Ann: Response to ASX Query Letter, page-7

From: [email protected]
Sent: Wednesday, 14 April 2021 2:54 PM
Subject: RE: ATTENTION MS RACHEL KERR Shareholder query

Hi xxxxxxx,

Thanks for sending in your questions, please see responses below inpurple.

• Is Roby Zomer still the Executive Chairman of Graft Polymer?

No – Roby Zomer is an Non-Executive Director

• Is Anthony Eastman still a director/CFO of Graft Polymer?

No he is not, he is now the Company Secretaryonly.

• Is Brett Mitchell still on the Advisory Team of Graft Polymer?

Yes – Brett is the Corporate Advisor to the GPOBoard, as Chieftain Securities is the engaged corporate advisor which hasraised all the funds for GP to date.

• Your latest announcement (23/03/2021 states in part...........
• CimetrATM encapsulates Graft Polymer’s proprietary GraftBio™ SNEDDS technology (Self-Nano Emulsifying Drug Delivery System), a unique platform to deliver active ingredients more effectively in higher concentrations to the cells, improving the bioavailability of natural active ingredients.

• Did MGC pay over $500k to Graft Polymer for R&D to develop a nano carrier for MGC?

Yes as has been detailed in MXC annual reports,audited accounts and ASX releases to date. MXC engaged Graft Polymer after atender process to develop the SNEDDS technology which has been refined tosupport MGC’s CimetrA product.

• If so, why is a product developed with MGC R&D money now a proprietary product of Graft Polymer?

Because this is not an area of expertise withinMXC, and like many other services it was required to secure external IP andexpertise to provide this product or service. The SNEDD is a DDS platform thathas been developed by GPO which has been modified to suit MGC needs, the MGCvariant of the DDS in CimetrA will be patented on MGC as well. Theoverriding SNEDDS technology is proprietary to Graft.

• Furthermore will MGC now have to pay royalties to Graft Polymer for the ongoing use of this technology?

In terms of a royalty agreement, no detailshave been agreed at this stage and commercial discussions are on-going betweenthe parties for a long term supply arrangement.

Hopefully this clarifies your queries.

Kind Regards,

Nadine Barry | Company Secretary
1202 Hay Street | West Perth WA 6005 | Australia
Tel +61 8 6382 3390 | Web www.mgcpharma.com.au
Email: [email protected]