Ann: Quarterly Activities Report and Appendix 4C, page-2

Well the tragedy never ends.
I wonder if current shareholders will recognise the statement in the last sentence and realise they are just an accessory as they are adding no value but shareholder spread and a source of cash but realistically why would the company go to the $ of doing a issue to existing holders when all the holders they want can go in as 708's and cost the company less in admin and less oversight.

Where is the huge stockpile of nutrucuiticals and algae production from the last 2 years? How much has been packages and sold? There were 5 different varieties? What is the value on the books. Are the new directors investigating the old directors? With Atlanta plant closed and we can only make a wild guess ( ha ha) as to who the proposed buyers are and if they were previous management of AEB and possibly have debt created on plant to them so they will be holding it to ransom- them or nobody and vice versa good new management will be holding old management to ransom and saying kick in the kitty or plant and business will be liquidated. Standoff??? Wonder what legal costs are adding up to. You have to wonder knowing the people involved just what written documetation of running plant etc exist and if it hasn't all walked out the door rather than being retained and if the current AEB really only have a few vats and some tubing and a drying rack for scrap and a lease?

Are current directors responsible for reporting to ASIC any prior incorrect statements made regarding production, performance etc as they become aware?

Now the really interesting part is no mention of sale of parts of algae business so the previous USA atlanta business that had similar names and same staff / management as the listed AEB somehow seems unrelated if in fact media reports of sale or agreement were infact true or something else has gone on? Has or has not a subsidiary or company involved with radient and involved with old dir actually been sold, given away , excised and if so how will it show on accounts and annual reports or did the listed AEB never really the participant contracted? I'm missing something?

Anyone know some facts?

31 October 2019
ASX AnnouncementSeptember Quarterly Activities ReportFor Period Ended 30 September 2019

Plant-based health and well-being company Affinity Energy & Health Limited (“Affinity” or the“Company”) (ASX:AEB) is pleased to provide shareholders with its Quarterly Activities Report for thethree months ended 30 September 2019 (Period).

Key Points:

Algae Operations
• Staffing reduced significantly
• Cost rationalisation reduces overheads

Medicinal Cannabis
• Australian Update
o Cultivation and Manufacturing License applications are both in the Evaluation phaseof the Office of Drug Control (“ODC”) process.

• Malta Application
o Malta Industrial Parks (Maltese Government authority) has identified land and anexisting building for the Company to establish medicinal cannabis facilities and theCompany is progressing with formal documents and initial fit out plans.

• Corporate
o Board and management rationalisation continued
o Financing and relisting process underway and will be announced within the currentPeriod

Algae Division Overview
Production
The Company has now developed the proprietary algae technology for nutraceuticals to the pointwhere negotiations are being undertaken to issue a sub-licence in North America. Discussionscontinue in this regard however the Company is targeting a cash payment and ongoing royalties forand from the sub-licence. These discussions include the possible sale of the Atlanta based productdevelopment plant.

As a result of ceasing production in the short term the ongoing costs at the Atlanta facility have beensignificantly reduced. The Company will update the market accordingly should any of thesepossibilities materially progress to the point where they become an announceable event.

Medicinal Cannabis Division
Overview

Australian Medicinal Cannabis License
At the end of the Quarter under review the Company is still underway with the Office of Drug Control(“ODC”). The Company will update accordingly.

European Medicinal Cannabis License
In accordance with the Letter of Intent issued by Malta Enterprise (Maltese Government authority)the Company has been allocated a 2,200m2 parcel of land on which to establish the medicinal cannabisfacilities in Malta.
AEB has been allocated factory space of 580sqm to start operations until such time the 2,200m2 parcelof land allocated is developed. The Company is progressing with formal documents and initial fit outplans.

Other Opportunities
The Company is in various discussions with potential strategic partners regarding the development ofan algae/cannabis neutraceutical product as well as cannabis strain genetics to coincide with thedevelopment of the Australian (if and when issued) and Maltese licence.

Board Rationalisation

During the quarter under review the Company has undertaken further Board and managementrationalisation with the resignation of Mr. Sonu Cheema and the appointment of Mr Qing Xu as Non-Executive Director.

Subsequent to the quarter the Company announced the appointment of Mr Terry Gardiner to theBoard as Non-Executive Director and the resignation of Mr Josh Puckridge.

Gardiner has more than 20 years’ experience in the capital markets and provides corporateadvisory services to listed companies in Australia and oversesas.
Mr Gardiner is an Executive Directorof Barclay Wells Limited, a boutique stockbrocking firm with offices in Perth and Melbourne.
Mr Gardiner is Non-Executive Director of Roto-Gro International Limited and was an integralcontributor to Roto-Gro’s successful IPO and continues to be a valuable adviser on Roto-Gro’sstrategies.
AEB welcomes Mr Gardiner’s relevant industry experience to the board of the Company.
Mr Gardiner is also Non-Executive Director of ASX listed Australian mineral resource explorers GalanLithium Limited and Cazaly Resources Limited.


Financing

To facilitate the ongoing commercialisation of the Company’s proprietary algae technology andmedicinal cannabis operations in Malta and Australia, the Company is presently finalising discussionswith regards how to best facilitate a significant capital injection to the Company that will ideally takethe form of a small portion of convertible equity and a significant amount of direct normal equity. TheCompany’s preference is to puruse a mechanism that supports current shareholders to participate.

-ENDS