ACTIVITIES REPORT – QUARTER ENDED 31 DECEMBER 2016

HIGHLIGHTS FROM THE DECEMBER QUARTER - OPERATIONS

Record DIAsource (DIA) December quarter caps off above expectation €16.3m

performance for the year

Continued market traction in PoC with execution of commercial agreement and two major

PoC development projects well underway

Record sales performance of the Vitamin D product line with 142% YOY growth in the

quarter

Advancing negotiations in rapid custom conjugation services - preparing scale-up.

Process and efficiency improvements drive full year Gross Margins for DIA to > 50%

Invited to present at the largest IVD trade-show in China

Intellectual Property (IP) position for Medical Device applications further strengthened

Anteo Business Update

During the December quarter Anteo delivered another strong performance through DIA that

exceeded expectations at acquisition. Our Technologies division achieved pleasing progress in the

Point of Care (PoC) applications with the execution of a 5-year supply agreement with Ellume and,

in addition, progressing two major PoC development projects with Atomo and Planet Innovation.

There has been a major focus on improving business processes in both divisions, particularly

around building a more customer and market focused organization, and integrating commercial

drive and process into all research and development programs.

IVD: DIAsource

Sales Performance

December was another record quarter for DIA, with sales of €4.855m (AUD6.88m) a 37% increase

over the December quarter of 2015. Calendar Year 2016 sales were €16.347m (AUD23.21m), up

15.5% on 2015 and up 4% on forecast. Over the past four years the CAGR of sales has been 14%.

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The strong sales result for the quarter was across all sectors of the business. Vitamin D sales were

particularly strong in December and achieved a 142% year over year growth in the quarter. Over

the full calendar year, growth was strongest for the Vitamin D product line with a 38% growth over

2015, driven by 77% growth in sales of the ELISA assay.

Business Improvements

The Supply Chain continuous improvement program has further progressed and continues to

contribute to the increase in Gross Margin of the company.

From an operational point of view the record sales achieved during the quarter required significant

planning and co-ordination which put pressure on our supply chain processes, especially those for

the Vitamin D business. It was very rewarding to see the production volume reached a record level

in the quarter, and specifically in the last month, to meet the growing demands of our customers.

Financial Performance

Since acquisition, DIA has outperformed expectations with continued double digit revenue growth,

improved margins and strong EBITDA growth.

When the acquisition was negotiated at the end of 2014 DIA had revenues of €11.9m, Gross Profit

Margin of 46.3% and an EBITDA of €1.5m. Projected revenues for 2015 and 2016 were €13.6m

and €15.4m respectively.

Actual revenues for 2015 were €14.2m (19% growth) and 2016 €16.3m (15% growth). Over the

period Gross Margin increased from 46.3% to 51.0% and EBITDA from €1.5m to €3.5m.

40%

42%

44%

46%

48%

50%

52%

2012 2013 2014 2015 2016

DIAsource Gross Margin

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Commercial Activities

UPDATE ON ZIKA VIRUS ASSAY

The Zika virus assay has been tested in different laboratories in South America. The results of

these tests were positive and the assay has now been submitted for registration in various South

American countries.

ATTENDANCE AT MEDICA (November 2016)

The Medica trade show in Germany is the most important worldwide event in the medical industry.

This last year was particularly important for our company. During this event, we were able to

connect with many of our existing distributors to discuss and negotiate our common business, get

insight into new market trends and get new contacts (over 10) for countries where we currently

have no distribution channels in place.

Medical Devices: Point of Care

We are continuing to see significant market interest in the area of highly sensitive novel PoC

product development and commercialization. In October Anteo entered into a five-year license and

supply agreement with next generation PoC company Ellume validating the commercial value of

Anteo’s technology in the PoC market. The commercial agreement will see Ellume utilise Anteo’s

proprietary technology across its suite of pipeline products. The first product, for influenza, is

anticipated to be launched in 2017 followed by other pipeline products including Respiratory

Syncytial Virus, Group A Streptococcus and Chlamydia.

In addition, Anteo is actively progressing two major PoC assay development projects leveraging

the Anteo technology. In November, Anteo secured funding in partnership with Planet Innovation,

Deakin University and the Defence Materials Technology Centre (DMTC) to advance the

technology readiness of Planet Innovation’s Nplex PoC platform. Through this project Anteo

expects to provide Nplex with a commercial solution to the challenges of controlling the surface

interface between synthetic materials and biological reagents, which is critical for development of

highly sensitive and specific PoC diagnostic tests.

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Following on from Atomo winning the $100,000 Advance Queensland Johnson & Johnson

Innovation QuickFire Challenge, Anteo and Atomo have executed an Exclusive Collaboration

Research Licence Agreement for the development of a lateral flow rapid point of care cardiac

troponin test on the AtomoRapid™ platform. Upon completion of the project both parties will enter

commercial discussions with the intent of coming to agreement on commercial terms to further

exploit the newly developed technology.

Medical Devices: Implantable

Anteo’s nanotechnology based binders and coatings can be utilized to enhance the performance of

many different medical devices across many different applications. It is important to identify and

select opportunities in alignment with existing and complementary technology capabilities, that

address an important unmet need in the market and, as well, presents Anteo with the potential to

develop a strong proprietary position. One area of particular interest that has been identified is

applications for active implantable medical devices (AIMDs). Together with Anteo’s Background IP

in diagnostics, other life science related applications, and Energy, Anteo has significant IP

expansion and coverage being developed for medical devices, and for implantable electrodes.

In late November 2016, Anteo progressed the “Competitive Exchange” patent to PCT. This patent

exemplifies methods for the controlled release of molecules but also includes methods to control

reaction kinetics important in the maintenance of good conductivity between electrode and,

potentially, cells. This patent complements another recently filed provisional patent application that

covers novel claims related to the development of flexible electrodes that may be useful in sensors,

implantable diagnostics and other devices. One opportunity may be in the development of more

effective neural interfaces to improve chemical signal transmission for hearing, vision, and mobility.

“Heterofunctional binding systems”, which covers a different family of Anteo coatings, also

progressed to National Phase in 2016. This application is useful for forming non-conductive,

insulating layers on electrodes and a variety of other functions. We believe that this will be an

important background patent for a variety of Medical Device uses.

Over the coming months Anteo will continue to work with Cook Medical in the application of Anteo

nanotechnology. In addition, we are also actively seeking to collaborate with development partners

who can evaluate the technical and commercial feasibility of Anteo technology in neural prosthetic

devices, such as cochlear implants or retinal implants.

Life Sciences

Anteo has been progressing commercial discussions in offering ‘rapid custom conjugation

services’, providing simpler access to our technology. Anteo is in the process of negotiating

several long-term custom conjugation service agreements with both major industry players and

innovative start-ups. In response to the growing demands in the market for rapid conjugation

services at commercial scales, we are in the process of scaling up our production capabilities.

Following the launch of three new Application Kits for IVD and Life Sciences markets at AACC

product sales have not been as strong as initially anticipated. As a result, we are in the process of

reviewing existing distribution channels and building new distribution channels to drive sales

particularly in regions with high demand such as China, where the life-sciences research spending

exceeds that of the US. Anteo will be presenting a technical seminar, in conjunction with Merck, at

the China Association of Clinical Laboratory Practice Expo (CACLP) in China, which is the largest

professional and influential exhibition in the Chinese IVD industry. CACLP represents 90% of the

local Chinese IVD producers. In total, more than 300 companies will exhibit. The technical

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presentation by Anteo will be critical for visibility in the Chinese IVD sector, and will help to

progress business development activities underway regarding distribution of Anteo products in

China.

Energy

Anteo’s core capabilities are in the development and applications of nanotechnology based binders and coatings. As discussed previously, and in keeping with current plans, it is essential for Anteo to collaborate with external R&D partners who have in-depth capability and industrial experience in Li-ion batteries to assist in data generation for full commercialization. During recent discussions with potential industry partners it has become clear that Anteo needs to generate additional data and further characterize the coating process to increase the value of the IP and knowhow that Anteo brings to the table before we enter into any third-party arrangement. Specifically, further data generation is required to clarify and validate the contribution of Anteo’s core technology to the performance of silicon anodes and the specific mechanism of action. The research to be conducted over the coming months will enable Anteo to determine whether the contributions of Anteo’s nanotechnology to improved charge/discharge cycling performance of Li-ion battery are due to: a) coating protection of the Si particles when expansion/shrinking during charge/discharge, b) improved performance of the binders to hold the electrode structure better, c) improved maintenance of better conductivity at interface with current collector, or d) some combination of all three. Over the coming months Anteo will focus on optimization and characterization of the coating process,

and generating solid data on the mechanism of action of Anteo technology in this unique application.

Corporate Update

During the December quarter Anteo announced it was performing a strategic review of the business

and the opportunities in front of it. This review is ongoing.

As illustrated in the quarterly update on DIA, the acquisition has performed extremely well. Based on

the un-audited results the Earn Out liability is expected to be €6,344,000, of which a minimum of

20% is paid in equity and the remainder of up to €5,075,200 is to be paid in cash.

Anteo has been working on a number of funding solutions to meet this funding obligation and expects

to be in a position to meet this payment.

At the end of the quarter Anteo had €2.3 million on hand.

There were no shares or options issued during the period.

ABOUT ANTEO GROUP – Anteo Diagnostics Limited (ADO:ASX) & Subsidiaries

Anteo Group is a global nanochemistry technology and medical supply group, developing, commercialising, manufacturing and distributing products for the life sciences, clinical diagnostics and bioseparations markets, and creating new applications in the energy and medical devices sectors.

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Through Anteo Technology, the Anteo Group owns a patented nanochemistry surface engineering technology which unites the strength and stability of covalent binding with the gentleness of passive binding through multi-point chelation. Through the use of its reagents binders, coatings or primers, Anteo provides materials and services for high- value commercial applications. Markets include protein binding and antibody coupling (e.g. point of care devices), primers for in-vivo medical devices and medical drug delivery, and coatings with commercial applications across a broad range of industry sectors, including life sciences, in vitro diagnostics, medical devices and energy.

Through its wholly owned subsidiary, DIAsource Immunoassays SA, Anteo Group manufactures and distributes a complete catalogue of ELISA and RIA products for clinical diagnostics via established distribution channels in 75 counties across the world, including antibodies and laboratory automation instrumentation.

For more information, please visit www.anteodx.com

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Rule 4.7B

introduced 31/03/00 Amended 30/09/01, 21/10/05, 17/12/10, 01/09/16

Quarter ended (“current quarter”)

31-Dec-16

Consolidated statement of cash flowsCurrent quarter

Year to date (6 months)

’000 € ’000 €

1 Cash flows related to operating activities

4,278 8,443

1.2 Payments for(a) research and development (excluding staff costs relating to R&D) (162) (357) (b) product manufacturing and operating costs (1,136) (2,498)(c) advertising and marketing (107) (185) (d) leased assets (58) (123) (e) staff costs (1,616) (3,077) (f) other working capital (1,946) (3,701)

1.3 Dividends received - - 1.4 Interest received 23 27 1.5 Interest and other costs of finance paid (2) (18) 1.6 Income taxes paid - - 1.7 Government grants and tax incentives 135 1,652 1.8 Other (provide details if material) - -

1.9 Net cash from / (used in) operating activities (591) 163

Cash flows related to investing activities

2.1 Payment to acquire:(a) property, plant and equipment (34) (62) (b) businesses - - (c) investments - - (c) intellectual property - - (e) other non-current assets - -

2.2 Proceeds from disposal of:(a) property, plant and equipment - - (b) businesses - - (c) investments - - (c) intellectual property - - (e) other non-current assets - -

2.3 Cash flow from loans to other entities (0) (0) 2.4 Dividends received - - 2.5 Other (provided details if material) - -

Net cash from / (used in) investing activities (34) (62)

2

2.6

1.1 Receipts from customers and government grants

Quarterly report for entities subject to Listing Rule 4.7B

Appendix 4C

Name of entity

75-070-028-625ACN or ARBN

Anteo Diagnostics Limited

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Cash flows from financing activities

3.1 Proceeds from issues of shares - - 3.2 Proceeds from issue of convertible notes - 457 3.3 Proceeds from exercise of share options - - 3.4 Transaction costs related to issues of shares, convertible notes or options - - 3.5 Proceeds from borrowings 842 947 3.6 Repayment of borrowings (274) (1,735) 3.7 Transaction costs related to loans and borrowings - - 3.8 Dividends paid - - 3.9 Other (provide details if material) - -

3.10 Net cash from / (used in) financing activities 568 (331)

4 Net increase (decrease) in cash and cash equivalents for the period4.1 Cash and cash equivalents at beginning of quarter/year to date 2,353 2,522 4.2 Net cash from / (used in) operative activities (item 1.9 above) (591) 163 4.3 Net cash from / (used in) investing activities (item 2.6 above) (34) (62)4.4 Net cash from / (used in) financing activities (item 3.10 above) 568 (331)4.5 Effect of movement in exchange rate on cash held 34 38 4.6 Cash and cash equivalents at end of quarter 2,330 2,330

Current quarter Previous quarter’000 € ’000 €

5.1 Bank balances 2,249 2,272 5.2 Call deposits 81 80 5.3 Bank overdrafts5.4 Other (provide details)5.5 Cash and cash equivalents at end of quarter (should equal item 4.6

above) 2,330 2,353

Current quarter’000 €

6.1 Aggregate amount of payments to these parties included in item 1.2 1366.2 Aggregate amount of cash flow from loans to these parties included in item

2.36.3

Current quarter’000 €

7.1 Aggregate amount of payments to these parties included in item 1.2

7.2 Aggregate amount of cash flow from loans to these parties included in item2.3

7.3

3

5

Payments to directors of the entity and their associates6

Include below any explaination necessary to understand the transactions included in items 6.1 and 6.2

7 Payments to related entities of the entity and their associates

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.

Include below any explaination necessary to understand the transactions included in items 7.1 and 7.2

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8 Financing facillities available Amount available Amount usedadd notes as necessary for an understanding of the position ’000 € ’000 €

8.1 Loan facilities - 8.2 Credit standby arrangements8.3 Other (please specifiy)8.4

9 Estimate cash outflow for next quarter ’000 €9.1 Research and development (175)9.2 Product manufacturing and operating costs (1,250)9.3 Advertising and marketing (78)9.4 Leased assets (62)9.5 Staff costs (1,538)9.6 Administration and corporate costs (250)9.7 Other (provide details if material) (750)9.8 Total estimated cash outflows (4,103)

Acquisitions and disposals of business entitiesAcquisitions Disposals

10.1 Name of entity10.2 Place of incorporation or registration10.3 Consideration for acquisition or disposal10.4 Total net assets 10.5 Nature of business

Compliance statement

1

2

Print name: Peter Harding-Smith Date: 31-Jan-17Company Secretary

Notes1

2

3

Include below a description of each facility above. Inclluding the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

10 Acquisition and disposals of business entities (items 2.1 (b) and 2.2(b) above)

This statement has been prepared in accordance with accounting standards and polcies which comply with Listing Rule 19.11A.

The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

If this quarterly report has been prepared in accordance with Australia Accounting Standard, the definitions in, and provisions of, AASB 107:Statements of Cash Flow apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

Dividends received may be classified either as cash flows from operating activities or cash flows from investing activites, depending on the accounting policy of the entity.

This statement gives a true and fair view of the matters disclosed.

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