Amendment to Series A Loan Funding Agreement

ASX Announcement

23 July 2019

ASX: OEX

AIM: OEX

Oilex Ltd (the Company) is pleased to advise that it has entered into an amendment agreement to vary the terms of its loan funding facility of A$330,000 (Amendment) entered into on 26 July 2018 (Series A Loan).

Pursuant to the Amendment, the loan repayment date has been extended from 26 July 2019 to 1 October 2019. In addition, the Company will issue 124,060,150 new options to the lenders at an exercise price of $0.00266. All other terms remain the same as the Series A Loan and are extended to 1 October 2019.

Summary of Key Terms after the Amendment

Term: 1 October 2019

Interest Rate: 5%

Repayments 100% payable at maturity

Options Issued: 124,060,150 options over ordinary shares

Option Exercise Price: A$0.00266 per option

Option Expiry Date: On 31 December 2019

Security: Unsecured

Key Undertakings: Not to dispose of assets having an aggregate value more than A$1 million

Not to incur any financial indebtedness more than A$50,000

Not to incur any aggregate payment or outgoing exceeding A$1 million (except for wages)

Customary additional provisions regarding events of default, undertakings, covenants and representations and warranties remain unchanged.

The options, which if exercised in their entirety, will result in a cash inflow to the Company of A$330,000. The proceeds from the conversion of options will be applied to the outstanding Series A Loan balance, which is fully drawn down.

The issue of the options is subject to shareholder approval under ASX Listing Rule 7.1 on or before 30 September 2019. Failure to secure shareholder approval will require immediate repayment of the loan principal and accrued interest. The Company is currently preparing the necessary notice of general meeting, which will be sent to shareholders shortly.

Related Party Transaction

Republic Investment Management Pte Ltd (Republic) makes up $300,000 of the Series A Loan balance of $330,000. Republic has a shareholding in the Company of 10.53% and is therefore categorised as a Substantial Shareholder of the Company pursuant to the AIM Rules for Companies (AIM Rules). Accordingly, the entering into the Amendment with Republic is classified as a related party transaction pursuant to the AIM Rules.

The Directors of the Company, having consulted with Strand Hanson Limited, the Company's Nominated Adviser, consider that the terms of the Amendment with Republic are fair and reasonable insofar as the Company's shareholders are concerned.

For and on behalf of Oilex Ltd

Mark Bolton

Chief Financial Officer Company Secretary

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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