Property Connect : Appendix 4C/5B

• Strong development progress achieved, with encouraging target market feedback indicating strong demand

• Development brought in-house to drive the platform towards completion, with out-sourced development agreement being formally terminated post quarter

• LiveOfferTMcommercial launch on track for 1 March 2017

• $2 million raised during the quarter via a convertible note

• Property Connect remains funded for commercial launch of its LiveOfferTMplatform

In early January 2017 Property Connect completed a capital raising of $2 million by way of a convertible note and subsequent converted into 333,333,333 shares at $0.06 per share. Of this capital raise $460,000 was received from Broker Trust accounts following the quarter end. As at 31 December 2016 the Company had a cash balance of $768,000,

Net operating cash flow for the quarter was $0.675 million (previous quarter ($0.3 million)), reflecting payment of accrued creditors from previous quarters, an increase in the ongoing development costs of Property Connect's LiveOfferTMproduct as well as its expansion in the US as the Company continues its marketing activities.

The Company anticipates that cash outflows will remain around this level in the current quarter as the Company enters the final phase of development, ahead of the launch of LiveOfferTM.

In November 2016, Mr Darren Patterson joined the Board as a non-executive director. Mr Patterson has over 20 years of experience working for start-up and blue-chip technology companies and is responsible for providing oversight of the development of the Company's LiveOfferTMplatform.

At the same time, Mr Michael Langoulant (previously Company Secretary) took on the role of non-executive Chairman replacing Mr Peter Friend who stepped down from the role for personal reasons. The Company appointed Ms Loren Jones as Company Secretary at this time.

During the December quarter, development of the LiveOfferTMplatform was taken in- house to afford the Board and management greater control and oversight in the critical phase ahead of commercial launch. The process is being principally managed by Mr Patterson and is supported by Property Connect's highly skilled development team of platform development experts.

Accordingly, the Company formally terminated its development agreement with Apmasphere Pty Limited following the close of the quarter in January 2017. The agreement was successfully terminated with no associated break costs. In addition, Property Connect did not incur any development costs under the agreement which was based on a revenue share model of the commercialised platform.

The Company is pleased to report that development has progressed as anticipated and the LiveOfferTMplatform remains on track for commercial go-live on 1 March 2017 and the commencement of revenue generation thereafter. Initial target market feedback of the prototype is encouraging and suggests strong demand for the platform once launched.

During the quarter, the Company delivered strong momentum in building its customer pipeline. It ended the quarter with several property management groups signed up to utilise the platform under Letters of Intent (LOIs). This gives the Company a reach of over 300,000 properties that may utilise the LiveOfferTMplatform as they become available for re-letting.

Having strengthened the Board and brought the development of our platform in-house, the Company is confident about launching the LiveOfferTMplatform at the start of March 2017.

The Company is focused on converting its LOIs to MSAs as well as broadening its footprint within the US multifamily property sector.

Property Connect CEO Tim Manson commented: "The December quarter represented an important transition for the Company, addressing financial, strategic and corporate aspects of our operations. Property Connect is now well placed to complete the development phase of the LiveOfferTMplatform for commercial launch by 1 March 2017 and commence revenue generation.

"Encouragingly this operational progress has been accompanied by a strong, ongoing positive industry response to LiveOfferTM, and we continue to advance its penetration of US multifamily property managers."

Forward-Looking Statements

This document includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning PCH's potential business development, corporate activities and any, and all, statements that are not historical facts. When used in this document, words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should" and similar expressions are forward- looking statements. PCH believes that its forward-looking statements are reasonable; however, forward-looking statements involve risks and uncertainties and no assurance can be given that actual future results will be consistent with these forward-looking statements. All figures presented in this document are unaudited and this document does not contain any forecasts of profitability or loss.

Property Connect has developed the LiveOfferTMtechnology, designed to create an easy, fair and transparent system under which potential tenants can negotiate the best offer on a rental property. Founded in 2012 and based in Los Angeles, Property Connect enables leasing agents the opportunity to secure optimal leasing terms on each property.

The company is listed on the Australian Securities Exchange (ASX:PCH). www.propertyconnect.com

d+Rule 4.7B

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

1. Cash flows from investing activities

2. Payments to acquire:

3. property, plant and equipment - -

4. businesses (see item 10) - -

5. investments - -

6. + See chapter 19 for defined terms

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