Ann: Coretrack Divests CLRS Technology, page-2

Australian oil and gas technology company Coretrack Ltd (ASX: CKK) (Coretrack, the Company) is pleased to announce that it has entered into an Agreement to divest its non-core Core Level Recorder System Technology (CLRS) to Specialised Oilfield Services Pty Ltd (SOS).

The CLRS Technology, including the Patent Rights, are part of Coretrack’s legacy oil and gas technology portfolio of assets, prior to the Company’s acquisition of EcoPropp and its new focus on developing a next generation, fly-ash based, proppant for use in hydraulic fracturing (fracking) of oil and gas wells globally.

Under the terms of the Agreement, Coretrack will sell to SOS and SOS agrees to purchase the CLRS Technology, all intellectual property and Patent Rights and materials associated with the CLRS Technology. Coretrack will forfeit any benefit arising from the Patent Rights and all rights arising from them.

SOS will take over and continue to pay all associated costs to continue any IP or Patent Rights. The consideration for SOS’s purchase of the CLRS Technology will be an amount of AUD$50,000 payable by SOS to Coretrack on the effective date of the transaction, plus the following commercial arrangements;

From 1 May 2017 onwards, SOS will pay Coretrack 0.5% of the revenue related to the CLRS Technology until the earlier of the duration of the Patent put in place by Coretrack or the date a third party purchases the CLRS Technology. If the CLRS Technology is purchased by a third party, Coretrack will receive a one-off final payment equivalent to 2.5% of the purchase price and Coretrack will hold no further rights to revenue.