Ann: Quarterly Update and Appendix 4C, page-2

Outlook is good,

The next 3-6 months will see Nanollose focus on the following objectives:

•Commence pilot scale production of microbial cellulose while continuing to develop improved processes to increase the throughput and reduce the cost of production.

•Select and develop commercial relationships with companies which align with Nanollose’s commercialisation strategy.

•Convert our existing stockpile of 250kg of microbial cellulose into Nullarbor fibre to be offered up tobrands to create limited edition offerings.