Digitalx : Despatch of Minority Holder Sale Documents

17 August 2017

Further to the announcement on 11 August 2017, DigitalX Ltd (Company or DCC) advises that the Letter to Minority Holders, the Information Pack and a Notice of Retention Form were despatched today.

Under the ASX Listing Rules, a 'marketable parcel' is a parcel of shares with a market value of not less than $500. 'Minority Holders' under the Company's Constitution, are shareholders who, from time to time, hold less than a marketable parcel as defined by the ASX Listing Rules (Minority Holders).

As at 5pm WST on 11 August 2017 (Record Date), a Minority Holding is a shareholder of 15,151 shares or less, based on the closing price of $0.033 on the Record Date. This represents 6,121,614 ordinary shares held by Minority Holders.

If Minority Members wish to sell their shares through this Minority Holder Sale, they do not need to take any action. If Minority Members do not wish to sell their shares through this Minority Holder Sale, the must complete and return the Notice of Retention Form to the Company's share registry, Computershare Investor Services Limited, by 5pm WST on 29 September 2017 (Retention Date).

The sale price will be determined once all the shares under the Minority Holder Sale are sold. Holders of a Minority Holding will receive a proportionate share of the sale proceeds (without any deduction for brokerage or handling costs). The Company's Constitution provides that the shares will be sold in the ordinary course of trading on the stock market operated by the ASX.

A summary of the key dates in relation to the Facility is as follows:

Leigh Travers

Chief Executive Officer leigh@digitalx.com

T: +61 439 376 847

-Ends-

DigitalX is a Blockchain Technology Company based out of Perth and New York. Partners can use DigitalX's Blockchain technology expertise to deliver innovative products to global markets.

Suite 5, 62 Ord Street, West Perth WA 6005 ● T: +61 8 9322 1587 ● E: info@digitalx.com

DCC

MR SAM SAMPLE UNIT 123 SAMPLE STREET

SAMPLETOWN NSW 2001

*L000001*

17 August 2017

Dear Shareholder

IMPORTANT NOTICE - SALE OF YOUR MINORITY SHAREHOLDING OF DIGITALX LIMITED SHARES

I am writing to advise you that, in accordance with clause 7 of its Constitution, DigitalX Limited (DigitalX or the Company) will be undertaking a minority holder share sale for holders holding a parcel of DigitalX shares (Shares) of less than $500 (Minority Holding Sale).

Based on the Company's share register as at the Record Date of 11 August 2017, you have been determined to be a holder of a parcel of shares with a market value of less than $500 (Minority Holding). Unless you advise the Company by 5.00pm (Perth time) on 29 September 2017 (Retention Date) that you do NOT wish to sell your Minority Holding, DigitalX intends to sell your Minority Holding in accordance with the Company's Constitution. However, if on the Retention Date the value of your parcel of Shares has increased such that you no longer have a Minority Holding (e.g. due to an increase in the Company's share price or where you acquire additional Shares), your Shares will not be sold.

By undertaking the Minority Holding Sale, the Company expects to reduce the administrative costs associated with maintaining a large number of very small holdings.

Summary of key dates

Announcement to ASX: 11 August 2017

Minority Holding Sale Record Date: 5.00pm (Perth time), 11 August 2017 Letters sent to shareholders holding a Minority Holding: 17 August 2017 Retention Date (last date for receipt of Notice of Retention Form): 5.00pm (Perth time), 29 September 2017

In accordance with the Company's Constitution, if by the Retention Date you have not advised the Company that you wish to retain your Shares (and you otherwise continue to hold a Minority Holding), your Shares will be transferred to the Company, who will arrange, through its agent, to dispose of those Shares in the ordinary course of trading on ASX. The Company will pay all brokerage or other costs associated with the Minority Holding Sale, save for any taxation costs incurred or associated by any individual shareholder.

To retain your holding of Shares

If you wish to retain your Minority Holding of Shares (i.e. you do NOT wish for your Shares to be sold through the Minority Holding Sale) you must complete and return the enclosed Notice of Retention Form so that it is received by 5.00pm (Perth time) on the Retention Date, of 29 September 2017.

You may also ensure that your Minority Holding is NOT sold by:

1. purchasing additional shares such that your shareholding at the Retention Date is at least $500; or

   230347_02031A

2. if you have multiple holdings of Shares under different holder numbers (HINs/SRNs), consolidating these under a single HIN/SRN such that your combined shareholding at the Retention Date is at least $500.

916CR_0_Sample_CA/000001/000001

If you do not take any action by the Retention Date your Shares will be sold.

The sale price will be determined once all the shares under the Minority Holding Sale are sold. Each shareholder will receive their proportionate share of the sale proceeds for all Shares sold through the Minority Holding Sale. Payment will be sent to you following settlement of the sale or otherwise as soon as is practicable. Under the Company's Constitution, the sale price for the Shares will occur during the ordinary course of trading on the securities exchange conducted by the ASX.

Under the Constitution, the Company:

1. is authorised the sell all of your Shares without any transaction costs being incurred by you (excluding any tax consequences from the sale which remains each shareholder's responsibility); and

2. will pay you the sale proceeds by cheque to the address on the Company's share register, following settlement of the sale of all Shares through the Minority Holding Sale.

   If you need help deciding what to do or if you require information regarding the financial, legal or tax consequences of participating in the Minority Holding Sale, you should consult your legal, financial or taxation adviser.

   You can also contact DigitalX on 08 9322 1587 if you have any queries about lodging your form or the operation of the Minority Holding Sale.

   Yours sincerely

   Toby Hicks

   230347_02031A

   Non-Executive Chairman

   INFORMATION PACK FOR THE SALE MINORITY HOLDING SALE

3. What is a Minority Holding?

   A Minority Holding is a holding of DigitalX shares (Shares) valued at less than $500. Based on the closing price of Shares at the Record Date, this is a holding of 15,151 Shares or less.

   *I00000101*

4. What was the closing price of a Share at the Record Date?

   The closing price of Shares at the Record Date on 11 August 2017 was $0.033.

5. What do I have to do to sell my Shares through the Minority Holding Sale?

   Nothing. Your Shares will automatically be sold unless:

   • you return a Notice of Retention Form so that it is received by 5.00pm (Perth time) on 29 September 2017

     (Retention Date);

   • you purchase additional shares such that your shareholding at the Retention Date is at least $500; or

   • if you have multiple holdings under different holder numbers (HINs/SRNs), and consolidate these under a single HIN/SRN such that your combined shareholding at the Retention Date is at least $500.

6. How will my Shares be sold under the Minority Holding Sale?

   Under the Minority Holding Sale, the Shares will be sold in the ordinary course of trading on ASX.

7. What price will I receive for Shares sold through the Minority Holding Sale?

   The price that you receive for your Shares sold through the Minority Holding Sale will be determined once all of the Shares under the Minority Holding Sale are sold. Each shareholder will receive their proportionate share of the sale proceeds for all Shares sold through the Minority Holding Sale (rounded down to the nearest cent). Under the Company's Constitution, the sale price for the Shares will occur during the ordinary course of trading on the stock exchange conducted by the ASX.

   You should note that the sale price you are paid for your Shares may be different from the sale price appearing in the media or on the ASX on a day a sale occurs, and may not be the best execution price on the trading day or trading days that your Shares are sold or at any other time during the operation of the Minority Holding Sale. The sale price will depend on a number of factors, including market conditions at the time of sale. Further, the sale price you are paid for your Shares may be less than the price you paid to acquire them.

   All tax consequences arising from the sale of your Shares will be your responsibility.

8. When will the proceeds for the sale of Shares be sent to me?

   Payment will be sent to you following settlement of the sale of all Shares through the Minority Holding Sale or otherwise as soon as it is practicable. Payment will be made in Australian dollars by cheque. You will be notified by way of a transaction confirmation statement of the number of your Shares that have been sold, the sale price obtained and total sale proceeds payable to you. The cheque will be sent by post to your address as shown in the share register.

   We expect payment to be made in October 2017.

9. What do I have to do if I wish to retain my Shares?

10. If you wish to retain your Shares, you must sign and return the Notice of Retention Form so that it is received before 5.00pm (Perth time) on 29 September 2017. If your Notice of Retention Form is not received and you have not otherwise validly notified the Company that you wish to retain your Shares by that time, the Company will be entitled to sell your Shares for you.

    Your Notice of Retention Form must be sent to:

    Computershare Investor Services Pty Limited GPO Box 52

    Melbourne VIC 3001

    230347_02031A

    Further, your Shares will not be sold if, on the proposed Retention Date, their value has increased to $500 or more.

    916CR_0_Sample_CA/000001/000002