Brainchip Business Model and Investor Opportunity, page-45

BrainChip are working on milestone 2 at the moment. I have seen the work being done, as have some others in the team from the Aziana side. No one else has seen the work behind milestone 2 as this is being done in the lab in Southern California. The team have forecast that this milestone should be achieved within 6 months of funding, as per previous statements made by BrainChip.

The “other" shareholders listed separately from the main BrainChip shareholders including Nerona, Robert Mitro and other noteholders, have in varying capacities funded BrainChip prior to it being introduced to Aziana. They have been separated from other BrainChip shareholders for complete and transparent disclosure.

The fixing of the shares issued to the vendor is based on a 20c raise and is therefore less dilutionary for existing Aziana shareholders. The capital raise as we have covered before, is to be done at the "lower of 20c or the VWAP calculated over the 10 days preceding the meeting to approve the deal".

Putting the deal mechanics aside, the business is being run by a very professional team in the US and the work they are doing is in accordance with their schedule for commercialising the technology. As Peter van der Made states, “The R&D is done and it is now an Engineering process.”

I am very comfortable with the progress being made in California.

Regards

Neil