----

|   | ☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|---------|------------------------------------------------------------------------------------------------|

|   | ☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|---------|--------------------------------------------------------------------------------------|

|   | ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|---------|------------------------------------------------------------------------------------------|

|   | ☐ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|---------|---------------------------------------------------------------------------------------------|

| Title of each class                                                | Name of each exchange on which registered |
|--------------------------------------------------------------------|-------------------------------------------|
| American Depositary Shares,each representing sixty Ordinary Shares | NASDAQ Capital Market                     |

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| Large accelerated filer ☐ | Accelerated filer ☐     |
|---------------------------------|-------------------------------|
| Emerging growth company ☐ | Non-accelerated filer ☒ |
| U.S. GAAP ☐ | International Financial Reporting Standards as issued by the International Accounting Standards Board ☒ | Other ☐ |
|-------------------|---------------------------------------------------------------------------------------------------------------|---------------|

----

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|     |                                                       |                                                 | Page |
|----------|------------------------------------------------------------|------------------------------------------------------|------|
| PART I   |                                                            | 6                                                    |
| ITEM 1.  | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS      | 6                                                    |
| ITEM 2.  | OFFER STATISTICS AND EXPECTED TIMETABLE                    | 6                                                    |
| ITEM 3.  | KEY INFORMATION                                            | 6                                                    |
|     | A.                                                         | Selected Consolidated Financial Data                 | 6    |
|     | B.                                                         | Capitalization and Indebtedness                      | 7    |
|     | C.                                                         | Reasons for the Offer and Use of Proceeds            | 7    |
|     | D.                                                         | Risk Factors                                         | 8    |
| ITEM 4.  | INFORMATION ON THE COMPANY                                 | 22                                                   |
|     | A.                                                         | History and Development of the Company               | 22   |
|     | B.                                                         | Business Overview                                    | 23   |
|     | C.                                                         | Organizational Structure                             | 39   |
|     | D.                                                         | Property, Plants and Equipment                       | 39   |
| ITEM 4A. | UNRESOLVED STAFF COMMENTS                                  | 39                                                   |
| ITEM 5.  | OPERATING AND FINANCIAL REVIEW AND PROSPECTS               | 39                                                   |
|     | A.                                                         | Operating Results                                    | 40   |
|     | B.                                                         | Liquidity and Capital Resources                      | 44   |
|     | C.                                                         | Research and Development, Patents and Licenses       | 48   |
|     | D.                                                         | Trend Information                                    | 48   |
|     | E.                                                         | Off-Balance Sheet Arrangements                       | 49   |
|     | F.                                                         | Tabular Disclosure of Contractual Obligations        | 49   |
| ITEM 6.  | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES                 | 49                                                   |
|     | A.                                                         | Directors and Senior Management                      | 49   |
|     | B.                                                         | Compensation                                         | 52   |
|     | C.                                                         | Board Practices                                      | 54   |
|     | D.                                                         | Employees                                            | 57   |
|     | E.                                                         | Share Ownership                                      | 57   |
| ITEM 7.  | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS          | 61                                                   |
|     | A.                                                         | Major Shareholders                                   | 61   |
|     | B.                                                         | Related Party Transactions                           | 61   |
|     | C.                                                         | Interests of Experts and Counsel                     | 61   |
| ITEM 8.  | FINANCIAL INFORMATION                                      | 62                                                   |
|     | A.                                                         | Financial Statements and Other Financial Information | 62   |
|     | B.                                                         | Significant Changes                                  | 62   |
| ITEM 9.  | THE OFFER AND LISTING                                      | 62                                                   |
|     | A.                                                         | Offer and Listing Details                            | 62   |
|     | B.                                                         | Plan of Distribution                                 | 64   |
|     | C.                                                         | Markets                                              | 64   |
|     | D.                                                         | Selling Shareholders                                 | 64   |
|     | E.                                                         | Dilution                                             | 64   |
|     | F.                                                         | Expenses of the Issue                                | 64   |
| ITEM 10. | ADDITIONAL INFORMATION                                     | 64                                                   |
|     | A.                                                         | Share Capital                                        | 64   |
|     | B.                                                         | Memorandum and Articles of Association               | 64   |
|     | C.                                                         | Material Contracts                                   | 66   |
|     | D.                                                         | Exchange Controls                                    | 67   |
|     | E.                                                         | Taxation                                             | 68   |
|     | F.                                                         | Dividends and Paying Agents                          | 74   |
|     | G.                                                         | Statement by Experts                                 | 74   |
|     | H.                                                         | Documents on Display                                 | 75   |
|     | I.                                                         | Subsidiary Information                               | 75   |
| ITEM 11. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 75                                                   |

----

| ITEM 12.   | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES                       | 76 |
|------------|------------------------------------------------------------------------------|----|
| PART II    |                                                                              | 78 |
| ITEM 13.   | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES                              | 78 |
| ITEM 14.   | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS | 78 |
| ITEM 15.   | CONTROLS AND PROCEDURES                                                      | 78 |
| ITEM 16.   | RESERVED                                                                     | 79 |
| ITEM 16A.  | AUDIT COMMITTEE FINANCIAL EXPERT                                             | 79 |
| ITEM 16B.  | CODE OF ETHICS                                                               | 79 |
| ITEM 16C.  | PRINCIPAL ACCOUNTANT FEES AND SERVICES                                       | 79 |
| ITEM 16D.  | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES                   | 80 |
| ITEM 16E.  | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS       | 80 |
| ITEM 16F.  | CHANGES IN REGISTRANT’S CERTIFYING ACCOUNTANT                          | 80 |
| ITEM 16G.  | CORPORATE GOVERNANCE                                                         | 80 |
| ITEM 16H.  | MINE SAFETY DISCLOSURE                                                       | 80 |
| ITEM 17.   | FINANCIAL STATEMENTS                                                         | 80 |
| ITEM 18.   | FINANCIAL STATEMENTS                                                         | 80 |
| ITEM 19.   | EXHIBITS                                                                     | 81 |
| SIGNATURES | 83                                                                           |

----

| ITEM 1. | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS |
|---------|-------------------------------------------------------|

| ITEM 2. | OFFER STATISTICS AND EXPECTED TIMETABLE |
|---------|-----------------------------------------|

| ITEM 3. | KEY INFORMATION |
|---------|-----------------|

| A. | Selected Consolidated Financial Data |
|----|--------------------------------------|

| Statement of Comprehensive Income:                                                    |   |                                                |        |   |
|--------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|-------------|--------|
|                                                                                       |   | Year Ended June 30,                                 |        |
|                                                                                       |   | 2017                                                |        |   | 2016 |   |   | 2015 |   |   | 2014 |   |   | 2013 |   |
|                                                                                       |   | (in A$, except loss per share and number of shares) |        |
| Revenue from continuing operations                                                         |   |                                                | 132,396     |   |   |   | 142,657 |   |   |   | 176,842 |   |   |   | 363,775 |   |   |   | 150,867 |   |
| Other income                             |   |                                                | 3,022,673   |   |   |   | 4,753,697 |   |   |   | 6,317,438 |   |   |   | 7,845,396 |   |   |   | 4,488,526 |   |
| Research and development expenses                                                          |   |                                                | (5,700,339  | )      |   |   | (9,585,371 | ) |   |   | (12,298,167 | ) |   |   | (14,908,098 | ) |   |   | (8,203,822 | ) |
| General and administration expenses                                                        |   |                                                | (3,968,630  | )      |   |   | (3,610,551 | ) |   |   | (4,506,122 | ) |   |   | (4,925,411 | ) |   |   | (3,793,235 | ) |
| Intellectual property expenses           |   |                                                | (241,892    | )      |   |   | (241,954 | ) |   |   | (257,299 | ) |   |   | (477,079 | ) |   |   | (294,894 | ) |
| Other operating expenses                 |   |                                                | (126,071    | )      |   |   | (45,276 | ) |   |   | (39,210 | ) |   |   | (451,251 | ) |   |   | (257,769 | ) |
| Finance expense – ADDF                                                               |   |                                                | -           |   |   |   | - |   |   |   | - |   |   |   | (29,978 | ) |   |   | (17,676 | ) |
| Other gains and losses                   |   |                                                | (660,213    | )      |   |   | 857,247 |   |   |   | 4,721,449 |   |   |   | (746,593 | ) |   |   | 140,761 |   |
| Net loss                                 |   |                                                | (7,542,076  | )      |   |   | (7,729,551 | ) |   |   | (5,885,069 | ) |   |   | (13,329,239 | ) |   |   | (7,787,242 | ) |
| Loss per share in cents – basic and diluted                                          |   |                                                | (1.41       | )      |   |   | (1.45 | ) |   |   | (1.17 | ) |   |   | (3.11 | ) |   |   | (2.30 | ) |
| Weighted average number of ordinary shares outstanding - basic and diluted                 |   |                                                | 533,891,470 |   |   |   | 533,891,470 |   |   |   | 502,714,982 |   |   |   | 428,047,123 |   |   |   | 338,700,006 |   |

----

| Balance Sheet Data                                                                  |   |           |         |   |   |   |         |   |   |   |         |   |   |   |         |
|------------------------------------------------------------------------------------------|--------|----------------|--------------|--------|--------|--------|--------------|--------|--------|--------|--------------|--------|--------|--------|--------------|
|                                                                                     |   | As at June 30, |         |
|                                                                                     |   | 2017           |         |   | 2016   |   |         | 2015   |   |   | 2014         |   |   | 2013   |         |
|                                                                                     |   | (in A$)        |         |
| Cash and cash equivalents              |   |           | 21,884,957   |   |   |   | 28,593,538   |   |   |   | 34,909,574   |   |   |   | 34,167,018   |   |   |   | 13,346,760 |   |
| Working capital                        |   |           | 23,659,659   |   |   |   | 31,299,470   |   |   |   | 39,025,487   |   |   |   | 37,597,770   |   |   |   | 13,883,965 |   |
| Total assets                                                                             |   |           | 25,280,946   |   |   |   | 33,725,020   |   |   |   | 41,834,382   |   |   |   | 41,640,855   |   |   |   | 17,073,821 |   |
| Net assets                             |   |           | 23,690,034   |   |   |   | 31,367,213   |   |   |   | 39,113,264   |   |   |   | 37,686,287   |   |   |   | 13,974,713 |   |
| Issued capital                         |   |           | 144,018,006  |   |   |   | 146,879,214  |   |   |   | 146,895,714  |   |   |   | 140,009,415  |   |   |   | 101,379,111 |   |
| Share based payment reserves           |   |           | 2,320,480    |   |   |   | 9,363,181    |   |   |   | 9,363,181    |   |   |   | 8,937,434    |   |   |   | 10,526,925 |   |
| Accumulated deficit during development stage                                             |   |           | (122,648,452 | )      |   |   | (124,875,182 | )      |   |   | (117,145,631 | )      |   |   | (111,260,562 | ) |   |   | (97,931,323 | ) |
| Total equity                           |   |           | 23,690,034   |   |   |   | 31,367,213   |   |   |   | 39,113,264   |   |   |   | 37,686,287   |   |   |   | 13,974,713 |   |
| YearEnded June 30,                                               |   | At Period End |   | Average Rate |   | High   |   | Low    |
|------------------------------------------------------------------|--------|---------------|--------|--------------|--------|--------|--------|--------|
| 2013           |   | 0.9146        |   | 1.0273       |   | 1.0624 |   | 0.9112 |
| 2014           |   | 0.9439        |   | 0.9183       |   | 0.9757 |   | 0.8659 |
| 2015           |   | 0.7655        |   | 0.8369       |   | 0.9457 |   | 0.7580 |
| 2016           |   | 0.7432        |   | 0.7289       |   | 0.7817 |   | 0.6855 |
| 2017           |   | 0.7676        |   | 0.7544       |   | 0.7733 |   | 0.7174 |
| Month                                                                  | High   | Low    |
|------------------------------------------------------------------------|--------|--------|
| April 2017           | 0.7604 | 0.7604 |
| May 2017                                                               | 0.7534 | 0.7352 |
| June 2017                                                              | 0.7680 | 0.7387 |
| July 2017                                                              | 0.7991 | 0.7584 |
| August 2017                                                            | 0.7983 | 0.7872 |

| B. | Capitalization and Indebtedness |
|----|---------------------------------|

| C. | Reasons for the Offer and Use of Proceeds |
|----|-------------------------------------------|

----

| D. | Risk Factors |
|----|--------------|

|  | · | the continued progress of our research and development programs; |
|--|--------|------------------------------------------------------------------|

|  | · | the timing, scope, results and costs of pre-clinical studies and clinical trials; |
|--|--------|-----------------------------------------------------------------------------------|

|  | · | the cost, timing and outcome of regulatory submissions and approvals; |
|--|--------|-----------------------------------------------------------------------|

|  | · | determinations as to the commercial potential of our product candidates; |
|--|--------|--------------------------------------------------------------------------|

|  | · | our ability to successfully expand our contract manufacturing services; |
|--|--------|-------------------------------------------------------------------------|

|  | · | our ability to establish and maintain collaborative arrangements; and |
|--|--------|-----------------------------------------------------------------------|

|  | · | the status and timing of competitive developments. |
|--|--------|----------------------------------------------------|

----

----

|  | · | government or regulatory delays, including delays in obtaining approvals from applicable hospital ethics committees and internal review boards; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | slower than expected patient enrollment; |
|--|--------|------------------------------------------|

|  | · | our inability to manufacture sufficient quantities of our new proprietary compound or our other product candidates or matching controls; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | unforeseen safety issues; or |
|--|--------|------------------------------|

|  | · | lack of efficacy or unacceptable toxicity during the clinical trials or non-clinical studies. |
|--|--------|-----------------------------------------------------------------------------------------------|

----

|  | · | the receipt and timing of regulatory approvals for the uses that we are studying; |
|--|--------|-----------------------------------------------------------------------------------|

|  | · | the establishment and demonstration to the medical community of the safety, clinical efficacy or cost-effectiveness of our product candidates and their potential advantages over existing therapeutics and technologies; and |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the pricing and reimbursement policies of governments and third-party payors. |
|--|--------|-------------------------------------------------------------------------------|

----

----

----

----

----

|  | · | obtain and maintain patents to protect our own product candidates and technologies; |
|--|--------|-------------------------------------------------------------------------------------|

|  | · | obtain orphan designation for our product candidates and technologies; |
|--|--------|------------------------------------------------------------------------|

|  | · | obtain licenses to the patented technologies of third parties; |
|--|--------|----------------------------------------------------------------|

|  | · | operate without infringing on the proprietary rights of third parties; and |
|--|--------|----------------------------------------------------------------------------|

|  | · | protect our trade secrets, know-how and other confidential information. |
|--|--------|-------------------------------------------------------------------------|

----

----

|  | · | Others may be able to make products that are similar to ours but that are not covered by the claims of the patents that we own. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------|

|  | · | Others may independently develop similar or alternative technologies or otherwise circumvent any of our technologies without infringing our intellectual property rights. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | We or any of our collaboration partners might not have been the first to conceive and reduce to practice the inventions covered by the patents or patent applications that we own, license or will own or license. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | We or any of our collaboration partners might not have been the first to file patent applications covering certain of the patents or patent applications that we or they own or have obtained a license, or will own or will have obtained a license. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | It is possible that our pending patent applications will not lead to issued patents. |
|--|--------|--------------------------------------------------------------------------------------|

|  | · | Issued patents that we own may not provide us with any competitive advantage, or may be held invalid or unenforceable, as a result of legal challenges by our competitors. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Our competitors might conduct research and development activities in countries where we do not have patent rights, or in countries where research and development safe harbor laws exist, and then use the information learned from such activities to develop competitive products for sale in our major commercial markets. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | The patents of third parties or pending or future applications of third parties, if issued, may have an adverse effect on our business. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Compulsory licensing provisions of certain governments to patented technologies that are deemed necessary for the government to access. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | the results of pre-clinical testing and clinical trials by us and our competitors; |
|--|--------|------------------------------------------------------------------------------------|

----

|  | · | developments concerning research and development, manufacturing, and marketing alliances or collaborations by us and our competitors; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|  | · | announcements of technological innovations or new commercial products by us and our competitors; |
|--|--------|--------------------------------------------------------------------------------------------------|

|  | · | determinations regarding our patent applications, patents and those of others; |
|--|--------|--------------------------------------------------------------------------------|

|  | · | publicity regarding actual or potential results relating to medicinal products under development by us and our competitors; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------|

|  | · | proposed governmental regulations and developments in Australia, the United States and elsewhere; |
|--|--------|---------------------------------------------------------------------------------------------------|

|  | · | litigation; |
|--|--------|-------------|

|  | · | economic and other external factors; and |
|--|--------|------------------------------------------|

|  | · | period-to-period fluctuations in our operating results. |
|--|--------|---------------------------------------------------------|

----

----

| ITEM 4. | INFORMATION ON THE COMPANY |
|---------|----------------------------|

| A. | History and Development of the Company |
|----|----------------------------------------|

----

| B. | Business Overview |
|----|-------------------|

----

|  | · | The University of Melbourne, Department of Pathology; and |
|--|--------|-----------------------------------------------------------|

|  | · | The Florey Institute of Neuroscience and Mental Health in Melbourne. |
|--|--------|----------------------------------------------------------------------|

|  | · | The Massachusetts General Hospital, Genetics and Aging Unit in Boston.  Massachusetts General Hospital (MGH); and |
|--|--------|------------------------------------------------------------------------------------------------------------------------|

|  | · | University of California, San Francisco. |
|--|--------|------------------------------------------|

----

----

----

----

----

|  | · | Preservation of motor function in animal models of Parkinson's disease created by administration of the Parkinsonian toxins (MPTP) and 6-OHDA. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Significantly improved motor function and coordination as tested by the ability of MSA mice to remain on a rotating rod. Indeed this improvement has been sustained for five months and resulted in a reduction in the accumulation of the insoluble forms of α-synuclein.  |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | In TgA53T, a generic model of synucleinopathy, to investigate Dementia with Lewy Bodies, animals treated with PBT434 exhibited significantly increased numbers of s.nigra neurons and a significant reduction in insoluble α-synuclein and incidence of clasping behavior. Cognition evaluated using the Y-Maze is also significantly improved. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | In mutant overexpressing tau mice, rTg4510, PBT434 has demonstrated highly significant improvement in the Y-maze cognitive assessment and resulted in a significant reduction in the number of abnormal tau deposits in the hippocampus of 12 month old mice. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Significant reduction in the levels of α-synuclein and tau in the cerebrospinal fluid (CSF) sampled from normal healthy rats within 4 hours and a reduction in α-synuclein (non-significant) in CSF of dogs over a 28-day period. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|  | ● | A drug to drug interaction study, ‘PBT2-104’. Based on in vitro metabolism studies indicating that PBT2 is both a substrate for, and an inhibitor of, CYP1A2, this study was designed to investigate the potential for drug to drug interactions in healthy volunteers when PBT2 is concurrently administered with other agents metabolized by this CYP450 isozyme.  |
|--|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ● | A food interaction Study, PBT2-103’. Healthy volunteers were randomized into 2 dosing groups; one which was administered 250mg PBT2 after a 12 hour fast, the other which was administered 250mg PBT2 after a prescribed FDA meal. Blood samples were taken over multiple time points over 24 hours to determine the pharmacokinetic profile of PBT2 and its metabolites. |
|--|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ● | Evaluation of the three pharmacokinetic parameters, absorption, metabolism and excretion (ADME) of [C]-PBT2 and to estimate the Absolute Bioavailability of PBT2 in healthy volunteers, ‘PBT2-102’ to understand the passage of the drug in humans after administration. |
|--|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|  | · | In September 2016 a case entitled ‘Compounds for Therapy and Diagnosis’ proceeded to Grant in Canada. This case includes composition of matter claims to novel non-MPAC metallocomplex compounds that are designed to treat Alzheimer’s disease by binding to the metal binding site of Abeta in the brain.  The case also covers the use of these metallocomplexes as imaging agents for Alzheimer’s disease. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | In November 2016, Prana received Notice of Grant from the European Patent Office in relation to the patent family entitled ‘Quinazolinone compounds’, which covers selected novel chemical drug candidates related to PBT434. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | In January 2017, an Australian provisional patent application entitled ‘Processes for the preparation of an 8-Hydroxyquinoline derivative’ was re-filed to cover alternative synthetic routes to selected 8-Hydroxyquinolines. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | In March 2017, Prana re-filed two Australian provisional patent applications directed to novel methods of synthesising compounds including the candidate PBT434 and compounds of similar structure. These patents are titled ‘A method of the production of 2-substituted-3H-quinazolin-4-ones-I and ‘A method of the production of 2-substituted-3H-quinazolin-4-ones-II ‘. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | In May 2017, Prana entered National Phase of a PCT application directed to 4H-Pyrido(1,2-a) Pyrimidin-4-one compounds, which are novel compounds for the treatment of neurodegenerative diseases. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | In June 2017, a PCT patent application entitled Method of Treating Immunoglobulin Light Chain Amyloidosis was filed. This case covers the use of a known compound for the treatment of cardiac toxicity associated with light chain amyloidosis. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| PATENT | STATUS | INVENTION |
|--------|--------|-----------|
| “Beta amyloid peptide inhibitors”Filed:  July 21, 2000Applicant: Biomolecular Research Institute and University of MelbourneAssigned to Prana Biotechnology Limited | Patents have been granted in the United States, Canada and Australia.                                                                                                                                                                                                                           | The invention encompasses claims to specific classes of metallocomplex agents capable of inhibiting binding of specified metal ions to the N-terminus of beta-amyloid and the use of these agents in the treatment of amyloid related conditions including Alzheimer’s Disease. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| “Neurotoxic Oligomers”Filed: June 28, 2000Applicants:  Prana Biotechnology Limited and The General Hospital Corporation                                             | Patents have been Granted in Australia, New Zealand, Canada, China and the United States (2). A case has been Granted in Europe and has been validated in separate countries.                                                                                                                   | The invention is directed to an immunotherapy strategy using or targeting tyrosine cross-linked protein aggregates.  The approach may be used in the treatment of Alzheimer’s Disease and other amyloid related conditions.                                                |
|  “8-Hydroxyquinoline Derivatives”Filed: July 16, 2003Applicant: Prana Biotechnology Limited                                                                         | Patents in Europe, the United States, New Zealand, Canada, Japan, Russia, Singapore, South Korea, Australia, Israel, China, Mexico and South Africa have been Granted.  A patent in Hong Kong has been registered. Applications in India and Brazil are under examination.                 | The invention is directed to chemical scaffolds of the 8-Hydroxyquinoline class and their utility in the treatment of neurological conditions.                                                                                                                                        |
| “Neurologically-Active Compounds”Filed: October 3, 2003Applicant: Prana Biotechnology Limited                                                                            | Patents in the United States, New Zealand, Canada, Japan, Mexico, India, Australia, China, South Korea, Japan, Israel, South Africa and Singapore have been Granted. A case has been Granted in Europe and has been validated in separate countries. A patent in Hong Kong has been registered. | The invention is directed to alternative chemical structures and their utility in the treatment of neurological conditions.                                                                                                                                                           |

----

| PATENT | STATUS | INVENTION |
|--------|--------|-----------|

| “Neurologically- Active Compounds”Filed: April 1, 2005Applicant: Prana Biotechnology Limited                                            | Patents have been Granted in Singapore, Japan, Mexico, Russia, Australia, the United States, China, Canada, Europe, India, South Korea, Israel, New Zealand and South Africa. A case has been Granted in Europe and has been validated in separate countries. An application in Brazil is with ANVISA for review. A patent in Hong Kong has been registered. | The invention is directed to ‘F4’ chemical structures and their utility in the treatment of neurological conditions and includes Parkinson’s Disease lead compounds. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| “Use of Clioquinol for the treatment of Alzheimer’s Disease”Filed: February 13, 1998Applicant: Prana Biotechnology Limited        | A Patent has been Granted in the United States.                                                                                                                                                                                                                                                                                                              | This invention is directed to the use of clioquinol for the treatment of Alzheimer’s Disease.                                                                                    |
| “Pharmaceutical compositions of Clioquinol with B12 for therapeutic use”Filed: February 13, 1998Applicant: Prana Biotechnology Limited. | A patent has been Granted in the United States.                                                                                                                                                                                                                                                                                                              | This invention is directed to clioquinol pharmaceutical compositions comprising B12.                                                                                                   |
| “Use of Clioquinol for the treatment of Parkinson’s Disease”Filed: February 13, 1998Applicant: Prana Biotechnology Limited.       | A patent has been Granted in the United States.                                                                                                                                                                                                                                                                                                              | This invention is directed to the use of clioquinol for the treatment of Parkinson’s Disease.                                                                                    |
| “Method of treatment and prophylaxis and agents useful for same"Filed: April 13, 2007Applicant: Prana Biotechnology Limited                   | Patents have been Granted in Australia, Singapore, South Africa, Canada, Japan, Israel, China and New Zealand and the United States. A case has been Granted in Europe and has been validated in separate countries. An application is under examination in Brazil.                                                                                          | This invention was originally filed to claim the use of compounds for the treatment of Age related Macular Degeneration.                                                               |
| “A method of prophylaxis or treatment and agents for same”.Filed:  June 22, 2007Applicant: Prana Biotechnology Limited             | A patent has been Granted in the United States, China, Australia, Canada and Japan. A case has been Granted in Europe and has been validated in separate countries.                                                                                                                                                                                          | This invention is directed to novel compounds and compounds for treating certain brain cancers.                                                                                        |
| “4H-Pyrido(1,2-a) Pyrimidin-4-one compounds”Filed: 2 December 2014 (prov)Applicant: Prana Biotechnology Limited                         | PCT National phase patent applications has been filed in Australia, Brazil, Canada, China, EA, EU, India, Japan, Malaysia, NZ, Korea and the United States.                                                                                                                                                                                                  | This invention is directed to novel compounds for the treatment of neurodegenerative diseases.                                                                                    |
| “Compounds for therapy and diagnosis”Filed: December 5, 2008Applicant: Prana Biotechnology Limited                                      | Patents have been Granted in New Zealand, Japan, United States Canada, Europe and Australia.                                                                                                                                                                                                                                                                 | This invention is directed to anti-amyloid angular metallocomplex compounds for the treatment of Alzheimer’s Disease.                                                            |
| “Processes for the preparation of 8-Hydroxy quinoline Derivatives”Filed: 4 January 2017Applicant: Prana Biotechnology Limited           | An Australian provisional application has been refiled.                                                                                                                                                                                                                                                                                                      | This invention is directed to synthetic routes for 8-Hydroxyquinoline Derivatives.                                                                                                     |

----

| PATENT | STATUS | INVENTION |
|--------|--------|-----------|

| “Quinazolinone compounds”Filed:  24 December 2008Applicant: Prana Biotechnology Limited                                          | Patents have been Granted in Japan, Australia, Europe and the United States. | This invention is directed to novel compounds and to selected molecules used in the treatment of Parkinson’s Disease. |
|---------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|
| “A method of the production of 2-substituted-3H-quinazolin-4-ones-I”Filed:  12 March 2017Applicant: Prana Biotechnology Limited  | An Australian provisional application has been refiled.                      | This invention is directed to synthetic routes for quinazolinone compounds.                                                 |
| “A method of the production of 2-substituted-3H-quinazolin-4-ones-II”Filed:  12 March 2017Applicant: Prana Biotechnology Limited | An Australian provisional application has been refiled.                      | This invention is directed to synthetic routes for quinazolinone compounds.                                                 |
| “Method of treating immunoglobulin light chain amyloidosis”Filed: 1 July 2016Applicant: Prana Biotechnology Limited                   | A PCT patent application has been filed.                                     | This invention is directed to the treatment of light chain amyloidosis with a known compound.                               |

----

----

| C. | Organizational Structure |
|----|--------------------------|

| D. | Property, Plants and Equipment |
|----|--------------------------------|

| ITEM 5. | OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
|---------|----------------------------------------------|

----

| A. | Operating Results |
|----|-------------------|

----

|  | · | the technical feasibility of completing the intangible asset so that it will be available for use or sale; |
|--|--------|------------------------------------------------------------------------------------------------------------|

|  | · | the intention to complete the intangible asset and use or sell it; |
|--|--------|--------------------------------------------------------------------|

|  | · | the ability to use or sell the intangible asset; |
|--|--------|--------------------------------------------------|

|  | · | how the intangible asset will generate probable future economic benefits; |
|--|--------|---------------------------------------------------------------------------|

|  | · | the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the ability to measure reliably the expenditure attributable to the intangible asset during its development. |
|--|--------|--------------------------------------------------------------------------------------------------------------|

----

----

----

| Pronouncement       | Title (Issue date)                                                | Effective date                                                                        | Impact on financial report                                                                                |
|---------------------|-------------------------------------------------------------------|---------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|
| IFRS 15             | Revenue from contracts with customers                             | Annual periods beginning on or after January 1, 2018Earlier application is permitted. | The Company is currently not generating revenue from contracts and thus the impact is expected to be nil. |
| IFRS 9              | Financial instruments                                             | Annual periods beginning on or after January 1, 2018Earlier application is permitted. | Management is in the process of determining the impact of this standard for subsequent reporting periods. |
| IFRS 16             | Leases                                                            | Annual periods beginning on or after January 1, 2019Earlier application is permitted. | Management is in the process of determining the impact of this standard for subsequent reporting periods  |
| IFRS 2 (Amendments) | Classification and Measurement ofShare-based Payment Transactions | Annual periods beginning on or after January 1, 2018Earlier application is permitted. | Management is in the process of determining the impact of this standard for subsequent reporting periods. |

| B. | Liquidity and Capital Resources |
|----|---------------------------------|

----

----

|  | · | Core activities, which are experimental activities whose outcome cannot be known or determined in advance, but can only be determined by applying a systematic progression of work; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Core activities conducted for the purpose of generating new knowledge (including new knowledge in the form of new or improved processes and materials); or |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Supporting activities that are directly related and designed to support the above). |
|--|--------|-------------------------------------------------------------------------------------|

----

|                                                                                                         |   |   | Year ended June 30, |   |
|--------------------------------------------------------------------------------------------------------------|--------|--------|---------------------|--------|
|                                                                                                         |   |   | 2017                |   |   |   | 2016 |   |   |   | 2015 |   |
|                                                                                                         |   |   | (A$)                |   |
| Net cash (used) in operating activities                    |   |   | (5,865,080          | )      |   |   | (7,418,526 | ) |   |   | (10,871,074 | ) |
| Net cash used in investing activities                      |   |   | (27,918             | )      |   |   | (833 | ) |   |   | (182,834 | ) |
| Net cash (used) provided by financing activities                                                             |   |   | (159,564            | )      |   |   | - |   |   |   | 6,843,211 |   |
| Net increase (decrease) in cash and cash equivalents                                                         |   |   | (6,052,562          | )      |   |   | (7,419,359 | ) |   |   | (4,210,697 | ) |
| Cash and cash equivalents at beginning of period           |   |   | 28,593,538          |   |   |   | 34,909,574 |   |   |   | 34,167,018 |   |
| Redemption of security deposit                                                                               |   |   | -                   |   |   |   | 152,603 |   |   |   | - |   |
| Exchange rate adjustments on cash held in foreign currencies                                                 |   |   | (656,019            | )      |   |   | 950,720 |   |   |   | 4,953,253 |   |
| Cash and cash equivalents at end of period                 |   |   | 21,884,957          |   |   |   | 28,593,538 |   |   |   | 34,909,574 |   |

----

----

| Contractual Obligations                                                                 |   | Payments due by period |   |
|-----------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                    |   | Total                  |   |   | less than 1 year |   |   | 1-3 years |   |   | 3-5Years |   |   | more than 5 years |   |
| Operating lease obligations           |   |                   | 48,330 |   |   |   | 44,521 |   |   |   | 3,809 |   |   |   | - |   |   |   | - |   |
| Total                                 |   |                   | 48,330 |   |   |   | 44,521 |   |   |   | 3,809 |   |   |   | - |   |   |   | - |   |

| ITEM 6. | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
|---------|--------------------------------------------|

| A. | Directors and Senior Management |
|----|---------------------------------|

| Name                                                                                  |   | Age    |   | Position                                                             |
|---------------------------------------------------------------------------------------|--------|--------|--------|----------------------------------------------------------------------|
| Geoffrey P. Kempler                 |   | 62     |   | Chairman of the Board of Directors and Chief Executive Officer       |
| Kathryn J.E. Andrews                |   | 50     |   | Chief Financial Officer                                              |
| David A. Stamler                                                                      |   | 56     |   | Chief Medical Officer and Senior Vice President Clinical Development |
|                                                                                  |   |   |   |                                                                 |
| Dianne M. Angus                     |   | 57     |   | Chief Operating Officer                                              |
| Peter A. Marks(1)                   |   | 61     |   | Director                                                             |
| Brian D. Meltzer(1)(2)(3)           |   | 63     |   | Director                                                             |
| George W. Mihaly(1)(2)(3)           |   | 64     |   | Director                                                             |
| Lawrence B. Gozlan(3)               |   | 38     |   | Director                                                             |
| Ira Shoulson                        |   | 71     |   | Director                                                             |

----

----

----

| B. | Compensation |
|----|--------------|

|                                                        |   | Salaries, fees,commissions, bonuses and other |      |   | Pension, retirement and other similar benefits |   |
|-------------------------------------------------------------|--------|-----------------------------------------------|-----------|--------|------------------------------------------------|--------|
|                                                        |   |                                          |      |   |                                           |   |   |   |
| Geoffrey P. Kempler (1)                                     |   | A$                                            | 419,313   |   |                                           | A$     | 26,411 |   |
| Dianne M. Angus                                             |   | A$                                            | 328,799   |   |                                           | A$     | 19,616 |   |
| Kathryn Andrews (1)                                         |   | A$                                            | 131,826   |   |                                           | A$     | 19,616 |   |
| David A. Stamler (3)                                        |   | A$                                            | 58,290    |   |                                           |   | -- |   |
| Peter A. Marks                                              |   | A$                                            | 60,000    |   |                                           |   | -- |   |
| Brian D. Meltzer                                            |   | A$                                            | 55,833    |   |                                           | A$     | 29,167 |   |
| George W. Mihaly                                            |   | A$                                            | 75,000    |   |                                           |   | -- |   |
| Lawrence B. Gozlan (2)                                      |   | A$                                            | 140,000   |   |                                           |   | -- |   |
| Ira Shoulson (2)                                            |   | A$                                            | 268,137   |   |                                           |   | -- |   |
| All executive officers and directors as a group (9 persons) |   | A$                                            | 1,537,198 |   |                                           | A$     | 87,465 |   |

|  | (1) | Base Fee includes movements in annual leave provision for Mr. Kempler, Ms. Angus and Ms. Andrews accrued in accordance with their employment contracts. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (2) | Includes consulting fees paid to an associated entity of Mr. Lawrence Gozlan, and Prof. Ira Shoulson in the amount of $80,000 and $223,201, respectively. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (3) | David Stamler appointed as Chief Medical Officer and Senior Vice President Clinical Development on 15 May 2017. |
|--|-----|-----------------------------------------------------------------------------------------------------------------|

----

|  | · | By our company without cause (as defined in the agreement) or by Mr. Kempler with good reason (as defined in the agreement), he will be entitled to: (i) the sum of A$1 million provided we have sufficient capital requirements to fulfill this obligation within 90 days of termination date; (ii) business expenses that have not been reimbursed and accrued and unused vacation days; and (iii) the acceleration of the vesting of any unvested options to purchase ordinary shares which may be purchased during the remainder of the exercise period of such options. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | By our company with cause (as defined in the agreement) or by Mr. Kempler without good reason (as defined in the agreement), he will be entitled to business expenses that have not been reimbursed and accrued and unused vacation days.  Mr. Kempler will only be permitted to exercise unvested options to purchase shares that had been granted to him prior to the employment agreement. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Due to death or disability (as defined in the agreement), we shall pay Mr. Kempler or his estate, as applicable, all accrued base salary, pro-rata bonus, business expenses that have not been reimbursed and accrued, unused vacation days (and in the case of disability, less such amounts under any disability policy maintained by our company).  Mr. Kempler or his estate, as applicable, will be entitled to exercise vested options for ordinary shares. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| C. | Board Practices |
|----|-----------------|

----

----

----

|  | · | incurred by the person in his or her capacity as an officer of our company or a subsidiary of our company provided that the liability does not arise out of a conduct involving a willful breach of duty in relation to our company or a subsidiary of our company; or |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | for costs and expenses incurred by that person defending proceedings, whatever their outcome. |
|--|--------|-----------------------------------------------------------------------------------------------|

| D. | Employees |
|----|-----------|

| E. | Share Ownership |
|----|-----------------|

| Name                                                        |   | Number of Ordinary Shares Beneficially Owned (1) |       |   | Percentage of Ownership (2) |   |
|-------------------------------------------------------------|--------|--------------------------------------------------|------------|--------|-----------------------------|--------|
| Geoffrey P. Kempler (3)                                     |   |                                             | 22,011,000 |   |                        |   | 4.01 | % |
| Kathryn J.E. Andrews (4)                                    |   |                                             | 500,000    |   |                        |   | * |   |
| Dianne M. Angus (5)                                         |   |                                             | 2,506,128  |   |                        |   | * |   |
| Peter A. Marks (7)                                          |   |                                             | 1,043,111  |   |                        |   | * |   |
| Brian D. Meltzer (8)                                        |   |                                             | 1,326,666  |   |                        |   | * |   |
| George W. Mihaly (9)                                        |   |                                             | 1,226,666  |   |                        |   | * |   |
| Lawrence B. Gozlan (10)                                     |   |                                             | 1,000,000  |   |                        |   | * |   |
| Ira Shoulson                                                |   |                                             | -          |   |                        |   | * |   |
| David Stamler (11)                                          |   |                                             | 4,000,000  |   |                        |   | * |   |
| All directors and executive officers as a group (9 persons) |   |                                             | 33,613,571 |   |                        |   | 6.13 | % |

|  | * | Less than 1% |
|--|---|--------------|

----

|  | 1. | Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission, and generally includes voting or investment power with respect to securities.  Ordinary shares relating to options currently exercisable or exercisable within 60 days of the date of the above table are deemed outstanding for computing the percentage of the person holding such securities but are not deemed outstanding for computing the percentage of any other person.  Except as indicated by footnote, and subject to community property laws where applicable, the persons named in the table above have sole voting and investment power with respect to all shares shown as beneficially owned by them. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2. | The percentages shown are based on 548,751,470 consisting of 533,891,470 ordinary shares and 14,860,000 unlisted options, issued and outstanding as of August 31, 2017. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 3. | Includes options to purchase 4,000,000 ordinary shares that are exercisable for A$0.33 consideration on or before December 13, 2017. Of the 18,011,000 outstanding ordinary shares, 30,000 ordinary shares are held of record by Mr. Kempler, 14,165,000 ordinary shares are held by Baywick Pty Ltd., an Australian corporation owned by Mr. Kempler, 156,000 ordinary shares are held by Sadarajak Pty Ltd., an Australian corporation owned by Mr. Kempler, 90,000 ordinary shares are held of record by Crystal Triangle Pty Ltd., an Australian corporation owned by Mr. Kempler and 2,970,000 ordinary shares are held of record by NRB Developments Pty Ltd., an Australian corporation in which Mr. Kempler holds a 50% interest, 600,000 ordinary shares are held of record by Sandhurst Trustees Ltd. Mr. Kempler may be deemed to be the beneficial owner of the ordinary shares held of record by Baywick Pty Ltd., Crystal Triangle Pty Ltd., NRB Developments Pty Ltd. and Sandhurst Trustees Ltd. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 4. | Includes options to purchase 500,000 ordinary shares that are exercisable for A$0.07 consideration on or before 6 June 2022. |
|--|----|------------------------------------------------------------------------------------------------------------------------------|

|  | 5. | Includes (i) options to purchase 160,000 ordinary shares that are exercisable for A$0.73 consideration on or before November 3, 2018; (ii) options to purchase 1,000,000 ordinary shares that are exercisable for A$0.34 consideration on or before October 2, 2018; (iii) options to purchase 1,000,000 ordinary shares that are exercisable for $0.07 consideration on or before 6 June 2022 and (iv) 146,128 outstanding ordinary shares held of record by Ms. Dianne Angus. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 6. | Includes options to purchase 4,000,000 ordinary shares that are exercisable for A$0.07 consideration on or before 6 June 2022. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------|

|  | 7. | Includes options to purchase 1,000,000 ordinary shares that are exercisable for A$0.33 consideration on or before December 13, 2017. The 43,111 outstanding ordinary shares are held of record by Lampam Pty Ltd., an Australian corporation owned by Mr. Peter Marks. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 8. | Includes options to purchase 1,000,000 ordinary shares that are exercisable for A$0.33 consideration on or before December 13, 2017. The 326,666 outstanding ordinary shares are held of record by Navigator Australia Ltd., a superannuation fund of Mr. Meltzer. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 9. | Includes options to purchase 1,000,000 ordinary shares that are exercisable for A$0.33 consideration on or before December 13, 2017. Of the 226,666 outstanding ordinary shares, 166,666 ordinary shares are held of record by Dr. Mihaly, 52,000 ordinary shares are held of record by Waide Pty Ltd., an Australian corporation owned by Dr. Mihaly, and 4,000 ordinary shares are held of record by each of Kieren Mihaly and Warwick Mihaly, Dr. Mihaly’s sons.  Dr. Mihaly disclaims beneficial ownership of the ordinary shares held by his sons, Kieren Mihaly and Warwick Mihaly. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | 10. | Includes options to purchase 1,000,000 ordinary shares that are exercisable for A$0.33 consideration on or before December 13, 2017. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------|

|  | 11. | Includes options to purchase 4,000,000 ordinary shares that are exercisable for A$0.07 consideration on or before June 6, 2022. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------|

----

|                                                  |   | As of June 30, |       |
|-------------------------------------------------------|--------|----------------|------------|
|                                                  |   | 2017           |       |   | 2016 |   |   | 2015 |   |
|                                                  |   | Amount         |       |   | Weightedaverageexerciseprice |   |   | Amount |   |   | Weightedaverageexerciseprice |   |   | Amount |   |   | Weightedaverageexerciseprice |   |
| Options outstanding at the beginning of the year      |   |           | 19,395,582 |   |   |   |  |   |   |   | 19,395,582 |   |   |   |  |   |   |   | 16,375,582 |   |   | $ | 0.41 |   |
| Granted                                               |   |           | 8,550,000  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 4,400,000 |   |   | $ | 0.28 |   |
| Exercised                                             |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (180,000 | ) |   |   | -- |   |
| Expired                                               |   |           | (1,119,519 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,000,000 | ) |   | $ | 0.25 |   |
| Lapsed                                                |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (200,000 | ) |   | $ | 1.12 |   |
| Options outstanding at the end of the year            |   |           | 26,826,063 |   |   |   |   |   |   |   | 19,395,582 |   |   |   |   |   |   |   | 19,395,582 |   |   | $ | 0.38 |   |
| Options exercisable at the end of the year            |   |           | 26,826,063 |   |   |   |   |   |   |   | 19,395,582 |   |   |   |   |   |   |   | 19,395,582 |   |   | $ | 0.38 |   |
|                                                  |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Options that may be granted as of the end of the year |   |           | 26,826,063 |   |   |   |   |   |   |   | 19,395,582 |   |   |   |   |   |   |   | 19,395,582 |   |   |   |   |   |

----

| ITEM 7. | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
|---------|---------------------------------------------------|

| A. | Major Shareholders |
|----|--------------------|

| B. | Related Party Transactions |
|----|----------------------------|

| C. | Interests of Experts and Counsel |
|----|----------------------------------|

----

| ITEM 8. | FINANCIAL INFORMATION |
|---------|-----------------------|

| A. | Financial Statements and Other Financial Information |
|----|------------------------------------------------------|

| B. | Significant Changes |
|----|---------------------|

| ITEM 9. | THE OFFER AND LISTING |
|---------|-----------------------|

| A. | Offer and Listing Details |
|----|---------------------------|

|                                                                       |   | Per Ordinary Share (A$) |   |
|----------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                       |   | High                    |   |   | Low |   |
| Fiscal Year Ended June 30,                                                 |   |                    |   |   |   |   |
| 2013                     |   |                    | 0.31   |   |   |   | 0.14 |   |
| 2014                     |   |                    | 1.37   |   |   |   | 0.16 |   |
| 2015                     |   |                    | 0.36   |   |   |   | 0.14 |   |
| 2016                     |   |                    | 0.17   |   |   |   | 0.06 |   |
| 2017                     |   |                    | 0.15   |   |   |   | 0.04 |   |
|                                                                       |   |                    |   |   |   |   |   |   |
| Fiscal Year Ended June 30, 2015:                                           |   |                    |   |   |   |   |   |   |
| First Quarter            |   |                    | 0.36   |   |   |   | 0.22 |   |
| Second Quarter           |   |                    | 0.25   |   |   |   | 0.17 |   |
| Third Quarter            |   |                    | 0.22   |   |   |   | 0.14 |   |
| Fourth Quarter           |   |                    | 0.26   |   |   |   | 0.14 |   |
|                                                                       |   |                    |   |   |   |   |   |   |
| Fiscal Year Ended June 30, 2016:                                           |   |                    |   |   |   |   |   |   |
| First Quarter            |   |                    | 0.18   |   |   |   | 0.13 |   |
| Second Quarter           |   |                    | 0.14   |   |   |   | 0.10 |   |
| Third Quarter            |   |                    | 0.11   |   |   |   | 0.06 |   |
| Fourth Quarter           |   |                    | 0.12   |   |   |   | 0.06 |   |
|                                                                       |   |                    |   |   |   |   |   |   |
| Fiscal Year Ended June 30, 2017:                                           |   |                    |   |   |   |   |   |   |
| First Quarter            |   |                    | 0.15   |   |   |   | 0.09 |   |
| Second Quarter           |   |                    | 0.11   |   |   |   | 0.04 |   |
| Third Quarter            |   |                    | 0.07   |   |   |   | 0.04 |   |
| Fourth Quarter           |   |                    | 0.07   |   |   |   | 0.05 |   |
|                                                                       |   |                    |   |   |   |   |   |   |
| Month Ended:                                                               |   |                    |   |   |   |   |   |   |
| April 2017               |   |                    | 0.07   |   |   |   | 0.07 |   |
| May 2017                 |   |                    | 0.07   |   |   |   | 0.05 |   |
| June 2017                |   |                    | 0.05   |   |   |   | 0.05 |   |
| July 2017                |   |                    | 0.06   |   |   |   | 0.05 |   |
| August 2017              |   |                    | 0.05   |   |   |   | 0.05 |   |

----

|                                                                       |   | Per ADS (U.S. $) |   |
|----------------------------------------------------------------------------|--------|------------------|--------|
|                                                                       |   | High 1           |   |   | Low 1 |   |
| Fiscal Year Ended June 30,                                                 |   |             |   |   |   |   |
| 2013                     |   |             | 18.36  |   |   |   | 9.00 |   |
| 2014                     |   |             | 79.74  |   |   |   | 8.82 |   |
| 2015                     |   |             | 17.64  |   |   |   | 6.42 |   |
| 2016                     |   |             | 7.68   |   |   |   | 2.70 |   |
| 2017                     |   |             | 6.69   |   |   |   | 1.52 |   |
|                                                                       |   |             |   |   |   |   |   |   |
| Fiscal Year Ended June 30, 2015:                                           |   |             |   |   |   |   |   |   |
| First Quarter            |   |             | 17.64  |   |   |   | 11.58 |   |
| Second Quarter           |   |             | 13.74  |   |   |   | 8.40 |   |
| Third Quarter            |   |             | 10.26  |   |   |   | 6.42 |   |
| Fourth Quarter           |   |             | 11.10  |   |   |   | 6.48 |   |
|                                                                       |   |             |   |   |   |   |   |   |
| Fiscal Year Ended June 30, 2016:                                           |   |             |   |   |   |   |   |   |
| First Quarter            |   |             | 7.68   |   |   |   | 4.20 |   |
| Second Quarter           |   |             | 6.42   |   |   |   | 4.08 |   |
| Third Quarter            |   |             | 4.50   |   |   |   | 2.70 |   |
| Fourth Quarter           |   |             | 5.14   |   |   |   | 2.79 |   |
|                                                                       |   |             |   |   |   |   |   |   |
| Fiscal Year Ended June 30, 2017:                                           |   |             |   |   |   |   |   |   |
| First Quarter            |   |             | 6.69   |   |   |   | 4.52 |   |
| Second Quarter           |   |             | 4.75   |   |   |   | 1.52 |   |
| Third Quarter            |   |             | 4.58   |   |   |   | 1.65 |   |
| Fourth Quarter           |   |             | 4.1    |   |   |   | 2.04 |   |
|                                                                       |   |             |   |   |   |   |   |   |
| Month Ended:                                                               |   |             |   |   |   |   |   |   |
| April 2017               |   |             | 4.1    |   |   |   | 2.67 |   |
| May 2017                 |   |             | 3.15   |   |   |   | 2.1 |   |
| June 2017                |   |             | 2.6    |   |   |   | 2.04 |   |
| July 2017                |   |             | 3.24   |   |   |   | 2.32 |   |
| August 2017              |   |             | 2.86   |   |   |   | 2.31 |   |
|                                                                       |   |             |   |   |   |   |   |   |

----

| B. | Plan of Distribution |
|----|----------------------|

| C. | Markets |
|----|---------|

| D. | Selling Shareholders |
|----|----------------------|

| E. | Dilution |
|----|----------|

| F. | Expenses of the Issue |
|----|-----------------------|

| ITEM 10. | ADDITIONAL INFORMATION |
|----------|------------------------|

| A. | Share Capital |
|----|---------------|

| B. | Memorandum and Articles of Association |
|----|----------------------------------------|

----

----

| C. | Material Contracts |
|----|--------------------|

----

| D. | Exchange Controls |
|----|-------------------|

----

| E. | Taxation |
|----|----------|

----

|  | · | Retain access to the full CGT discount for discount capital gains of foreign resident individuals in respect of the increase in the value of a CGT asset that occurred before 9 May 2013; and |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | Remove the CGT discount for discount capital gains for foreign resident individuals that arise after 8 May 2013. |
|--|--------|------------------------------------------------------------------------------------------------------------------|

----

----

----

|  | · | you will be required to allocate “excess distributions” or gain recognized upon the disposition of ADRs ratably over your holding period for the ADSs. An “excess distribution” is the amount by which distributions during a taxable year in respect of an ADS exceed 125% of the average annual distributions during the three preceding taxable years (or, if shorter, your holding period for the ADSs). |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the amount allocated to each year during which we are considered a PFIC, other than the year of the distribution or disposition, will be subject to tax at the highest individual or corporate tax rate, as the case may be, in effect for that year and an interest charge will be imposed with respect to the resulting tax liability allocated to each such year, |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the amount allocated to the current taxable year and any taxable year before we became a PFIC will be taxable as ordinary income in the current year, and |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | you will be required to file an annual return on IRS Form 8621. |
|--|--------|-----------------------------------------------------------------|

|  | · | a direct or indirect owner of a pass-through entity, including a trust or estate, that is a direct or indirect shareholder of a PFIC, |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a shareholder of a PFIC that is a shareholder of another PFIC, or |
|--|--------|-------------------------------------------------------------------|

|  | · | a 50%-or-more shareholder of a foreign corporation that is not a PFIC and that directly or indirectly owns stock of a PFIC. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------|

----

| F. | Dividends and Paying Agents |
|----|-----------------------------|

| G. | Statement by Experts |
|----|----------------------|

----

| H. | Documents on Display |
|----|----------------------|

| I. | Subsidiary Information |
|----|------------------------|

| ITEM 11. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|----------|------------------------------------------------------------|

----

| ITEM 12. | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
|----------|--------------------------------------------------------|

| Persons Depositing or Withdrawing Shares Must Pay: |                                                                                                                                                                                       |               | For:    |
|----------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|---------|
|                                               |                                                                                                                                                                                       |               |    |   |
| ●                                            | U.S.$5.00 (or less) per 100 ADSs (or portion of 100 ADSs)                                                                                                                                  |     | ● | Issuance of ADSs, including issuances resulting from a distribution of shares or rights or other property |
|                                               |                                                                                                                                                                                       |               | ● | Cancellation of ADSs for the purpose of withdrawal, including if the deposit agreement terminates |
| ●                                            | U.S.$0.005 (or less) per ADS                                                                                                                                                               |               | ● | Any cash distribution to you |
| ●                                            | A fee equivalent to the fee that would be payable if securities distributed to you had been shares and the shares had been deposited for issuance of ADSs                                  |               | ● | Distribution of securities distributed to holders of deposited securities which are distributed by the depositary to ADS holders |
| ●                                            | U.S.$1.50 (or less) per ADS                                                                                                                                                                |               | ● | Transfers, combination and split-up of ADSs |
| ●                                            | Expenses of the depositary                                                                                                                                                                 |               | ● | Cable, telex and facsimile transmissions (when expressly provided in the deposit agreement) |
|                                               |                                                                                                                                                                                       |               | ● | Converting foreign currency to U.S. dollars |
| ●                                            | Taxes and other governmental charges the depositary or the custodian have to pay on any ADS or share underlying an ADS, for example, stock transfer taxes, stamp duty or withholding taxes |               | ● | As necessary |
| ●                                            | Any charges incurred by the depositary or its agents for servicing the deposited securities                                                                                                |               | ● | As necessary |

----

----

| ITEM 13. | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
|----------|-------------------------------------------------|

| ITEM 14. | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
|----------|------------------------------------------------------------------------------|

| ITEM 15. | CONTROLS AND PROCEDURES |
|----------|-------------------------|

|  | · | pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use of disposition of the company’s assets that could have a material effect on the financial statements. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ITEM 16. | RESERVED |
|----------|----------|

|                                                                          |   | Year Ended June 30, |    |
|-------------------------------------------------------------------------------|--------|---------------------|---------|
| Services Rendered                                                             |   | 2017                |    |   | 2016 |   |
| Audit (1)                   |   | A$                  | 260,645 |   |   | A$ | 166,479 |   |
| Audit-Related (2)           |   | A$                  | 20,590  |   |   | A$ | 38,297 |   |
| Total                       |   | A$                  | 281,235 |   |   | A$ | 204,776 |   |

----

| ITEM 16E. |  PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
|-----------|------------------------------------------------------------------------------|

| ITEM 16F. |  CHANGES IN REGISTRANT’S CERTIFYING ACCOUNTANT |
|-----------|-----------------------------------------------------------|

| ITEM 17. | FINANCIAL STATEMENTS |
|----------|----------------------|

| ITEM 18. | FINANCIAL STATEMENTS |
|----------|----------------------|

|                                                                                                                         | Page |
|------------------------------------------------------------------------------------------------------------------------------|------|
| Index to Consolidated Financial Statements                                 | F-0  |
| Report of Independent Registered Public Accounting Firm                    | F-1  |
| Consolidated Statements of Financial Position                                                                                | F-2  |
| Consolidated Statements of Profit or Loss and Other Comprehensive Income                                                     | F-3  |
| Consolidated Cash Flow Statements                                          | F-4  |
| Consolidated Statements of Changes in Shareholders’ Equity           | F-5  |
| Notes to Consolidated Financial Statements                                 | F-6  |

----

| ITEM 19. | EXHIBITS |
|----------|----------|

| ExhibitNumber |    | Exhibit Description                                                                                                                                                                                                                                                                                                                                                                                                                                                        |    | Incorporated by Reference |
|---------------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|---------------------------|
|          |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |    | Form                      |    | Exhibit |    | Filing Date/Period EndDate |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |         |                      |
| 1             |    | Constitution of Registrant.                                                                                                                                                                                                                                                                                                                                                                                                                                           |    | 20-F                      |    | 1.1 |    | 6/30/09 |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |         |                      |
| 2.1           |    | Deposit Agreement dated March 23, 2001, as amended and restated as of December 21, 2007, among the Registrant, the Bank of New York, as Depositary, and owners and holders from time to time of ADRs issued thereunder, including the Form of American Depositary Receipts.                                                                                                                                                                                                |    | F-6 POS                   |    | 1 |    | 12/21/07 |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |         |                      |
| 4.1           |         | License Agreement dated January 1, 2001, between the Registrant and The General Hospital Corporation.                                                                                                                                                                                                                                                                                                                                                                 |         | 20-F                      |   |   |   | 5/29/02 |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |         |                      |   |   |   |   |
| 4.2           |    | Variation Agreement dated August 8, 2001, between the Registrant and The General Hospital Corporation, which amends the License Agreement dated January 1, 2001, between the parties.                                                                                                                                                                                                                                                                                      |    | 20-F                      |    |   |    | 5/29/02 |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |         |                      |
| 4.3           |    | Agreement to Provide Accounting, Administration, Corporate Advice and Company Secretarial Services dated February 23, 2000, between the Registrant and Malvern Administrative Services (now The CFO solution).                                                                                                                                                                                                                                                             |    | 20-F                      |    |   |    | 5/29/02 |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |         |                      |
| 4.4           |    | Second Amendment to Exclusive License Agreement dated January 1, 2001, between the Registrant and The General Hospital Corporation dated March 15, 2004.                                                                                                                                                                                                                                                                                                                   |    | 20-F                      |   | 4.6 |    | 6/30/04 |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |         |                      |
| 4.5           |    | Settlement Agreement dated July 28, 2004, among the Registrant, P.N. Gerolymatos S.A, or PNG, Mr. Gerolymatos, GHC, Professor Ashley Bush, Dr. Rudolph Tanzi and Dr. Robert Cherny and the ancillary agreements of even date therewith exhibited thereto, including the Patent Assignment and Settlement Agreement among the Registrant and PNG, Patent Rights Security Agreement among the Registrant and PNG and the Derivatives Agreement among the Registrant and PNG. |    | 20-F                      |    | 4.21 |    | 6/30/04 |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |         |                      |
| 4.6           |    | Prana Biotechnology Limited, 2004 American Depository Share (ADS) Option Plan.                                                                                                                                                                                                                                                                                                                                                                                             |    | 6-K                       |    | Annexure A |    | 11/3/04 |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |         |                      |   | to Item 1 |   |   |
| 4.7           |         | Prana Biotechnology Limited, 2004 Employees’, Directors’ and Consultants’ Share and Option Plan.                                                                                                                                                                                                                                                                                                                                                         |         | 6-K                       |   | Annexure B |   | 11/3/04 |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |         |                      |   | to Item 1 |   |   |
| 4.8           |         | Fourth Research Funding and Intellectual Property Assignment Agreement dated December 1, 2009.                                                                                                                                                                                                                                                                                                                                                                        |         | 20-F                      |   | 4.9 |   | 6/30/12 |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |         |                      |   |   |   |   |
| 4.9           |         | Fifth Research Funding and Intellectual Property Assignment Agreement dated December 1, 2012.                                                                                                                                                                                                                                                                                                                                                                              |         | 20-F                      |   | 4.9 |   | 6/30/13 |

----

| 4.10   |         | Sixth Research Funding and Intellectual Property Assignment Agreement dated November 7, 2014.                                                                                                                                                                        |         | 20-F       |         | 4.10  |         | 6/30/15 |
|--------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|------------|--------------|------------|--------------|---------|
|   |         |                                                                                                                                                                                                                                                                 |         |       |         |       |         |    |
| 4.11   |         | Employment Agreement dated September 21, 2007, among the Registrant and Mr. Kempler.                                                                                                                                                                                 |         | 20-F       |         | 4.19       |         | 6/30/07 |
|   |         |                                                                                                                                                                                                                                                                 |         |       |         |       |         |    |
| 4.12   |         | Letter Agreements effective as of June 12, 2007 between the Registrant and Ms. Dianne Angus.                                                                                                                                                                         |         | 20-F       |         | 4.21       |         | 6/30/07 |
|   |         |                                                                                                                                                                                                                                                                 |         |       |         |       |         |    |
| 4.13   |         | Placement Confirmation Letter dated September 8, 2009, between the Registrant and BAM Capital LLC.                                                                                                                                                                   |         | 6-K        |         | 10.1       |         | 9/9/09  |
|   |         |                                                                                                                                                                                                                                                                 |         |       |         |       |         |    |
| 4.14   |         | Manufacturing Services Agreement for PBT2 HCI Supply dated August 19, 2013 between the Registrant and Dr. Reddy’s Laboratories Limited.                                                                                                                        |         | 20-F       |         | 4.30       |         | 6/30/13 |
|   |         |                                                                                                                                                                                                                                                                 |         |       |         |       |         |    |
| 4.15   |         | Amendments to Manufacturing Services Agreement for PBT2 HCI Supply dated August 19, 2013 between the Registrant and Dr. Reddy’s Laboratories Limited, as amended: Amendment No. 1 effective September 26, 2013; and Amendment No. 2 effective August 31, 2013. |         | 20-F  |         | 4.35       |         | 6/30/14 |
|   |         |                                                                                                                                                                                                                                                                 |         |       |         |       |         |    |
| 4.16   |         | Manufacturing Services Agreement for PBT434 API supply dated March 28, 2014                                                                                                                                                                                          |         | 20-F       |         | 4.36       |         | 6/30/14 |
|   |         |                                                                                                                                                                                                                                                                 |         |       |         |       |         |    |
| 4.17   |         | Master Service Agreement between the Registrant and Certara Portugal dated January 22, 2015                                                                                                                                                                          |         | 20-F       |         | 4.17       |         | 6/30/15 |
|   |         |                                                                                                                                                                                                                                                                 |         |       |         |       |         |    |
| 4.18   |         | Master Service Agreement between the Registrant and d3 Medicine LLC dated March 17, 2015                                                                                                                                                                             |         | 20-F       |         | 4.18       |         | 6/30/15 |
|   |         |                                                                                                                                                                                                                                                                 |         |       |         |       |         |    |
| 4.19   |         | Master Service Agreement between the Registrant and Orgapharm S.A.S. dated September 21, 2015.                                                                                                                                                                       | .            | 20-F       |              | 4.19       |         | 6/30/16 |
|   |         |                                                                                                                                                                                                                                                                 |         |       |         |       |         |    |
| 4.20   |         | Master Service Agreement between the Registrant and IDT Australia  Limited dated September 1, 2015                                                                                                                                                              |         | 20-F       |              | 4.20       |         | 6/30/16 |
|   |         |                                                                                                                                                                                                                                                                 |         |       |         |       |         |    |
| 4.21*  |         | Services Agreement between the Registrant and Pharmaceutical Packaging Professionals Pty Limited                                                                                                                                                                     |         |       |         |       |         |    |
|   |         |                                                                                                                                                                                                                                                                 |         |       |         |       |         |    |
| 8.1*   |    | List of Subsidiaries of the Registrant.                                                                                                                                                                                                                              |    |       |    |       |    |    |
|   |         |                                                                                                                                                                                                                                                                 |         |       |         |       |         |    |
| 12.1*  |         | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act, as amended.                                                                                                                                                   |         |       |         |       |         |    |
|   |         |                                                                                                                                                                                                                                                                 |         |       |
| 12.2*  |    | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act, as amended.                                                                                                                                                   |    |       |    |       |    |    |
|   |         |                                                                                                                                                                                                                                                                 |         |       |
| 13.1*  |    | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                   |    |       |    |       |    |    |
|   |         |                                                                                                                                                                                                                                                                 |         |       |
| 13.2*  |    | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                              |    |       |    |       |    |    |
|   |         |                                                                                                                                                                                                                                                                 |         |       |
| 15.1*  |    | Consent of PricewaterhouseCoopers.                                                                                                                                                                                                                                   |    |       |    |       |    |    |

----

|                                                                     | Page Number |
|--------------------------------------------------------------------------|-------------|
|                                                                     |        |
| Report of Independent Registered Public Accounting Firm                  | F-1         |
|                                                                     |        |
| Consolidated Statements of Financial Position                            | F-2         |
|                                                                     |        |
| Consolidated Statements of Profit or Loss and Other Comprehensive Income | F-3         |
|                                                                     |        |
| Consolidated Cash Flow Statements                                        | F-4         |
|                                                                     |        |
| Consolidated Statements of Changes in Shareholders' Equity               | F-5         |
|                                                                     |        |
| Notes to Consolidated Financial Statements                               | F-6         |

----

----

|                                                                                                                                                                                            |   |   |                |   | June 30, |       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------|--------|----------|------------|
|                                                                                                                                                                                            |   | Notes  |                |   | 2017     |       |   | 2016 |   |
| Assets                                                                                                                                                                                          |   |   |                |   |     |       |   |   |   |
| Current Assets                                                                                                                                                                                  |   |   |                |   |     |       |   |   |   |
| Cash and cash equivalents                                                                                                                                                                       |   |   |                |   |     | 21,884,957 |   |   |   | 28,593,538 |   |
| Trade and other receivables                                                                                                                                                                     |   |   | 5    |   |     |       | 3,035,573 |   |   |   | 4,786,765 |   |
| Other current assets                                                                                                                                                                            |   |   | 6    |   |     |       | 329,601 |   |   |   | 276,504 |   |
|                                                                                                                                                                                            |   |   |                |   |     |       |   |   |   |   |   |   |
| Total Current Assets                                                                                                                                                                            |   |   |                |   |     |       | 25,250,131 |   |   |   | 33,656,807 |   |
|                                                                                                                                                                                            |   |   |                |   |     |       |   |   |   |   |   |   |
| Non-Current Assets                                                                                                                                                                              |   |   |                |   |     |       |   |   |   |   |   |   |
| Property and equipment, net of accumulated depreciation of A$353,443 and $329,541 respectively                                                                                                  |   |   |                |   |     |       | 30,815 |   |   |   | 24,225 |   |
| Other non-current assets                                                                                                                                                                        |   |   | 6         |   |     |       | - |   |   |   | 43,988 |   |
|                                                                                                                                                                                            |   |   |                |   |     |       |   |   |   |   |   |   |
| Total Non-Current Assets                                                                                                                                                                        |   |   |                |   |     |       | 30,815 |   |   |   | 68,213 |   |
|                                                                                                                                                                                            |   |   |                |   |     |       |   |   |   |   |   |   |
| Total Assets                                                                                                                                                                                    |   |   |                |   |     |       | 25,280,946 |   |   |   | 33,725,020 |   |
|                                                                                                                                                                                            |   |   |                |   |     |       |   |   |   |   |   |   |
| Liabilities                                                                                                                                                                                     |   |   |                |   |     |       |   |   |   |   |   |   |
| Current Liabilities                                                                                                                                                                             |   |   |                |   |     |       |   |   |   |   |   |   |
| Trade and other payables                                                                                                                                                                        |   |   | 7         |   |     |       | 892,434 |   |   |   | 1,748,566 |   |
| Provisions                                                                                                                                                                                      |   |   | 8         |   |     |       | 698,038 |   |   |   | 608,771 |   |
|                                                                                                                                                                                            |   |   |                |   |     |       |   |   |   |   |   |   |
| Total Current Liabilities                                                                                                                                                                       |   |   |                |   |     |       | 1,590,472 |   |   |   | 2,357,337 |   |
|                                                                                                                                                                                            |   |   |                |   |     |       |   |   |   |   |   |   |
| Non-Current Liabilities                                                                                                                                                                         |   |   |                |   |     |       |   |   |   |   |   |   |
| Provisions                                                                                                                                                                                      |   |   | 8         |   |     |       | 440 |   |   |   | 470 |   |
|                                                                                                                                                                                            |   |   |                |   |     |       |   |   |   |   |   |   |
| Total Non-Current  Liabilities                                                                                                                                                             |   |   |                |   |     |       | 440 |   |   |   | 470 |   |
|                                                                                                                                                                                            |   |   |                |   |     |       |   |   |   |   |   |   |
| Total Liabilities                                                                                                                                                                               |   |   |                |   |     |       | 1,590,912 |   |   |   | 2,357,807 |   |
|                                                                                                                                                                                            |   |   |                |   |     |       |   |   |   |   |   |   |
| Net Assets                                                                                                                                                                                      |   |   |                |   |     |       | 23,690,034 |   |   |   | 31,367,213 |   |
|                                                                                                                                                                                            |   |   |                |   |     |       |   |   |   |   |   |   |
| Equity                                                                                                                                                                                          |   |   |                |   |     |       |   |   |   |   |   |   |
| Issued capital 2017: 533,891,470 fully paid ordinary shares Nil options over fully paid ordinary shares2016: 533,891,470 fully paid ordinary shares Nil options over fully paid ordinary shares |   |   | 10        |   |     |       | 144,018,006 |   |   |   | 146,879,214 |   |
| Reserves                                                                                                                                                                                        |   |   | 11        |   |     |       | 2,320,480 |   |   |   | 9,363,181 |   |
| Accumulated deficit during the development stage                                                                                                                                                |   |   | 12        |   |     |       | (122,648,452 | ) |   |   | (124,875,182 | ) |
|                                                                                                                                                                                            |   |   |                |   |     |       |   |   |   |   |   |   |
| Total Equity                                                                                                                                                                                    |   |   |                |   |     |       | 23,690,034 |   |   |   | 31,367,213 |   |

----

|                                                                                              |   |   |              |   | Years endedJune 30, |   |
|---------------------------------------------------------------------------------------------------|--------|--------|-------------------|--------|---------------------|--------|
|                                                                                              |   | Notes  |              |   | 2017                |   |   | 2016 |   |   | 2015 |   |
|                                                                                              |   |   |              |   |                |   |   |   |   |   |   |   |
| Revenues from ordinary activities                                                                 |   |   | 2       |   |                |   | 132,396 |   |   |   | 142,657 |   |   |   | 176,842 |   |
| Other income                                                                                      |   |   | 2       |   |                |   | 3,022,673 |   |   |   | 4,753,697 |   |   |   | 6,317,438 |   |
| Intellectual property expenses                                                                    |   |   |              |   |                |   | (241,892 | ) |   |   | (241,954 | ) |   |   | (257,299 | ) |
| General and administration expenses                                                               |   |   | 3       |   |                |   | (3,968,630 | ) |   |   | (3,610,551 | ) |   |   | (4,506,122 | ) |
| Research and development expenses                                                                 |   |   | 3       |   |                |   | (5,700,339 | ) |   |   | (9,585,371 | ) |   |   | (12,298,167 | ) |
| Other operating expenses                                                                          |   |   |              |   |                |   | (126,071 | ) |   |   | (45,276 | ) |   |   | (39,210 | ) |
| Other gains and losses                                                                            |   |   | 3       |   |                |   | (660,213 | ) |   |   | 857,247 |   |   |   | 4,721,449 |   |
|                                                                                              |   |   |              |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Loss before income tax expense                                                                    |   |   |              |   |                |   | (7,542,076 | ) |   |   | (7,729,551 | ) |   |   | (5,885,069 | ) |
|                                                                                              |   |   |              |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Income tax expense                                                                                |   |   | 4       |   |                |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                              |   |   |              |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Loss for the year                                                                                 |   |   |              |   |                |   | (7,542,076 | ) |   |   | (7,729,551 | ) |   |   | (5,885,069 | ) |
|                                                                                              |   |   |              |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive loss                                                                          |   |   |              |   |                |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                              |   |   |              |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Total comprehensive loss for the year                                                             |   |   | 13(a)   |   |                |   | (7,542,076 | ) |   |   | (7,729,551 | ) |   |   | (5,885,069 | ) |
|                                                                                              |   |   |              |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Loss per share (basic and diluted - cents per share)                                              |   |   | 17      |   |                |   | (1.41 | ) |   |   | (1.45 | ) |   |   | (1.17 | ) |
|                                                                                              |   |   |              |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of ordinary shares used in computing basic and diluted net loss per share |   |   |                   |   |                |   | 533,891,470 |   |   |   | 533,891,470 |   |   |   | 502,714,982 |   |

----

|                                                                              |   |   |              |   | Years Ended June 30, |        |
|-----------------------------------------------------------------------------------|--------|--------|-------------------|--------|----------------------|-------------|
|                                                                              |   | Notes  |              |   | 2017                 |        |   | 2016 |   |   | 2015 |   |
|                                                                              |   |   |              |   |                 |        |   |   |   |   |   |   |
| Cash Flows from Operating Activities                                              |   |   |              |   |                 |        |   |   |   |   |   |   |
| Payments to suppliers and employees                                               |   |   |              |   |                 | (10,766,301 | ) |   |   | (14,055,879 | ) |   |   | (18,124,102 | ) |
| Interest received                                                                 |   |   |              |   |                 | 147,575     |   |   |   | 120,392 |   |   |   | 216,317 |   |
| Grants received                                                                   |   |   |              |   |                 | -           |   |   |   | - |   |   |   | 228,541 |   |
| R&D tax refund                                                                |   |   |              |   |                 | 4,753,646   |   |   |   | 6,516,961 |   |   |   | 6,808,170 |   |
|                                                                              |   |   |              |   |                 |        |   |   |   |   |   |   |   |   |   |
| Net cash flows used in operating activities                                       |   |   | 13(a)   |   |                 |        | (5,865,080 | ) |   |   | (7,418,526 | ) |   |   | (10,871,074 | ) |
|                                                                              |   |   |              |   |                 |        |   |   |   |   |   |   |   |   |   |   |
| Cash Flows from Investing Activities                                              |   |   |              |   |                 |        |   |   |   |   |   |   |   |   |   |   |
| Payment for payroll and rental security deposits                                  |   |   |              |   |                 |        | - |   |   |   | 1,474 |   |   |   | (154,077 | ) |
| Payments for purchase of plant and equipment                                      |   |   |              |   |                 |        | (27,918 | ) |   |   | (2,307 | ) |   |   | (28,757 | ) |
|                                                                              |   |   |              |   |                 |        |   |   |   |   |   |   |   |   |   |   |
| Net cash flows used in investing activities                                       |   |   |              |   |                 |        | (27,918 | ) |   |   | (833 | ) |   |   | (182,834 | ) |
|                                                                              |   |   |              |   |                 |        |   |   |   |   |   |   |   |   |   |   |
| Cash Flows from Financing Activities                                              |   |   |              |   |                 |        |   |   |   |   |   |   |   |   |   |   |
| Proceeds from exercise of options and issue of securities                         |   |   |              |   |                 |        | - |   |   |   | - |   |   |   | 7,128,142 |   |
| Payment of share issue costs                                                      |   |   |              |   |                 |        | (159,564 | ) |   |   | - |   |   |   | (284,931 | ) |
|                                                                              |   |   |              |   |                 |        |   |   |   |   |   |   |   |   |   |   |
| Net cash flows (used in) / provided by financing activities                       |   |   |              |   |                 |        | (159,564 | ) |   |   | - |   |   |   | 6,843,211 |   |
|                                                                              |   |   |              |   |                 |        |   |   |   |   |   |   |   |   |   |   |
| Net (decrease) in cash and cash equivalents                                       |   |   |              |   |                 |        | (6,052,562 | ) |   |   | (7,419,359 | ) |   |   | (4,210,697 | ) |
|                                                                              |   |   |              |   |                 |        |   |   |   |   |   |   |   |   |   |   |
| Opening cash and cash equivalents brought forward                                 |   |   |              |   |                 |        | 28,593,538 |   |   |   | 34,909,574 |   |   |   | 34,167,018 |   |
| Redemption of security deposit                                                    |   |   |              |   |                 |        | - |   |   |   | 152,603 |   |   |   | - |   |
| Exchange rate adjustments on cash and cash equivalents held in foreign currencies |   |   |              |   |                 |        | (656,019 | ) |   |   | 950,720 |   |   |   | 4,953,253 |   |
|                                                                              |   |   |              |   |                 |        |   |   |   |   |   |   |   |   |   |   |
| Closing cash and cash equivalents carried forward                                 |   |   | 13(b)   |   |                 |        | 21,884,957 |   |   |   | 28,593,538 |   |   |   | 34,909,574 |   |

----

|                                                                       |   |   Notes      |   |   |   Number of Shares |        |        |   Issued Capital |   |        |   Reserves |   |   | AccumulatedDeficit During Development Stage |       |   |   Total Equity |         |
|----------------------------------------------------------------------------|--------|------------------------|--------|--------|------------------------------|-------------|-------------|----------------------------|--------|-------------|----------------------|--------|--------|---------------------------------------------|------------|--------|--------------------------|--------------|
|                                                                       |   |                   |   |   |                         |        |        |                       |   |        |                 |   |   |                                        |       |   |                     |         |   |   |   |   |   |
| Balance, June 30, 2014                                                     |   |                   |   |   |                         | 488,646,960 |        |                       |   | 140,009,415 |                 |   |   | 8,937,434                                   |       |   |                     | (111,260,562 | ) |   |   | 37,686,287 |   |
| Transactions with owners in their capacity as owners:                      |   |                   |   |   |                         |        |        |                       |   |        |                 |   |   |                                        |       |   |                     |         |   |   |   |   |   |
| Issuance of shares in connection with At-The-Market facility, net of costs |   |  10(b)            |   |   |                         | 44,954,510  |        |                       |   | 6,844,311   |                 |   |   | -                                           |       |   |                     | -            |   |   |   | 6,844,311 |   |
| Issuance of shares in connection with share purchase plan, net of costs    |   |  10(b)            |   |   |                         | 110,000     |        |                       |   | 16,500      |                 |   |   | -                                           |       |   |                     | -            |   |   |   | 16,500 |   |
| Non-cash issuance of options to employees                                  |   |  11(b)            |   |   |                         | -           |        |                       |   | -           |                 |   |   | 170,397                                     |       |   |                     | -            |   |   |   | 170,397 |   |
| Non-cash issuance of options to consultants                                |   |  11(b)            |   |   |                         | -           |        |                       |   | -           |                 |   |   | 280,838                                     |       |   |                     | -            |   |   |   | 280,838 |   |
| Issuance of shares in connection with exercise of options, net of costs    |   |  10(b) & 1(b) |   |   |                         | 180,000     |        |                       |   | 25,488      |                 |   |   | (25,488                                     | )          |   |                     | -            |   |   |   | - |   |
|                                                                       |   |              |   |   |                         | 45,244,510  |        |                       |   | 6,886,299   |                 |   |   | 425,747                                     |       |   |                     | -            |   |   |   | 7,312,046 |   |
| Net loss                                                                   |   |                   |   |   |                         |        | -           |                       |   |        | -                    |   |   |                                        | -          |   |                     |         | (5,885,069 | ) |   |   | (5,885,069 | ) |
| Total comprehensive loss for the year                                      |   |                   |   |   |                         |        | -           |                       |   |        | -                    |   |   |                                        | -          |   |                     |         | (5,885,069 | ) |   |   | (5,885,069 | ) |
| Balance, June 30, 2015                                                     |   |                   |   |   |                         |        | 533,891,470 |                       |   |        | 146,895,714          |   |   |                                        | 9,363,181  |   |                     |         | (117,145,631 | ) |   |   | 39,113,264 |   |
| Transactions with owners in their capacity as owners:                      |   |                   |   |   |                         |        |        |                       |   |        |                 |   |   |                                        |       |   |                     |         |   |   |   |   |   |   |
| Issuance of shares in connection with At-The-Market facility, net of costs |   |  10(b)            |   |   |                         | -           |        |                       |   | -           |                 |   |   | -                                           |       |   |                     | -            |   |   |   | - |   |
| Issuance of shares in connection with share purchase plan, net of costs    |   |  10(b)            |   |   |                         | -           |        |                       |   | (16,500     | )                    |   |   | -                                           |       |   |                     | -            |   |   |   | (16,500 | ) |
| Non-cash issuance of options to employees                                  |   |  11(b)            |   |   |                         | -           |        |                       |   | -           |                 |   |   | -                                           |       |   |                     | -            |   |   |   | - |   |
| Non-cash issuance of options to consultants                                |   |  11(b)            |   |   |                         | -           |        |                       |   | -           |                 |   |   | -                                           |       |   |                     | -            |   |   |   | - |   |
| Issuance of shares in connection with exercise of options, net of costs    |   |  10(b) & 1(b) |   |   |                         | -           |        |                       |   | -           |                 |   |   | -                                           |       |   |                     | -            |   |   |   | - |   |
|                                                                       |   |                   |   |   |                         |        | -           |                       |   |        | (16,500              | )      |   |                                        | -          |   |                     |         | - |   |   |   | (16,500 | ) |
| Net loss                                                                   |   |                   |   |   |                         |        | -           |                       |   |        | -                    |   |   |                                        | -          |   |                     |         | (7,729,551 | ) |   |   | (7,729,551 | ) |
| Total comprehensive loss for the year                                      |   |                   |   |   |                         |        | -           |                       |   |        | -                    |   |   |                                        | -          |   |                     |         | (7,729,551 | ) |   |   | (7,729,551 | ) |
| Balance, June 30, 2016                                                     |   |                   |   |   |                         |        | 533,891,470 |                       |   |        | 146,879,214          |   |   |                                        | 9,363,181  |   |                     |         | (124,875,182 | ) |   |   | 31,367,213 |   |
| Transactions with owners in their capacity as owners:                      |   |                   |   |   |                         |        |        |                       |   |        |                 |   |   |                                        |       |   |                     |         |   |   |   |   |   |   |
| Issuance of shares in connection with At-The-Market facility, net of costs |   |  10(b)            |   |   |                         | -           |        |                       |   | -           |                 |   |   | -                                           |       |   |                     | -            |   |   |   | - |   |
| Issuance of shares in connection with share purchase plan, net of costs    |   |  10(b)            |   |   |                         | -           |        |                       |   | -           |                 |   |   | -                                           |       |   |                     | -            |   |   |   | - |   |
| Non-cash issuance of options to employees                                  |   |  11(b)            |   |   |                         | -           |        |                       |   | -           |                 |   |   | 22,743                                      |       |   |                     | -            |   |   |   | 22,743 |   |
| Non-cash issuance of options to consultants                                |   |  11(b)            |   |   |                         | -           |        |                       |   | -           |                 |   |   | 1,717                                       |       |   |                     | -            |   |   |   | 1,717 |   |
| Issuance of shares in connection with exercise of options, net of costs    |   | 10(b) & 1(b)       |   |   |                         | -           |        |                       |   | -           |                 |   |   | -                                           |       |   |                     | -            |   |   |   | - |   |
| Transaction costs                                                          |   |                   |   |   |                         |        | -           |                       |   |        | (159,564             | )      |   |                                        | -          |   |                     |         |   |   |   |   | (159,564 | ) |
| Expired options                                                            |   |                   |   |   |                         |        | -           |                       |   |        | (2,701,644           | )      |   |                                        | (7,067,161 | )      |                     |         | 9,768,805 |   |   |   | - |   |
|                                                                       |   |                   |   |   |                         |        | -           |                       |   |        | (2,861,208           | )      |   |                                        | (7,042,701 | )      |                     |         | 9,768,805 |   |   |   | (135,104 | ) |
| Net loss                                                                   |   |                   |   |   |                         |        | -           |                       |   |        | -                    |   |   |                                        | -          |   |                     |         | (7,542,076 | ) |   |   | (7,542,076 | ) |
| Total comprehensive loss for the year                                      |   |                   |   |   |                         |        | -           |                       |   |        | -                    |   |   |                                        | -          |   |                     |         | (7,542,076 | ) |   |   | (7,542,076 | ) |
| Balance, June 30, 2017                                                     |   |                   |   |   |                         |        | 533,891,470 |                       |   |        | 144,018,006          |   |   |                                        | 2,320,480  |   |                     |         | (122,648,453 | ) |   |   | 23,690,033 |   |

----

----

|  | · | The Company continues to pursue raising additional funds through alternative funding structures and has a strong history of raising capital.  The Company had an "at the market" (ATM) facility through which it could raise additional funds of up to US$44.5 million by the sale of American Depositary Receipts ("ADRs"). This facility, which was established through the filing of a shelf registration statement on Form F-3 with the United States Securities and Exchange Commission in November, 2014 has been a successful source of raising funds. While this facility expires in November, 2017, the Group is in the process of completing a new shelf registration which is expected to be completed prior to the expiration of the current registration. In prior reporting periods, the Company has raised A$46.5 million (US$42.5 million) under this and a previous ATM facility.  |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | The Company has on issue a total of 26.8 million unlisted, unexercised options.  The options have exercise prices ranging from A$0.07 to A$1.12.  If all unlisted options were exercised, the Company would receive consideration of A$7.9 million in total.  Although the exercise of options may be available, it is not in the Company's control to receive this consideration. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Notwithstanding, in the event that the Company will not have sufficient funds to effect its current plans through the above mentioned methods, the Company has the ability to scale down its operations and prioritize its research and development programs. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Class of Fixed Asset   | Depreciation Rate |
|------------------------|-------------------|
|                   |              |
| Furniture and fittings | 5-33%             |
| Computer equipment     | 33%               |
| Plant and equipment    | 10-33%            |
| Leasehold improvements | 33%               |

----

----

| · | assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet, and |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|

| · | income and expenses for each income statement are translated at average exchange rates (unless this is not a reasonable  approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions), and |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | all resulting exchange differences are recognized as a separate component of equity. |
|--------|--------------------------------------------------------------------------------------|

----

----

----

| Pronouncement       | Title (Issue date)                                                | Effective date                                                                        | Impact on financial report                                                                                               |
|---------------------|-------------------------------------------------------------------|---------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|
| IFRS 15             | Revenue from contracts with customers                             | Annual periods beginning on or after January 1, 2018Earlier application is permitted. | The Company is currently not generating revenue from contracts with customers and thus the impact is expected to be nil. |
| IFRS 9              | Financial instruments                                             | Annual periods beginning on or after January 1, 2018Earlier application is permitted. | Management is in the process of determining the impact of this standard for subsequent reporting periods.                |
| IFRS 16             | Leases                                                            | Annual periods beginning on or after January 1, 2019Earlier application is permitted. | Management is in the process of determining the impact of this standard for subsequent reporting periods                 |
| IFRS 2 (Amendments) | Classification and Measurement ofShare-based Payment Transactions | Annual periods beginning on or after January 1, 2018Earlier application is permitted. | Management is in the process of determining the impact of this standard for subsequent reporting periods.                |

----

|                                                        |   | Years Ended June 30, |      |
|-------------------------------------------------------------|--------|----------------------|-----------|
|                                                        |   | 2017                 |      |   | 2016 |   |   | 2015 |   |
| 2. REVENUE AND OTHER INCOME FROM CONTINUING OPERATIONS |   |                 |      |   |   |   |   |   |   |
|                                                        |   |                 |      |   |   |   |   |   |   |
| Other revenue                                               |   |                 |      |   |   |   |   |   |   |
| Interest                                                    |   |                 | 132,396   |   |   |   | 142,657 |   |   |   | 176,842 |   |
| Total other revenue                                         |   |                 | 132,396   |   |   |   | 142,657 |   |   |   | 176,842 |   |
|                                                        |   |                 |      |   |   |   |   |   |   |   |   |   |
| Other income                                                |   |                 |      |   |   |   |   |   |   |   |   |   |
| R&D Tax Incentive (1)                                   |   |                 | 3,022,673 |   |   |   | 4,753,697 |   |   |   | 6,088,897 |   |
| Other Grants                                                |   |                 | -         |   |   |   | - |   |   |   | 228,541 |   |
| Total other income                                          |   |                 | 3,022,673 |   |   |   | 4,753,697 |   |   |   | 6,317,438 |   |
|                                                        |   |                 |      |   |   |   |   |   |   |   |   |   |
| Total revenue and other income from continuing operations   |   |                 | 3,155,069 |   |   |   | 4,896,354 |   |   |   | 6,494,280 |   |

|                                                 |   | Years Ended June 30, |      |
|------------------------------------------------------|--------|----------------------|-----------|
|                                                 |   | 2017                 |      |   | 2016 |   |   | 2015 |   |
| 3.   EXPENSES FROM ORDINARY ACTIVITIES     |   |                 |      |   |   |   |   |   |   |
|                                                 |   |                 |      |   |   |   |   |   |   |
| Research and Development Expenses (2)                |   |                 |      |   |   |   |   |   |   |
| Employee expenses                                    |   |                 | 1,673,473 |   |   |   | 1,821,717 |   |   |   | 1,866,915 |   |
| Other research and development expenses              |   |                 | 4,026,866 |   |   |   | 7,763,654 |   |   |   | 10,431,252 |   |
|                                                 |   |                 |      |   |   |   |   |   |   |   |   |   |
| General and Administration Expenses                  |   |                 |      |   |   |   |   |   |   |   |   |   |
| Depreciation on fixed assets                         |   |                 | 21,328    |   |   |   | 22,810 |   |   |   | 31,587 |   |
| Employee expenses (non R&D related)              |   |                 | 1,033,897 |   |   |   | 992,751 |   |   |   | 937,348 |   |
| Consultant and director expenses                     |   |                 | 849,588   |   |   |   | 750,158 |   |   |   | 1,227,731 |   |
| Audit, internal control and other assurance expenses |   |                 | 200,480   |   |   |   | 204,776 |   |   |   | 499,911 |   |
| Corporate compliance expenses                        |   |                 | 377,920   |   |   |   | 358,097 |   |   |   | 421,958 |   |
| Office rental                                        |   |                 | 200,704   |   |   |   | 195,561 |   |   |   | 161,175 |   |
| Other administrative and office expenses             |   |                 | 1,284,713 |   |   |   | 1,086,398 |   |   |   | 1,226,412 |   |
|                                                 |   |                 |      |   |   |   |   |   |   |   |   |   |
| Other gains and losses                               |   |                 |      |   |   |   |   |   |   |   |   |   |
| Foreign exchange (gain)/loss                         |   |                 | 660,213   |   |   |   | (857,247 | ) |   |   | (4,721,449 | ) |

| (1) | The Australian Government replaced the research and development tax concession with the research and development tax incentive from1 July 2011.The provisions provide refundable or non-refundable tax offsets. The research and development tax incentive applies to expenditure incurred and the use of depreciating assets in an income year commencing on or after 1 July 2011. A refundable research and development tax incentive offset of 43.5%, will be available to eligible small companies with an annual aggregate turnover of less than $20 million. Eligible companies can receive a refundable research and development tax incentive offset of 43.5% of their research and development spending. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Research and development expenses consist of expenses paid for contracted research and development activities conducted by third parties on behalf of the Company. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                   |   | Years Ended June 30, |       |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|------------|
|                                                                                                                                                   |   | 2017                 |       |   | 2016 |   |   | 2015 |   |
| 4.  INCOME TAX                                                                                                                               |   |                 |       |   |   |   |   |   |   |
|                                                                                                                                                   |   |                 |       |   |   |   |   |   |   |
| (a)  Income tax expense:                                                                                                                          |   |                 |       |   |   |   |   |   |   |
| Current tax                                                                                                                                            |   |                 | -          |   |   |   | - |   |   |   | - |   |
| Adjustment for current tax of prior periods                                                                                                            |   |                 | -          |   |   |   | - |   |   |   | - |   |
| Deferred tax                                                                                                                                           |   |                 | -          |   |   |   | - |   |   |   | - |   |
|                                                                                                                                                   |   |                 |       |   |   |   |   |   |   |   |   |   |
| (b)  Numerical reconciliation of income tax expense to prima facie tax payable:                                                                   |   |                 |       |   |   |   |   |   |   |   |   |   |
| Prima facie tax on net loss before income tax at 27.5% (2017, 2016 & 2015: 30%)                                                                    |   |                 | (2,074,071 | ) |   |   | (2,318,865 | ) |   |   | (1,765,431 | ) |
| Effect of lower tax rates of tax on overseas income                                                                                                    |   |                 | (28,639    | ) |   |   | (11,111 | ) |   |   | (41 | ) |
|                                                                                                                                                   |   |                 |       |   |   |   |   |   |   |   |   |   |
| Add tax effect of:                                                                                                                                     |   |                 |       |   |   |   |   |   |   |   |   |   |
| (Over)/Under provision of income tax in previous year relating to a revision of estimates                                                              |   |                 | -          |   |   |   | 4,582,839 |   |   |   | 3,071,631 |   |
| Equity issued for nil consideration                                                                                                                    |   |                 | -          |   |   |   | - |   |   |   | 140,651 |   |
| Research and development expenditure (net of tax incentive)                                                                                            |   |                 | 1,079,650  |   |   |   | 1,743,004 |   |   |   | (2,153,737 | ) |
| Gain/(loss) on fair value of financial liabilities                                                                                                     |   |                 | -          |   |   |   | - |   |   |   | 25,897 |   |
| Other                                                                                                                                                  |   |                 | 94,877     |   |   |   | 54,222 |   |   |   | 1,549 |   |
|                                                                                                                                                   |   |                 |       |   |   |   |   |   |   |   |   |   |
| Deferred tax asset not recognized                                                                                                                      |   |                 | 928,183    |   |   |   | (4,050,088 | ) |   |   | 679,571 |   |
| Income tax expense attributable to loss before income tax                                                                                              |   |                 | -          |   |   |   | - |   |   |   | - |   |
|                                                                                                                                                   |   |                 |       |   |   |   |   |   |   |   |   |   |
| (c)    Potential deferred tax asset at June 30, 2017, 2016 and 2015 in respect of:  tax losses not brought to account is (1): |   |                 | 33,625,059 |   |   |   | 35,687,127 |   |   |   | 38,463,614 |   |
| Temporary differences                                                                                                                                  |   |                 | (2,114,243 | ) |   |   | (1,655,223 | ) |   |   | 3,934,146 |   |

|                                |   | Years Ended June 30, |      |
|-------------------------------------|--------|----------------------|-----------|
|                                |   | 2017                 |      |   | 2016 |   |
| 5. TRADE AND OTHER RECEIVABLES |   |                 |      |   |   |   |
|                                |   |                 |      |   |   |   |
| Accrued interest income             |   |                 | 10,104    |   |   |   | 25,283 |   |
| R&D tax incentive receivable    |   |                 | 3,022,673 |   |   |   | 4,753,646 |   |
| Goods and services tax receivable   |   |                 | 2,796     |   |   |   | 7,836 |   |
| Total Trade and Other Receivables   |   |                 | 3,035,573 |   |   |   | 4,786,765 |   |

|                 |   | Years Ended June 30, |    |
|----------------------|--------|----------------------|---------|
|                 |   | 2017                 |    |   | 2016 |   |
| 6. OTHER ASSETS |   |                 |    |   |   |   |
|                 |   |                 |    |   |   |   |
| Current              |   |                 |    |   |   |   |
| Prepayments          |   |                 | 285,613 |   |   |   | 276,504 |   |
| Rental term deposit  |   |                 | 43,988  |   |   |   | - |   |
|                 |   |                 |    |   |   |   |   |   |
| Total                |   |                 | 329,601 |   |   |   | 276,504 |   |
|                 |   |                 |    |   |   |   |   |   |
| Non-current          |   |                 |    |   |   |   |   |   |
| Rental term deposit  |   |                 | -       |   |   |   | 43,988 |   |
|                 |   |                 |    |   |   |   |   |   |
| Total                |   |                 | -       |   |   |   | 43,988 |   |

----

|                                      |   | Years Ended June 30, |    |
|-------------------------------------------|--------|----------------------|---------|
|                                      |   | 2017                 |    |   | 2016 |   |
| 7.  TRADE AND OTHER PAYABLES    |   |                 |    |   |   |   |
|                                      |   |                 |    |   |   |   |
| Trade creditors                           |   |                 | 65,049  |   |   |   | 311,719 |   |
| Accrued research and development expenses |   |                 | 493,307 |   |   |   | 1,178,656 |   |
| Accrued intellectual property expenses    |   |                 | -       |   |   |   | 10,910 |   |
| Accrued corporate personnel expenses      |   |                 | 345     |   |   |   | 7,421 |   |
| Accrued professional fees                 |   |                 | 261,232 |   |   |   | 143,776 |   |
| Accrued travel expenses                   |   |                 | -       |   |   |   | 1,650 |   |
| Other accrued expenses                    |   |                 | 50,355  |   |   |   | 94,434 |   |
| Other Payables                            |   |                 | 22,146  |   |   |   | - |   |
|                                      |   |                 |    |   |   |   |   |   |
| Total                                     |   |                 | 892,434 |   |   |   | 1,748,566 |   |

----

|                      |   | Years Ended June 30, |    |
|---------------------------|--------|----------------------|---------|
|                      |   | 2017                 |    |   | 2016 |   |
| 8. PROVISIONS        |   |                 |    |   |   |   |
|                      |   |                 |    |   |   |   |
| Current                   |   |                 |    |   |   |   |
| Annual leave (1)          |   |                 | 298,508 |   |   |   | 288,122 |   |
| Long service leave (1)(2) |   |                 | 399,530 |   |   |   | 320,649 |   |
|                      |   |                 |    |   |   |   |   |   |
| Total                     |   |                 | 698,038 |   |   |   | 608,771 |   |
|                      |   |                 |    |   |   |   |   |   |
| Non-Current               |   |                 |    |   |   |   |   |   |
| Long service leave (2)    |   |                 | 440     |   |   |   | 470 |   |

|                                 |   | Years Ended June 30, |     |
|--------------------------------------|--------|----------------------|----------|
|                                 |   | 2017                 |     |   | 2016 |   |
| Annual leave                         |   |                 |     |   |   |   |
| Carrying amount at start of year     |   |                 | 288,122  |   |   |   | 261,823 |   |
| Charged/(credited) to profit or loss |   |                 |     |   |   |   |   |   |
| -additional provisions recognized    |   |                 | 134,198  |   |   |   | 165,384 |   |
| Amounts used during the year         |   |                 | (123,812 | ) |   |   | (139,085 | ) |
| Carrying amount at end of year       |   |                 | 298,508  |   |   |   | 288,122 |   |
|                                 |   |                 |     |   |   |   |   |   |
| Long service leave                   |   |                 |     |   |   |   |   |   |
| Carrying amount at start of year     |   |                 | 321,119  |   |   |   | 295,204 |   |
| Charged/(credited) to profit or loss |   |                 |     |   |   |   |   |   |
| -additional provisions recognized    |   |                 | 78,851   |   |   |   | 25,915 |   |
| Carrying amount at end of year       |   |                 | 399,970  |   |   |   | 321,119 |   |
|                                 |   |                 |     |   |   |   |   |   |
| TOTAL                                |   |                 | 698,478  |   |   |   | 609,241 |   |

|                                                                 |   | Years Ended June 30, |    |
|----------------------------------------------------------------------|--------|----------------------|---------|
|                                                                 |   | 2017                 |    |   | 2016 |   |
|                                                                 |   |                 |    |   |   |   |
| Long service leave obligation expected to be settled after 12 months |   |                 | 197,940 |   |   |   | 320,649 |   |

----

|                                                       |   |   |              |   | Years Ended June 30, |   |
|------------------------------------------------------------|--------|--------|-------------------|--------|----------------------|--------|
|                                                       |   | Notes  |              |   | 2017                 |   |   | 2016 |   |   | 2015 |   |
|                                                       |   |   |              |   |                 |   |   |   |   |   |   |   |
| (a)   Issued Capital                                  |   |   |              |   |                 |   |   |   |   |   |   |   |
| 533,891,470 (2016: 533,891,470) fully paid ordinary shares |   |   | 10(b)   |   |                 |   | 144,018,006 |   |   |   | 144,177,570 |   |   |   | 144,194,070 |   |
| Nil (2016: Nil) options for fully paid ordinary shares     |   |   | 10(c)   |   |                 |   | - |   |   |   | 2,701,644 |   |   |   | 2,701,644 |   |
|                                                       |   |   |              |   |                 |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |   |              |   |                 |   | 144,018,006 |   |   |   | 146,879,214 |   |   |   | 146,895,714 |   |

| (b)    Movements in Issued Shares |   |   |   |   |   |   |   |
|--------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|

|                     |   | June 30, |        |
|--------------------------|--------|----------|-------------|
|                     |   | 2017     |        |   | 2016 |   |   | 2015 |   |
|                     |   |     | No.         |   |   |   | A$ |   |   |   | No. |   |   |   | A$ |   |   |   | No. |   |   |   | A$ |   |
| Beginning of the year    |   |     | 533,891,470 |   |   |   | 144,177,570 |   |   |   | 533,891,470 |   |   |   | 144,194,070 |   |   |   | 488,646,960 |   |   |   | 137,307,771 |   |
|                     |   |     |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Movement during the year |   |     | -           |   |   |   | (159,564 | ) |   |   | - |   |   |   | (16,500 | ) |   |   | 45,244,510 |   |   |   | 6,886,299 |   |
|                     |   |     |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| End of the year          |   |     | 533,891,470 |   |   |   | 144,018,006 |   |   |   | 533,891,470 |   |   |   | 144,177,570 |   |   |   | 533,891,470 |   |   |   | 144,194,070 |   |

| Date                     |   | Details                                                                    |   | Notes  |   |   | Number      |   |   | Issue Price |   |   |   | A$         |      |
|--------------------------|--------|----------------------------------------------------------------------------|--------|--------|--------|--------|-------------|--------|--------|-------------|--------|--------|--------|------------|-----------|
|                     |   |                                                                       |   |   |   |   |        |   |   |        |   |   |   |       |      |
| Year ended June 30, 2014 |   |                                                                       |   |   |   |   | 107,036,534 |   |   |        |   |   |   | 38,630,304 |      |
| July 1, 2014             |   | Reverse proposed issue to a consultant                                     |   |   |   |   | -           |   |   |        | -      |   |   |       | (24,200   | ) |
| July 21, 2014            |   | Non cash share issue in consideration for services provided by consultants |   | (i)    |   |   | 110,000     |   |   |        | 0.23   |   |   |       | 25,300    |   |
| July 21, 2014            |   | Exercise of options – employees                                      |   |   |   |   | 180,000     |   |   |        | -      |   |   |       | 25,488    |   |
| February 23, 2015        |   | Shares to investors as part of at-the-market facility                      |   |   |   |   | 35,631,690  |   |   |        | 0.15   |   |   |       | 5,304,319 |   |
| February 24, 2015        |   | Shares to investors as part of at-the-market facility                      |   |   |   |   | 2,538,820   |   |   |        | 0.14   |   |   |       | 357,270   |   |
| June 2, 2015             |   | Shares to investors as part of at-the-market facility                      |   |   |   |   | 6,784,000   |   |   |        | 0.22   |   |   |       | 1,466,553 |   |
| June 30, 2015            |   | Non cash share issue in consideration for services provided by consultants |   |   |   |   | -           |   |   |        | -      |   |   |       | 16,500    |   |
|                     |   | Security issuance costs                                               |   |   |   |   | -           |   |   |        | -      |   |   |       | (284,931  | ) |
| Year ended June 30, 2015 |   |                                                                       |   |   |   |   | 45,244,510  |   |   |        | -      |   |   |       | 6,886,299 |   |
| July1, 2015              |   | Reverse proposed issue to a consultant                                     |   |   |   |   | -           |   |   |        | -      |   |   |       | (16,500   | ) |
| Year end June 30, 2016   |   |                                                                       |   |   |   |   | -           |   |   |        | -      |   |   |       | (16,500   | ) |
| June 30, 2017            |   | Security issuance costs                                                    |   |   |   |   | -           |   |   |        | -      |   |   |       | (159,564  | ) |
| Year end June 30, 2017   |   |                                                                       |   |   |   |   | -           |   |   |        | -      |   |   |       | (159,564  | ) |

----

|                                             |   | June 30, |              |
|--------------------------------------------------|--------|----------|-------------------|
|                                             |   | 2017     |              |   | 2016 |   |   | 2015 |   |
|                                             |   |     | Number of Options |   |   |   | A$ |   |   |   | Number of Options |   |   |   | A$ |   |   |   | Number of Options |   |   |   | A$ |   |
| Beginning of the year                            |   |     | -                 |   |   |   | 2,701,644 |   |   |   | - |   |   |   | 2,701,644 |   |   |   | - |   |   |   | 2,701,644 |   |
|                                             |   |     |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassify expired options to accumulated losses |   |     | -                 |   |   |   | (2,701,644 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |     |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| End of the year*                                 |   |     | -                 |   |   |   | - |   |   |   | - |   |   |   | 2,701,644 |   |   |   | - |   |   |   | 2,701,644 |   |

| (d) Terms and Conditions of Issued Capital                                                                                                                                                                                                                                                                                                                                       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Ordinary shares                                                                                                                                                                                                                                                                                                                                                                       |
| Ordinary shares have the right to receive dividends as declared and, in the event of a winding up of the Company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held.  Ordinary shares entitle their holder to vote, either in person or by proxy, at a meeting of the Company's shareholders. |
|                                                                                                                                                                                                                                                                                                                                                                                  |
| Options                                                                                                                                                                                                                                                                                                                                                                               |
| Option holders do not have the right to receive dividends and are not entitled to vote at a meeting of the Company's shareholders.  Options may be exercised at any time from the date they vest to the date of their expiration.  Share options convert into ordinary shares on a one for one basis on the date they are exercised.                                   |

| (e)    Shares Issued after Reporting Date |   |   |   |   |   |
|---------------------------------------------------------------|--------|--------|--------|--------|--------|

|                                                                 |   |   |   |   | Years Ended June 30, |   |
|----------------------------------------------------------------------|--------|--------|--------|--------|----------------------|--------|
|                                                                 |   | Notes  |   |   | 2017                 |   |   | 2016 |   |   | 2015 |   |
|                                                                 |   |   |   |   |                 |   |   |   |   |   |   |   |
| (a) Share Based Payments                                        |   |   |   |   |                 |   |   |   |   |   |   |   |
| 26,826,063 (2016: 19,395,582) options for fully paid ordinary shares |   |   | 13(b)  |   |                 |   | 2,320,480 |   |   |   | 7,394,184 |   |   |   | 7,394,184 |   |
| Nil (2015: Nil) options for ADRs                                     |   |   | 13(c)  |   |                 |   | - |   |   |   | 1,515,434 |   |   |   | 1,515,434 |   |
| Nil  (2015: 612,397) warrants for ADRs                          |   |   | 13(d)  |   |                 |   | - |   |   |   | 453,563 |   |   |   | 453,563 |   |
|                                                                 |   |   |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 |   |   |   |   |                 |   | 2,320,480 |   |   |   | 9,363,181 |   |   |   | 9,363,181 |   |

|                      |   | Years Ended June 30, |       |
|---------------------------|--------|----------------------|------------|
|                      |   | 2017                 |       |   | 2016 |   |   | 2015 |   |
|                      |   | Number of Options    |       |   | Comp. Expense (A$) |   |   | Number of Options |   |   | Comp. Expense (A$) |   |   | Number of Options |   |   | Comp. Expense (A$) |   |
| Beginning of the year     |   |                 | 19,395,582 |   |   |   | 2,320,480 |   |   |   | 19,395,582 |   |   |   | 7,394,184 |   |   |   | 18,542,577 |   |   |   | 6,968,437 |   |
| Issued during the year    |   |                 | 8,550,000  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,400,000 |   |   |   | 451,235 |   |
| Expired during the year   |   |                 | (1,119,519 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (3,166,995 | ) |   |   | - |   |
| Forfeited during the year |   |                 | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (200,000 | ) |   |   | - |   |
| Exercised during the year |   |                 | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (180,000 | ) |   |   | (25,488 | ) |
|                      |   |                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| End of the year           |   |                 | 26,826,063 |   |   |   | 2,320,480 |   |   |   | 19,395,582 |   |   |   | 7,394,184 |   |   |   | 19,395,582 |   |   |   | 7,394,184 |   |

----

|                      |   | Years Ended June 30, |   |
|---------------------------|--------|----------------------|--------|
|                      |   | 2017                 |   |   | 2016 |   |   | 2015 |   |
|                      |   | Number of Options    |   |   | Comp. Expense (A$) |   |   | Number of Options |   |   | Comp. Expense (A$) |   |   | Number of Options |   |   | Comp. Expense (A$) |   |
| Beginning of the year     |   |                 | -      |   |   |   | 1,515,434 |   |   |   | - |   |   |   | 1,515,434 |   |   |   | - |   |   |   | 1,515,434 |   |
|                      |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expiration of options (1) |   |                 | -      |   |   |   | (1,515,434 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| End of the year           |   |                 | -      |   |   |   | - |   |   |   | - |   |   |   | 1,515,434 |   |   |   | - |   |   |   | 1,515,434 |   |

|                           |   | Years Ended June 30, |   |
|--------------------------------|--------|----------------------|--------|
|                           |   | 2017                 |   |   | 2016 |   |   | 2015 |   |
|                           |   | Number of Warrants   |   |   | Comp. Expense (A$) |   |   | Number of Warrants |   |   | Comp. Expense (A$) |   |   | Number of Warrants |   |   | Comp. Expense (A$) |   |
| Beginning of the year (1) |   |                 | -      |   |   |   | 453,563 |   |   |   | - |   |   |   | 453,563 |   |   |   | - |   |   |   | 453,563 |   |
| Beginning of the year (2)      |   |                 | -      |   |   |   | - |   |   |   | 612,397 |   |   |   | - |   |   |   | 612,397 |   |   |   | - |   |
| Expired                        |   |                 | -      |   |   |   | (453,563 | ) |   |   | (612,397 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| End of the year                |   |                 | -      |   |   |   | - |   |   |   | - |   |   |   | 453,563 |   |   |   | 612,397 |   |   |   | 453,563 |   |

----

| Options and warrants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Option holders and warrant holders do not have the right to receive dividends and are not entitled to vote at a meeting of the Company's shareholders.  Options and warrants may be exercised at any time from the date they vest to the date of their expiration.  Share options are exercisable into ordinary shares on a one for one basis on the date they are exercised.  Options granted under the 2004 ADS Plan are exercisable into ADRs, being one option for one ADR, which equals ten ordinary shares, on the date they are exercised. |

| (f)     Options and Warrants Issued after Reporting Date |   |   |   |   |   |
|------------------------------------------------------------------------------|--------|--------|--------|--------|--------|

|                                                  |   | Years Ended June 30, |         |
|-------------------------------------------------------|--------|----------------------|--------------|
|                                                  |   | 2017                 |         |   | 2016 |   |   | 2015 |   |
| 12. ACCUMULATED DEFICIT DURING DEVELOPMENT STAGE |   |                 |         |   |   |   |   |   |   |
|                                                  |   |                 |         |   |   |   |   |   |   |
| Balance at beginning of year                          |   |                 | (124,875,182 | ) |   |   | (117,145,631 | ) |   |   | (111,260,562 | ) |
| Net loss for the year                                 |   |                 | (7,542,076   | ) |   |   | (7,729,551 | ) |   |   | (5,885,069 | ) |
| Reclassify expired options from contributed equity    |   |                 | 2,701,644    |   |   |   | - |   |   |   | - |   |
| Reclassify expired options from reserves              |   |                 | 5,098,165    |   |   |   | - |   |   |   | - |   |
| Reclassify expired options from reserves (1)          |   |                 | 1,968,997    |   |   |   | - |   |   |   | - |   |
|                                                  |   |                 |         |   |   |   |   |   |   |   |   |   |
| Balance at end of year                                |   |                 | 122,648,452  |   |   |   | (124,875,182 | ) |   |   | (117,145,631 | ) |

|                                                                                     |   | Years Ended June 30, |       |
|------------------------------------------------------------------------------------------|--------|----------------------|------------|
|                                                                                     |   | 2017                 |       |   | 2016 |   |   | 2015 |   |
| 13.    CASH FLOW INFORMATION                                              |   |                 |       |   |   |   |   |   |   |
|                                                                                     |   |                 |       |   |   |   |   |   |   |
| (a)     Reconciliation of Net Loss to Net Cash Flows From Operations |   |                 |       |   |   |   |   |   |   |
| Net loss                                                                                 |   |                 | (7,542,076 | ) |   |   | (7,729,551 | ) |   |   | (5,885,069 | ) |
|                                                                                     |   |                 |       |   |   |   |   |   |   |   |   |   |
| Non-cash items                                                                           |   |                 |       |   |   |   |   |   |   |   |   |   |
| Depreciation of property and equipment                                                   |   |                 | 21,328     |   |   |   | 22,810 |   |   |   | 31,587 |   |
| Non-cash issue of equity in consideration of operating expenses                          |   |                 | 24,460     |   |   |   | (16,500 | ) |   |   | 468,835 |   |
| Foreign exchange (gain) loss                                                             |   |                 | 656,019    |   |   |   | (950,720 | ) |   |   | (4,953,253 | ) |
| (Gain) loss on fair value of financial liabilities                                       |   |                 | -          |   |   |   | - |   |   |   | (86,322 | ) |
|                                                                                     |   |                 |       |   |   |   |   |   |   |   |   |   |
| Changes in assets and liabilities                                                        |   |                 |       |   |   |   |   |   |   |   |   |   |
| Decrease (increase) in trade and other receivables                                       |   |                 | 1,746,152  |   |   |   | 1,734,389 |   |   |   | 764,255 |   |
| Decrease (increase) in other current assets                                              |   |                 | (4,069     | ) |   |   | (115,643 | ) |   |   | (63,979 | ) |
| (Decrease) increase in trade and other payables                                          |   |                 | (856,131   | ) |   |   | (403,449 | ) |   |   | (1,206,343 | ) |
| (Decrease) in other current liabilities                                                  |   |                 | -          |   |   |   | (12,076 | ) |   |   | - |   |
| Increase in provision for employee entitlements                                          |   |                 | 89,237     |   |   |   | 52,214 |   |   |   | 59,215 |   |
|                                                                                     |   |                 |       |   |   |   |   |   |   |   |   |   |
| Net cash flows used in operating activities                                              |   |                 | (5,865,080 | ) |   |   | (7,418,526 | ) |   |   | (10,871,074 | ) |
|                                                                                     |   |                 |       |   |   |   |   |   |   |   |   |   |
| (b)     Reconciliation of Cash and Cash Equivalents                  |   |                 |       |   |   |   |   |   |   |   |   |   |
|                                                                                     |   |                 |       |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents balance comprises:                                             |   |                 |       |   |   |   |   |   |   |   |   |   |
| -  cash and cash equivalents on hand                                                |   |                 | 21,884,957 |   |   |   | 28,593,538 |   |   |   | 34,909,574 |   |
|                                                                                     |   |                 |       |   |   |   |   |   |   |   |   |   |
| Closing cash and cash equivalents balance                                                |   |                 | 21,884,957 |   |   |   | 28,593,538 |   |   |   | 34,909,574 |   |

----

----

|                      |   | Years Ended June 30, |       |
|---------------------------|--------|----------------------|------------|
|                      |   | 2017                 |       |   | 2016 |   |   | 2015 |   |
|                      |   | Number of Options    |       |   | Weighted Average Exercise Price (A$) |   |   | Number of Options |   |   | Weighted Average Exercise Price (A$) |   |   | Number of Options |   |   | Weighted Average Exercise Price (A$) |   |
| Beginning of the year     |   |                 | 19,395,582 |   |   |   | 0.38 |   |   |   | 19,395,582 |   |   |   | 0.38 |   |   |   | 16,375,582 |   |   |   | 0.41 |   |
| Issued during the year    |   |                 | 8,550,000  |   |   |   | 0.07 |   |   |   | - |   |   |   | - |   |   |   | 4,400,000 |   |   |   | 0.28 |   |
| Exercised during the year |   |                 | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (180,000 | ) |   |   | - |   |
| Expired during the year   |   |                 | (1,119,519 | ) |   |   | 0.25 |   |   |   | - |   |   |   | - |   |   |   | (1,000,000 | ) |   |   | 0.25 |   |
| Lapsed during the year    |   |                 | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (200,000 | ) |   |   | 1.12 |   |
|                      |   |                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding at year end   |   |                 | 26,826,063 |   |   |   | 0.29 |   |   |   | 19,395,582 |   |   |   | 0.38 |   |   |   | 19,395,582 |   |   |   | 0.38 |   |
|                      |   |                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercisable at year end   |   |                 | 26,826,063 |   |   |   | 0.29 |   |   |   | 19,395,582 |   |   |   | 0.38 |   |   |   | 19,395,582 |   |   |   | 0.38 |   |

|  Series                                                                        |   |   |  Grant Date  |   |  Expiry Date  |       | Exercise Price$A |   |   | Share options 2017 |       |      | Share options2016 |   |
|-------------------------------------------------------------------------------------|--------|--------|-------------------|--------|--------------------|------------|------------------|--------|--------|--------------------|------------|-----------|-------------------|--------|
| PBTAA                                                                               |   |   | October 25, 2013  |   | October 24, 2018   |       |             | 0.61   |   |               |       | 200,000   |              |   |   | 200,000 |   |
| PBTAB                                                                               |   |   | October 3, 2014   |   | October 2, 2018    |       |             | 0.34   |   |               |       | 1,000,000 |              |   |   | 1,000,000 |   |
| PBTAC                                                                               |   |   | June 26, 2013     |   | June 25, 2018      |       |             | 0.37   |   |               |       | 1,649,573 |              |   |   | 1,649,573 |   |
| PBTAD                                                                               |   |   | November 4, 2013  |   | November 3, 2018   |       |             | 0.73   |   |               |       | 360,000   |              |   |   | 360,000 |   |
| PBTAE                                                                               |   |   | December 13, 2013 |   | December 11, 2018  |       |             | 1.04   |   |               |       | 1,200,000 |              |   |   | 1,200,000 |   |
| PBTAF                                                                               |   |   | February 7, 2014  |   | February 5, 2019   |       |             | 1.12   |   |               |       | 100,000   |              |   |   | 100,000 |   |
| PBTAG                                                                               |   |   | April 7, 2014     |   | April 6, 2018      |       |             | 0.25   |   |               |       | 1,200,000 |              |   |   | 1,200,000 |   |
| PBTAH                                                                               |   |   | February 19, 2015 |   | February 18, 2020  |       |             | 0.26   |   |               |       | 2,000,000 |              |   |   | 2,000,000 |   |
| PBTAQ                                                                               |   |   | December 12, 2012 |   | December 13, 2017  |       |             | 0.33   |   |               |       | 8,500,000 |              |   |   | 8,500,000 |   |
| PBTAR                                                                               |   |   | May 27, 2015      |   | May 25, 2020       |       |             | 0.27   |   |               |       | 1,400,000 |              |   |   | 1,400,000 |   |
| PBTAW                                                                               |   |   | March 21, 2012    |   | March 20, 2017     |       |             | 0.25   |   |               |       | -         |              |   |   | 1,119,519 |   |
| PBTAY                                                                               |   |   | August 5, 2013    |   | August 4, 2018     |       |             | 0.66   |   |               |       | 306,490   |              |   |   | 306,490 |   |
| PBTAZ                                                                               |   |   | October 2, 2013   |   | October 1, 2018    |       |             | 0.66   |   |               |       | 360,000   |              |   |   | 360,000 |   |
| PBTAS                                                                               |   |   | June 7, 2017      |   | June 6, 2022       |       |             | 0.07   |   |               |       | 8,550,000 |              |   |   | - |   |
|                                                                                |   |   |              |   |     |       | Total            |   |   |               | 26,826,063 |      |              |   | 19,395,582 |   |
|                                                                                |   |   |              |   |               |       |             |   |   |               |       |      |              |   |   |   |   |
| Weighted average remaining contractual life of options outstanding at end of period |   |   | 2.34 years        |   |               | 2.04 years |             |

----

|   Series |   |   Grant Date |   | Exercise Price per ShareA$ |   |   | Share Price at Grant DateA$ |   |   |  Expected Share Price Volatility |   |   |  Years to Expiry |   |   |  Dividend Yield |   |   |  Risk-free Interest Rate |   |
|--------------------|--------|------------------------|--------|----------------------------|--------|--------|-----------------------------|--------|--------|---------------------------------------|--------|--------|-----------------------|--------|--------|----------------------|--------|--------|-------------------------------|--------|
| PBTAY              |   | August 5, 2013         |   |                       | 0.66   |   |                        |   | 0.38   |                                  |   |   | 62.00                 | %      |   |                 | 5.00   |   |                          |   | 0 | % |   |   | 3.05 | % |
| PBTAZ              |   | October 2, 2013        |   |                       | 0.66   |   |                        |   | 0.41   |                                  |   |   | 61.00                 | %      |   |                 | 5.00   |   |                          |   | 0 | % |   |   | 3.24 | % |
| PBTAA              |   | October 25, 2013       |   |                       | 0.61   |   |                        |   | 0.38   |                                  |   |   | 63.60                 | %      |   |                 | 5.00   |   |                          |   | 0 | % |   |   | 3.31 | % |
| PBTAD              |   | November 4, 2013       |   |                       | 0.73   |   |                        |   | 0.44   |                                  |   |   | 68.80                 | %      |   |                 | 5.00   |   |                          |   | 0 | % |   |   | 3.46 | % |
| PBTAE              |   | December 13, 2013      |   |                       | 1.04   |   |                        |   | 0.69   |                                  |   |   | 70.70                 | %      |   |                 | 5.00   |   |                          |   | 0 | % |   |   | 3.45 | % |
| PBTAF              |   | February 7, 2014       |   |                       | 1.12   |   |                        |   | 1.18   |                                  |   |   | 58.50                 | %      |   |                 | 5.00   |   |                          |   | 0 | % |   |   | 3.44 | % |
| PBTAG              |   | April 7, 2014          |   |                       | 0.25   |   |                        |   | 0.23   |                                  |   |   | 289.40                | %      |   |                 | 4.00   |   |                          |   | 0 | % |   |   | 3.02 | % |
| PBTAB              |   | October 3, 2014        |   |                       | 0.34   |   |                        |   | 0.22   |                                  |   |   | 130.50                | %      |   |                 | 4.00   |   |                          |   | 0 | % |   |   | 2.71 | % |
| PBTAH              |   | February 19, 2015      |   |                       | 0.26   |   |                        |   | 0.16   |                                  |   |   | 74.80                 | %      |   |                 | 5.00   |   |                          |   | 0 | % |   |   | 2.00 | % |
| PBTAR              |   | May 27, 2015           |   |                       | 0.27   |   |                        |   | 0.17   |                                  |   |   | 69.40                 | %      |   |                 | 5.00   |   |                          |   | 0 | % |   |   | 2.25 | % |
| PBTAS              |   | June 7, 2017           |   |                       | 0.07   |   |                        |   | 0.05   |                                  |   |   | 100.00                | %      |   |                 | 5.00   |   |                          |   | 0 | % |   |   | 1.97 | % |

|                       |   | Years Ended June 30, |       |
|----------------------------|--------|----------------------|------------|
|                       |   | 2017                 |       |   | 2016 |   |   | 2015 |   |
|                       |   | Number of Shares     |       |   | Number of Shares |   |   | Number of Shares |   |
| Beginning of the year      |   |                 | 13,277,715 |   |   |   | 13,277,715 |   |   |   | 12,987,715 |   |
| Issued during the year (1) |   |                 | -          |   |   |   | - |   |   |   | 290,000 |   |
|                       |   |                 |       |   |   |   |   |   |   |   |   |   |
| End of the financial year  |   |                 | 13,277,715 |   |   |   | 13,277,715 |   |   |   | 13,277,715 |   |

----

|                                                                                                            |   | Years Ended June 30, |        |
|-----------------------------------------------------------------------------------------------------------------|--------|----------------------|-------------|
|                                                                                                            |   | 2017                 |        |   | 2016 |   |   | 2015 |   |
|                                                                                                            |   |                 |        |   |   |   |   |   |   |
| Basic and diluted loss per share (cents per share)                                                              |   |                 | (1.41       | ) |   |   | (1.45 | ) |   |   | (1.17 | ) |
|                                                                                                            |   |                 |        |   |   |   |   |   |   |   |   |   |
| Weighted average number of ordinary shares on issue used in the calculation of basic and diluted loss per share |   |                 | 533,891,470 |   |   |   | 533,891,470 |   |   |   | 502,714,982 |   |

|                         |   | Years Ended June 30, |      |
|------------------------------|--------|----------------------|-----------|
|                         |   | 2017                 |      |   | 2016 |   |   | 2015 |   |
|                         |   |                 |      |   |   |   |   |   |   |
| Short-term employee benefits |   |                 | 1,537,198 |   |   |   | 1,429,615 |   |   |   | 1,554,843 |   |
| Post-employment benefits     |   |                 | 87,465    |   |   |   | 95,117 |   |   |   | 96,324 |   |
| Long-term benefits           |   |                 | 28,600    |   |   |   | 13,817 |   |   |   | 2,733 |   |
| Share-based payments         |   |                 | 16,307    |   |   |   | - |   |   |   | 170,397 |   |
|                         |   |                 | 1,669,570 |   |   |   | 1,538,549 |   |   |   | 1,824,297 |   |

|                                                    |   | Years Ended June 30, |    |
|---------------------------------------------------------|--------|----------------------|---------|
|                                                    |   | 2017                 |    |   | 2016 |   |   | 2015 |   |
|                                                    |   |                 |    |   |   |   |   |   |   |
| - audit and review fees: current year financial reports |   |                 | 260,645 |   |   |   | 166,479 |   |   |   | 160,158 |   |
| - audit and review fees: internal controls              |   |                 | 20,590  |   |   |   | 38,297 |   |   |   | 256,113 |   |
| -audit and review fees: other assurance services        |   |                 | -       |   |   |   | - |   |   |   | 83,640 |   |
|                                                    |   |                 |    |   |   |   |   |   |   |   |   |   |
|                                                    |   |                 | 281,235 |   |   |   | 204,776 |   |   |   | 499,911 |   |

----

| Geoffrey Kempler                                             | Executive Chairman                                                   |
|--------------------------------------------------------------|----------------------------------------------------------------------|
| Brian Meltzer                                                | Non-Executive Independent Director                                   |
| George Mihaly                                                | Non-Executive Independent Director                                   |
| Peter Marks                                                  | Non-Executive Independent Director                                   |
| Lawrence Gozlan                                              | Non-Executive Independent Director                                   |
| Ira Shoulson                                                 | Non-Executive Director                                               |
|                                                         |                                                                 |
| The Key Management Personnel of the Company during the year: |
|                                                         |                                                                 |
| Dianne Angus                                                 | Chief Operating Officer                                              |
| Dr. David Stamler*                                           | Chief Medical Officer and Senior Vice President Clinical Development |
| Kathryn Andrews                                              | Chief Financial Officer                                              |

----

|                              |   | Short Term Benefits |      |   | Post-Employment |   |   | Long Term Benefits           |   |   | Equity               |   |   |      |   |
|-----------------------------------|--------|---------------------|-----------|--------|-----------------|--------|--------|------------------------------|--------|--------|----------------------|--------|--------|-----------|--------|
| 2017 Directors' remuneration |   | Base FeeA$          |      |   | BonusA$         |   |   | SuperannuationContributionA$ |   |   | Long-service LeaveA$ |   |   | OptionsA$ |   |   | TotalA$ |   |
| Geoffrey Kempler (1)              |   |                | 419,313   |   |            |   | -      |                         |   |   | 26,411               |   |   |      | 8,146  |   |   |   | - |   |   |   | 453,870 |   |
| Brian Meltzer                     |   |                | 55,833    |   |            |   | -      |                         |   |   | 29,167               |   |   |      | -      |   |   |   | - |   |   |   | 85,000 |   |
| George Mihaly                     |   |                | 75,000    |   |            |   | -      |                         |   |   | -                    |   |   |      | -      |   |   |   | - |   |   |   | 75,000 |   |
| Peter Marks                       |   |                | 60,000    |   |            |   | -      |                         |   |   | -                    |   |   |      | -      |   |   |   | - |   |   |   | 60,000 |   |
| Lawrence Gozlan (2)               |   |                | 140,000   |   |            |   | -      |                         |   |   | -                    |   |   |      | -      |   |   |   | - |   |   |   | 140,000 |   |
| Ira Shoulson (2)                  |   |                | 268,137   |   |            |   | -      |                         |   |   | -                    |   |   |      | -      |   |   |   | - |   |   |   | 268,137 |   |
|                              |   |                | 1,018,283 |   |            |   | -      |                         |   |   | 55,578               |   |   |      | 8,146  |   |   |   | - |   |   |   | 1,082,007 |   |

|                              |   | Short Term Benefits |    |   | Post-Employment |   |   | Long Term Benefits           |   |   | Equity               |   |   |      |   |
|-----------------------------------|--------|---------------------|---------|--------|-----------------|--------|--------|------------------------------|--------|--------|----------------------|--------|--------|-----------|--------|
| 2016 Directors' remuneration |   | Base FeeA$          |    |   | BonusA$         |   |   | SuperannuationContributionA$ |   |   | Long-service LeaveA$ |   |   | OptionsA$ |   |   | TotalA$ |   |
| Geoffrey Kempler (3)              |   |                | 436,132 |   |            |   | -      |                         |   |   | 29,990               |   |   |      | 7,766  |   |   |   | - |   |   |   | 473,888 |   |
| Brian Meltzer                     |   |                | 50,000  |   |            |   | -      |                         |   |   | 35,000               |   |   |      | -      |   |   |   | - |   |   |   | 85,000 |   |
| George Mihaly                     |   |                | 75,000  |   |            |   | -      |                         |   |   | -                    |   |   |      | -      |   |   |   | - |   |   |   | 75,000 |   |
| Peter Marks                       |   |                | 60,000  |   |            |   | -      |                         |   |   | -                    |   |   |      | -      |   |   |   | - |   |   |   | 60,000 |   |
| Lawrence Gozlan                   |   |                | 60,000  |   |            |   | -      |                         |   |   | -                    |   |   |      | -      |   |   |   | - |   |   |   | 60,000 |   |
| Ira Shoulson (4)                  |   |                | 303,474 |   |            |   | -      |                         |   |   | -                    |   |   |      | -      |   |   |   | - |   |   |   | 303,474 |   |
|                              |   |                | 984,606 |   |            |   | -      |                         |   |   | 64,990               |   |   |      | 7,766  |   |   |   | - |   |   |   | 1,057,362 |   |

|                              |   | Short Term Benefits |      |   | Post-Employment |   |    | Long Term Benefits           |   |   | Equity               |   |   |      |   |
|-----------------------------------|--------|---------------------|-----------|--------|-----------------|--------|---------|------------------------------|--------|--------|----------------------|--------|--------|-----------|--------|
| 2015 Directors' remuneration |   | Base FeeA$          |      |   | BonusA$         |   |    | SuperannuationContributionA$ |   |   | Long-service LeaveA$ |   |   | OptionsA$ |   |   | TotalA$ |   |
| Geoffrey Kempler (1)              |   |                | 421,689   |   |            |   | 100,000 |                         |   |   | 35,000               |   |   |      | (224   | ) |   |   | - |   |   |   | 556,465 |   |
| Brian Meltzer                     |   |                | 50,000    |   |            |   | -       |                         |   |   | 35,000               |   |   |      | -      |   |   |   | - |   |   |   | 85,000 |   |
| George Mihaly                     |   |                | 75,000    |   |            |   | -       |                         |   |   | -                    |   |   |      | -      |   |   |   | - |   |   |   | 75,000 |   |
| Peter Marks                       |   |                | 60,000    |   |            |   | -       |                         |   |   | -                    |   |   |      | -      |   |   |   | - |   |   |   | 60,000 |   |
| Lawrence Gozlan                   |   |                | 50,000    |   |            |   | -       |                         |   |   | -                    |   |   |      | -      |   |   |   | - |   |   |   | 50,000 |   |
| Ira Shoulson (2)                  |   |                | 250,648   |   |            |   | -       |                         |   |   | -                    |   |   |      | -      |   |   |   | - |   |   |   | 250,648 |   |
|                              |   |                | 1,007,337 |   |            |   | -       |                         |   |   | 70,000               |   |   |      | (224   | ) |   |   | - |   |   |   | 1,077,113 |   |

| (1) | Base Fee includes movements in annual leave provision for Mr. Kempler accrued in accordance with his employment contract.  During the 2015 fiscal year, Mr. Kempler received A$100,000 incentive bonus which he was awarded in 2012. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes consulting fees paid to Prof. Ira Shoulson in the amount of A$205,426. |
|-----|---------------------------------------------------------------------------------|

----

|                               |   | Short Term Benefits |    |   | Post-Employment |   |   | Long Term Benefits           |   |   | Equity               |   |   |      |   |
|------------------------------------|--------|---------------------|---------|--------|-----------------|--------|--------|------------------------------|--------|--------|----------------------|--------|--------|-----------|--------|
| 2017 Executives' Remuneration |   | Base FeeA$          |    |   | Other A$        |   |   | SuperannuationContributionA$ |   |   | Long-service LeaveA$ |   |   | OptionsA$ |   |   | TotalA$ |   |
| Dianne Angus (1)                   |   |                | 328,799 |   |            |   | -      |                         |   |   | 19,616               |   |   |      | 20,354 |   |   |   | 3,433 |   |   |   | 372,202 |   |
| Kathryn Andrews (1)                |   |                | 131,826 |   |            |   | -      |                         |   |   | 12,271               |   |   |      | 101    |   |   |   | 1,430 |   |   |   | 145,628 |   |
| Dr. David Stamler (2)              |   |                | 58,290  |   |            |   | -      |                         |   |   | -                    |   |   |      | -      |   |   |   | 11,443 |   |   |   | 69,733 |   |
|                               |   |                | 518,915 |   |            |   | -      |                         |   |   | 31,887               |   |   |      | 20,455 |   |   |   | 16,306 |   |   |   | 587,563 |   |

|                               |   | Short Term Benefits |    |   | Post-Employment |   |   | Long Term Benefits           |   |   | Equity               |   |   |      |   |
|------------------------------------|--------|---------------------|---------|--------|-----------------|--------|--------|------------------------------|--------|--------|----------------------|--------|--------|-----------|--------|
| 2016 Executives' Remuneration |   | Base FeeA$          |    |   | Other A$        |   |   | SuperannuationContributionA$ |   |   | Long-service LeaveA$ |   |   | OptionsA$ |   |   | TotalA$ |   |
| Dianne Angus (1)                   |   |                | 329,690 |   |            |   | -      |                         |   |   | 19,307               |   |   |      | 6,051  |   |   |   | - |   |   |   | 355,049 |   |
| Kathryn Andrews (1)                |   |                | 115,319 |   |            |   | -      |                         |   |   | 10,820               |   |   |      | -      |   |   |   | - |   |   |   | 126,139 |   |
|                               |   |                | 445,009 |   |            |   | -      |                         |   |   | 30,127               |   |   |      | 6,051  |   |   |   | - |   |   |   | 481,188 |   |

|                               |   | Short Term Benefits |    |   | Post-Employment |   |   | Long Term Benefits           |   |   | Equity               |   |   |      |   |
|------------------------------------|--------|---------------------|---------|--------|-----------------|--------|--------|------------------------------|--------|--------|----------------------|--------|--------|-----------|--------|
| 2015 Executives' Remuneration |   | Base FeeA$          |    |   | Other A$        |   |   | SuperannuationContributionA$ |   |   | Long-service LeaveA$ |   |   | OptionsA$ |   |   | TotalA$ |   |
| Phillip Hains (2)                  |   |                | 100,000 |   |            |   | -      |                         |   |   | -                    |   |   |      | -      |   |   |   | - |   |   |   | 100,000 |   |
| Dianne Angus (1)                   |   |                | 326,346 |   |            |   | -      |                         |   |   | 18,783               |   |   |      | 2,874  |   |   |   | 170,397 |   |   |   | 518,401 |   |
| Kathryn Andrews (3)                |   |                | 81,233  |   |            |   | -      |                         |   |   | 7,541                |   |   |      | 82     |   |   |   | - |   |   |   | 88,857 |   |
| Richard Revelins (4)               |   |                | 39,926  |   |            |   | -      |                         |   |   | -                    |   |   |      | -      |   |   |   | - |   |   |   | 39,926 |   |
|                               |   |                | 547,506 |   |            |   | -      |                         |   |   | 26,324               |   |   |      | 2,957  |   |   |   | 170,397 |   |   |   | 747,184 |   |

----

| Directors         | Duration                                                                      | Notice Requirements                                               | Termination                                                                                                                                                                           |
|-------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Geoffrey Kemplser |  Until termination by either  party.  Signed 21 September 2007 | For Good Reason Mr Kempler may terminate with 30 days' notice     |  Pay Geoffrey Kempler within ninety (90)  days of the termination date $1,000,000  provided the Group has sufficient capital requirements  to fulfill this clause |
|              |                                                                          |                                                              |  Accrued entitlements including all unreimbursed  business expenses                                                                                                         |
|              |                                                                          |                                                              |  Accelerate the vesting of any unvested options                                                                                                                                  |
|              |                                                                          | Without Good Reason Mr Kempler may terminate with 90 days' notice |  Bonus pro-rated only if termination occurs in  1st year                                                                                                                    |
|              |                                                                          | Without Cause the Group may terminate with 90 days'notice         |  Pay Geoffrey Kempler within ninety (90)  days of the termination date $1,000,000  provided the Group has sufficient capital  requirements to fulfill this clause |
|              |                                                                          |                                                              |  Accrued entitlements including all  unreimbursed business expenses                                                                                                         |
|              |                                                                          |                                                              |  Accelerate the vesting of any unvested options                                                                                                                                  |
|              |                                                                          | With Cause the Group may terminate with 30 days' notice           |    Bonus pro-rated only if termination occurs in    1st year                                                                                            |

| Key management personnel | Duration                                                               | Notice Requirements                                            | Termination                                                                          |
|--------------------------|------------------------------------------------------------------------|----------------------------------------------------------------|--------------------------------------------------------------------------------------|
| Kathryn Andrews          |  Until termination by either party.  Signed 11 November 2014 | Ms Andrews may terminate with 30 days' notice, or              | Accrued entitlements including all unreimbursed business expenses                    |
|                     |                                                                   | Without Cause the Group may terminate with 30 days' notice, or | Permitted to keep and/or exercise optionsthat have vested at the time of termination |
|                     |                                                                   | With Cause the Group may terminate without notice              |                                                                                 |

| Key management personnel | Duration                                                                                       | Notice Requirements                                              | Termination                                                                                                                                                                                                                                    |
|--------------------------|------------------------------------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Dianne Angus             | Until termination by either party. Signed 2 October 2006. Letter Agreement signed 12 June 2007 | For Good Reason Ms AngusMay terminate with 30 days'notice        |    Pay remuneration entitlements 3 months fromthe time of termination (less any payout madefor the notice period). The Group can elect to pay such sum as cash, equity in the Group or as a combination of both cash and equity |
|                     |                                                                                           |                                                             | Accrued entitlements including all unreimbursed business expenses                                                                                                                                                                              |
|                     |                                                                                           |                                                             | Accelerate the vesting of any unvested options                                                                                                                                                                                                 |
|                     |                                                                                           | Without Good Reason Ms Angus may terminate with 120 days' notice | Permitted to keep and/or exercise options that have vested at the time of termination                                                                                                                                                     |
|                     |                                                                                           |                                                             | Accrued entitlements including all unreimbursed business expenses                                                                                                                                                                              |
|                     |                                                                                           | Without Cause the Group may terminate with 120 days' notice | Pay remuneration entitlements 3 months fromthe time of termination (less any payout made for the notice period). The Group can elect topay such sum as cash, equity in the Group or asa combination of both cash and equity                    |
|                     |                                                                                           |                                                             | Accrued entitlements including all unreimbursed business expenses                                                                                                                                                                              |
|                     |                                                                                           |                                                             | Accelerate the vesting of any unvested options                                                                                                                                                                                                 |
|                     |                                                                                           | With Cause the Group mayterminate without notice                 | Accrued entitlements including all unreimbursed business expenses                                                                                                                                                                              |
|                     |                                                                                           |                                                             | Permitted to keep and/or exercise options that   have vested at the time of termination                                                                                                                                         |

----

| Key management personnel | Duration                                                 | Notice Requirements                                                                                                                                                      | Termination                                                                           |
|--------------------------|----------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|
|                     |                                                     |                                                                                                                                                                     |                                                                                  |
| David Stamler            | Until termination by either party. Signed 18 April 2017. | Each party is required to provide 3 months' notice, increasing to 6 months' notice after 18 months of employment, unless otherwise agreed in writing | Accrued entitlements including all unreimbursed business expenses                     |
|                     |                                                     |                                                                                                                                                                     | Unexercised options shall be exercisable within 30 days after the date of termination |
|                     |                                                     | With Cause, the Group may terminate at any time upon written notice                                                                                                      | Accrued entitlements including all unreimbursedbusiness expenses                      |
|                     |                                                     |                                                                                                                                                                     | Unexercised options shall be exercisable within 30 days after the date of termination |

|  Fully Paid Ordinary Shares of the Company |   | Balance July 1, 2016 |       |   | Received as Remuneration |   |   | Received on Exercise of Options |   |   | Net Change Other |   |   | Balance June 30, 2017 |   |
|-------------------------------------------------|--------|----------------------|------------|--------|--------------------------|--------|--------|---------------------------------|--------|--------|------------------|--------|--------|-----------------------|--------|
|                                                 |   | No.                  |       |   | No.                      |   |   | No.                             |   |   | No.              |   |   | No.                   |   |
| Geoffrey Kempler                                |   |                 | 18,011,000 |   |                     |   | -      |                            |   |   | -                |   |   |                  | -      |   |   |   | 18,011,000 |   |
| Brian Meltzer                                   |   |                 | 326,666    |   |                     |   | -      |                            |   |   | -                |   |   |                  | -      |   |   |   | 326,666 |   |
| George Mihaly                                   |   |                 | 226,666    |   |                     |   | -      |                            |   |   | -                |   |   |                  | -      |   |   |   | 226,666 |   |
| Peter Marks                                     |   |                 | 43,111     |   |                     |   | -      |                            |   |   | -                |   |   |                  | -      |   |   |   | 43,111 |   |
| Lawrence Gozlan                                 |   |                 | -          |   |                     |   | -      |                            |   |   | -                |   |   |                  | -      |   |   |   | - |   |
| Ira Shoulson                                    |   |                 | -          |   |                     |   | -      |                            |   |   | -                |   |   |                  | -      |   |   |   | - |   |
| Dianne Angus                                    |   |                 | 146,128    |   |                     |   | -      |                            |   |   | -                |   |   |                  | -      |   |   |   | 146,128 |   |
| Kathryn Andrews                                 |   |                 | -          |   |                     |   | -      |                            |   |   | -                |   |   |                  | -      |   |   |   | - |   |
| David Stamler (1)                               |   |                 | -          |   |                     |   | -      |                            |   |   | -                |   |   |                  | -      |   |   |   | - |   |
|                                            |   |                 |       |   |                     |   |   |                            |   |   |             |   |   |                  |   |   |   |   |   |   |
|                                            |   |                 | 18,753,571 |   |                     |   | -      |                            |   |   | -                |   |   |                  | -      |   |   |   | 18,753,571 |   |

|  Fully Paid Ordinary Shares of the Company |   | Balance July 1, 2015 |       |   | Received as Remuneration |   |   | Received on Exercise of Options |   |   | Net Change Other |   |   | Balance June 30, 2016 |   |
|-------------------------------------------------|--------|----------------------|------------|--------|--------------------------|--------|--------|---------------------------------|--------|--------|------------------|--------|--------|-----------------------|--------|
|                                            |   | No.                  |       |   | No.                      |   |   | No.                             |   |   | No.              |   |   | No.                   |   |
| Geoffrey Kempler                                |   |                 | 18,011,000 |   |                     |   | -      |                            |   |   | -                |   |   |                  | -      |   |   |   | 18,011,000 |   |
| Brian Meltzer                                   |   |                 | 326,666    |   |                     |   | -      |                            |   |   | -                |   |   |                  | -      |   |   |   | 326,666 |   |
| George Mihaly                                   |   |                 | 226,666    |   |                     |   | -      |                            |   |   | -                |   |   |                  | -      |   |   |   | 226,666 |   |
| Peter Marks                                     |   |                 | 43,111     |   |                     |   | -      |                            |   |   | -                |   |   |                  | -      |   |   |   | 43,111 |   |
| Lawrence Gozlan                                 |   |                 | -          |   |                     |   | -      |                            |   |   | -                |   |   |                  | -      |   |   |   | - |   |
| Ira Shoulson                                    |   |                 | -          |   |                     |   | -      |                            |   |   | -                |   |   |                  | -      |   |   |   | - |   |
| Dianne Angus                                    |   |                 | 146,128    |   |                     |   | -      |                            |   |   | -                |   |   |                  | -      |   |   |   | 146,128 |   |
| Kathryn Andrews                                 |   |                 | -          |   |                     |   | -      |                            |   |   | -                |   |   |                  | -      |   |   |   | - |   |
|                                            |   |                 |       |   |                     |   |   |                            |   |   |             |   |   |                  |   |   |   |   |   |   |
|                                            |   |                 | 18,753,571 |   |                     |   | -      |                            |   |   | -                |   |   |                  | -      |   |   |   | 18,753,571 |   |

----

|  Fully Paid Ordinary Shares of the Company |   | Balance July 1, 2014 |       |   | Received as Remuneration |   |   | Received on Exercise of Options |   |   | Net Change Other |   |   | Balance June 30, 2015 |    |
|-------------------------------------------------|--------|----------------------|------------|--------|--------------------------|--------|--------|---------------------------------|--------|--------|------------------|--------|--------|-----------------------|---------|
|                                            |   | No.                  |       |   | No.                      |   |   | No.                             |   |   | No.              |   |   | No.                   |    |
| Geoffrey Kempler                                |   |                 | 17,811,000 |   |                     |   | -      |                            |   |   | -                |   |   |                  | 200,000 |   |   |   | 18,011,000 |   |
| Brian Meltzer                                   |   |                 | 326,666    |   |                     |   | -      |                            |   |   | -                |   |   |                  | -       |   |   |   | 326,666 |   |
| George Mihaly                                   |   |                 | 226,666    |   |                     |   | -      |                            |   |   | -                |   |   |                  | -       |   |   |   | 226,666 |   |
| Peter Marks                                     |   |                 | 43,111     |   |                     |   | -      |                            |   |   | -                |   |   |                  | -       |   |   |   | 43,111 |   |
| Lawrence Gozlan                                 |   |                 | -          |   |                     |   | -      |                            |   |   | -                |   |   |                  | -       |   |   |   | - |   |
| Ira Shoulson                                    |   |                 | -          |   |                     |   | -      |                            |   |   | -                |   |   |                  | -       |   |   |   | - |   |
| Dianne Angus                                    |   |                 | 146,128    |   |                     |   | -      |                            |   |   | -                |   |   |                  | -       |   |   |   | 146,128 |   |
| Kathryn Andrews (2)                             |   |                 | -          |   |                     |   | -      |                            |   |   | -                |   |   |                  | -       |   |   |   | - |   |
|                                            |   |                 |       |   |                     |   |   |                            |   |   |             |   |   |                  |    |   |   |   |   |   |
|                                            |   |                 | 18,753,571 |   |                     |   | -      |                            |   |   | -                |   |   |                  | 200,000 |   |   |   | 18,753,571 |   |

----

|      Share Options of     the Company             |   | BalanceJuly 1, 2016No.             |      |   | Granted as RemunerationNo.             |   |      | Options ExercisedNo.             |   |   | Options Expired No.                  |   |   | Options ForfeitedNo.             |     |   | Net Change Other                   |   |   | Options VestedDuring 2017 fiscal year       |   |   | Balance June 30, 2017No.             |   |   | Total Vested and Exercisable June 30, 2017No. |   |   | Total Unvested June 30, 2017No.       |   |
|--------------------------------------------------------------------------------------|--------|------------------------------------|-----------|--------|----------------------------------------|--------|-----------|----------------------------------|--------|--------|--------------------------------------|--------|--------|----------------------------------|----------|--------|------------------------------------|--------|--------|---------------------------------------------|--------|--------|--------------------------------------|--------|--------|-----------------------------------------------|--------|--------|---------------------------------------|--------|
| Geoffrey Kempler                                                                     |   |                               | 4,000,000 |   |                                   |   | -         |                             |   |   | -                                    |   |   |                             | -        |   |                               |   | -      |                                        |   |   | -                                    |   |   |                                          | -      |   |                                  |   | 4,000,000 |   |   |   | 4,000,000 |   |   |   | - |   |
| Brian Meltzer                                                                        |   |                               | 1,000,000 |   |                                   |   | -         |                             |   |   | -                                    |   |   |                             | -        |   |                               |   | -      |                                        |   |   | -                                    |   |   |                                          | -      |   |                                  |   | 1,000,000 |   |   |   | 1,000,000 |   |   |   | - |   |
| George Mihaly                                                                        |   |                               | 1,000,000 |   |                                   |   | -         |                             |   |   | -                                    |   |   |                             | -        |   |                               |   | -      |                                        |   |   | -                                    |   |   |                                          | -      |   |                                  |   | 1,000,000 |   |   |   | 1,000,000 |   |   |   | - |   |
| Peter Marks                                                                          |   |                               | 1,000,000 |   |                                   |   | -         |                             |   |   | -                                    |   |   |                             | -        |   |                               |   | -      |                                        |   |   | -                                    |   |   |                                          | -      |   |                                  |   | 1,000,000 |   |   |   | 1,000,000 |   |   |   | - |   |
| Lawrence Gozlan                                                                      |   |                               | 1,000,000 |   |                                   |   | -         |                             |   |   | -                                    |   |   |                             | -        |   |                               |   | -      |                                        |   |   | -                                    |   |   |                                          | -      |   |                                  |   | 1,000,000 |   |   |   | 1,000,000 |   |   |   | - |   |
| Ira Shoulson                                                                         |   |                               | -         |   |                                   |   | -         |                             |   |   | -                                    |   |   |                             | -        |   |                               |   | -      |                                        |   |   | -                                    |   |   |                                          | -      |   |                                  |   | - |   |   |   | - |   |   |   | - |   |
| Dianne Angus                                                                         |   |                               | 1,317,819 |   |                                   |   | 1,200,000 |                             |   |   | -                                    |   |   |                             | (157,819 | )      |                               |   | -      |                                        |   |   | -                                    |   |   |                                          | -      |   |                                  |   | 2,360,000 |   |   |   | 1,160,000 |   |   |   | 1,200,000 |   |
| Kathryn Andrews                                                                      |   |                               | -         |   |                                   |   | 500,000   |                             |   |   | -                                    |   |   |                             | -        |   |                               |   | -      |                                        |   |   | -                                    |   |   |                                          | -      |   |                                  |   | 500,000 |   |   |   | - |   |   |   | 500,000 |   |
| Dr. David Stamler (1)                                                                |   |                               | -         |   |                                   |   | 4,000,000 |                             |   |   | -                                    |   |   |                             | -        |   |                               |   | -      |                                        |   |   | -                                    |   |   |                                          | -      |   |                                  |   | 4,000,000 |   |   |   | - |   |   |   | 4,000,000 |   |
|                                                                                 |   |                               | 9,317,819 |   |                                   |   | 5,700,000 |                             |   |   | -                                    |   |   |                             | (157,819 | )      |                               |   | -      |                                        |   |   | -                                    |   |   |                                          | -      |   |                                  |   | 14,860,000 |   |   |   | 9,160,000 |   |   |   | 5,700,000 |   |
|                                                                                 |   |                               |      |   |                                   |   |      |                             |   |   |                                 |   |   |                             |     |   |                               |   |   |                                        |   |   |                                 |   |   |                                          |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
|        Share Options of     the Company |   |   BalanceJuly 1, 2015No. |      |   |   Granted as RemunerationNo. |   |      |   Options ExercisedNo. |   |   |    Options Expired No |   |   |   Options ForfeitedNo. |     |   |    Net Change Other |   |   |  Options VestedDuring 2016 fiscal year |   |   |   Balance June 30, 2016No. |   |   | Total Vested and Exercisable June 30, 2016No. |   |   |  Total Unvested June 30, 2016No. |   |
| Geoffrey Kempler                                                                     |   |                               | 4,000,000 |   |                                   |   | -         |                             |   |   | -                                    |   |   |                             |     |   |                               |   | -      |                                        |   |   | -                                    |   |   |                                          | -      |   |                                  |   | 4,000,000 |   |   |   | 4,000,000 |   |   |   | - |   |
| Brian Meltzer                                                                        |   |                               | 1,000,000 |   |                                   |   | -         |                             |   |   | -                                    |   |   |                             |     |   |                               |   | -      |                                        |   |   | -                                    |   |   |                                          | -      |   |                                  |   | 1,000,000 |   |   |   | 1,000,000 |   |   |   | - |   |
| George Mihaly                                                                        |   |                               | 1,000,000 |   |                                   |   | -         |                             |   |   | -                                    |   |   |                             |     |   |                               |   | -      |                                        |   |   | -                                    |   |   |                                          | -      |   |                                  |   | 1,000,000 |   |   |   | 1,000,000 |   |   |   | - |   |
| Peter Marks                                                                          |   |                               | 1,000,000 |   |                                   |   | -         |                             |   |   | -                                    |   |   |                             |     |   |                               |   | -      |                                        |   |   | -                                    |   |   |                                          | -      |   |                                  |   | 1,000,000 |   |   |   | 1,000,000 |   |   |   | - |   |
| Lawrence Gozlan                                                                      |   |                               | 1,000,000 |   |                                   |   | -         |                             |   |   | -                                    |   |   |                             |     |   |                               |   | -      |                                        |   |   | -                                    |   |   |                                          | -      |   |                                  |   | 1,000,000 |   |   |   | 1,000,000 |   |   |   | - |   |
| Ira Shoulson                                                                         |   |                               | -         |   |                                   |   | -         |                             |   |   | -                                    |   |   |                             |     |   |                               |   | -      |                                        |   |   | -                                    |   |   |                                          | -      |   |                                  |   | - |   |   |   | - |   |   |   | - |   |
| Dianne Angus                                                                         |   |                               | 1,317,819 |   |                                   |   | -         |                             |   |   | -                                    |   |   |                             |     |   |                               |   | -      |                                        |   |   | -                                    |   |   |                                          | -      |   |                                  |   | 1,317,819 |   |   |   | 1,317,819 |   |   |   | - |   |
| Kathryn Andrews (3)                                                                  |   |                               | -         |   |                                   |   | -         |                             |   |   | -                                    |   |   |                             |     |   |                               |   | -      |                                        |   |   | -                                    |   |   |                                          | -      |   |                                  |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                 |   |                               | 9,317,819 |   |                                   |   | -         |                             |   |   | -                                    |   |   |                             | -        |   |                               |   | -      |                                        |   |   | -                                    |   |   |                                          | -      |   |                                  |   | 9,317,819 |   |   |   | 9,317,819 |   |   |   | - |   |

----

|     Share Options of     the Company |   | BalanceJuly 1, 2014No. |      |   | Granted as RemunerationNo. |   |      | Options ExercisedNo. |   |   | Options Expired No. |   |   | Options ForfeitedNo. |   |   | Net Change Other |   |   | Options VestedDuring 2015 fiscal year |   |   | Balance June 30, 2015No. |   |   | Total Vested and Exercisable June 30, 2015No. |   |   | Total Unvested June 30, 2015No. |   |
|--------------------------------------------------------------------|--------|------------------------|-----------|--------|----------------------------|--------|-----------|----------------------|--------|--------|---------------------|--------|--------|----------------------|--------|--------|------------------|--------|--------|---------------------------------------|--------|--------|--------------------------|--------|--------|-----------------------------------------------|--------|--------|---------------------------------|--------|
| Geoffrey Kempler                                                   |   |                   | 4,000,000 |   |                       |   | -         |                 |   |   | -                   |   |   |                 | -      |   |             |   | -      |                                  |   |   | -                        |   |   |                                          | -      |   |                            |   | 4,000,000 |   |   |   | 4,000,000 |   |   |   | - |   |
| Brian Meltzer                                                      |   |                   | 1,000,000 |   |                       |   | -         |                 |   |   | -                   |   |   |                 | -      |   |             |   | -      |                                  |   |   | -                        |   |   |                                          | -      |   |                            |   | 1,000,000 |   |   |   | 1,000,000 |   |   |   | - |   |
| George Mihaly                                                      |   |                   | 1,000,000 |   |                       |   | -         |                 |   |   | -                   |   |   |                 | -      |   |             |   | -      |                                  |   |   | -                        |   |   |                                          | -      |   |                            |   | 1,000,000 |   |   |   | 1,000,000 |   |   |   | - |   |
| Peter Marks                                                        |   |                   | 1,000,000 |   |                       |   | -         |                 |   |   | -                   |   |   |                 | -      |   |             |   | -      |                                  |   |   | -                        |   |   |                                          | -      |   |                            |   | 1,000,000 |   |   |   | 1,000,000 |   |   |   | - |   |
| Lawrence Gozlan                                                    |   |                   | 1,000,000 |   |                       |   | -         |                 |   |   | -                   |   |   |                 | -      |   |             |   | -      |                                  |   |   | -                        |   |   |                                          | -      |   |                            |   | 1,000,000 |   |   |   | 1,000,000 |   |   |   | - |   |
| Ira Shoulson                                                       |   |                   | -         |   |                       |   | -         |                 |   |   | -                   |   |   |                 | -      |   |             |   | -      |                                  |   |   | -                        |   |   |                                          | -      |   |                            |   | - |   |   |   | - |   |   |   | - |   |
| Richard Revelins (2)                                               |   |                   | 500,000   |   |                       |   | -         |                 |   |   | -                   |   |   |                 | -      |   |             |   | -      |                                  |   |   | (500,000                 | )      |   |                                          | -      |   |                            |   | - |   |   |   | - |   |   |   | - |   |
| Dianne Angus                                                       |   |                   | 317,819   |   |                       |   | 1,000,000 |                 |   |   | -                   |   |   |                 | -      |   |             |   | -      |                                  |   |   | -                        |   |   |                                          | -      |   |                            |   | 1,317,819 |   |   |   | 1,317,819 |   |   |   | - |   |
| Phillip Hains (2)                                                  |   |                   | -         |   |                       |   | -         |                 |   |   | -                   |   |   |                 | -      |   |             |   | -      |                                  |   |   | -                        |   |   |                                          | -      |   |                            |   | - |   |   |   | - |   |   |   | - |   |
| Kathryn Andrews (3)                                                |   |                   | -         |   |                       |   | -         |                 |   |   | -                   |   |   |                 | -      |   |             |   | -      |                                  |   |   | -                        |   |   |                                          | -      |   |                            |   | - |   |   |   | - |   |   |   | - |   |
|                                                               |   |                   | 8,817,819 |   |                       |   | 1,000,000 |                 |   |   | -                   |   |   |                 | -      |   |             |   | -      |                                  |   |   | (500,000                 | )      |   |                                          | -      |   |                            |   | 9,317,819 |   |   |   | 9,317,819 |   |   |   | - |   |

----

|                                   |   | Consolidated Entity |       |
|----------------------------------------|--------|---------------------|------------|
|                                   |   | 2017                |       |   | 2016 |   |
|                                   |   | A$                  |       |   | A$ |   |
| Cash and cash equivalents (USD)        |   |                | 17,508,482 |   |   |   | 21,890,509 |   |
| Cash and cash equivalents (€EUR) |   |                | 164        |   |   |   | - |   |
| Cash and cash equivalents (£GBP)  |   |                | 1,421      |   |   |   | - |   |
| Trade and other payables (USD)         |   |                | (6,509     | ) |   |   | (36,348 | ) |
| Trade and other payables (€EUR)  |   |                | -          |   |   |   | (10,176 | ) |
| Trade and other payables (£GBP)   |   |                | -          |   |   |   | (2,437 | ) |
| Total exposure                         |   |                | 17,503,558 |   |   |   | 21,841,548 |   |

----

----

|  June 30, 2017         |   | FloatingInterest Rate(A$) |       |   | Fixed InterestMaturing in(A$) |   |      | Non-Interest bearing(A$) |   |   | Total(A$) |   |   | Average Interest Rate |      |
|-----------------------------|--------|---------------------------|------------|--------|-------------------------------|--------|-----------|--------------------------|--------|--------|-----------|--------|--------|-----------------------|-----------|
|                        |   |                      |       |   | 1 year  or less               |   |      | 1-5 years                |   |   |      |   |   |                  |      |   |   |   |
| Financial Assets            |   |                      |       |   |                          |   |      |                     |   |   |      |   |   |                  |      |   |   |   |
| Cash and cash equivalents   |   |                      | 18,680,923 |   |                          |   | 3,150,000 |                     |   |   | -         |   |   |                  | 54,034    |   |   |   | 21,884,957 |   |   |   | 0.33 | % |
| Trade and other receivables |   |                      | -          |   |                          |   | -         |                     |   |   | -         |   |   |                  | 3,035,573 |   |   |   | 3,035,573 |   |   |   |   |   |
| Other current assets        |   |                      | -          |   |                          |   | 43,988    |                     |   |   | -         |   |   |                  | 285,613   |   |   |   | 329,601 |   |   |   | 2.55 | % |
| Other non-current assets    |   |                      | -          |   |                          |   | -         |                     |   |   | -         |   |   |                  | -         |   |   |   | - |   |   |   |   |   |
|                        |   |                      |       |   |                          |   |      |                     |   |   |      |   |   |                  |      |   |   |   |   |   |   |   |   |   |
| Total Financial Assets      |   |                      | 18,680,923 |   |                          |   | 3,193,988 |                     |   |   | -         |   |   |                  | 3,375,220 |   |   |   | 25,250,131 |   |   |   | 0.88 | % |
|                        |   |                      |       |   |                          |   |      |                     |   |   |      |   |   |                  |      |   |   |   |   |   |   |   |   |   |
| Financial Liabilities       |   |                      |       | -      |                          |   |      | -                        |   |   |      |   |   |                  |      |   |   |   |   |   |   |
| Trade and other payables    |   |                      | -          |   |                          |   | -         |                     |   |   | -         |   |   |                  | 892,434   |   |   |   | 892,434 |   |   |   |   |   |
|                        |   |                      |       |   |                          |   |      |                     |   |   |      |   |   |                  |      |   |   |   |   |   |   |   |   |   |
| Total Financial Liabilities |   |                      | -          |   |                          |   | -         |                     |   |   | -         |   |   |                  | 892,434   |   |   |   | 892,434 |   |   |   |   |   |
| June 30, 2016               |   | FloatingInterest Rate(A$) |       |   | Fixed InterestMaturing in(A$) |   |      | Non-Interest bearing(A$) |   |   | Total(A$) |   |   | Average Interest Rate |      |
|-----------------------------|--------|---------------------------|------------|--------|-------------------------------|--------|-----------|--------------------------|--------|--------|-----------|--------|--------|-----------------------|-----------|
|                        |   |                      |       |   | 1 year  or less               |   |      | 1-5 years                |   |   |      |   |   |                  |      |   |   |   |
| Financial Assets            |   |                      |       |   |                          |   |      |                     |   |   |      |   |   |                  |      |   |   |   |
| Cash and cash equivalents   |   |                      | 22,440,074 |   |                          |   | 6,150,000 |                     |   |   | -         |   |   |                  | 3,464     |   |   |   | 28,593,538 |   |   |   | 0.68 | % |
| Trade and other receivables |   |                      | -          |   |                          |   | -         |                     |   |   | -         |   |   |                  | 4,786,765 |   |   |   | 4,786,765 |   |   |   |   |   |
| Other current assets        |   |                      | -          |   |                          |   | -         |                     |   |   | -         |   |   |                  | 276,504   |   |   |   | 276,504 |   |   |   |   |   |
| Other non-current assets    |   |                      | -          |   |                          |   | -         |                     |   |   | 43,988    |   |   |                  | -         |   |   |   | 43,988 |   |   |   | 2.85 | % |
|                        |   |                      |       |   |                          |   |      |                     |   |   |      |   |   |                  |      |   |   |   |   |   |   |   |   |   |
| Total Financial Assets      |   |                      | 22,440,074 |   |                          |   | 6,150,000 |                     |   |   | 43,988    |   |   |                  | 5,066,733 |   |   |   | 33,700,795 |   |   |   |   |   |
|                        |   |                      |       |   |                          |   |      |                     |   |   |      |   |   |                  |      |   |   |   |   |   |   |   |   |   |
| Financial Liabilities       |   |                      |       |   |                          |   |      |                     |   |   |      |   |   |                  |      |   |   |   |   |   |   |
| Trade and other payables    |   |                      | -          |   |                          |   | -         |                     |   |   | -         |   |   |                  | 1,748,566 |   |   |   | 1,748,566 |   |   |   |   |   |
|                        |   |                      |       |   |                          |   |      |                     |   |   |      |   |   |                  |      |   |   |   |   |   |   |   |   |   |
| Total Financial Liabilities |   |                      | -          |   |                          |   | -         |                     |   |   | -         |   |   |                  | 1,748,566 |   |   |   | 1,748,566 |   |   |   |   |   |
| Financial Assets            |   |                      |       |   |                          |   |      |                     |   |   |      |   |   |                  |      |   |   |   |   |   |   |   |   |   |

----

|                     |   | Maturities of Financial Liabilities |      |
|--------------------------|--------|-------------------------------------|-----------|
| 2017                     |   | Less than 6 months                  |      |   | 6-12 months |   |   | Greater than 12 months and less than 5 years |   |   | Total contracted cash flows |   |   | Carrying amounts |   |
|                     |   |                                |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Trade and other payables |   |                                | 892,434   |   |   |   | - |   |   |   | - |   |   |   | 892,434 |   |   |   | 892,434 |   |
| Total                    |   |                                | 892,434   |   |   |   | - |   |   |   | - |   |   |   | 892,434 |   |   |   | 892,434 |   |
|                     |   |                                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2016                     |   | Less than 6 months                  |      |   | 6-12 months |   |   | Greater than 12 months and less than 5 years |   |   | Total contracted cash flows |   |   | Carrying amounts |   |
|                     |   |                                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trade and other payables |   |                                | 1,748,566 |   |   |   | - |   |   |   | - |   |   |   | 1,748,566 |   |   |   | 1,748,566 |   |
| Total                    |   |                                | 1,748,566 |   |   |   | - |   |   |   | - |   |   |   | 1,748,566 |   |   |   | 1,748,566 |   |

| - | quoted prices in active markets for identical assets or liabilities (Level 1); |
|---|--------------------------------------------------------------------------------|

| - | inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (Level 2); and |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3). |
|---|-----------------------------------------------------------------------------------------------------------------|

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|   | Prana Biotechnology Limited  |                    |
|--------|-----------------------------------|-------------------------|
|   |                              |                    |   |
|   | By:                               | /s/ Geoffrey P. Kempler |   |
|   |                              | Geoffrey P. Kempler     |   |
|   |                              | Chief Executive Officer |   |

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