WEEBIT NANO LTD — Interim / Quarterly Report 2017

Apr 27, 2017

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Q3 FY2017 activities update

Company remains on track to meet 40nm target by end of 2017

Third quarter highlights

• “Lab to fab” activity was concluded – the technology was successfully transferred from Rice University’s research institute labs to the pre-industrialised facility at CEA-Leti

• Successful electrical results that validated the Rice University results in an industrialised cleanroom environment, and also achieved highly competitive voltage levels

• Management participated in a panel discussion at a global ReRAM conference in Greece alongside a number of global players

• Company remains on track to achieve 40nm working cells by the end of calendar year 2017

• Cash at bank as at 31 March 2017 was $2.2 million

28 April, 2017 – Weebit Nano Ltd [ASX: WBT] is pleased to provide an update for the quarter ending 31 March 2017, along with its Appendix 4C cash flow results. The major operational developments over the quarter are discussed below.

“Lab to fab” activity was concluded

Over the quarter, Weebit Nano overcame the challenges of technology transfer, successfully transferring its technology from Rice University’s research institute to the pre-industrialised cleanroom facility in Leti. This included the transfer of 8 years of knowledge and research that accumulated at Rice University, such as all process and measurement activities. The companynow has all capabilities in place at Leti to continue with its high gear development process.

Successful electrical results

Over the quarter, Weebit Nano announced the successful electrical results of its Silicon Oxide ReRAM memory technology at Leti. This was a very significant milestone for the company, as they validated the memory behaviour of the company’s technology.

As part of the electrical testing, competitive voltage levels were achieved, which is critical for cost effective and low power devices. Voltage levels are a critical parameter for the success of a semiconductor technology and its ability to operate at low power, and results achieved over the quarter mean Weebit Nano has now passed this hurdle.

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Moving towards miniatursation to 40nm

Weebit Nano is now finalising its preparations to start the miniaturisation process of its technology towards the 40nm target. The company is currently optimising the cleanroom conditions ahead of the first scaled silicon wafers experiment, expected to take place within a month. Weebit Nano remains on track to achieve full scale 40nm memory cells by the end of the calendar year.

Public appearances at industry events

Post-balance date, Weebit Nano management were invited to participate in an industry panel discussion at a global ReRAM conference in Greece in April. The conference included global players of the memory storage industry as well as leading global academic institutions. Further details will be provided on this in due course.

The company continues to receive strong interest from industry and academic events, highlighting the attention that Weebit Nano is generating.

For further information, contact:

Investors

Media

Eric Kuret Georgie Morell Market Eye Market Eye M: +61 417 311 335 M: +61 438 008 383 E: eric.kuret@marketeye.com.au E: georgie.morell@marketeye.com.au

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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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 31 March 2017

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date ( 9
		$A’000	months)
			$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers	-	-
1.2	Payments for
	(a) research and development	(161)	(949)
	(b) product manufacturing and operating costs	-	-
	(c) advertising and marketing	(38)	(48)
	(d) leased assets	(9)	(86)
	(e) staff costs	(143)	(282)
	(f) administration and corporate costs	(224)	(908)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	-	5
1.5	Interest and other costs of finance paid	(1)	(5)
1.6	Income taxes paid	-	(4)
1.7	Government grants and tax incentives	-	-
1.8	Other: Former activities (Exploration)	-	(149)
1.9	Net cash from / (used in) operating activities	(576)	(2,426)

• 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	-	(263)
	(e) other non-current assets	-	109
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	-	(154)
3.	Cash flows from financing activities
3.1	Proceeds from issues of shares	-	1,425
3.2	Proceeds from issue of convertible notes	-	-
3.3	Proceeds from exercise of share options	-	75
3.4	Transaction costs related to issues of shares,	-	(670)
	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	-	830

• 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	2,782	3,810
4.2	Net cash from / (used in) operating activities	(576)	(2,426)
	(item 1.9 above)
4.3	Net cash from / (used in) investing activities	-	(154)
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities	-	830
	(item 3.10 above)
4.5	Effect of movement in exchange rates on cash	(37)	109
	held
4.6	Cash and cash equivalents at end of quarter	2,169	2,169
5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A’000	$A’000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances	2,169	2,782
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end of quarter	2,169	2,782
	(should equal item 4.6 above)
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		137
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

• 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	Total facility amount at	Amount drawn at
	Add notes as necessary for an understanding of	quarter end	quarter end
	the position	$A’000	$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.

9.	Estimated cash outflows for next quarter	$A’000
9.1	Research and development		237
9.2	Product manufacturing and operating costs		-
9.3	Advertising and marketing		55
9.4	Leased assets		8
9.5	Staff costs		67
9.6	Administration and corporate costs		198
9.7	Other (provide details if material)		-
9.8	Total estimated cash outflows		565

• 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	Acquisitions	Disposals
	business entities
	(items 2.1(b) and 2.2(b) above)
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 April 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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