REPORT FOR THIRD QUARTER FY15

Antaria Limited is a specialist manufacturer and supplier of materials used in the personal care and cosmetic sectors.
Antaria's two primary products are ZinClear™ a transparent zinc oxide based broad spectrum UV absorber for use in the sun care and cosmetics sector and Alusion™ an aluminium oxide pigment with applications in cosmetics products.
Antaria services its international customer-base via a global network of distributors.

ASX: ANO Directors

Rade Dudurovic (Chairman) Ron Higham
Paul Pisasale

Company Secretary

Geoff Fussell

Quarterly Overview

Cash flow from operations for the quarter improved over the corresponding quarter for the prior year with a cash inflow from operations of $413,822 compared to the prior year cash inflow from operations of $61,340, an improvement of $352,482.

Receipts from customers for the quarter were strong due to the collection of the high level of receivables reported at 31 December 2014 and the receipt of the Research and Development Rebateable Credit of $344,931 (R&D Rebateable Credit $255,880 in the corresponding quarter in the prior year).

Antaria's focus on the reduction of capital expenditure, by improving productivity through the use of variable costs such as casual labour and additional shifts, is reflected in no capital expenditure spend for the quarter compared to

$65,048 in the corresponding quarter in the prior year.

Antaria continues to focus on the expansion of its distribution base. During the quarter, Antaria finalised the appointment of Infinity Ingredients Ltd as distributor for the United Kingdom and the Republic of Ireland. This follows the appointment of Pachem Distribution Inc as Canadian distributor. Antaria continues to pursue suitable distributors in Japan, South East Asia and other markets.

Demand for the ZinClear range of products continues to improve due to the expansion of the distribution network and as a result of the investment in new formulations and samples. Antaria expects that cash outflows will increase

in the next quarter as it invests in additional inventory and
working capital to ensure that the current and new customer orders are met.

Antaria's cash balance at the end of the quarter was

$1,433,364 (unaudited), up from $539,409 as at 30 June
2014.

For further information, please contact:

Rade Dudurovic - Non Executive Chairman

Email: rade.antaria@gmail.com

ANO - Quarterly Commentary - 31 March 2015 RAH.doc 1 of 1

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