Nemex Resources : Wavefront Acquisition Update

17 September 2015

Fast Facts

Shares on issue 241.3M Options 24.4M ASX Code NXR

Chairman

Non-Exec Director

Non-Exec Director & Company Secretary

WBT Investment

 Biometric technology

 Potential global market

 Strong management

Guinea (Iron)

 High-grade iron discovery

 Large resource potential

W Australia (Iron)

 Woodley DSO Project

T: +61 8 9388 2277 www.nemexres.com.au
Nemex Resources Limited (ASX: NXR) (Nemex or Company) provides the following update to the agreement under which it has a conditional right to acquire 100% of the issued capital in Wavefront Biometric Technologies Pty Ltd (Wavefront) that it does not already own (Acquisition).
All Wavefront shareholders have now agreed to sell their Wavefront shares to Nemex, so that on completion of the Acquisition Nemex will hold 100% of Wavefront.
It has also been agreed that, subject to shareholder approval and upon completion of the Acquisition, the Company will be re-named Wavefront Biometric Limited.
As previously advised, in conjunction with the Acquisition and in order to re- comply with Chapters 1 and 2 of the ASX Listing Rules, the Company will conduct a capital raising to raise up to $9,000,000 (with a minimum raising of
$5,000,000). Completion of the necessary documentation to complete the Acquisition and fundraising, including the detailed share purchase agreement, notice of general meeting of shareholders and prospectus have been completed or are nearing completion.
As part of its technology development programme Wavefront has previously agreed to facilitate a review of the technology through Purdue University, a globally recognised leader in biometric technology analysis. This work includes validation of the internal performance testing completed by Wavefront and its consultants. The Board of Wavefront is targeting for the validation work to be completed within 4 - 6 weeks.
The market globally for biometric solutions is competitive and dynamic. Recent analysis by Wavefront indicates there are multiple companies developing authentication solutions using various biometric modalities, including fingerprint, facial, iris, finger and eye vein and voice recognition. Companies are also developing solutions involving combinations of these modalities. There is limited information about competing product performance in the mobile market (self acquisition). Wavefront is aware however of competitive solutions being developed in the mobile market reporting performance superior to that achieved to date by Wavefront. Wavefront is obtaining commentary on the performance of competitive technologies (based on the limited information available) from an industry
expert.
PO BOX 131, Subiaco WA 6904 T: +61 8 9388 2277 F: +61 8 9380 6761 www.nemexres.com.au

Nemex and Wavefront have agreed that due to the relatively short targeted timeframe to completion of the validation and competitive analysis work, the results should be made available before finalising the terms of the capital raising and issuing the notice of meeting for Nemex shareholders to consider resolutions in respect of the Acquisition at the upcoming shareholders meeting.
Upon receipt of the results of the validation and competitive analysis work, the Company will issue a revised indicative timetable in respect of the Acquisition.
Wavefront has also advised that Mr Leigh Clapham has resigned as a director of Wavefront due to personal commitments. As a result it is no longer proposed that Mr Clapham will transition across to the Board of the Company following completion of the Acquisition.

Patrick Flint
Chairman
Nemex Resources Limited
P: 08 9388 2277
E: pflint@nemexres.com.au
Dr Shanny Dyer
Managing Director
Wavefront Biometric Technologies Pty Ltd
P: +61 410 526 130
E: Shanny.Dyer@wavefrontbiometric.com

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