LWP Technologies : CLARIFICATION REGARDING THE ISSUE OF MILESTONE 1 SHARES TO ECOPROPP VENDORS

CLARIFICATION REGARDING THE ISSUE OF MILESTONE 1 SHARES TO ECOPROPP VENDORS ASX ANNOUNCEMENT 20 JANUARY 2017

The Company has received an enquiry from the ASX regarding the issue of Milestone 1 Shares to the former shareholders OF Ecopropp Pty Ltd (Ecopropp Vendors), and advises as follows:

Under clause 12 of the Option Deed entered into by LWP and each of the shareholders at the time in Ecopropp Pty Ltd, Milestone 1:

1. was satisfied upon successful scale up of the Company's technology being achieved, and

2. was deemed to be satisfied in the event that there was a Change in Control of Coretrack (subsequently LWP).

   On Page 15, paragraph (f) of the Explanatory Memorandum for the Extraordinary Meeting of Coretrack Shareholders, held on 25 June 2014, Shareholders were informed that a "Change in Control" of Coretrack would result in the Milestone 1 Shares being issued to Ecopropp Vendors.

   The transaction was approved by Coretrack Shareholders at the EGM on 25 June 2014. A change in control arose on 6 March 2015 when;

3. All of the 3 directors of Coretrack resigned, being Winton Willisee, Bernie Kelly and Trevor Beazley; and

4. 2 new directors were appointed being Eugene Loy and Ross Hendon. Clause 12 of the Option Deed reads:

5. The Directors had sought and received confirmatory legal advice regarding the Milestone 1 Share issue prior to the 24 March 2015 Board meeting.

   The Board minutes of March 24, 2015 reflect that Mr. Konig, who was a director at the time of the change in control, and also a key vendor of Ecopropp, left the meeting for the discussion on the Milestone 1 Shares, and did not participate in the deliberations regarding whether the terms of Milestone 1 had been satisfied or deemed satisfied, pursuant to the terms of the Coretrack- Ecopropp Agreements, nor whether the Milestone 1 Shares should be issued or otherwise.

   Yours faithfully

   Andrew Bursill Company Secretary

   ENDS

   For further information please contact:

   Siegfried Konig Chairman

   LWP Technologies Limited Phone: [phone]

   Email: [e-mail]

   For Media & Investors please contact: Ben Jarvis, Six Degrees Investor Relations [phone] About LWP Technologies

   LWP Technologies Limited (LWP) is an Australian oil and gas technology company focused on commercialising next generation, fly-ash based, proppants for use in hydraulic fracturing of oil and gas wells globally. LWP is seeking to commercialise its proppants as a cost effective, superior alternative to bauxite and clay based ceramic proppants, typically used in hydraulic fracturing operations currently. The Company commenced proppant production from its pilot scale proppant manufacturing plant in Queensland, Australia, in Q3, 2015. LWP is seeking joint venture partners and/or licensees to commercialise its proppant product, and deliver significant returns to shareholders.

   About Proppants

   Proppants are a sand-like commodity used to 'prop' open fractures in shale rocks which allows oil and gas to flow. Proppants are often the single largest cost item in the fracking process and represent a

   multi-billion dollar global market annually. Traditional ceramic proppants are made from clay and/or bauxite.

   LWP Technologies ceramic proppants are majority manufactured from fly-ash, a by-product of coal fired power plants. The Company is of the view that its unique proppant product has the potential to lead the

   industry due to:

   • the widespread abundant availability of fly-ash, often near to oil and gas shale resources;

   • the ultra-light weight of LWP fly-ash proppants; and

   • the ability of LWP proppants to withstand the very high pressures and heat of deep wells.

   LWP proppants have been certified by Independent Experts to meet or exceed both the American Petroleum Institute standards and the ISO standards.