Ann: India Coldry Project Receives Positive Overseas Ruling, page-6

Key Points The key items from the Finding Certificate include that:  The (project) activities are eligible (Advance Finding)  The project is an approved overseas activity (Overseas Ruling)  There are no exceptions This outcome has significant positive implications across the core aspects of our India Project, including in relation to:  Project Financing  Project Structure (Resolution 6 of the 2016 AGM)  Matmor Overseas Ruling Application Project Financing The Company is eligible for, and has received, rebates under the AusIndustry R&D Tax Incentive Scheme for domestic expenditure. This ruling extends that eligibility to the Coldry related overseas R&D activities proposed in India. An important part of the Company’s Capital Management Plan has been the forward factoring of anticipated R&D refunds. This facility is currently provided by Brevet Capital Advisers LLC. On 22 December 2016, the Company announced that it has entered a term sheet in relation to a $10 million debt finance facility with Brevet to support the Company’s estimated one-third contribution to the India project. The announcement noted two key conditions precedent: a) ECT receiving an overseas ruling from AusIndustry for the Indian project and, b) the Indian partners each co-contributing their 1/3 funding of the project.