Pacific Edge : Investor Update - Jan 2023

Dear Investors,

In this third quarter update, I am pleased to advise that we are continuing to deliver on our growth objectives. Pacific Edge closed out 2022 confident the new approach we are taking to drive increased adoption and use of Cxbladder is delivering on its goals.

Test volumes for the third quarter of the 2023 financial year are up 36% on the same period in the prior financial year to 7,768. Consistent with prior years, we observed a seasonal slowdown that comes with the Thanksgiving, Christmas, and New Year holiday season (see page 3).

Throughput remained flat on the 7,864 achieved in the second quarter of the current financial year, though notably the number of unique ordering clinicians increased.

In the previous quarter, we added two new sales roles with a focus on National Accounts (see page 4). With these appointments, we have now largely put in place the size and diversity of roles in the commercial team that we need for our next phase of growth. We are looking towards the 2024 financial year when we expect these initiatives to start to demonstrate a return by increasing the number of tests per ordering clinician, while continuing our upward momentum on the number of ordering clinicians and revenue.

As we highlighted at our 1H23 results in November, we are seeing similar encouraging signs across the initiatives we announced in May. Our new Direct Sales team members are gaining confidence and knowledge in their territories.

To support the expected volume growth, we have added to our laboratory, scientific and customer support staff.

In the previous quarter, our Medical Affairs team have also begun to demonstrate the value they bring to the business. Communicating the portfolio of evidence supporting Cxbladder to clinical and commercial decision makers is no small task. Ultimately, it requires our people to be able to engage with them as equals, and to be able to answer nuanced questions of science or clinical practice confidently and with conviction.

"We have now largely put in place the size and diversity of roles

... for our next phase of growth."

At the Society for Urologic Oncology (SUO) meeting in San Diego in December, and in meetings following the conference (see page 5), various key opinion leaders (KOLs) from the urology community regularly acknowledged that the Medical Affairs team was bringing a new sense of purpose by putting Pacific Edge and Cxbladder at the center of conversations around innovation in biomarkers

• a key feature of international conferences.
  Decision makers are not only talking to Pacific Edge about the evidence and the clinical utility of the products. More and more they are now talking to one another on the value of integrating Cxbladder into their practice. We

are also seeing a new enthusiasm for clinicians to be involved in upcoming clinical trials.

Finally, we were excited to announce in December acceptance for publication in the Journal of Urology new research demonstrating that the addition of DNA biomarkers to Cxbladder can deliver significant improvements in test performance (see page 6). The study and the enhanced test that we are commercializing on the back of it, Cxbladder Detect+, positions the company to extend our leadership in best-in-class diagnostic tools for the detection and management of bladder cancer.

Cxbladder Detect+ represents an exciting evolution for the company. As a single product for hematuria evaluation with significantly enhanced performance characteristics, it allows us to offer new solutions to the clinicians, healthcare funders and providers and those who set global standards of care.

We continue to actively engage with our legal advisors, our industry coalition partners and with all appropriate formal channels

with Novitas and CMS regarding the proposed LCD and remain confident that our feedback will be incorporated into revisions to the proposal that will benefit patients, payors and diagnostics companies, including continued reimbursement for Cxbladder.

On behalf of the entire Pacific Edge team, I wish you all a good start to the New Year.

Ngā mihi,

Dr Peter Meintjes

Cxbladder tests processed at Pacific Edge's laboratories in the US and New Zealand have sustained the strong performance of prior quarters despite the seasonal headwinds of holidays with reduced laboratory operating days and reduced physician schedules.

In the three months to the end of December 2022 (Q3 23), the team processed 7,768 tests, a 36% increase over Q3 22. This growth rate is in line with the year-on- year growth rates we achieved in Q2 23 and ahead of the year-on-year growth rate of 32% achieved in Q1 23.

Volumes were flat on the Q2 23's 7,8641 tests reflecting the seasonal slowdown we see from Thanksgiving through to the New Year and the start of the fourth quarter as urologists and patients take

holidays. As we have seen in prior years, we expect a return to quarter-on-quarter growth in the last three months of the financial year.

US test volumes for Q3 23 were 6,629, a 44% improvement on the 4,591 in Q3 22, but flat on the 6,699 tests in the Q2 23. The number of unique US ordering clinicians has continued to grow to 1,076 at the end of the Q3 23, up 45% on Q3 22 and up 10% on Q2 23.

In line with the seasonal trends observed in the prior years, tests per physician in Q3 23 fell to 6.2 from 6.8 in Q2 23.

Q3 23 APAC volumes were up 2% on Q3 22 at 1,139 and flat on the 1,165 in Q2 23, with the relatively mature New Zealand market dominating throughput.

As a continued enhancement to Pacific Edge's sales strategy, the PEDUSA team now has a small and dedicated team to work with national accounts.

National Accounts are those institutions and practices that have larger influence on the practice of urology either through their ability to influence clinical standards and practice, or through their scope, size, and reputation.

Pacific Edge has always had strong relationships with these National Accounts, managed by the sales and executive teams, and believe this new focus will enhance these relationships.

These National Accounts will initially total approximately 50 institutions in the US, but this focus can be expanded as we prove our selling model.

National Accounts are expected to have longer sales cycles and complex decision- making processes. However, they are expected to standardize and systematize their technology adoption, which increases the

"stickiness" as they look to establish protocols for the appropriate use of Cxbladder in their patient population.

To help lead this initiative, we have appointed an experienced and award-winning sales leader, Melissa Garcia, as our new National Account Director. Joining her in the National Accounts Team is Joe Swanson - a top performer among our Account Executives. The new team will work closely with our Medical Affairs, Market Access, and field sales teams to establish our National Accounts strategy, and refine it in response to market dynamics.

We expect the new team to be a performance driver in the 2024 financial year.

CONFERENCES

MONITOR'S DAY IN THE SUN

STRENGTHENING KAISER CLINICIAN RELATIONSHIPS

Cxbladder Monitor and our freshly minted Medical Affairs Team were front and center at the Society of Urologic Oncology (SUO) meeting in San Diego at the start of December.

The conference is a premier gathering for clinicians who manage patients already diagnosed with bladder cancer. For these clinicians, having treated the cancer, Cxbladder Monitor (CxbM) is of intense interest due to its potential to reduce the frequency of surveillance cystoscopy, and therefore improve compliance with surveillance for recurrent bladder cancer.

A highlight of the conference, attended by about 1000 clinicians and industry professionals was a Cxbladder Breakfast Symposium on the real-life impacts of Cxbladder tests for the diagnosis and surveillance of bladder cancer. The event featured three leading urologists - Dr Sia Daneshmand, Dr Sima Porten, and Dr John Sfakianos and was chaired by Pacific Edge's VP of Medical Affairs Dr Tamer Aboushwareb.

Key successes of the symposium, and the conference at large, included the endorsement by independent clinicians of CxbM's clinical utility, the evidence to support its use, and how - by offering options to reduce the number of cystoscopies - CxbM helped to overcome patient

reticence towards surveillance regimes for cancer recurrence.

In a sign of the success of our new Medical Affairs team, Pacific Edge was roundly praised for its research and its commitment to a full clinical evidence generation program and has set a new template for engagement at similar events in the future.

Medical Affairs led podium presentations, side line conversations with clinicians, and formal sessions. A key initiative was the Principle Investigator Meeting for STRATA which was attended by all principle investigators and coordinators in the STRATA trial (see page 7) to discuss challenges and drive faster enrolment of appropriate patients for the trial. We plan to hold PI meetings for other clinical studies at similar conferences going forward.

Finally, the SUO conference also hosted the first meeting of Pacific Edge's Clinical Advisory Board (CAB). This body, a panel of our most trusted advisors from renowned academic centers, includes leading urologists from around the US, four of whom sit on the AUA guidelines committees. The CAB provided us with highly useful insights in how to drive our product development and clinical study program. It was also supportive of our test validation roadmap for Detect+ (see page 6).

Cxbladder remains on track to be integrated within the Kaiser Permanente electronic medical record (EMR) system with the rollout starting with Southern California (SoCal). As a partner in this project, Pacific Edge was invited to attend a Kaiser Permanente internal conference for urologists in October and had the opportunity to raise awareness of the rollout

to a number of urologists not already familiar with the internal developments. In December, Pacific Edge Medical Affairs and Senior Management were invited to address the SoCal organization's 13 urology chiefs over dinner and received positive confirmation on the performance of Cxbladder and the desire to rollout systematically via EMR.

"We are confident of ... the successful conclusion of this project before the end of March 2023."

These opportunities reinforce Pacific Edge's position as an innovation partner for Kaiser Permanente, underpinned by a shared desire to reduce unnecessary cystoscopies during hematuria evaluation and surveillance, and to ultimately move towards proactive routine testing

of "At Risk" populations defined by age, smoking history and other clinical factors in the EMR. We remain encouraged that we will be able to announce a successful conclusion to the integration project prior to the end of the financial year.