Ann: Appendix 4C - March 2016 Quarterly Report-CL8.AX, page-2

Collaborate Corporation Limited (ASX:CL8) is pleased to present its consolidated Quarterly Cash Flow and business update for the period ended 31 March 2016.

Key highlights include: + Strong overall revenue performance despite seasonal decline in demand. +

Continued reduction in corporate costs. + 70% increase in income paid to corporate fleet owners vs Dec 2015 Quarter. + 27% increase in MyCaravan revenue vs Dec 2015 Quarter. + Repayment of $121,694 loan to Future Capital Development Fund. + More deals signed to increase supply from vehicle manufacturers and fleet owners.

Receipts from customers declined by 2% compared to the December 2015 Quarter due to the seasonal impact of the holiday period however this was offset by savings in staff and marketing costs. Receipts for the March 2016 Quarter increased by 46% compared to the March 2015 Quarter. Payments for other working capital increased from the December 2015 Quarter. This was largely due to the strong sales in the December 2015 and March 2016 Quarters which caused a corresponding increase in payments to vehicle owners and other cost of sales items. There is a time lag between receipt of funds from renters and the subsequent payment to owners. Therefore, the owner component of the large receipts received late in the December 2015 Quarter were paid to owners in the March 2016 Quarter. Corporate expenses declined compared to previous quarters as the administrative and accounting cost savings as a result of the 30 June 2015 divestment of Marketboomer are now being realised.

The $121,694 loan from Future Capital Development Fund was repaid on the due date of 19 February 2016, leaving the Company free of borrowings. Accrued interest on the loan of $26,633 was also paid.

The R&D tax incentive payment of approximately $192,000 has been credited to the Company’s tax account and receipt is expected in May 2016. An investment of $50,000 committed by Collaborate Director, Domenic Carosa in the December 2016 placement is subject to shareholder approval, which will be sought at a forthcoming EGM.

DriveMyCar During the March 2016 Quarter, DriveMyCar continued to deliver improved results across a range of metrics, despite the seasonal decline in demand following the Christmas holiday period. Vehicle activations grew by 39% and net rental days booked grew by 24% compared to the December 2015 Quarter.

A key objective of the Company is to leverage corporate relationships to more rapidly expand vehicle supply and demand opportunities. During the March 2016 Quarter, the amount of income paid to corporate vehicle fleet owners increased by 70% from the December 2015 Quarter and 216% from the September 2015 Quarter. Payments to corporate fleet owners made up 27% of total owner payments in the March 2016 Quarter, up from 10% in September 2015 Quarter. The increase in corporate supply of vehicles places the Company in a stronger position to capitalise on corporate and government demand opportunities.

Rental Transaction Value increased by 42% from the March 2015 Quarter to the March 2016 Quarter (Graph 1 below) and gross profit increased by 71% (Graph 2 below). The greater proportional increase in gross profit is an indication of the efficiencies in a marketplace platform with higher levels of supply and liquidity.