Suda : Appendix 4C for Fourth Quarter FY2017

ACN 090 987 250

Receipts from customers for the period were $1.8 million, an increase of 21% on the corresponding quarter in FY2016.

SUDA's subsidiary company, Westcoast Surgical & Medical Supplies, has continued to grow, having been awarded several new contracts in the 2017 financial year, including the supply of medical products to oil rigs, ships, custom vessels and floatels.

The fourth quarter receipts were also boosted by a payment from Pfizer Consumer Healthcare in relation to the feasibility and option agreement signed in April 2017. Under the terms of this agreement, SUDA was paid to formulate two widely-used OTC molecules into oro-mucosal sprays. Pfizer has an option to negotiate with SUDA for a global commercial licence to these oral sprays.

Operating costs in the three-month period were $1.3 million, a decrease of approximately 18% from the third quarter. Overall for the period, net cash outflow from operating activities was $0.4 million. The cash position as at 31 March 2017 was $1.8 million.

In the fourth quarter, SUDA received net cash from financing activities of $1.5 million from an over-subscribed placement as announced on 7 April 2017. The Company also rolled over the majority of its Convertible Notes and received commitments for additional Convertible Note funding as announced on 3 April 2017.

Following the end of the period, the Company entered into a licence and supply agreement with Teva Pharmaceuticals for SUDA's novel ZolpiMist™ oral spray of zolpidem tartrate to treat insomnia in multiple countries. Under the terms of the agreement, SUDA receives an upfront payment of US$300,000 (approx. A$400,000) and is entitled to receive further licence fees and milestone payments as well as royalties on sales and handling fees for supply of product.

SUDA's CEO, Mr Stephen Carter, commented: "Our subsidiary Westcoast continues to expand and grow. The fourth quarter was one of steady progress, culminating in our largest licensing deal to date with a top-20 pharmaceutical company, Teva, which we announced on 5 July 2017. I look forward to updating shareholders with more news over the coming weeks and months as we continue to focus on achieving our strategic goals and increasing shareholder value."

Tel: +61 8 6142 5555

sjcarter@sudaltd.com.au

About SUDA LTD

SUDA LTD (ASX: SUD) is a drug delivery company focused on oro-mucosal administration, headquartered in Perth, Western Australia. The Company is developing low-risk oral sprays using its OroMist® technology to reformulate existing pharmaceuticals. The many potential benefits of administering drugs through the oral mucosa (ie: cheeks, tongue, gums and palate) include ease of use, lower dosage, reduced side effects and faster response time. SUDA's product pipeline includes Zolpimist™, a first-in-class oral spray of zolpidem for insomnia. Zolpimist™ is marketed in the USA and SUDA has rights to the product outside of US and Canada. SUDA's most advanced development-stage product, ArTiMist®, is a novel sublingual malaria treatment for children. In a Phase III trial, ArTiMist® was shown to be superior to intravenous quinine. Other products in development include oral sprays for the treatment of migraine headache, chemotherapy-induced nausea and vomiting, erectile dysfunction, pulmonary arterial hypertension, epileptic seizures and pre-procedural anxiety. For more information, visit www.sudaltd.com.au

Rule 4.7B

1. Cash flows from investing activities

2. Payments to acquire:

3. property, plant and equipment

4. (18) (93)

   businesses (see item 10) - -

   investments - -

   Consolidated statement of cash flows		Current quarter $A'000	Year to date (12 months) $A'000
   intellectual property	(345)	(1,146)
   other non-current assets	-	-
   2.2	Proceeds from disposal of:
   (a) property, plant and equipment	-	-
   businesses (see item 10)	-	-
   investments	-	-
   intellectual property	-	-
   other non-current assets	-	-
   2.3	Cash flows from loans to other entities	-	-
   2.4	Dividends received (see note 3)	-	-
   2.5	Other (provide details if material)	-	-
   2.6	Net cash from / (used in) investing	(363)	(1,239)
   activities

5. Cash flows from financing activities

6. Proceeds from issues of shares

7. Proceeds from issue of convertible notes

8. Proceeds from exercise of share options

9. Transaction costs related to issues of shares, convertible notes or options

10. Proceeds from borrowings

11. Repayment of borrowings

12. Transaction costs related to loans and borrowings

13. Dividends paid

14. Other (provide details if material)

15. 3.10 Net cash from / (used in) financing activities

1,500

542

- (103)

- (470)

-

-

-

1,500

542

- (103)

- (470)

-

-

-

1,469

1,469