Announcement PDF 31 January 2019 Company Announcements Office Australian Securities Exchange Issue of Shares on Exercise of Options Xref Limited (ASX:XF1) (Xref or the Company) advises that three of its option holders have exercised a total of 1,992,673 options at an exercise price of $0.23 into 1,992,673 fully paid ordinary shares and that the shares were issued today. The exercise of the 1,992,673 options, which were issued on 1 February 2016, raised $458,315. An Appendix 3B for the issue of these shares is attached. Xref Limited Robert J Waring Company Secretary Cleansing Statement – Notice under Section 708A(5)(e) As at 31 January 2019, Xref Limited gives notice under section 708A(5)(e) of the Corporations Act 2001 (Cth) (Corporations Act) that: 1. 2. 3. the Company issued the abovementioned securities without disclosure to investors under Part 6D.2 of the Corporations Act. the Company has complied with the provisions, as they apply to the Company, of Chapter 2M of the Corporations Act and with Section 674 of the Corporations Act; and there is no information: a. that has been excluded from a continuous disclosure notice in accordance with the ASX Listing Rules; or b. that investors and their professional advisors would reasonably require for the purpose of making an informed assessment of the assets and liabilities, financial performance, profits and losses and prospects of Xref Limited, or the rights and liabilities attaching to Xref Limited ordinary shares. Xref Limited (ASX:XF1) ACN 122 404 666 Suite 17, Level 3, 13 Hickson Road, Dawes Point, Sydney NSW 2000 Australia, Website: xref.com Appendix 3B New issue announcement Rule 2.7, 3.10.3, 3.10.4, 3.10.5 Appendix 3B New issue announcement, application for quotation of additional securities and agreement Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public. Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12, 04/03/13 Name of entity Xref Limited (ASX:XF1) ABN 34 122 404 666 We (the entity) give ASX the following information. Part 1 - All issues You must complete the relevant sections (attach sheets if there is not enough space). 1 +Class of +securities issued or to be issued 2 3 Fully paid ordinary shares Number of +securities issued or to be issued (if known) or maximum number which may be issued 1,992,673 Principal terms of the +securities (e.g. if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for +convertible payment; if securities, the conversion price and dates for conversion) Issue of 1,992,673 fully paid ordinary shares on exercise of options at $0.23 per share. + See chapter 19 for defined terms. 04/03/2013 Appendix 3B Page 1 Appendix 3B New issue announcement 4 Do the +securities rank equally in all respects from the +issue date with an existing +class of quoted +securities? Yes If the additional +securities do not rank equally, please state:  the date from which they do  the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment  the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 5 Issue price or consideration 23 cents per share on exercise of options 6 Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets) The conversion of 1,992,673 options into fully paid ordinary shares by three of the Company’s option holders. 6a Is the entity an +eligible entity that has obtained security holder approval under rule 7.1A? Yes If Yes, complete sections 6b – 6h in relation to the +securities the subject of this Appendix 3B, and comply with section 6i 6b The date the security holder resolution under rule 7.1A was passed 6c Number of +securities issued without security holder approval under rule 7.1 Not applicable Number of +securities issued with security holder approval under rule 7.1A Not applicable Number of +securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting) Not applicable 6d 6e The Company received shareholder approval at its Annual General Meeting held on 28 November 2018 under ASX Listing Rule 7.1A. + See chapter 19 for defined terms. Appendix 3B Page 2 04/03/2013 Appendix 3B New issue announcement 6f Number of +securities issued under an exception in rule 7.2 1,992,673 options 6g If +securities issued under rule 7.1A, was the issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the +issue date and both values. Include the source of the VWAP calculation. Not applicable If +securities were issued under rule 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements Not applicable Calculate the entity’s remaining issue capacity under rule 7.1 and rule 7.1A – complete Annexure 1 and release to ASX Market Announcements 41,394,593 6h 6i 7 +Issue dates Note: The issue date may be prescribed by ASX (refer to the definition of issue date in rule 19.12). For example, the issue date for a pro rata entitlement issue must comply with the applicable timetable in Appendix 7A. 31 January 2019 Cross reference: item 33 of Appendix 3B. 8 9 Number and +class of all +securities quoted on ASX (including the +securities in section 2 if applicable) +class Number and of all +securities not quoted on ASX (including the +securities in section 2 if applicable) Number +Class 165,578,370 Fully paid ordinary shares +Class Number 16,666,666 C Class Performance Rights – The conversion ratio of the Performance Rights into ordinary shares upon achievement of the relevant Performance Milestone is one ordinary share for each Performance Right. + See chapter 19 for defined terms. 04/03/2013 Appendix 3B Page 3 Appendix 3B New issue announcement Number * Note: 1,992,673 Options were exercised before expiry on 1 February 2019 – exercise price $0.23. +Class 0 * Note Options – will expire, if not exercised, by 1 February 2019 – exercise price $0.23 (all of which have vested). 7,000,000 Options – 4,500,000 of the Options will expire, if not exercised, by 25 November 2021 and 2,500,000 of the Options will expire, if not exercised, by 25 November 2022. All have an exercise price of $0.70 (4,500,000 of which have vested and 2,500,000 will vest on 25 November 2019). 900,000 Options – will expire, if not exercised, by 25 November 2021. All have an exercise price of $0.70 (all of which have vested). 906,870 Options – issued under the EOP, with an exercise price of $0.585 (all of which have vested) and will expire if not exercised by 3 July 2021. 204,161 Options – issued under the EOP, with an exercise price of $0.66 (which vest on 5 February 2019) and will expire if not exercised by 5 February 2022. 2,500,000 Options – issued under the EOP, with an exercise price of $0.70 (with 1,000,000 options of which have vested and expiring if not exercised by 12 February 2021, with 750,000 options vesting on 12 February 2019 and will expire if not exercised by 12 February 2022, and with 750,000 options vesting on the later of 12 February 2020 or when the Company achieves cash flow breakeven and expiring if not exercised by 12 February 2023). 315,664 Options – issued under the EOP, with an exercise price of $0.66, which vest on 1 August 2019 and will expire if not exercised by 1 August 2022. 2,500,000 Options – issued under the EOP, with an exercise price of $0.70 and will expire if not exercised by 29 November 2022 (1,250,000 of which have vested and 1,250,000 options vest on dates until March 2020). 900,000 Options – issued under the EOP, with an exercise price of $0.70 (300,000 options of which have vested and expire if not exercised by 3 September 2021, with 300,000 options vesting on 3 September 2019 and expiring if not exercised by 3 September 2022, and with 300,000 options vesting on 3 September 2020 and expiring if not exercised by 3 September 2023). + See chapter 19 for defined terms. Appendix 3B Page 4 04/03/2013 Appendix 3B New issue announcement 10 Dividend policy (in the case of a The fully paid ordinary shares issued will have trust, distribution policy) on the full participation in any future dividends. increased capital (interests) Part 2 - Pro rata issue Questions 11 to 33 are not applicable Part 3 - Quotation of securities You need only complete this section if you are applying for quotation of securities 34 Type of +securities (tick one) (a) +Securities described in Part 1 (b) All other +securities Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities Entities that have ticked box 34(a) Additional securities forming a new class of securities Tick to indicate you are providing the information or documents 35 If the securities are equity securities, the names of the 20 largest holders of the  additional securities, and the number and percentage of additional securities + + + + held by those holders 36 If the securities are equity securities, a distribution schedule of the additional  securities setting out the number of holders in the categories + + + 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over 37 + A copy of any trust deed for the additional securities  Entities that have ticked box 34(b) Questions 38 to 42 are not applicable + See chapter 19 for defined terms. 04/03/2013 Appendix 3B Page 5 Appendix 3B New issue announcement Quotation agreement 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the +securities on any conditions it decides. 2 We warrant the following to ASX.  The issue of the +securities to be quoted complies with the law and is not for an illegal purpose.  There is no reason why those +securities should not be granted +quotation.  An offer of the +securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act. Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty  Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any +securities to be quoted and that no-one has any right to return any +securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the +securities be quoted.  If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the +securities be quoted. 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement. 4 We give ASX the information and documents required by this form. If any information or document is not available now, we will give it to ASX before +quotation of the +securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete. Sign here: Date: 31 January 2019 (Director/Company Secretary) Print name: Robert J Waring == == == == == + See chapter 19 for defined terms. Appendix 3B Page 6 04/03/2013 Appendix 3B New issue announcement Appendix 3B – Annexure 1 Calculation of placement capacity under rule 7.1 and rule 7.1A for eligible entities Introduced 01/08/12 Amended 04/03/13 Part 1 Rule 7.1 – Issues exceeding 15% of capital Step 1: Calculate “A”, the base figure from which the placement capacity is calculated Insert number of fully paid +ordinary securities on issue 12 months before the +issue date or date of agreement to issue 147,736,127 Add the following: Date Number Number of fully paid +ordinary securities issued in that 12-month period under an exception in rule 7.2 26 Sep 2018 550,000 28 Sep 2018 13,333,334 • Number of fully paid +ordinary securities issued in that 12-month period with shareholder approval 5 Oct 2018 1,966,236 31 Jan 2019 1,992,673 • Number of partly paid +ordinary Total 17,842,243 • securities that became fully paid in that 12-month period Note: • Include only ordinary securities here – other classes of equity securities cannot be added • Include here (if applicable) the securities the subject of the Appendix 3B to which this form is annexed • It may be useful to set out issues of securities on different dates as separate line items Subtract the number of fully paid +ordinary securities cancelled during that 12-month period Nil “A” 165,578,370 + See chapter 19 for defined terms. 04/03/2013 Appendix 3B Page 7 Appendix 3B New issue announcement Step 2: Calculate 15% of “A” “B” 0.15 [Note: this value cannot be changed] Multiply “A” by 0.15 24,836,756 Step 3: Calculate “C”, the amount of placement capacity under rule 7.1 that has already been used Insert number of +equity securities issued or agreed to be issued in that 12-month period not counting those issued: • Under an exception in rule 7.2 • Under rule 7.1A • With security holder approval under rule 7.1 or rule 7.4 Note: • This applies to equity securities, unless specifically excluded – not just ordinary securities • Include here (if applicable) the securities the subject of the Appendix 3B to which this form is annexed • It may be useful to set out issues of securities on different dates as separate line items “C” Nil Step 4: Subtract “C” from [“A” x “B”] to calculate remaining placement capacity under rule 7.1 “A” x 0.15 24,836,756 Note: number must be same as shown in Step 2 Subtract “C” Nil Note: number must be same as shown in Step 3 Total [“A” x 0.15] – “C” 24,836,756 [Note: this is the remaining placement capacity under rule 7.1] + See chapter 19 for defined terms. Appendix 3B Page 8 04/03/2013 Appendix 3B New issue announcement Part 2 Rule 7.1A – Additional placement capacity for eligible entities Step 1: Calculate “A”, the base figure from which the placement capacity is calculated “A” 165,578,370 Note: number must be same as shown in Step 1 of Part 1 Step 2: Calculate 10% of “A” “D” 0.10 Note: this value cannot be changed Multiply “A” by 0.10 16,557,837 Step 3: Calculate “E”, the amount of placement capacity under rule 7.1A that has already been used Insert number of +equity securities issued or agreed to be issued in that 12-month period under rule 7.1A Nil Notes: • This applies to equity securities – not just ordinary securities • Include here – if applicable – the securities the subject of the Appendix 3B to which this form is annexed • Do not include equity securities issued under rule 7.1 (they must be dealt with in Part 1), or for which specific security holder approval has been obtained • It may be useful to set out issues of securities on different dates as separate line items “E” Nil Step 4: Subtract “E” from [“A” x “D”] to calculate remaining placement capacity under rule 7.1A “A” x 0.10 16,557,837 Note: number must be same as shown in Step 2 Subtract “E” Nil Note: number must be same as shown in Step 3 Total [“A” x 0.10] – “E” 16,557,837 Note: this is the remaining placement capacity under rule 7.1A + See chapter 19 for defined terms. 04/03/2013 Appendix 3B Page 9