Biotron : 29 Aug 2019Year End Accounts and Preliminary Final Report

Results for announcement to the market

Brief explanation of any of the figures reported above and short details of any bonus or cash issue or other item(s) of importance not previously released to the market:

Refer attached Annual Report for the year ended 30 June 2019.

The attached Annual Report which forms part of this Appendix 4E has been audited.

BIOTRON LIMITED

OPERATING AND FINANCIAL REVIEW

REVIEW OF OPERATIONS

Biotron Limited ('Biotron' or 'the Company') has completed several significant milestones during the 2018-

2019 financial year. These include:

Reporting of positive results from the Company's pivotal Phase 2 BIT225 HIV-1 clinical trial.

Presentation of data from the BIT225 HIV-1 trial at the HIV DART and Emerging Viruses 2018 conference in Miami, Florida USA, which received the Conference's 2018 Poster Award.

Appointment of Professor Stephen Locarnini as a Non-Executive Director.

Raising $6.0 million in capital from the exercise of Company options.

HIV-1 Program

The major highlight during the year was the release of positive human clinical data from the BIT225-009 Phase 2 trial of its lead drug BIT225 in HIV-infected patients in combination with current antiretroviral drugs.

The data from this Phase 2 clinical trial indicates that BIT225 has induced key immune responses not seen in patients dosed with approved anti-HIV drugs.

During HIV-1 infection, the virus hides in long-lived cells known as macrophages. This cellular source of virus persists even in people taking antiretroviral drugs, although there is no detectable virus in their blood. The continued presence of virus causes serious problems including accelerated aging of the immune system and HIV-associated neurocognitive disorder (also known as AIDS-related dementia). Eradication of virus from hidden reservoirs is key to further improving health outcomes in this population and also key to any strategy to cure patients infected with HIV-1.

In previously reported laboratory-based studies, Biotron has shown that BIT225 attacks HIV-1 growing in macrophages. An earlier Phase 1b/2a human clinical trial (BIT225-004) demonstrated that BIT225 targets replication of HIV-1 in macrophage lineage cells in infected individuals.

The data from the BIT225-009 clinical trial indicate that treatment with BIT225 triggers a range of positive changes to the immune cells which help to fight HIV-1 in these patients.

In addition to statistically significant changes in immune cells, there was a statistically significant reduction in the level of the macrophage activation marker sCD163 in the blood of the BIT225-treated cohort by the end of the treatment period compared to the placebo group in the trial.

Higher levels of sCD163 are linked with worse clinical outcomes in patients and so this reduction of sCD163 by BIT225 provides additional evidence of potential clinical benefit in these patients.

Since releasing data from the BIT225-009 trial, the Company's main efforts have been directed towards further understanding of these unique responses to BIT225. This has involved testing samples of blood collected during the trial for various markers, the levels of which allow the determination of precisely how BIT225 treatment has impacted on specific immune pathways.

These analyses are supplementary in nature and will not change the reported key positive findings from the clinical trial. These analyses are proceeding well and are important as they are providing key information on characterising the mechanism of action of BIT225 on HIV-1 behind the positive results observed in the BIT225-009 clinical trial.

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