Osteopore : Activities Update Qtr Ending December 2021 and Appendix 4C

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ASX RELEASE│OSTEOPORE LIMITED

DECEMBER 2021 QUARTERLY ACTIVITIES REPORT

Highlights:

• Osteopore achieved S$307,220 (A$310,798) in revenue for Q4 CY21, marking a 70% improvement on Q3 CY21, with improving gross margins at 71% compared to 62% achieved in Q4 CY20.
• The Company ended the quarter with A$4,530,175 cash on hand, securing the continued execution of its growth strategy and to take advantage of the expected increased activity in elective surgeries.
• Osteopore secured the lead role in a A$19m project with the National Dental Centre Singapore and A*STAR research institutes to develop a next generation jaw implant.
• Received Hong Kong approval allowing for the free sale of Osteopore products and strong potential for additional regional access.
• Granted patent secured for 'Smart' 3D biomimetic scaffolds in China, creating research and development opportunities in the region.
• Binding MOU executed with Singular Health to validate their AI model and to conduct a comparative study between Osteopore's existing cranial implant design process and the new design process in a clinical environment.

28 January 2022: Osteopore Limited (ASX: OSX) ("Osteopore" or the "Company"), a revenue- generating Australian and Singapore based global leader in the manufacture of innovative regenerative implants at commercial scale empowering natural tissue regeneration, is pleased to release its quarterly results presentation and Appendix 4C cash flow statement for the three-month period ending 31 December 2021.

Financial Performance

COVID-19 continued to disrupt global healthcare systems in the fourth quarter of 2021. While Q4 CY21 sales increased 70% on Q3 CY21, the Company continued to experience lower demand in its key markets in South Korea and Vietnam which was only partially offset by sales from the USA, Singapore, and Oman. Osteopore achieved S$307,220 (A$310,798) in revenue for Q4 CY21 and ended the quarter with A$4,530,175 cash on hand. Revenue growth in the USA and Europe increasingly provides a commercial foundation on which to build, with a post-COVID strategy in place to scale. As the current pandemic wave eases, Osteopore expects revenue to gradually return to its pre-COVID levels with increased momentum.

During the quarter, the Company continued to work towards maintaining and improving its margins. A gross margin of 71.2% of sales revenue was achieved in Q4 CY21, reflecting an encouraging improvement over the 61.5% achieved in Q4 CY20. The improvement is reflective of the sale of higher- value implants and the Company believes that its cost effective and high margin manufacturing process will ultimately become a major contributor towards the Company achieving profitability as revenue grows.

Osteopore Limited (ACN 630 538 957)│ASX:OSX│16 Ord Street, West Perth│[phone]│www.osteopore.com

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CY 2019 Pro Forma Quarterly Revenues

Osteopore CEO, Goh Khoon Seng said; "Even though COVID-19 continued to disrupt business activities during the quarter, our global expansion is still underway with regulatory clearance and distribution partners secured in most major markets. We have a fully trained and dedicated sales team expected to drive growth in the near term and are currently witnessing growing sales momentum as the effects of COVID-19 recede in the USA and Europe."

Osteopore continues to be included as an "essential service" in Singapore, allowing it to remain open and operational while executing its growth strategy.

Osteopore secures A$19m clinical-industrial partnership

In partnership with the Institute of Molecular and Cell Biology (IMCB), the Singapore Institute of Manufacturing Technology (SIMTech), and the National Dental Centre Singapore (NDCS), Osteopore was nominated as the industry lead on a A$18.7m project to develop a next generation dental implant technology. Osteopore will commit a total of A$1.8m in cash towards the study over the over the next three years.

The results of this research are expected to make a significant contribution towards the development of Osteopore's next-generation dental implants to promote faster bone growth and reduce the need for complex bone harvesting processes, thereby simplifying future dental procedures and applications. The successful conclusion of this translational study will pave the way for Osteopore to access the dental bone graft and membrane market, which has an estimated value of A$1.26b according to Verified Market Research, with 10% of the global dental implant surgeries conducted in its key markets in APAC.

Hong Kong sales approval and Chinese patent granted

Osteopore products were successfully registered with Hong Kong's Medical Device Control System ("MDACS"). While the registration for medical devices in Hong Kong is voluntary, registered medical

Osteopore Limited (ACN 630 538 957)│ASX:OSX│16 Ord Street, West Perth│[phone]│www.osteopore.com

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devices are typically given preference for use. Significantly, an ongoing Osteopore pilot program is providing Hong Kong approved products with expedited access to the prosperous Greater Bay Area.

To qualify for access to the Greater Bay Area, products need to be used and/or purchased by public hospitals in Hong Kong or Macau, meet urgent clinical needs, and contribute to clinical advancements. Access to the mainland Chinese market through the National Medical Product Administration ("NMPA"), the Chinese regulatory body, requires local clinical data which

involves conducting clinical trials. Usually, this process would take at least a few years and incurs high costs. Osteopore's pilot program, allows partial access to this market with clinical data in hand.

During the quarter, Osteopore was also granted Chinese patent protection for its regenerative biomimetic scaffolds made from polycaprolactone and magnesium composite material which is expected to promote faster bone growth and healing. Having secured the patent, the Company is taking the next steps towards expanding Osteopore's involvement with the Chinese medical research and surgical community which will open a pathway to more collaborative research and development and lucrative commercial opportunities throughout the region. China accounts for 18% of the global craniofacial market.

Collaboration with Singular Health to validate patient-specific AI cranial implant design tool

Osteopore signed a binding memorandum of understanding (MOU) with Singular Health Group Ltd (ASX: SHG) ("Singular Health") to validate the results of their AI design-engine through a comparative study using a dataset provided by Osteopore. Singular Health has been awarded a Kickstart 2 grant from Australia's peak science agency, CSIRO, matching $50,000 of funding to conduct a project with CSIRO's Data61 division to automatically generate patient specific cranial implants for craniotomies from CT scans.

The purpose of this six-to-twelve-month collaboration is to conduct a comparative study to test and validate the accuracy and efficiency provided by the automated generation of patient specific cranial implant designs. The significance of this cooperative undertaking lies in the potentially significant design and process improvement opportunities afforded by Singular Health's AI technology and Osteopore looks forward to future collaborations and commercialisation prospects.

Board Renewal

Osteopore has completed its Board renewal process. Mark Leong, who joined Osteopore's Board as Chairman and Non-Executive Director on 1 August 2021, has taken on the role of Osteopore's Executive Chairman and Director, effective 28 December 2021. Based in Singapore and actively engaged with the local team, Mr Leong brings a strong background in South-East Asian capital markets.

The Company announced the addition of experienced corporate executive Vlado Bosanac as the Non- Executive Senior Independent Director. Mr Bosanac combines over 30 years' experience in capital markets, deal origination, negotiation, corporate advisory, strategy, project implementation, leveraged and management buy-outs, as well as private and public investment. Over the past 20 years he has focussed on bio-medical, medical device and pharmaceutical development. Mr Bosanac joins the board of OSX with extensive ASX experience as Chairman and CEO of ASX listed Advanced Human Imaging Limited (ASX: AHI), In addition, in November 2021, Mr. Bosanac successfully dual listed AHI on the NASDAQ Exchange in the USA.

Osteopore Limited (ACN 630 538 957)│ASX:OSX│16 Ord Street, West Perth│[phone]│www.osteopore.com

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Outlook

The Company's focus remains on growing revenue across its current commercial product line and building upon existing regulatory clearances to develop and strengthen brand recognition and uptake in core bone regeneration applications. As vaccination rates continue to improve, medical trade shows are starting to revert to "in-person" which will help Osteopore engage with healthcare decision makers. We are also experiencing increased access to hospitals and surgeons as the pandemic resides in key markets and have a fully dedicated sales team ready to take advantage of a significant backlog of elective surgeries which have been disrupted by the pandemic.

Following the significant improvement in international travel, Company employees are actively engaged in driving business development and sales in the USA and Europe. Mark Leong, Osteopore Executive Chairman, noted that "The Board and Management are very focussed on driving sales back to and above the 2020 trend through engagement with existing and new distributors as well as exploring opportunities to secure direct sales revenues."

Corporate and Financial Summary

The attached Appendix 4C provides details on the cashflows for the quarter ended 31 December 2021. As at 31 December 2021 the Company had a cash balance of $4.53m. The Company's net cash used in operating activities for the quarter amounted to $1.08m and included expenditure on advertising and marketing ($0.15m), staff costs ($0.67m) and administration and corporate costs ($0.56m).

Information Required by Listing Rules

Listing Rule 4.7C.1

During the December 2021 quarter, the Company incurred expenses of $111,000 for the completion of the 2021 Annual EN ISO13485-2016 and MDR 2017/745 Audit.

Listing Rule 4.7C.3

Payments in the December quarter to related parties of $74,000 included at Item 6 in the attached Appendix 4C comprised fees paid to non-executive directors, accounting and company secretarial services and reimbursements.

This announcement has been approved for release by the Board of Osteopore.

For more information, please contact:

Mark Leong Executive Chairman Osteopore Limited [phone]

[e-mail]

About Osteopore Limited

Osteopore Ltd is an Australian and Singapore based medical technology company commercialising a range of bespoke products specifically engineered to facilitate natural bone healing across multiple therapeutic areas. Osteopore's patented technology fabricates specific micro-structured scaffolds for bone regeneration through 3D printing and bioresorbable material.

Osteopore Limited (ACN 630 538 957)│ASX:OSX│16 Ord Street, West Perth│[phone]│www.osteopore.com

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Osteopore's patent-protected scaffolds are manufactured using a proprietary manufacturing technique with a polymer that naturally dissolve over time to leave only natural, healthy bone tissue, significantly reducing post-surgery complications commonly associated with permanent bone implants. Our 3D printer technology is not available in the market and unique to Osteopore.

Forward-Looking Statements

Statements contained in this release, particularly those regarding possible or assumed future performance, revenue, costs, dividends, production levels or rates, prices, or potential growth of Osteopore Limited, are, or may be, forward-looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. Actual results may differ materially from those expressed or implied by these forward-looking statements depending on various factors.

Osteopore Limited (ACN 630 538 957)│ASX:OSX│16 Ord Street, West Perth│[phone]│www.osteopore.com