Leaf Resources : raises $2.5M in placement

24 January 2017

Australian Securities Exchange Announcement

Leaf Resources (ASX: LER "Leaf or the "Company") is pleased to announce that it has raised approximately $2.5 million through a placement of approximately 17.24 million ordinary shares (and free attaching options) to sophisticated investors.

Settlement of the placement is due on Wednesday 1 February 2017.

The placement was undertaken at $0.145 per share, representing a 6.4% discount to the last closing price of $0.155 per share (without consideration of the value of the options attached). Placement participants will also receive one unlisted option for every two shares subscribed for, exercisable at $0.20 and expiring on 15 March 2018.

Leaf Resources will use the funds raised from the placement to further advance the commercialisation of the GlycellTM process and advance potential projects in Malaysia and the USA with its joint venture partner Claeris, LLC.

The Managing Director of Leaf, Ken Richards, commented:

"Leaf Resources made significant progress last year in the commercialisation of its proprietary Glycell TM process.

We have had strong support through agreements with leading, well credentialed, international companies; Claeris and Novozymes, ongoing commercial arrangements with Andrtiz and an MOU with departments of the Malaysian government (see shareholder update 13th December 20161).

We are expecting significant progress on our potential projects in the first half of calendar 2017and the funds raised will allow us to meet the engineering and certification expenses of the next stage of our path to commercialisation."

End

1 http://www.leafresources.com.au/UserFiles/files/Documents/2016.12.13_LER-Shareholder-update.pdf

Leaf Resources is commercialising its proprietary GlycellTM process, which enables the production of renewable chemicals and bioplastics from plant biomass to economically replace petroleum based chemicals.

The GlycellTM process uses a biodegradable, waste reagent, glycerol, in a simple process to break down plant biomass into lignin, cellulose and hemicellulose at low temperature and pressure. The cellulose is then converted to cellulosic sugars through enzymatic hydrolysis and the lignin, hemicellulose and glycerol become valuable co-products.

Cellulosic sugars are a major feedstock for the production of green, renewable biobased chemicals and bioplastics, products whose markets are multi billion dollars in value and growing fast.

The GlycellTM process can produce cellulosic sugars at under $50 per tonne when co- products are included. This compares with over $200 per tonne for raw sugars or sugars produced from either the conversion of corn starch or produced from biomass by rival processes.

By dramatically reducing the cost of the feedstock, normally the major cost for the production of renewable chemicals, and bio-plastics, the GlycellTM process has the potential to change the face of global renewable production.

Ken Richards (Managing Director) M: +61 403 385 051

Jay Hetzel (Chairman) M: +61 413 045 478

Harrison Polites

E: harrison.polites@mcpartners.com.au M: +61 409 623 618