PPK : Enters Documentation to Proceed with BNNT Acquisition

ASX ANNOUNCEMENT

FOR IMMEDIATE RELEASE TO THE MARKET

PPK Group Limited - ASX Code: PPK

Thursday 24 January 2019

PPK ENTERS BINDING AGREEMENTS TO ACQUIRE INTEREST IN BORON NITRIDE

NANOTUBE TECHNOLOGY AND OTHER TECHNOLOGY VENTURES

• • PPK Group Ltd has now entered into formal agreements to acquire AIC Investment Corporation Pty Ltd (AICIC) and a 50% interest in BNNT Technology Ltd;

• • This acquisition provides PPK with the opportunity to participate in the bulk scale production and commercialisation of Boron Nitride Nanotubes which have multiple high added value uses in mining, defence, aeronautical, space, medical and other industries;

• • This acquisition also provides PPK with equity in two other technology ventures which are now in the process of being commercialised;

• • A shareholder meeting to approve this transaction is expected to be held by mid-March 2019.

Strategic Acquisition of AIC Investment Corporation Pty Ltd (AICIC)

PPK Group Ltd (PPK) announced on 13 November 2018 that it had entered into a binding Heads of Agreement with Australian Innovation Centre Pty Ltd (AIC) to acquire 100% of AICIC.

PPK is now pleased to advise that it has completed due diligence and executed formal documentation to proceed with this acquisition.

AICIC owns 50% of BNNT Technology Limited, a joint venture company which holds an exclusive 20 year licence in respect of technology developed by Deakin University to manufacture BNNT on a commercial basis.

BNNTs are a new advanced nanomaterial that have superior mechanical properties, excellent thermal conductivity, optical and infrared transparency, thermal and chemical stability, neutron shielding capability, electrical insulation properties and extreme flexibility. BNNTs are light weight and are considered to be stronger than high-strength steel and industrial-grade carbon fibre.

PPK GROUP LIMITED

ABN: 65 003 964 181

Level 27, 10 Eagle St, Brisbane QLD 4000

GPO Box 754, Brisbane Qld 4001

Tel: [phone] Fax: [phone]

BNNT Technology Limited is currently establishing its first full scale production plant at Deakin University's ManuFutures, a purpose-built advanced manufacturing innovation hub in their Geelong Waurn Ponds Campus. BNNT Technology Limited was recently awarded a Federal Government Manufacturing Grant of $1,400,000 for the new BNNT plant.

PPK sees this investment as an opportunity to secure a leading position in developing and providing a broad range of advanced products in the mining industry as well as other industries. When used in the manufacture of new composite materials, potential applications include the next-generation of fighter jets, spacecraft, bullet-proof vests, transparent armour, heat sink for electronics, lighter-weight vehicles, safer lithium-ion batteries and sporting goods.

AICIC also has equity in two other technology ventures which PPK will participate in. PPK will also enjoy a priority arrangement with AIC that provides PPK with a first right to innovations and technologies commercialised by AIC over the next 5 years.

The key terms of the acquisition were summarised in the Company's announcement dated 13 November 2018 and will be set out in further detail in the Notice of Meeting and Explanatory Statement for a shareholder meeting to approve the acquisition. It is anticipated that this shareholder meeting will be held mid-March 2019 and the Notice of Meeting will be sent to all shareholders at the earliest opportunity.

For further information contact:

Robin Levison

Executive Chairman of PPK Group Limited on 07 3054 4500.