WEEBIT NANO LTD — Interim / Quarterly Report 2018

Jul 30, 2018

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Q4 FY2018 Activities Update

40nm 1Mb array achieved; progressing towards commercialisation

Key highlights for Q4

• Successfully demonstrated a 1Mb capacity ReRAM array at 40nm using silicon oxide – now at a capacity that can address most of the embedded memory market

• Extended agreement with partner, Leti, to fast track commercialisation

• Announced as a finalist in 2018 Red Herring Top 100 Europe Awards

• Discussions continuing with potential strategic partners/collaborations

31 Jul, 2018 – Weebit Nano Ltd (ASX: WBT) is pleased to provide an update for the quarter ending 30 June 2018, along with its Appendix 4C cash flow results.

Major 1Mb milestone achieved on schedule

In late June Weebit Nano achieved the significant milestone of demonstrating a 1Mb (1 Megabit > 1 million bits) capacity ReRAM array at 40nm using silicon oxide (SiOx). This milestone was on schedule, as committed to by the company two years ago.

Weebit Nano’s ReRAM technology is now at the capacity of memory larger than what is currently being used across most of the embedded non-volatile memory (NVM) market, which is the first market segment the company is targeting and is currently estimated to be worth over US$25 billion.

The 1Mb initial test, conducted in CEA/Leti facilities in Grenoble, France, demonstrated the capability of addressing and programming nearly all the memory cells and are especially encouraging results as they were achieved without using performance improvement techniques such as redundancy, which are commonly used in the memory industry to achieve programmability of 100 per cent of the array cells.

Extension of Leti agreement

During the quarter, Weebit Nano extended its agreement with partner Leti, the French research institute recognised as a global leader in the field of micro-electronics, to further develop and optimise the company’s ReRAM memory technology.

This agreement extension allows Weebit Nano to accelerate the optimising of manufacturing processes required to achieve standard capabilities with its memory technology, and therefore accelerate the Company’s ability to productise its technology.

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

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The agreement also allows Weebit to initiate work on the miniaturisation of its technology to the more advanced node of 28nm later this year.

Announced as a finalist in 2018 Red Herring Top 100 Europe Awards

The quarter also saw Weebit Nano selected as a finalist for the 2018 Red Herring Top 100 Europe award, a prestigious list honouring the year’s most promising technology ventures from the European business region.

The Red Herring editorial team selected the most innovative companies from a pool of more than 1200 companies from across Europe. The nominees were evaluated on 20 quantitative and qualitative criteria, which included disruptive impact, market footprint, proof of concept, financial performance, technology innovation, social value, quality of management, execution of strategy, and integration into their respective industries.

Looking ahead

The agreement extension with Leti will allow Weebit Nano to accelerate the optimisation process to improve the quality of its 1Mb array, bringing the technology to the level needed to move to a production level fab (where silicon components are manufactured).

In addition, the company is still working to sign its first co-operation agreement with a key industry player, with the aim of achieving this by the end of the calendar year.

The Company looks ahead with a great deal of excitement as it moves closer to having a commercial product that can address a large and growing market in need of an advanced memory solution.

For further information, contact:

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

Media

Tristan Everett Market Eye M: +61 3 9591 8905 E: tristan.everett@marketeye.com.au

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Contact

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

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About Weebit Nano Limited

Weebit Nano is a leader in the development of next generation computer memory technology, and plans to become the new industry standard in this space. Its goal is to address the growing need for a significantly higher performance and lower power computer memory technology. Weebit Nano’s ReRAM technology is based on fabfriendly Silicon Oxide, allowing the company to rapidly execute, without the need for special equipment or preparations. The company secured several patents to ensure optimal commercial and legal protection for its ground-breaking technology.

Weebit Nano’s technology enables a quantum leap, allowing semiconductor memory elements to be significantly cheaper, faster, more reliable and more energy efficient than the existing Flash technology. Weebit Nano 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 2018

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	- (235) - (53) (39) (243) (307) - 3 1 - - -	- (991) - (158) (122) (1,002) (1,317) - 9 (2) - - -
	(873)	(3,583)

• 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	- - - - - - - - - - - -	- - - - - - - - - - - - -
	-	-
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	- - - (4) - - - - -	2,500 - 3,018 (358) - - (4) - -
	(4)	5,156

• 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	4,200 (873) - (4) 34	1,695 (3,583) - 5,156 89
	3,357	3,357
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 c5.2 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)	3,357 - - -	4,200 - - -
	3,357	4,200
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 1.2 141 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
		141

• 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 Advertising and marketing 9.3 Leased assets 9.4 Staff costs 9.5 Administration and corporate costs 9.6 Other 9.7 Total estimated cash outflows	196 117 24 205 494 -
	1,036

• 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: ............................................. 31 July 2018

--------------(Director/Company secretary)

Mark Licciardo Print name: .........................................................

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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