G U A R D I N G B O R D E R S . P R O T E C T I N G A S S E T S . S A V I N G L I V E S .

D A I L Y , G L O B A L , H I G H - R E S O L U T I O N ,I N D E P E N D E N T M A R I T I M E A C T I V I T Y D A T A A S A S E R V I C E .

Q U A R T E R L Y U P D A T E – O C T O B E R 2 0 1 8

C O R P O R A T E S N A P S H O T

Page 2Note: the foreign exchange rate used in this presentation for EUR/AUD is 1.62

• €6 million cash at 30 September 2018 – funded to launch and data sales

• MoU signed with Airbus Defence and Space to expand radio transmitter geolocation market opportunities

• 2nd MoU signed with Airbus Defence and Space to collaborate on In-Space proprietary technology

• Contract signed with GomSpace for satellite supply and build milestones achieved

• Contract signed with Rocket Lab for Q2 2019 launch

• Strong business development activities around the globe in US, Australia, Germany and Italy

• Formation of high calibre Advisory Board

Q 3 2 0 1 8 K E Y A C H E I V E M E N T S

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MOU Signed with Airbus Defence and Space

• Kleos Space S.A., have signed a Memorandum of Understanding with Airbus Defence and Space.

• Both companies aim at expanding the international market of radio-frequency monitoring, transmitter geolocation.

• Both companies aim to investigate opportunities to collaborate.

• Airbus Defence and Space is a division of Airbus and is the world's second largest space company and one of the top ten defence companies in the world.

T I E R 1 E N G A G E M E N T - A I R B U S D E F E N C E A N D S P A C E

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This MoU covers the companies’ agreement to collaborate on In-Space manufacturing technology

• Both companies investigate opportunities to collaborate for the manufacture In-Space of structural elements.

• The proprietary In-Space manufacturing system will provide a method of producing huge carbon composite 3D structures in space.

• The In-Space Manufacturing industry encompasses many applications (Communications, Science, Exploration, Earth Observation and Space Resources) and is a significant long term business opportunity for the Company in a complimentary fashion to the near term primary mission geolocation intelligence data sales.

• Future revenue for the Company from the technology is expected in the form of specific application hardware sales and/or application based licencing.

2 N D A I R B U S D E F E N C E A N D S P A C E M O U

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Executed agreement with GomSpace for the supply of multi-nanosatellite system – Contract milestones achieved.

• Kleos Space was proud to announce the signing of a contract for the supply of a multinanosatellite system with GomSpaceA/S - a subsidiary of GomSpace Group AB.

• The contract value is €2.42 million including test equipment, launch support and the delivery of the multi-nanosatellite system which is expected to take place in 2019.

• GomSpace is a critical partner for Kleos to deliver our goal of providing global RF geolocation intelligence as a service.

• We continue to be impressed with the quality, value, responsiveness and capability of the GomSpace team who have shown themselves to be able to work truly synergistically with the Kleos team

S A T E L L I T E S U P P L Y

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Executed agreement with Rocket lab

• Kleos Space was proud to announce the signing of a contract for the launch of their ‘Scouting Mission’ with Rocket Lab

• Kleos Space satellites are scheduled to launch on an Electron rocket from Launch Complex-1 in Q2-2019.

• The satellites will be integrated into Rocket Lab’s in-house designed and built Maxwell dispensers and deployed from the Electron kick stage to low Earth orbit.

• Rocket Lab’s technology provides Kleos with the flexibility we need to grow our satellite constellation and respond to the demanding market needs. We are thrilled to launch our first satellites with a new space company which meets our business philosophy.

L A U N C H P R O V I S I O N

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Maritime ISR (Intelligence, Surveillance, Reconnaissance) Global Conference – Rome, Italy

• Exhibited 25th – 27th September with Company Chairman Air Commodore Peter Round (Ret) presenting on 25th

September 2018: Delivering Independent, Global, Precise, Commercial Activity-Based Intelligence Data

• Successful engagement across multiple Government agencies and large commercial players achieved

• Of the event IQPC were quoted on LinkedIn stating:

“I have honestly stopped counting how many agencies have mentioned the excellent work that Kleos Space is doing in the Maritime sector. They almost featured in every presentation this morning! Very impressive. “

•

M A R I T I M E I S R E V E N T

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69TH International Astronautical Congress – Bremen, Germany

• Exhibiting as part of a Luxembourg delegation 1st-5th October at The International Astronautical Congress (IAC ) which consists of a scientific conference program and a space exhibition.

• One time of the year opportunity when about 4,000 space actors from all over the world come together.

• Successful enangement across multiple Government agencies and sector specific investor groups achieved.

I A C E V E N T

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Kleos Space has formed a world-class Advisory Board, initially comprising two leading geospatial intelligence and defence advisers from the United States and United Kingdom.

• Roger Davies MBE QGM • Kleos Space Defence & Security Advisor – United Kingdom

• A former Officer of the British Army with specialties in bomb disposal, counter terrorism, intelligence and special projects, Mr Davies was the founder and CEO of HMS Ltd (Counter IED Services) and VP Business Development for Allen Vanguard (Electronic Warfare Technologies). Before retiring he was the founder of Intelligence Management Support Services Ltd, a provider of intelligence consultancy, data and analysis services to governments and industry.

• Karyn Hayes-Ryan • Kleos Space GEOINT Market Strategy Advisor – United States

• Ms Hayes-Ryan is a former intelligence community and Department of Defence senior executive with an extensive history in defence, aerospace and IT. Having held senior executive roles in the National Geospatial Intelligence Agency and National Reconnaissance Office, she brings to the Advisory Board extensive experience and skillsets in government acquisition, program management, agile acquisition, engineering, integration, data analytics, technology management, source selection, Federal Acquisition Regulation and procurement.

F O R M A T I O N O F A D V I S O R Y B O A R D

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T H E T R A J E C T O R Y A H E A D

Kleos Space aims to provide a commercially unique, global, Maritime Security Data as a Service (DaaS) product

• Answering immediate customer need, to provide enhanced Maritime security

• Multi-market opportunity, ISR market valued at $41bn in 2015 and growing rapdily

• Non-US (rest of world) first mover

• Spin-out from respected UK Space technology firm, leveraging significant historical R&D effort & investment

• Board comprises seasoned Space executives and senior Defence personnel

• Small number of very high value customers currently being targeted

• Finances, partners, stakeholders and market engagement in place and executed upon

B A C K G R O U N D

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To provide an enhance maritime situational awareness by offering commercial, global, GEOINT/SIGINT Data as a Service (DaaS).

• In Q2 2019 we are launching our 1st satellites (Scouting Mission) into Low Earth Orbit (LEO) that will accurately geolocate target RF transmissions (e.g. maritime VHF) on a daily basis.

• We do not rely on voluntary/active trackers AIS (Automatic Identification System) that can be subject to spoofing and deactivation.

• We aim to locate the: dark, unseen, unlocatable, obscured, obfuscated, covert Maritime activity.

• The data will be sold to maritime Government & commercial information users in the defence and security ISR market

• We will grow the offer to near real-time collection by launching further satellites with a wider payload capacity into a constellation formation.

• The data will be offered at a variety of levels from raw to fully analysed.

O U R M I S S I O N

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D E L I V E R I N G O N G R O W T H O P P O R T U N I T Y

2015R&D commenced for geolocation mission

(Magna Parva)

Q2 2017Kleos Space formed –

Luxembourg Government commit to

2M Euro funding

Q1 2018Seed Round closed, 1.4M Euro funding

AUG 2018IPO, 7M Euro funding

Q3/4 2018Tier 1/Government

MOUs signed

Q1/Q2 2019Commercial contracts

signed

Q2 2019‘Scouting Mission’

launched. Data revenues can commence

Q4 2019/Q1 2020‘V2 Mission’ launched

Q1 2020Revenue acceleratIon

• Increasingly complex global threats and emergencies aredriving the need for ISR, geospatial intelligence (GEOINT)and signals intelligence (SIGINT) with global coverage.

• Current terrestrial solutions are: expensive, technically limited by range, persistence and the weather, overt and subject to counter threats.

• Global Land and sea ‘activity based’ intelligence applications: Defence, Maritime, Security, Regulatory, Search and Rescue, real societal challenges:

• Border security

• Illegal fishing

• Drugs/arms/people trafficking

• Illegal oil bunkering

• Illegal trans-shipping

• Ghost shipping

• Maritime security

T H E C H A L L E N G E

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• Global ISR market valued at $41bn in 2015 with high growth. Kleos anticipates that data sales will move to value-added intelligence sales further increasing revenue and steady profitability.

• Diverse, multi-market, high value direct & reseller agreement revenue streams.

T A R G E T M A R K E T S

Other Markets

Search and Rescue Agencies Regulatory Bodies Communications Providers Earth Observation App Developers

Maritime Market

Coastguards Maritime Security Companies Insurance Companies Shipping Companies Intelligence Aggregators

Defence/Security Market

Defence Ministries (NATO) Intelligence Agencies Tier 1 ISR Supply Chain Intelligence Aggregators Border/Homeland

security Agencies

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Collecting.

Global, persistent transmitter activity data collected by our satellites

Sorted/Filtered/Analysis

Raw data organised into useful data leading to analysed data with change events reported

Distributing.

The raw data to full value add intelligence distributed through our Guardian ABI platform via secure channels to end users

Enabling.

Enabling our customers to efficiently cue/ task airborne & ground ISR assets

Delivering.

Enhancing situational awareness for decision makers dealing with: Defence & Security needs and humanitarian crises

T H E P R O D U C T

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Data as a Service sales will be facilitated through our Guardian ABI platform product currently in development, with the initial capability scheduled to be complete in order to integrate data from the scouting satellite in 2019.

• Deployment of multiple receiving antenna on a nano-satellite system in low earth orbit, separated and in known positions and orbiting the entire globe.

• By receiving the ‘passive’ transmissions at each antenna at slightly different times, the time difference of arrival can be used with multilateration algorithms to calculate the location of the transmitter on the ground.

• Unique and cost effective solution when compared to conventional airborne ISR solutions due to the long flight endurance (multi-year) and global unrestricted coverage.

• Isolate and locate with high accuracy RF transmissions from surface emitters (initially) such as Maritime VHF (walkie talkies & mast mounted).

• Daily coverage from a single system + more satellites = lower latency.

K L E O S S O L U T I O N

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Funded and on track to launch Kleos Scouting Mission in Q2 2019, and begin generating revenue

• In its first quarter on ASX, Kleos Space has progressed its technical and commercial pathways as planned.

• The company has achieved key technical milestones with build partner GomSpace and contracted Rocket Lab to launch its first satellites into low Earth orbit.

• The company has achieved critical international market engagement at the Tier 1/Prime Contractor level with Airbus.

• At 30 September 2018, the Company had no debt and €6M cash.

• Kleos Space is well-funded and on track to launch our Kleos Scouting Mission satellites in Q2 2019, leading to revenues commencing.

Q 3 S U M M A R Y

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Forward-Looking StatementsThis announcement contains forward-looking statements. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. These forward-looking statements are based on management’s beliefs and assumptions and on information currently available to our management. The Company's management believes that these forward-looking statements are reasonable as and when made. However, you should not place undue reliance on any such forward-

looking statements because such statements speak only as of the date when made. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law or the ASX Listing Rules. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results, events and developments to differ materially from our historical experience and our present expectations or projections.

D I S C L A I M E R

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I N V E S T O R C O N T A C T

Eric Kuret - Market Eyeeric.kuret@marketeye.com.au