Thred Market Update  Product Development & Enhancement Being...

Thred Market Update  Product Development & Enhancement Being Accelerated  Product Learnings Rapidly Incorporated to Enhance User Experience  Thred Announces Establishment of In-House Tech Development Team  Thred Starts initial ‘In Market’ Testing Phase and Baseline Metrics Product Development & Enhancement Being Accelerated Thred now has two new product specialists inspiring, leading and delivering our Product vision; Chief Product & Growth Officer, Mez Gallifuoco and our Chief Technology Officer, Michael Cerbara. Since their appointment in May, and under their ongoing stewardship, the Company has identified new and exciting features and User growth opportunities that significantly enhance the messaging experience, creating new IP for Thred. Thred believes these new innovations are market leading and will put Thred ahead of market thinking and direction, and will therefore, accelerate the core messaging features of Thred and ultimately, adoption by Users. The Company is going through a process of rigorous validation and testing of these new features, including validated Product-Market fit. Once this is completed, and the Technology pathway is validated, Thred will release prototypes for testing and assessment. The Company will update Shareholders in the coming weeks as to the nature and potential of these innovations and enhancements. Product Learnings Drive Enhancements for User Experience After the initial launch, aimed to test user interest and further validate the value and behaviour of being able to chat to people from multiple communication channels, we have accumulated enough feedback and learnings to direct the iteration of core features. As such, we have devised new and better solutions to ease the user-journey of “threding without Thred”, a term used to describe the feature of messaging connected contacts, regardless of them having a Thred account. This is an exciting feature that will provide greater value to the Users, as well as a strong acquisition pathway, essentially allowing Thred app Users to communicate and interact with their friends without them needing to initially create an account. As this is a unique and feedback-driven feature it is currently our number one development priority. In-House Technology Transition There were several factors that drove Thred’s decision to outsource its Platform development following its listing in June 2016. A core reason being the difficulty in finding in-house resources without the ability to provide surety of cash flow and employment. Accordingly, the Company appointed Lateral in December of 2016 as its Platform development partner. Shareholders will recall that Lateral also became a significant shareholder following the rights issue announced at the time. Further to the most recent capital raise, and with the Platform foundation established, Thred believes it can now move all platform development in-house. 2 The Company has subsequently informed Lateral that this transition will gradually occur over the coming months. Along with Management, the Development team will be based in Sydney. The key benefits of this for the Company and Shareholders are: 1. The Company is able to develop and enhance its own Intellectual Property; 2. The pace of Product and Technology development will increase significantly as Product, Design and Technology resources will be all in one place, using more strategic technologies; 3. Creation of the necessary business culture, centred around Product and Technology Development teams, working in unison to passionately achieve an outcome for Shareholders and Users; 4. Up to 60% reductions in expenses associated with Technology and Product Development by transitioning to an in-house team. Our CTO, Michael Cerbara, is spearheading an assertive transition plan that balances the need for ongoing product enhancements, with the need to increase development speed and product quality, along with financial synergies. Platform Metrics Update In the last few days the Company has begun to apply efforts towards lifting in-market testing. Until the “threding without Thred” feature is deployed, no material marketing will occur. The Company believes cash is better utilised evolving and enhancing Product before growing Users, in order to deliver an engaging Product. As such, User metrics were not expected to increase due to no material marketing being applied. No Measure