Osteopore : Activities Update Qtr Ending March 2022 and Appendix 4C

ASX RELEASE│OSTEOPORE LIMITED

MARCH 2022 QUARTERLY ACTIVITIES REPORT

Highlights:

• • Osteopore achieved S$371,929 (A$375,386) in revenue for Q1 CY22, with a gross manufacturing margin of 70.1% and ended the quarter with A$3,405,837 cash on hand.

• • Q1 CY22 revenue was up 21% on Q4 CY21, resulting in the second consecutive quarter

  of revenue growth, and delivering a 13.5% increase over the previous year's revenue for the corresponding period of Q1 CY21.

• • Successful collaboration with Singular Health to improve the accuracy, workflow efficiency, speed and patient outcomes for Osteopore's customised cranial implants.

• • Began development of a completely new and novel 3D printer in partnership with the Singapore Institute of Manufacturing Technology (SIMTech).

• • Continued to advance a number of development programs, including new products for fresh craniotomy cuts in Australia, and a number of new shapes for burr hole covers.

• • Expand our footprint into the Middle East with the first shipment of implants to United Arab Amirates, and increased our presence in Europe with the first sales to Switzerland.

• • Commenced physical attendance at multiple trade show events to engage with healthcare decision makers and increase the visibility and credibility of Osteopore products among neurosurgeons, researchers and other health professionals.

• • Implemented a management restructure to sharpen the Company's focus, increase efficiencies and streamline sales and marketing responsibilities.

28 April 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 and Appendix 4C cash flow statement for the three-month period ending 31 March 2022.

Financial performance regaining momentum

Osteopore achieved S$371,929 (A$375,386) in revenue for Q1 CY22 and ended the quarter with

A$3,405,837 cash on hand. Q1 CY22 revenue was up 21% on Q4 CY21, and up 13.5% over the previous year's revenue for the corresponding period of Q1 CY21. This result was the second consecutive

quarter of revenue growth despite COVD-19 continuing to disrupt global healthcare systems.

However, while the pandemic contributed to lower revenue for the majority of CY21, conditions are gradually improving and Osteopore believes further growth is likely moving forward.

This sequential growth and initial rebound in revenue, indicates both strong adoption and increasing surgeries at hospitals. Growth can also be related to Osteopore's online training programmesimplemented during COVID, which allowed the company to engage with sales reps and doctors during lockdowns.

These digital sales and training programs will continue to be a critical component of Osteopore's overall approach to scaling the business. They allow our teams to cost effectively engage with key medical stakeholders and decision makers anywhere in the world, and complement on ground physical outreach programmes. Additional stand out results included Q-O-Q sales in the U.S. increasing by 190%, Singapore growing 387%, Vietnam 91%, and Indonesia 88%.

The lifting of COVID restrictions across key markets during the quarter enabled the sales team to be on-ground in both the US and EU, to support current distributors and sign-up new partners. As the pandemic eases, Osteopore expects to emerge stronger with increased momentum.

The Company also continued to work towards maintaining and improving its margins. A gross margin of 70.1% of sales revenue was achieved in Q1 CY22, reflecting an encouraging consistency with the 71.2% achieved in Q4 CY21. Osteopore believes that its cost effective and high margin manufacturing process will ultimately become a major contributor towards the Company achieving profitability as revenue scales.

Osteopore Executive Chairman, Mark Leong said; "This quarter's results clearly illustrate that we are emerging stronger, duly executing our strategy and gaining momentum. While our revenue growth is encouraging, equally important is continuing to build on our clinical data, global regulatory clearances and securing distribution partners in as many countries as possible. We know that our products are superior over traditional bone regeneration products, so we are moving rapidly to expand our global network. We are confident that as we execute our strategy and achieve various key milestones, revenue will continue to grow as more and more surgeons switch to using our products."

Commenced AI study to improve product design

In early March, Osteopore commenced a study in partnership with Singular Health Group Ltd (ASX:

SHG) ("Singular Health"), to improve the accuracy and workflow efficiency of Osteopore's

customised cranial implants. The study is part of Osteopore's strategy to collaborate with a range of technologies to improve the efficacy of its regenerative implants and improve patient outcomes.

Osteopore's customised implants are developed through CT scans of patients which are provided by surgeons. The scans are processed by software that converts them into 3D models, which can then be used to 3D print customised implants.

The objective of Singular Health's AI design engine is to reduce modelling time, while maintaining or improving design accuracy. Results to date have enabled an Osteopore cranial implant to be designed in less than 4 minutes with 91% accuracy. The study will also aim to reduce product-to- customer timeframes and improve implant quality.

Examples of Osteopore's customised implants which could benefit from the study

Advancements in manufacturing

Our 3D printing manufacturing process continued to be refined through Industrie 4.0 initiatives, as well as building on our intellectual property and trade secrets. We successfully tested an auto-platform cleaning and auto-feeding mechanism for our 3D printers, this will allow Osteopore to print implants with continuous material feed without operator intervention.

Through Osteopoe's IAF-ICP grant, the Company commenced the development of a new 3D printer in partnership with the Singapore Institute of Manufacturing Technology (SIMTech). SIMTech develops high-value manufacturing technology to enhance the competitiveness of Singapore's manufacturing industry, and the new printer aims to create a product that releases bio-stimulants which support the healing process.

Additional product development

During the quarter, Osteopore continued to advance a number of development programs that aim to create new products and expand the scope of bone regeneration applications, including a Vietnam hospital that completed a number of tibia reconstructions using Osteopore's next generation implant. Positive feedback from the surgeons conducing these procedures illustrated that Osteopore's products were easy and straightforward to use, did not take too much time to

implant, and complements well with fixation devices to provide additional stability during the bone healing process.

Our first-in-human study in high tibia wedge osteotomy also continued efficiently, with 38 patients already receiving Osteopore's wedge implants. The Company also added new products and indications for fresh craniotomy cuts in Australia, and a number of new shapes for burr hole covers that allows insertion of a catheter.

Osteopore has a number of new products under development

Distribution network and market access expanded

Osteopore currently has a number of highly successful distributor agreements already in place across many major world markets, with further distribution agreements recently secured that enhance our global reach. The first of these agreements saw Osteopore expand its footprint to the Middle East with the first shipment of its cranial regenerative implants to the United Arab Emirates (UAE). The Company will now aim to harness this opportunity and gain new regulatory access in additional Middle East territories.

Encouraging progress was made in Europe, with shipments of cranial regenerative implants to Switzerland. Achieving first sales in Switzerland was yet another key milestone for the company and displays the team's ability to execute on the strategy to penetrate new markets. Further sales across Europe are expected to continue this quarter.

Additional distribution agreements are also expected to be secured in the near term, as we move quickly to regain momentum and have a fully dedicated sales team ready to take advantage of a significant backlog of elective surgeries.

Market access also improved. Device registration with the MHRA post-Brexit was completed, meaning our products can be placed on the UK market and distributed for specific surgical indications. We obtained clearance from the UAE MOHAP for import and supply of our products for craniofacial, nasal, and dental applications as well as patient specific implants.

Engagement with potential customers increasing

This quarter we experienced an increase in access to hospitals and surgeons as the pandemic resided in key markets. Medical trade shows started to revert to "in-person", which helped Osteopore engage with healthcare decision makers across a number of events.

In mid-March, Osteopore attended the XVII World Congress of Neurosurgery in Bogotá, Colombia, hosted by WFNS. The World Federation of Neurosurgical Societies (WFNS) is a professional, scientific, non-governmental organisation representing some 30,000 neurosurgeons worldwide. Osteopore attended the event to increase visibility and credibility of its activities among neurosurgeons, researchers and other health professionals.

Osteopore also had a presence at the World Congress of Aesthetic Surgery-Medicine, Anti-Aging and Alternative Medicine (WCAM2022) in late March. The event was held in Bangkok Thailand and brought together 10 international aesthetic associations of Asia in one of the biggest international aesthetic conferences. Osteopore presented their advanced implants to assist with bone and tissue regeneration following cosmetic surgery.