Further to the announcement made to the market on 18 December 2018, Recce Pharmaceuticals Ltd. advised that Executive Chairman and Chief Research Officer, Dr. Graham Melrose will provide the Company with a short term, unsecured loan of AUD 50,000. Further to the loan offered by Dr. Melrose, Executive Director James Graham will also provide the Company with a short term, unsecured loan of AUD 100,000. The AUD 150,000 in additional funds from these loans will be used to support the Company's short- term cash flows as it continues its new class of broad spectrum antibiotic development program. Under the terms of the loans, Dr. Melrose and Mr. Graham will receive a nominal interest of 5% per annum, with the principal to be repaid within the next two years.