#1Ocean Grown Abalone ALEX Ocean Grown Abalone Investor Presentation December 2017#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 20 December 2017 (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 any forward-looking statement; and disclaim all responsibility and liability for these forward-looking statements (including, without limitation, liability for negligence). Ocean Grown 2 Abalone#3Overview 3#4Introduction: Ocean Grown Abalone Though an innovative abalone "ranching" model, OGA can produce a high quality, sustainable product to meet growing demand Costs of land-based abalone aquaculture is high: high power, feed and infrastructure costs and limited availability of land; no new developments for a number of years. Wild catch quotas in decline. Global demand for Greenlip abalone is strong with high prices around US$39.5/kg being achieved for whole abalone, ~7% increase in 6 months from production commencing. Inn$ $ OGA has a world-first method of ranch producing abalone which delivers a premium product in a sustainable, environmentally friendly way, at a lower cost than land- based methods. Ocean Grown Abalone 4#5Investment proposition Innovative technology: OGA has developed the world's first 'ranching' method of greenlip abalone production with high margins and high barriers to entry. Established business model: Commercial production and revenue from Augusta ranch commenced November 2016. Clean, green & sustainable: Grown in natural habitat with a low/positive environmental footprint as certified by third-party experts. High-calibre management: Led by industry executives and Board members who have experience in growing businesses Growth inflection point has arrived: Model is now being deployed at other locations which provides strategic growth; diversification of risk. Blue sky potential: Ongoing expansion at current sites, entering new states in Australia and deployment overseas all feature in further growth strategy. $ Positive supply demand fundamentals: Growth driven by emerging Asian middle class who view abalone as a premium delicacy, with declining wild catch quotas limiting supply Ocean Grown Abalone 5#6OGA at a critical inflection point: poised for rapid growth Ex DADI O The Adams family have been diving for abalone in Augusta since the 1960's. With the wild catch population dwindling, Brad turned his attention to the concept of "ocean ranching". "Ocean ranching" concept proven over the last 12 years through approximately A$18M of funding into research, and then commercial development With the commercial proposition now validated through regular sales to China, the strategy is to expand to multiple sites to leverage off the work of the last decade. High-value industry: Greenlip abalone a sought-after delicacy, especially in Asian markets, with growing demand. Premium product: OGA's quality allows it to compete with wild-catch product. OGA can grow a higher quality abalone at a cheaper cost than current land-based farms. Immediate avenues for growth underway with expansion of current site in Augusta and testing new sites at Wylie Bay (Esperance) and Port Lincoln (South Australia). Further afield, growth opportunities exist in Victoria, Tasmania, New Zealand and Mexico. Ocean Grown Abalone 6#7The Business 7#8The OGA process Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Site identification Research and testing Licence and approval Abitat construction and deployment Abitat seeding: 40mm juveniles Growth phase Harvest - highly flexible depending on market demand Steady state Ocean Grown Abalone 8#9Revenue model $ A typical 5,000 abitat should produce approximately 100 tonne of abalone at steady state. Useful life of an abitat is estimated to be 100 years. Whole Greenlip abalone are currently selling at A$50/kg. Abalone can be sold locally and overseas in several forms including live, meat, canned, dried or frozen. Live can bring a premium hence investment in processing. When a ranch reaches steady state, costs are largely fixed, meaning significant leverage to higher abalone prices. OGA plan to market its abalone as a premium product - "Baby Wild". Other revenue opportunities include ranch tours, celebrity chef events and the sale of other abalone products such as shell jewelry. Ocean Grown Abalone 9#10Ranch expansion timetable Testing/Approvals Deployment/growth/construction Revenue Augusta | Augusta II Esperance Augusta III South Australia Headquarters 01/14 01/15 01/16 01/17 01/18 01/19 01/20 01/21 01/22 Ocean Grown Abalone 10#11Growth & Production 11#122017/2018 Production Update FY2018 YTD (15/12/17) abalone harvest of 21.1T : Abalone up to 140mm & 400g being harvested from 3 year old reefs; ⚫ Includes thinning of younger 2 year old stock. Average 100mm & 140g Harvesting rates are expected to slow down over December 2017 and January 2018 due to seasonal weather conditions, before resuming normal rates in February. Ocean Grown Abalone 12#13Abalone Growth Rates Shell length (mm) 160 80 60 40 20 རྦྦ ༅ ྴ ༈ ཎྜ ཎྜ ྨ ༅ ླ 。 200 180 140 120 100 0 1 2 Study merged data Gompertz (wild data) L_inf=178.41 LENGTH (mm) WEIGHT (g) k=0.61 40 10 t_0=2.62 50 19 60 33 70 53 L_inf=164.31 80 75 k=0.66 t_0=2.47 90 100 95 130 100 160 105 180 110 205 115 235 120 280 3 4 5 6 7 8 9 10 Time (years) 125 330 130 370 Speculative Gompertz growth curve Typical weights at various lengths. Hart's wild data Speculative Gompertz growth curve created using growth data for the three size classes in the H. laevigata sea ranching trial at Flinders Bay, Augusta, Western Australia merged by length and compared to wild enhancement raw data Hart et al. and fitted curves Source: Fisheries Research & Development Corporation, Curtin University of Technology, Ocean Grown Abalone. 2013 TIME # Abs/ ABITAT Average Length (mm) Weight (g) Average Biomass (kg) / ABITAT Biomass (kg) / 5000 ABITATS Day 1 120 40 10 1.2 6,000 Day 30 84 40 10 0.84 4,200 Day 365 75 75 66 4.95 24,750 Day 730 67 105 180 12 60,000 Day 1095 60 125 333 20 100,000 Ocean Grown Abalone Biomass model Ocean Grown 13 Abalone#14Kilograms June 2017 Stock Assessment Report Number NUMBER OF ABALONE SEPARATED BY SIZE CLASS ON THE FLINDERS BAY 1 PROJECT-AT 30 JUNE 2017 300,000 250,000 200,000 150,000 100,000 50,000 ll 90-100 100-110 110-120 120-130 130-140 0 40-50 50-60 60-70 70-80 80-90 Size (mm) BIOMASS OF ABALONE SEPARATED BY SIZE CLASS ON THE FLINDERS BAY 1 PROJECT-AT 30 JUNE 2017 35,000 30,000 25,000 20,000 OGA is currently undertaking its December stock assessment. This is expected to be released in January following a full review and analysis of the stock position. OGA will be completing ongoing stock assessments on a bi-annual basis in June and December. 15,000 10,000 5000 0 40-50 50-60 60-70 70-80 80-90 90-100 100-110 110-120 120-130 130-140 Size (mm) Ocean Grown Abalone 14#15Augusta Project Update 413 Ha Flinders Bay lease expansion approved. ✓ 2,000 ABITATS constructed, deployed and seeded. Total = 7,000 17.2T abalone harvested 2016/17 FY. 21.1T abalone harvested 1 July - 15 December. ✓ Approximately 1.3M juvenile seeded in 2017. 2 new purpose built dive vessels delivered. Abalone Rancher & Abundance. Ocean Grown Abalone 15#16Other Projects Update Esperance ✓ Wylie Bay lease approval. Total of 1,242Ha. ✓ JV Partner, Alan Wilson of Ocean King Fishing has constructed, deployed and seeded 400 ABITATS. Seeded with 160,000 juveniles October 2017. Port Lincoln ✓ R&D Trial approved and commenced. 4 Trial Sites (10 ABITATS/site) seeded 30 September 2017. 16,000 juvenile abalone seeded. ✓ SARDI (South Australian Research & Development Institute) engaged to undertake 3rd party validation of R&D. $100,000 FRDC grant approved Business Development ✓ Strong demand for IQF meat sales into Hong Kong. ✓ Regular small live shipments into Sydney/Melbourne. ✓ Product development - whole frozen, vacuum pouches, live. Visits to customers in SE Asia. Trade show attendance. ✓ DA approval for processing/HQ/cellar door facility at Augusta Harbour. ✓ Awarded $200,000 DAFF grant for market development and product development (particularly live). Ocean Grown Abalone 16#172 OCEANS ABALONE 2OCEANS ABALONE AUSTRALIAN GREENLIP ABALONE 100% WILD GROWN TWOCEANS ABALONE AUSTRALIAN GREENLIP ABALONE 100% WILD GROWN 100% WILD GROWN AUSTRALIAN GREENLIP ABALONE Concept sample packaging being developed for high end retail/gift market. 2 OCEANS ABALONE Margret River region, world renowned Anest quality foods and wine from for pr fertile soils amongst rain forests, blending into the pristine coastline of South Western Australia Two Oceans Abalone reefs "abitats" are located t the deep sea grass beds of Flinders Bay Australian premium wild abalane growing area of the Margret River region. Our Greenlip Abalone, the most consistent quality in the world: unique creamy texture, ocean flavours followed by a subtle sweet candy after taste Two Oceans Abalone, producing the Margaret River regions true delicate ocean flavours. INGREDIENTS Australian Wild Greenlip Abalone Meat NUTRITIONAL INFORMATION wwww Product of Australle Packaged by Two Oceans Abalone EX O Lot 615 Brindley Augusta WA Aust Ocean Grown Al www.oceangrown 369998 212132 WILD GROW AUSTRALIAN GREENLIP ABALONE Ocean Grown Abalone 21/12/2017 17#18Competitive Analysis 门 I-I 11 18#19The ranching system and comparisons to farming Ranching • . • • High-quality abalone - larger size, better texture and flavour. Ranched in the ocean - natural and pristine seawater, sustainable habitat. Abalone in OGA ranches feed on ocean grown organic seaweed. • "Wild" harvest. Significantly lower cost structure, therefore higher margins. Farm • • - Lower quality abalone – small sized, less preferred taste. Farmed in artificial tank environment on land - water needs to be treated. Farmed abalone feed on factory produced expensive, artificial aquafeed and chemical formulas. "Farmed" harvest. Inferior economics. Ocean Grown Abalone 19#20Advantages of ranching over land-based methods Ability to harvest any size, but OGA focus on 110-140mm, a size not currently seen in the market due to: • • Minimum size limits in traditional fisheries (>140mm); and ⚫ Too costly to produce in traditional land-based aquaculture systems. ✓ Ability to meet market specifications on demand, e.g. Chinese New Year. ✓ Ability to develop high-margin, niche markets. ✓ Low cost of production, compared to traditional land-based abalone aquaculture systems, resulting in higher margins: • • No feed costs; Negligible power costs; Low infrastructure costs; and Low cost of real estate. 1 Ocean Grown Abalone 20#21Significant competitive advantage & barriers to entry ✓ No new greenfield investments in traditional land-based abalone farms in Australia ✓ OGA focuses on abalone of 110-140mm, a size not currently seen in the market due to minimum size limits (>140mm) in wild catch, too costly to produce in traditional land-based aquaculture systems ✓ Flexible harvest allows an ability to meet market specifications on demand ✓ Low cost of production, compared to traditional land-based abalone aquaculture systems: higher margins ✓ A management team with the skills and experience to execute the growth strategy ✓ Patented technology fully developed using private capital. Commercial proposition already validated ✓ Ranching produces a "wild catch" product "Baby Wild", which delivers marketing advantages Technology is suited to a few select locations around Australia. OGA has developed an in- house, end-to-end knowledge base that is key to Successful abalone ranching. OGA has a ten-year head start on any new entrant. Long lead times to acquire and develop new leases. A typical 5,000 abitat ranch takes 5 years to reach steady state of production from deployment date. Established relationships with regulatory authorities. OGA has developed strategic alliances with key abalone hatcheries to secure supply of juvenile abalone. Due to the high cost and long lead times of developing land-based abalone hatcheries, it is unlikely that a new hatchery would be developed by a new entrant. OGA has assessed multiple reef designs and understands the intricate requirements of successful reef design. Land-based farms cannot compete on quality or size. The average harvest size from a land-based farm is 90-100mm whereas OGA are targeting 125-135mm. Wild-caught legal minimum length is 140mm. Develop supply chains direct to consumer. Ocean Grown Abalone 21#22Location advantage Augusta is considered an 'ideal' location for abalone ranching as: • Proximity to Augusta Marina. • Close to a town (services and staff). . Long-term supply agreement in place with the 888 Abalone hatchery in Bremer Bay. Large areas of suitable habitat on which to locate reefs on (sand/seagrass). • Proximity to Asian markets. ⚫ Protection from large swells due to unique island system. 330000 Augusta 340000 Ocean Grown Abalone 22#23Other producers/competition Land-based/Farmed Yumbah Abalone Craig Mostyn Group (Food & Agribusiness) Ocean Road 888 Abalone Pty Ltd Golden Bay Corporation Australia Pty Ltd (Tasmanian Abalone Farms) Ocean Wave Seafood Pty Ltd Ocean Abalone Australia No.1 OGA ranching Ocean Grown Abalone Wild catch Commercial catch Greenlip abalone (2013, tonnes): Western Australia (166) . South Australia (360) • Tasmania (140) Victoria (1) Source: http://www.fish.gov.au/reports/molluscs/aba lones/Pages/greenlip_abalone.aspx Ocean Grown Abalone 23#24Corporate Overview SWL 1000KG 24#25Capital Structure Issued Capital Snapshot CAPITAL STRUCTURE (as at 20 Dec 2017) Shares on Issue: Options on Issue: (100% escrowed) Performance Rights on Issue: (100% escrowed) Share Price: (closing price at 20 Dec 2017) Market Capitalisation: (based on closing price of $0.195) Cash Balance at IPO: (as at 14 Nov 2017) 174,110,260 21,346,902 12,000,000 $0.195 $33,951,501 $11.95 million Ocean Grown Abalone 25#26Capital Structure Terms of Shares, Options & Performance Rights Shares Fully Paid Ordinary Shares Fully Paid Ordinary Shares (Escrowed) Total Shares on Issue Options Number 154,357,693 19,752,567 174,110,260 Escrow Expiry N/A 14 Nov 2019 Number Exercise Price 8,807,452 30 cents Expiry Date 28 Dec 2020 Escrow Expiry 10,039,450 39 cents 30 Sep 2021 14 Nov 2019 14 Nov 2019 2,500,000 44 cents 30 Sep 2021 14 Nov 2019 Series A Options (Corporate Adviser)* Series B Options (Corporate Adviser)* Series C Options (Non-Executive Directors)** * View Street Capital Partners has acted as Corporate Adviser to the Company ** Issued to the Non-Executive Chairman (Peter Harold) and the Non-Executive Director (Danielle Lee). Performance Rights*** Number Expiry Date Escrow Expiry Class A Performance Rights (Managing Director) 4,000,000 31 Dec 2018 Class B Performance Rights (Managing Director) Class C Performance Rights (Managing Director) 4,000,000 4,000,000 14 Nov 2019 14 Nov 2019 14 Nov 2019 14 Nov 2022 14 Nov 2019 *** Performance conditions attached to the Performance Rights are as follows: • Class A Performance Rights: Prior to 31 December 2018, the Company completes its Flinders Bay 2 Project in Augusta, with completion deemed to occur upon the deployment and seeding of 5,000 Abitats at the Flinders Bay 2 Project site. Class B Performance Rights: Within 2 years from the date the Company is admitted to the Official List of the ASX, the Company recognises revenue from the sale of 100 tonnes of abalone combined from Flinders Bay 1, Flinders Bay 2, Wylie Bay and Port Lincoln Development projects in any 12 month period. Class C Performance Rights: Within 5 years from the date the Company is admitted to the Official List of the ASX, and subject to the Board determining the success of a material part of the Port Lincoln Development Project, the Company (either on its own or together with an affiliate or joint venture partner) deploys and seeds a cumulative total of 5,000 Abitats across one or more commercial project sites within South Australia. Ocean Grown Abalone 26#27Corporate Structure 100% OGA Operations Pty Ltd Ocean Grown Abalone Limited 100% 100% 67% 100% Holder of aquaculture licence and lease for Flinders Bay OGA Wylie Bay Pty Ltd Wylie Bay Abalone Pty Ltd Holder of R&D Licence for Port Lincoln Construction work on reefs Flinders Bay 1 Flinders Bay 2 Project Project Wylie Bay Project Management Agreement Holder of aquaculture licence and lease for Wylie Bay Port Lincoln Development Project Ocean Grown Abalone 27#28Board Structure O Mr Peter Harold (Non-Executive Chairman), B. App. Sc (Chemistry) FAICD Peter is a the Managing Director of Panoramic Resources Limited (ASX:PAN)and is a process engineer with over 26 years of corporate experience in the minerals industry, specialising in financing, marketing, 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 was immediate past Chairman on the Youth Focus Board. This is an independent not for profit charity that focuses on the prevention of youth suicide and depression. Peter is also Non-Executive Chairman of Peak Resources Limited (ASX:PEK) and a Non-Executive Director of Pacifico Minerals Limited (ASX:PMY). 1 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. The Ricciardi Family group have interests in Shark Bay prawn trawlers. Ian has worked on and operated 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. Ian held the position of President of Shark Bay Prawn Association for 10 years and has significant experience in WA Fisheries-related processes. Ian has been a Director of and served in an executive capacity for Ocean Grown Abalone Limited since July 2013. Ms Danielle Lee (Non-Executive Director) LLB Danielle is a corporate lawyer with more than 20 years experience shared between private law firms and the ASX. Her main practice areas are corporate advisory, governance and equity capital markets. She advises on a range of corporate and commercial transactions including capital raisings, business and share acquisitions, shareholder agreements and joint venture arrangements. Most recently Danielle was special counsel at Jackson McDonald and previously was counsel for Fairweather Corporate Lawyers for approximately 7 years after having worked for approximately 9 years as legal counsel at ASX Sydney and Assistant Manager at ASX Perth. She is currently a non-executive director of Hazer Group Limited (ASX:HZR). Ocean Grown Abalone 28