#1Ocean Grown Abalone Ocean Grown Abalone Investor Presentation March 2019#2Important Notice and Disclaimer Summary of information This presentation has been prepared by and is the sole responsibility of Ocean Grown Abalone Limited ("OGA" or the "Company"). This presentation contains general and background information about the Company's activities current as at the date of the presentation and should not be considered to be comprehensive or to comprise all the information that an investor should consider when making an investment decision and does not contain all information about OGA's assets and liabilities, financial position and performance, profits and losses, prospects, and the rights and liabilities attaching to OGA's securities. The information in this presentation should be read in conjunction with OGA's other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, available at www.asx.com.au. The information in this presentation is based on OGA's own information and estimates and has not been independently verified. OGA is not responsible for providing updated information and assumes no responsibility to do so. Any investment in OGA should be considered speculative and there is no guarantee that OGA will make a return on capital invested, that dividends would be paid, or that there will be an increase in the value of the investment in the future. Not financial product advice Statements and information in this presentation are current only as at 24 October 2018 (or as otherwise indicated) and the information in this presentation remains subject to change without notice and is expected to change, potentially in material respects. The information contained in this presentation is for information purposes only and is an overview and does not contain all information necessary to make an investment decision or that would be required in a prospectus or product disclosure statement prepared in accordance with the requirements of the Corporations Act 2001 (Cth) (Corporations Act). This presentation is for information purposes only and should not be considered as, an offer or an invitation to acquire securities in the Company or any other financial products and neither this presentation nor any of its contents will form the basis of any contract or commitment. This presentation must not be disclosed to any other party and does not carry any right of publication. Neither this presentation nor any of its contents may be reproduced or used for any other purpose without the prior written consent of the Company. The information contained in this presentation is of a general nature and does not purport to be complete or verified by the Company. The information contained in this presentation does not constitute investment or financial product advice (nor taxation or legal advice) or a recommendation to acquire shares in the Company and is not intended to be used as the basis for making any investment decision. In providing this presentation, the Company has not considered the objectives, financial position, taxation situation or other needs of any particular recipients. Investors should consult with their own professional advisers in connection with any acquisition of securities. No liability The Company, its related bodies corporate, shareholders or affiliates, nor any of its respective officers, directors, employees, affiliates, agents, representatives or advisers (each a "Limited Party") guarantees or makes any representations or warranties, express or implied, as to or takes responsibility for, the accuracy, reliability, completeness, correctness or fairness of the information, opinions, forecasts, reports, estimates and conclusions contained in this presentation. The Company does not represent or warrant that this presentation is complete or that it contains all information about the Company that a prospective investor or purchaser may require in evaluating a possible investment in the Company or acquisition of shares in the Company. To the maximum extent permitted by law, each Limited Party expressly disclaims any and all liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of or reliance on information contained in this presentation including representations or warranties or in relation to the accuracy or completeness of the information, statements, opinions, forecasts, reports or other matters, express or implied, contained in, arising out of or derived from, or for omissions from, this presentation including, without limitation, any financial information, any estimates or projections and any other financial information derived therefrom. Forward looking statement This presentation may contain certain forward looking statements and comments about future events, including the Company's expectations about the performance of its businesses. Forward looking statements can generally be identified by the use of forward looking words such as, 'aim', 'assume', 'due' 'expect', 'anticipate', 'likely', 'intend', 'should', 'could', 'may', 'predict', 'plan', 'purpose', 'will', 'believe', 'forecast', 'estimate', 'target' and other similar expressions within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance or outlook on, future earnings or financial position or performance are also forward looking statements. Forward looking statements involve inherent risks and uncertainties, both general and specific, and there is a risk that such predictions, forecast, projections and other forward looking statements will not be achieved. A number of important factors could cause the Company's actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward looking statements, and many of these factors are beyond the Company's control. Forward looking statements are provided as a general guide only, and should not be relied on as an indication or guarantee of future performance and involve known and unknown risks, uncertainty and other factors, many of which are outside the control of the Company. As such, undue reliance should not be placed on any forward looking statement. Past performance is not necessarily a guide to future likelihood of achievement or reasonableness of any forward looking statements, forecast financial information or other forecast. Nothing contained in this presentation nor any information made available to you is, or shall be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of the Company. No Limited Party or any other person makes any representation, or gives any assurance or guarantee that the occurrence of the events expressed or implied in any forward looking statements in this presentation will occur. The information in this presentation remains subject to change without notice. No responsibility or liability is assumed by the Company for updating any information in this presentation or to inform any recipient of any new or more accurate information or any errors or mis-descriptions of which the Company or its advisers may become aware. Forward looking statements speak only as of the date of this document. There can be no assurance that actual outcomes will not differ materially from these statements. To the maximum extent permitted by law, OGA and any of its affiliates and their directors, officers, employees, agents, associates and advisers: disclaim any obligations or undertaking to release any updates or revisions to the information to reflect any change in expectations or assumptions; do not make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of the information in this document, or likelihood of fulfilment of any forward-looking statement or any event or results expressed or implied in and forward-looking statement; and disclaim all responsibility and liability for these forward-looking statements (including, without limitation, liability for negligence). Ocean Grown 2 Abalone#3Operations 3 MM#4Business overview Operations ☐ Flinders 2 completed October 2018. ■ Since FY 2017 total capacity increased 100% to 10,000 installed Abitats. ■If laid end to end Abitats would be approximately 20 Km's long. Installed capacity lays the foundation for increases in future harvests/sales. Production and Sales ■ Harvest FY 2018 - 38.1 tonnes (FY 2017 - 17.2 tonnes). BIOMASS Growth Total BIOMASS @ 31 December 2018 - 210T (@ 30 June 2018 – 161T). - 181,143 Kg of commercial grade abalone on ranches @ 31 December 2018 compared to 100,718 Kg at 30 June 2018. Processing Facility - Augusta Marina – target completion June 2019 - • Brings additional flexibility and productivity improvements to the business. • Resolves processing "bottleneck" limiting production. Future Developments Wylie Bay - 18 month assessment completed. Encouraging and comparable to existing commercial ranches in Augusta. ■ Esperance - Assessing 34 Ha prime coastal land to develop land based abalone hatchery and grow-out business. ■ Flinders 3-approval given for additional 5,000 ABITATS. Trials underway outside of existing lease to assess future expansion potential. H Ocean Grown 4 Abalone#5Locations OGA has developed proprietary ABITAT 'ranching technology' enabling it to establish "wild abalone" populations, in locations previously regarded as "oceanic desert". • Current locations: Augusta Western Australia. · Area 413 Ha Lease. • 10,000 Abitats and installed capacity of 200 T p.a. Wylie Bay - Esperance Western Australia. • · Area 922 Ha Lease. Trials commenced October 2017. March 2019- Positive results, similar to existing Augusta commercial ranching operations. Ongoing monitoring for future expansion opportunities. Ideal areas where we apply our ranching technology: • Areas of suitable habitat on which to locate reefs - (sand/seagrass). • • Close proximity to a Marina, hatchery and export supply chains. Protection from large swells. Augusta Wylie Bay Ocean Grown Abalone 5#6BIOMASS and growth rate update BIOMASS Kg 60,000 50,000 40,000 30,000 20,000 10,000 BIOMASS of abalone by size class Flinders Bay 250,000 0 200,000 150,000 100,000 50,000 0 -50,000 30-40 40-50 50-60 60-70 70-80 80-90 90-100 100-110 110-120 120-130 130-140 140-150 Abalone class size (mm) Jun-17 Dec-17 Jun-18 Dec-18 -Cumulative Biomass (RHS) Cummulative BIOMASS Kg BIOMASS overview ✓ OGA's ocean BIOMASS and harvest continues to increase year on year, while wild greenlip abalone stocks and production continue to decline. ✓ 28.7 tonnes harvested in HY2019, @ 31/12/18-OGA has 181,143 Kg of commercial grade abalone on its oceanic ranches (@ 30/06/18-100,718 Kg). ✓ OGA ranched product is well positioned to fill the gap in reduction of wild quota caught greenlip abalone. Ocean Grown Abalone 6#7New Processing facility - Augusta Western Australia The new processing facility provides OGA the opportunity to unlock value. • . Increased production capacity. - Individual Quick Frozen meat (IQF). - Whole in Shell (WIS). - Live - premium product, capacity of up to 7,500 Kg in a week. Increased production flexibility. Improved operational productivity - secure service centre at marina. . Lower unit costs of production. • Addresses current processing bottleneck, limiting production. • Completion - June 2019. Ocean Grown Abalone 7#8Harvest/Sales Harvest volumes - up 37% to 28.7 tonnes in H1FY19 compared to 21.0 tonnes in H1FY18. ✓ Largest ever harvest for a quarter in Q2FY19 of 19.9 tonnes, an increase of 48% compared to the previous largest quarter in Q2FY18. • Abalone up to 140mm & 400g being harvested from 3 year old reefs. • Includes thinning of younger 2 year old stock. Average 100mm & 140g. Total sales-up 15% to $1,682,784 in H1FY19 Ocean Grown Abalone 8#9Wylie Bay Background . Join Venture with Ocean Grown Abalone 67% (OGA) and Ocean King Fishing (OKF) 33%. • Size 926 Ha (Area 1 - 596 Ha, Area 2 - 326 Ha). Augusta commercial ranch lease 413 Ha. • First seeded October 2017. Performance ⚫ 18 month assessment completed - encouraging results. Similar growth & survival to Augusta. • Continue monitoring in 2019 for future expansion opportunities. Key Commercial Terms . . • OGA & OKF - Joint operating arrangements. OGA receives a marketing fee for all JV abalone net sales. OGA receive a Royalty against net sales from the JV for use OGA's IP. 9 Wylie Bay - October 2018.#10Esperance - abalone hatchery and land-based grow-out Delta Thunkow Esperance Sandy Creek Lot 50A-34 Ha • OGA finalizing contracts for an option to purchase a 34 Ha rural property in Esperance, Western Australia. TERMS 12 month lease with option for additional 12 month lease for $10,000 p.a. Option to purchase at OGA discretion. Sale price - $500,000 plus sub-division costs capped at $15,000 ⚫ The property is a unique proposition for large scale land-based abalone farm. • A preliminary assessment suggests the property has the capacity to develop a 500T per annum production of greenlip abalone. STAGE 1 - 250T tank grow-out capacity STAGE 2-500T tank grow-out capacity Ocean Grown Abalone 10#11Why is OGA assessing land based abalone farming in Esperance? • This is a very rare opportunity. ⚫ Few properties in Australia are suitable for the development of large-scale abalone farming business. • • Value accretive to OGA, providing juvenile abalone supply diversification and vertical integration to support oceanic ranching activities post 2024. . Compliments existing oceanic ranching operations, providing growth and market diversification into farmed abalone. ⚫ Land based abalone farming is profitable. e.g. Yumbah, CMG. • • • Strong international demand for farmed abalone from Australia. $40/kg. Predictable, established culture technology for land-based farming. o 30 years of continuous improvement in: Hatchery technology. ➤ Grow-out technology. ➤ Processing. ➤ Market development. Ideal water temperatures 14°C - 21°C = high growth rates. Large rural coastal property, with supporting infrastructure near established town. • Very supportive Shire Council & community. • Only 10km from Esperance - population 14,000. Ocean Grown Abalone 11#12Indicative next steps - Esperance abalone farm . • Execute land agreements with Esperance Shire - expected to be completed by end of May 2019. • Undertake feasibility study. • ⚫ Secure licenses, obtain approvals. • Assess funding strategies. • 9 to 12 months - Decision on whether to proceed with development. • • 12 to 18 months - source capital. 18 to 24 months - commence development. 2 to 3 years - First Spawning of brood stock for farm. • 5 to 6 years – First harvest and sales of 100g farmed greenlip abalone. Ocean Grown Abalone 12#13Financials 13#14Profit and LoSS - @ 31 December 2018 Profit and Loss overview by key activity for the Half Year ended 31 December 2018 Ranching Activities Head office Group Total 3rd Party Processing Selling & Marketing Operating income and expenditure Total Revenue 1,586,984 95,800 112,624 Operating Costs (1,769,732) (121,096) (219,247) (827,572) 1,795,408 (2,937,646) Development and Construction costs (125,505) (125,505) Investment in BIOMASS (887,964) (887,964) R&D Refund anticipated to be received in FY2020 857,285 857,285 BIOMASS movement 3,083,513 3,083,513 Total Operating Profit 1,887,296 (25,296) (219,247) 142,338 1,785,091 Non operating adjustments Performance Rights (367,330) (367,330) Deprecation & Amortisation (266,866) (3,908) (21,526) (292,300) Total Non operating adjustments (266,866) (3,908) (388,856) (659,630) Profit (Loss) before tax 1,620,430 (29,204) (219,247) (246,519) 1,125,461 ✓ First half year profit since listing $1,125,461 compared to H1FY18 ($1,420,548). ✓ Total operating cost reductions across the business $341,801 Dive Vessels and operating costs; ↓ $153,809 Corporate & Admin. ✓ Strong BIOMASS growth for the half year, provides ocean inventory for future sales. 14#15Board & Corporate Structure 15#16Capital Structure Issued capital Capital Structure (as of 29 March 2019) Shares on Issue Options on Issue: (100% escrowed) Performance Rights on Issue Share Price (29/03/2019) Market Capitalisation Cash Balance at 31 December 2018 Cash Balance at 29 March 2019 174,110,260 21,346,902 12,342,391 $0.17 $29,598,744 $ 6,106,598 $4,352,552 Ocean Grown Abalone 16#17Corporate Structure 100% OGA Operations Pty Ltd 100% Ocean Grown Abalone Limited Holder of aquaculture licence and lease for Flinders Bay 100% OGA Wylie Bay Pty Ltd Construction work on reefs Flinders Bay 1 Project Flinders Bay 2 Project Wylie Bay Project Management Agreement 67% Wylie Bay Abalone Pty Ltd Holder of aquaculture licence and lease for Wylie Bay Ocean Grown Abalone 17#18Board Structure Mr Peter Harold (Non-Executive Chairman), B. App. Sc (Chemistry) FAICD Peter is the Managing Director of Panoramic Resources Limited (ASX:PAN) and is a process engineer with over 30 years of corporate experience in the minerals industry, specialising in financing, marketing, project development and operating, business development and general corporate activities. Prior to founding Panoramic Resources in March 2001, Peter held various senior management positions with Shell Australia, Australian Consolidated Minerals Limited, Normandy Mining Limited, MPI Mines Limited and the Gutnick network of companies. Peter is also Non-Executive Chairman of Horizon Gold Limited (ASX:HRN) and a Non-Executive Director of Pacifico Minerals Limited (ASX:PMY). Mr Brad Adams (Managing Director) BSC (Biology), G.Dip (Aqua) MBA Brad is a third-generation fisherman and has worked as a commercial abalone diver along Western Australia's south coast for 12 years. In the 1990's, Brad was involved in setting up one of Tasmania's first abalone farms - Tasmanian Tiger Abalone, which later became Cold Gold Abalone. Brad has been actively involved in Abalone Aquaculture research and development in Western Australia since 2000. Brad was a director of the Western Australian Fishing Industry Council from 2009 to 2011 and Chairman from 2011 to 2013. He holds a MBA and Bachelor of Applied Science, Biology from Curtin University of Technology and a Graduate Diploma, Aquaculture from the University of Tasmania. Brad has been a Director of and served in an executive capacity for Ocean Grown Abalone Limited since July 2013. Mr Ian Ricciardi (Executive Director) lan has been involved in the Western Australian Fishing Industry since 1975. lan has worked on and operated prawn trawlers in Shark Bay, Gulf of Carpentaria and Kimberly Prawn Fisheries. Ian also has interests in the South West Trawl Fishery, through One Sea Pty Ltd - Rottnest Island Scallop. The Ricciardi Family built and operated an Export Food Processing Facility in North Coogee and holds 50% interest in Fremantle City Coldstores. lan held the position of President of Shark Bay Prawn Association for 10 years and has significant experience in WA Fisheries-related processes. Ms Danielle Lee (Non-Executive Director) B.Ec, LLB Danielle is an experienced corporate lawyer with more than 23 years of experience shared between private law firms and the Australian Securities Exchange. She has a broad range of skills and legal experience in the areas of corporate advisory, governance and equity capital markets. She has advised a range of Australian public and private companies in a range of industries on corporate transactions including capital raisings, ASX listings, business and share acquisitions, shareholder agreements and joint venture agreements. Ocean Grown Abalone 18