Ann: December Quarter Cash Flow Report and Commentary, page-2

29 January 2016

DECEMBER QUARTER CASH FLOW REPORT AND COMMENTARY
Clean Seas Tuna Limited (ASX: CSS) has today released the December quarter Appendix 4C.

Sales
Sales in H1FY16 were 748 tonnes which is 46% higher than the 511 tonnes in H1FY15. These sales were mostly to the Australian and European market while sales to the USA and Asian markets comprised 4% of the total. The Company remains focussed on substantially increasing sales to the latter markets in H2FY16 and beyond while also continuing to increase sales in the Australian and European market, which have demonstrated pleasing growth to date in FY16.

Production
Our Yellowtail Kingfish continue to perform very well, maintaining excellent health and historically high survival rates. Growth has been in line with expectation during the seasonal increase in seawater temperatures. The seasonal fluctuation in seawater temperatures causes the majority of annual fish growth to occur in the second half of the financial year. Total biomass at 31 December 2015 was 2,160 tonnes which is 37% higher than the 1,578 tonnes at 31 December 2014.

The first three runs of 2016 Year Class (YC16) fingerlings have now been transferred to sea cages and the fourth and final run had commenced in the Hatchery at 31 December and are scheduled for transfer to sea cages in February 2016.

R&D Tax Incentive Cash Refund and Cash Position
The FY15 R&D Tax Incentive Refund of $6.0 million was received in November 2015 and is reflected in the Q2FY16 Cash Flow Report. At 31 December the cash balance was $0.4 million with the $7.0 million Working Capital Facility completely undrawn.

David Head – Managing Director and Chief Executive Officer
As announced on 7 December 2015, David Head commenced as Managing Director and CEO on 28 January 2016. The Board again records its thanks to Craig Foster for the significant improvements achieved in the business during his period as CEO and looks forward to the next stage of strategic development with David Head.

Half-Year Results
The company is on schedule to release its half-year results in the last week of February.