Rights Issue Prospectus

A renounceable pro-rata rights issue offer of one (1) fully paid ordinary new share (New Share) for every two (2) fully paid ordinary shares (Shares) held by shareholders with a registered address in Australia or New Zealand as at the Record Date (Eligible Shareholders) at an issue price of $0.03 (3 cents) per New Share to raise up to approximately $2.46 million before costs.

Every two (2) New Shares will be accompanied by one (1) free-attaching option (New Option), with each New Options with an exercise price of $0.075 (7.5 cents), expiring 30 months from issue and which, upon exercise, entitle the holder to one fully paid ordinary share in the Company.

The offer of New Shares and free-attaching New Options is referred to as the Rights Issue.

The Rights Issue is partially underwritten by Mahe Capital Pty Ltd [ABN 91 634 087 684] [AFSL 517246] (Underwriter) for $750,000 before costs (Underwritten Amount). A summary of the material terms of the Underwriting Agreement between the Company and the Underwriter is set out in Section 1.2.

This Prospectus also contains an offer of up to a maximum of 4,924,227 New Options to the Underwriter (and/or its nominee(s)) as part fees for underwriting the Rights Issue (Underwriter Option Offer).

The Rights Issue and the Underwriter Option Offer are collectively the Offers.

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