturisation process underway and progressing towards 300nm and 40nm working cells – on track to achieve 40nm working cells by the end of calendar year 2017

• Management continued to participate in industry events to generate further awareness of Weebit Nano’s emerging memory technology

• Post balance date, significant write speed results achieved: 100 to 1000 times faster than existing Flash technology, demonstrated at low energy

28 July, 2017 – Weebit Nano Ltd [ASX: WBT] is pleased to provide an update for the quarter ending 30 June 2017, along with its Appendix 4C cash flow results.

Moving towards miniatursation: 40nm working cells

During the quarter, Weebit Nano began the miniaturisation process of its Silicon Oxide ReRAM wafers towards a 40nm bit cell. This is a significant development given 40nm is the size of current state of the art 3D-NAND technology and is necessary for use in advanced devices such as Solid State Drive (SSD) storage and other devices including smartphones. In partnership with Leti, Weebit Nano is now progressing to scale-down the size of its technology to bring the company closer to commercialisation. The company is on track to achieve 40nm working cells by the end of calendar year 2017. Following this, Weebit Nano will be scaling up the capacity of its ReRAM prototype towards Mega Bit array blocks, which is a further significant advancement in moving towards a commercially viable memory solution.

Presenting at industry events

Weebit Nano management participated in a number of industry panel discussions at global memory conferences over the quarter. In April, management presented at the MEMRYSIS 2017 conference in Athens, Greece, and in June management presented at the Technion – Israel Institute of Technology workshop and the Leti Memory Workshop in Grenoble, France. The conferences included many of the global players in the memory storage industry and provided meaningful business opportunities with industry partners.

Contact Office: +972-9-7797832 info@weebit-nano.com www.weebit-nano.com

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Weebit Nano is very pleased with the level of interest its technology has been receiving from the industry, and it will continue to present at appropriate industry events and seek to identify possible collaboration opportunities with industry participants.

Demonstration of significant “write” speeds at low energy

Post balance date, Weebit Nano announced that significant write speed results were achieved in Leti’s pre-industrialisation facilities in Grenoble. The write speeds are currently 100 to 1000 times faster than Flash technology, and were achieved at low operating voltages, resulting in high energy efficiency. These results demonstrate great potential to overcome two of the main deficiencies of the current 3D Flash memory technology – the ability to write data extremely fast onto the memory device, and to do this in an energy efficient way. These write speed results are a strong indication of the memory capability and performance expected on nanometer scale devices – that is, at the scaled down cell sizes that Weebit is progressing towards.

Looking forward with confidence

With the miniaturisation process well underway towards 300nm and 40nm cells, and with very fast write speed and energy efficiency results, Weebit Nano is looking forward with confidence. There is a clear need for advancements beyond current memory technology, and Weebit Nano is making significant progress with its unique Silicon Oxide ReRAM memory technology. The Company remains on track to achieve the 40nm working cell target by the end of the 2017 calendar year.

For further information, contact:

Investors

Eric Kuret Market Eye M: +61 417 311 335 E: eric.kuret@marketeye.com.au

Media

Georgie Morell Market Eye M: +61 438 008 383 E: georgie.morell@marketeye.com.au

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Contact Office: +972-9-7797832 info@weebit-nano.com www.weebit-nano.com

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About Weebit Nano Limited

Weebit Nano is an exciting venture that is leading the way into the future of computer memory storage, and plans to become the new industry standard in this space.

Incorporated in Israel in 2015, Weebit was built to address the growing need for data storage technology around a revolutionary memory technology. Weebit has secured several patents to ensure optimal commercial and legal protection for its ground-breaking technology.

This quantum leap will allow semiconductor memory elements to become cheaper, faster, more reliable and more energy efficient than the existing Flash technology. Weebit has signed an R&D agreement with Leti, an R&D institute that specialises in nanotechnologies, to further develop SiOx ReRAM technology. For more information please visit: http://www.weebit-nano.com/

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Contact Office: +972-9-7797832 info@weebit-nano.com www.weebit-nano.com

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

+Rule 4.7B

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

Name of entity

Weebit Nano Limited (ASX:WBT)

ABN Quarter ended (“current quarter”) 15 146 455 576 30 June 2017

Consolidated statement of cash flows	Current quarter $A’000	Year to date ( 12 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) research and development (b) product manufacturing and operating costs (c) advertising and marketing (d) leased assets (e) staff costs (f) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other: Former activities (Exploration) 1.9 Net cash from / (used in) operating activities	- (14) - (63) (9) (155) (226) - - (5) - - -	- (963) - (111) (95) (437) (1,134) - 5 (10) (4) - (149)
	(472)	(2,898)

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) businesses (see item 10) (c) investments (d) intellectual property (e) other non-current assets 2.2 Proceeds from disposal of: (a) property, plant and equipment (b) businesses (see item 10) (c) investments (d) intellectual property (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	- - - - - - - - - - - - -	- - - - - - - - (263) 109 - - -
	-	(154)
3. Cash flows from financing activities 3.1 Proceeds from issues of shares 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from exercise of share options 3.4 Transaction costs related to issues of shares, convertible notes or options 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- - - (8) - - - - -	1,425 - 75 (678) - - - - -
	(8)	822

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of quarter/year to date 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of quarter	2,169 (472) - (8) (30)	3,810 (2,898) (154) 822 79
	1,659	1,659
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	1,659 - - -	2,169 - - -
	1,659	2,169
6. Payments to directors of the entity and their associates Current quarter $A'000 6.1 Aggregate amount of payments to these parties included in item 1.2 127 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2
		Current quarter $A'000
		127

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

7.	Payments to related entities of the entity and their associates	Current quarter
		$A'000
7.1	Aggregate amount of payments to these parties included in item 1.2		-
7.2	Aggregate amount of cash flow from loans to these parties included in		-
	item 2.3
7.3	Include below any explanation necessary to understand the transactions included in items 7.1 and
	7.2

	8. Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 8.1 Loan facilities - - 8.2 Credit standby arrangements - - 8.3 Other (please specify) - - 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		-	-
		-	-
		-	-

9. Estimated cash outflows for next quarter	$A’000
9.1 Research and development 9.2 Product manufacturing and operating costs 9.3 Advertising and marketing 9.4 Leased assets 9.5 Staff costs 9.6 Administration and corporate costs 9.7 Other (provide details if material) 9.8 Total estimated cash outflows	180 - 70 9 183 279 -
	721

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

10. Acquisitions and disposals of business entities (items 2.1(b) and 2.2(b) above)	Acquisitions	Disposals
10.1 Name of entity	-	-
10.2 Place of incorporation or registration	-	-
10.3 Consideration for acquisition or disposal	-	-
10.4 Total net assets	-	-
10.5 Nature of business	-	-

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Sign here: ... ....................................... Date: 28 July 2017........... Company Secretary

Print name: ..Chris Lobb........................................

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms 1 September 2016

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