Business and Operations Update HighlightsSample testing underway...

Business and Operations Update Highlights Sample testing underway by prospective clients in China and Australia, as NZCS continues discussions with leading suppliers globally. Key personnel appointed with Chief of Sales and Operations and Production Manager, driving sales and production capacity into 2021. Significant progress on the Marine Collagen R&D project, as the Company works towards commercial production, and builds demand from potential clients seeking a truly sustainable source of NZ based marine collagen. NZCS is advancing the business case for acquiring specialised manufacturing equipment, whilst concurrently building demand for output products. Leading secondary producer of nutraceutical, seafood products and premium marine ingredients,New Zealand Coastal Seafoods Limited (ASX:NZS) (“NZCS”, the “Company”) is pleased to provide shareholders and investors with a business and operations update. New Zealand Coastal Seafoods CEO, Andrew Peti, commented:“Over the past months, we have continued to work behind the scenes, as we progress discussions with customers globally, with product sample testing continuing in both China and Australia. Our recently bolstered sales and production team are now driving sales, with ample capacity to meet upcoming demand. The Company has also made significant progress in the development of marine collagen products with lab scale testing ongoing as a precursor to commercial production once successfully completed. Demand from new and existing customers for powdered extract also continues to increase as we further advance the business case for additional manufacturing equipment.” Over the past months, NZCS has continued discussions with leading suppliers globally with the aim of entering into further high value purchase agreements for its nutraceutical products. As announced in September 2020, NZCS received a trial purchase order for 20kgs of mussel powder from Toyond, a multinational nutraceutical supplier established in 2010, with 10 global offices supplying nutraceutical products across 6 continents. In December 2020, a 25kg Sample of Fullfat GLM Mussel Powder was delivered and received by Toyond, following border clearance issue with a previous sample in November 2020. Toyond has since been conducting testing on the samples. Similar to Toyond, the Company has dispatched a 5kg sample to a leading nutraceutical company in Australia, with testing underway as NZCS continues discussions and explore opportunities to expand sales of nutraceuticals within the Australian market. The Company has recently appointed Phillip Wilson as Chief of Sales and Peter Fletcher as Operations and Production Manager, with both personnel now integrated into their roles and driving sales and production capacity into 2021. During the December ’20 Quarter, NZCS made significant progress in the Company’s Marine Collagen R&D project with lab scale testing ongoing as a precursor to commercial production once successfully completed, and builds demand from new and existing clients seeking a truly sustainable source of NZ based marine collagen. A significant opportunity exists for the Company to generate additional revenues from this product line, with the global Collagen Powder market estimated to be valued at US$4 billion in 2018, with growth forecast to US$6 billion by 2026. NZCS is working to further advance the business case for additional manufacturing equipment, whilst concurrently building demand for output products. The Board and Management of NZCS thanks shareholders for their support to date and looks forward to updating the market in January 2021.