Ann: Response to ASX Appendix 4C Query Letter, page-2

Dear Mr Sutton   

TILLEGRAH LIMITED (‘TIH’: APPENDIX 4C QUERY

We refer to your email notification of an Appendix 4C query letter received on 18 February 2019.

In respect of the questions raised, the following responses are submitted:

1. Does TIH expect that it will continue to have negative operating cash flows for the time being and, if not, why not?

TIH does expect that it will continue to have negative operative cash flows for the foreseeable future, as it has presently no income to offset operating cash flows. The Board continues to review new proposals from a number of industries to identify an opportunity which would allow the Company to grow future value and enable the Company to recommence trading on the Australian Securities Exchange.

2. Has TIH taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

TIH is currently in discussions with a number of investors to complete a capital raise in accordance with Resolution 6 as approved by shareholders at the Annual General Meeting held on 15 January 2019. Resolution 6 permits the issue of up to 62,500,000 Note Conversion Shares at $0.004 each to professional and sophisticated investors to raise up to $250,000. TIH is of the view that it will be able to secure this funding in sufficient time to ensure that it can continue operations and meet its business objectives.

3. Does TIH expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

TIH is of the view that it will be able to complete the capital raise referred to above within the short term, such that it believes it will be able to continue its operations and meet its business objectives. TIH anticipates reducing its cash burn, and taking any other necessary steps to ensure that it can operate in the short term while it is securing funding via the capital raise referred to above.

Tillegrah Limited, Level 54 111 Eagle Street Brisbane Qld 4000
ABN 80 112 379 503 │T +61 (0)7 3122 2233 │F +61 (0)7 3012 6699 | E [email protected] | W www.tillegrah.com

4. Please confirm that TIH is complying with Listing Rule 3.1 and that there is no information that should be given to ASX about its financial condition under that rule that has not already been released to the market.

The Company confirms that it is in compliance with the Listing Rules and, in particular, Listing Rule 3.1 and confirms that there is no information about its financial condition that should be given to the ASX in accordance with Listing Rule 3.1 that has not already been released to the market

5. Please confirm that TIH’s responses to the questions above have been authorised and approved in accordance with its published continuous disclosure policy or otherwise by its board or an officer of TIH with delegated authority from the board to respond to ASX on disclosure matters.

TIH confirms that the responses to the questions above have been authorised and approved by its Board.

Yours sincerely
  Dan Lanskey   Chairman and Non Executive Director