Cellmid : Notes to Appendix 4C

ASX ANNOUNCEMENT NOTES TO APPENDIX 4C

SYDNEY, Tuesday, 24 January 2017: Cellmid Limited (ASX: CDY} provides the following Notes to the Appendix 4C for the second quarter of the 2017 financial year (FY201 7) .

Cellmid closed the second quarter of FY201 7 with a cash balance of $5.3 million, reporting record cash receipts from customers of $1 .4 million, up 98% compared with the same period last year ($713K in 2Q2016).

Through its wholly owned subsidiary, Advangen Limited, the Company's sales reached $943K for its FGF5 inhibitor hair loss products during the second quarter of FY2017, up 79% compared with the same period last year ($526K in 2Q201 6).

During the quarter Cellmid received $1 .2 million from the exercise of the CDYO options that expired on 23 October 201 6 and another $3 million as a result of a private placement. A further $831 K R&D tax credit was received during the quarter.

Operational update - Advangen

Advangen Limited is Cellmid's wholly owned subsidiary that owns and operates the consumer health businesses in Australia, Japan and the USA.

The evolis® REVERSE product range was launched in the USA in November 2016 in a pre-sale format on a dedicated e-commerce platform, evolisprofessional.com. The first shipment to the USA arrived in mid-December 2016 and order fulfilment commenced during the third week of December. A comprehensive digital and social marketing plan, SEM, SEO, community management and other forms of digital strategies will be fully deployed in the coming months to build e-commerce based sales.

Evolis® REVERSE as 2017 TOP 10 New Grooming Product by Men's Health USA. A comprehensive US public relations programme was implemented prior to the product launch. As a result, evolis® has been featured in a number of publications, including The Daily Mail, which has 50 million readers in the United States alone. Evolis® has also been named as one of the 201 7 Top Ten New Grooming Products by Men's Health Magazine. Other features and product mentions are expected in leading fashion and lifesty le magazines as the Company 's PR push continues. A successful PR campaign is critical to the Company's e-commerce strategy.

Pharmacy distribution in Australia grew by several hundred stores during the quarter; these are expected to start stocking the full range of evolis® products during the third and fourth quarters of FY201 7. The Company's dedicated national sales force is actively supporting the pharmacy distribution network, which will be critical for new product launches planned for FY201 7 and beyond.

CELLMID LIMITED ACN 111 304 119 ASX ICDY

Suite 1802, Level 18, 15 Castlereagh Street, Sydney NSW 2000 AUSTRALIA TELEPHONE [phone] FACSIMILE [phone]

WEB www.cellmid. com. au

Advertising activity in television, digital and social channels continued in Australia during the quarter and is expected to increase substantially as the US e-commerce strategy is deployed during the second half of the 2017 financial year.

Operational update - Lyramid and Kinera

Lyramid Limited and Kinera Limited are Cellmid's wholly owned subsidiaries that own and develop midkine (MK) related research and development programmes.

Federal Government funding for Lyramid. Following the close of the second quarter Lyram id was awarded two Innovation Connections Grants from the Australian Government, totalling $100,000. The grants will support collaborations with kidney specialists and University of Sydney research scientists at the Westmead Institute. The planned studies will test the efficacy of MK antibodies for the treatment of chronic kidney disease (CKD) and cardiovascular (CV ) complications of CKD in preclinical rodent models (ASX Announcemen t, 18 January 2017) .

The result of the glioblastoma research collaboration between Lyramid and Complutense University, Spain was reported during the quarter . MK antibodies have shown efficacy in improving tetrahydrocannabinol [THC) treatment response in animal models of cannabinoid resistant glioblastoma multiforme, one of the most common and aggressive forms of brain cancer [ASX Announcemen t 5 October 2016).

In October 2016 Lyramid licensee, Pacific Edge, became Approved Provider to Tricare Health Plan Networks in the US, which provides health care to 9 .4 million beneficiaries of the US Military Health system. Also in October 2016 CxBladder® Monitor was adopted as a replacement for cystoscopy for low risk patients monitored for recurrence of bladder cancer by the Waitemata District Health Board in New Zealand.

In a further development, Pacific Edge reported in December 2016 that clinical study results of CxBladder® Monitor were accepted for publication in the American Journal of Urology. The study confirmed strong performance [93% sensitivity and 97% negative predictive value) of the test and the potential of it to replace cystoscopy in low risk patients.

These developments are expected to have a material, positive effect on CxBladder® sales, which in turn is expected to result in higher royalties for Lyramid.

End

Contact: Maria Halasz, CEO

T [phone]

"'@mariahalasz

Page I 2

Ap pendix 4C

+Rule 4.78

Quarterly report for entities subject to Listing Rule 4.78

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

Name of entity

I CELLMID LIMITED

ABN Quarter ended ("current quarter")

1 69 111 304 119 1 31 DECEMBER 2016

Consolidated statement of cash flows	Current quarter $A'OOO	Year to date (6 months) $A'OOO
Cash flows from operating activities Receipts from customers Payments for research and development product manufacturing and operating costs advertising and marketing leased assets staff costs administration and corporate costs Dividends received (see note 3) Interest received Interest and other costs offinance paid Income taxes paid Government grants and tax incentives Other (provide details if material) 1.9 Net cash from I (used in) operating activities	1,410	2,292
	(443)	(760)
	(378)	(699)
	(620)	(991)
	-	-
	(679)	(1,390)
	(402)	(891)
	-	-
	4	7
	(3)	(4)
	-	-
	831	831
	-	-
	(280)	(1,605)

Cash flows from investing activities Payments to acquire: property, plant and equipment businesses (see item 10) investments	(1) -	(6) -
	- -

+ See chapter 19 for defined terms

1 September 2016 Page 1

Consolidated statement of cash flows	Current quarter $A'OOO	Year to date (6 months) $A'OOO
(d) intellectual property	-	-
(e) other non-current assets	-	-
2.2 Proceeds from disposal of:
(a) property, plant and equipment	-	-
(b) businesses (see item 10)	-	-
(c) investments	-	-
(d) intellectual property	-	-
(e) other non-current assets	-	-
2.3 Cash flows from loans to other entities	-	-
2.4 Dividends received (see note 3)	-	-
2.5 Other (provide details if material)	-	-
2.6 Net cash from I (used in) investing	(1)	(6)
activities

Cash flows from financing activities Proceeds from issues of shares Proceeds from issue of convertible notes Proceeds from exercise of share options Transaction costs related to issues of shares, convertible notes or options Proceeds from borrowings Repayment of borrowings Transaction costs related to loans and borrowings Dividends paid Other (provide details if material) 3.10 Net cash from I (used in) financing activities	2,970 - 1,221 (96) - (24) - - -	2,970 - 1,221 (96) 257 (39) - - -
	4,071	4,313

4. Net increase I (decrease) in cash and	1,588	2,686
cash equivalents for the period
4.1 Cash and cash equivalents at beginning of
quarter/year to date
4.2 Net cash from I (used in) operating	(280)	(1,605)
activities (item 1.9 above)
4.3 Net cash from I (used in) investing activities	(1)	(6)
(item 2.6 above)
4.4 Net cash from I (used in) financing activities	4,071	4,313
(item 3.10 above)

+ See chapter 19 for defined terms

1 September 2016 Page 2