Genera Biosystems : Business Update and June 2017 Appendix 4C

1 Dalmore Drive,

Scoresby, Victoria 3179 AUSTRALIA

T: +61 (0)3 9763-1287

F: +61 (0)3 9763-2817

www.generabiosystems.com

Genera Biosystems Limited ('Genera') is pleased to provide an update to accompany the attached Appendix 4C Quarterly Cash Flow report for the period ended 30 June 2017.

The company held cash at end of quarter of $220k representing a net increase of $186k during the quarter. Operating cash outflow was ($153k) for the June quarter with the full year operating cash burn amounting to ($799k).

Cash receipts from customers for the quarter and the full year amounted to $232k and $821k respectively which were up 84.1% and 24.2% versus the corresponding June 2016 periods. Sales receipts during the month of July were $78k with the company currently anticipating that current quarter receipts will exceed those received in the 2016 September quarter.

The Company's order levels from its major customer for its respiratory panel test continue to ramp up as the southern hemisphere flu season progresses with another year of record volumes anticipated.

Genera currently anticipates record operating revenues for the current quarter. Cash receipts from these sales alongside a projected ~$500k FY2017 ATO tax incentive rebate should deliver a positive operating cash flow for the current half year period to 31 December 2017.

Genera is targeting the completion of a material capital raising late in the current quarter. In the interim to assist in funding general working capital requirements Genera has increased its existing Mezzanine debt facility to ~$1.3m at 30 June. This facility may be increased to $1.5m as required. The Board has approved the CEO, Richard Hannebery, providing additional financial support alongside other lenders under the increased Mezzanine debt facility on the terms previously disclosed to the ASX.

Holders of all Series B Convertible Notes on issue agreed unanimously to further extend the term of the Notes by 3 months to 30 September 2017. Richard Hannebery, Genera Chief Executive Officer commented, "We again appreciate the collegiate support of our Noteholders in supporting the current execution plan to deliver an optimal outcome for all stakeholders."

Genera has recently appointed a US-based boutique investment bank to lead a material equity- linked expansion capital financing for the Company. The principal of the firm who is leading the transaction has a 4-5 year history with Genera from a prior role and approached the company earlier

this year to discuss the Board's appetite for sourcing funding in the US market. Preliminary discussions with potential investors have now commenced and we hope to have the capital raising concluded in the current quarter or shortly thereafter.

Operational activities during the quarter were focused on ensuring the Company is well placed to meet rising customer demand for respiratory tests as southern hemisphere flu season volumes increase.

Other areas of focus included work towards validation of a new enzyme that is being incorporated into both Genera's PapType® HPV test and a new Sexually Transmitted Infections panel. Successful integration of the new enzyme will result in PCR run times approximately halving for operators running these tests thereby delivering additional throughput capacity for pathology customers over a single shift. Richard Hannebery commented, "Genera's AmpaSand® multiplexing platform is already well-placed for use in high-volume laboratories due to its ability to test for all targets in a single-well of a reaction plate. Further, the PCR run-time improvements that this new enzyme appears capable of delivering, coupled with new automation capabilities being introduced with respect to instrumentation, will provide operator workflow benefits and testing volume throughput capacity not previously experienced by Genera customers."

During the quarter the TGA undertook a comprehensive audit of Genera's manufacturing facilities. Genera is pleased to report that it has recently received confirmation from the TGA that the audit has successfully closed with TGA records being updated to show a final compliance facility rating of A1. Information on the TGA's system to determine compliance rating can be found at the TGA website at https://www.tga.gov.au/manufacturer-compliance-history.

The next re-audit of Genera's manufacturing facility is expected to be performed by the TGA by June 2019.

Genera's team continued to work on the collation of a Meijer compliant clinical data package for its PapType® HPV test during the period. Meijer compliant data will support the market positioning of Genera's PapType® HPV test when the new cervical screening regime is introduced in the Australian market on 1 December 2017.

Genera's PapType® test is currently listed on the Australian Register of Therapeutic Goods ('ARTG'). Our regulatory team has been advised that, under the new regime, all qualifying HPV tests will be listed on the Medicare Benefits Schedule once commercial pathology providers running the tests have sufficient comfort that the performance of the HPV test being used meets the 'Meijer performance guidelines'. Genera has received prior indication from members of its world class scientific advisory board that, based on extensive clinical studies of PapType®, the test should meet these guidelines.

Genera continues to make strong progress in its prospective IVD partnering discussions and currently anticipates having this key commercialisation milestone concluded with details announced to the market in the current quarter or shortly thereafter.

For further information please contact:

Mr Richard Hannebery Chief Executive Officer Genera Biosystems Limited

Telephone: +61 (0)3 9763 1287 www.generabiosystems.com.au

+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

   - (75)

4. businesses (see item 10) - -

5. investments - -

6. + See chapter 19 for defined terms

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