Page 1

ASX Announcement Recce Pharmaceuticals recce.com.au ACN 124 849 065 Quarterly Cash Flow Statement & Operational Highlights Highlights : • • Strong cash position of $ 23.59 million Human Research Ethics Committee Approval for Phase I / II Human Burns Wounds Study at leading teaching hospital Both RECCEⓇ 327 and RECCE® 529 indicating > 95 % effective against SARS- COV - 2 , the virus that causes COVID - 19 , in both in - vitro and in - vivo studies . Further testing before R327 and / or R529 may be considered for human use • $ 26.78m Australian Government R & D rebate commitment for Recce's Antibiotic and Anti - viral programs globally , over three years • • RECCE® 327 Phase I intravenous ( IV ) study advances with clinicians appointed and independent facility audit approval Japan Family 3 Anti - viral patent Granted furthering marketing and manufacturing monopolies to February 2037 SYDNEY Australia , 28 January 2021 : Recce Pharmaceuticals Ltd ( ASX : RCE ) , the Company developing New Classes of Synthetic Anti - infectives , today released its December 2020 quarter results and operational highlights . Financial Update The Company ended the quarter with a cash balance of $ 23.59 million . Cash out - flows from operations were $ 2.01 million with investment in research and development ( $ 1.64m ) , the main source of expenditure during the period ; $ 0.372m to related parties ( Executive & Director fees ) . In - flows of $ 640,049 under Australian R & D tax incentive scheme represented domestic R & D rebated activity of previous financial year with an additional , greater rebate from the international component expected . The Australian Government awarded two Advanced Overseas Findings for the Company's Antibiotic and Anti - viral development programs . This uniquely sees the 43.5 % cash rebate otherwise legislated for local R & D only , extended to include $ 26.78 million of ASX : RCE Head Office : Level 25 , 88 Phillip Street , Aurora Place , SYDNEY NSW 2000 T +61 ( 02 ) 9256 2571 R & D Centre - Perth : Suite 10 , 3 Brodie Hall Drive , Technology Park , BENTLEY WA 6102 T +61 ( 8 ) 9362 9860 Washington Office : 1717 Pennsylvania Avenue NW , Suite 1025 , WASHINGTON DC 20006 USA