3D Metalforge : March 2022 Quarter Activities Report and Appendix 4C

ASX ANNOUNCEMENT

3MF CONTINUES TO ADVANCE FIELD TRIALS

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AND INTERNATIONAL EXPANSION

IN MARCH QUARTER

HIGHLIGHTS

• • Customer receipts of A$294k for Q1 FY22

• • Successfully raised A$2.12m with significant interest from sophisticated and institutional investors as well as existing shareholders

• • Progress in key hubs continued with expansion in Australia and strengthened collaboration with UNSW following successful completion of Stage 1 Proof of Concept Study1.

• • Technology progress with increase of polymer printers to 33, capable of printing in up to 25 different materials and continuing working with Hitachi Metals to identify applications of their MAT21 high performing metal alloy2.

• • Growing adoption of AM services, driven by rise in long term sustainability goals and short-term pandemic linked challenges, resulting in encouraging outlook entering H1 FY22.

• • Cash balance of A$1.3m as at 31 March 2022, with additional funds raised of A$2.12m fully received in April 2022

29th April 2022: 3D Metalforge Limited (ASX: 3MF) ("3D Metalforge" or the "Company"), a global revenue generating Additive Manufacturing ("AM") company, is pleased to release its Appendix 4C cash flow statement and associated activities report for the quarter ended 31 March 2022.

Financial Performance

3D Metalforge continued to see positive sales during the March 2022 quarter, achieving revenue of A$154k, and customer receipts of A$294k. Revenue growth was driven by the Company continuing building its presence in Australia, Houston and Singapore.

• 1 ASX Announcement 11th November 2021 titled "Memorandum of Understanding with University of NSW"

• 2 ASX Announcement 22nd December 2021 titled "Memorandum of Understanding with University of NSW"

3D Metalforge Limited (ACN 644 780 281)│ASX:3MF

16 Ord Street, West Perth│[phone]

www.3dmetalforge.com

Targeted cash spend was in-line with the investment in building the business with cash expenditure of A$1.2m. The Company remains cognisant of its cash burn and expects the gap between expenditure and cash inflows to narrow over time as its investments in growth pay off.

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3D Metalforge has launched an operational efficiency program to consolidate the enlarged and improved facilities opened over the past 12 months and to ensure operating and overhead costs are transparent and well managed.

Main Activities

Progress in key hubs

Australia

Following first orders received in the country, 3D Metalforge has made progress with its strategic expansion in Australia, including signing a channel partner agreement with IKM Measurement Services Australia Pty Ltd (IKM-MSA)3. This agreement appoints IKM-MSA as an authorised partner to promote and represent 3D Metalforge's products and services to its customers in Australia and South East Asia for a three year period, followed by an option for an additional two years. During the Agreement, both parties will explore the possibility to expand this agreement to a global agreement.

A number of early stage discussions are currently underway in the resources and energy sectors as large companies in the COVID-19 landscape are looking to adopt AM as a solution to bypass sustainability challenges, following the rise in global shipping costs and transportation delays, and as part of their longer term sustainability goals.

The Company also continued to develop its 12-month Memorandum of Understanding with the University of New South Wales (UNSW), Sydney, for AM research and development collaboration. In the first six months since inception, a stage 1 Proof of Concept study was successfully conducted. The study consisted in establishing a new machine learning based additive manufacturing process to guide the additive manufacturing process of In718 and other alloys to achieve high quality printed parts (relative density ≥99.5% without cracks). The results are encouraging and will reduce the existing burdens associated with the costly and time-consuming process optimisation for In718 or other new alloys. This represents a further step in 3MF's continued engagement in the Australian market.

3 ASX Announcement 1st March 2022 titled "Channel partner Agreement with IKM MSA"

3D Metalforge Limited (ACN 644 780 281)│ASX:3MF

16 Ord Street, West Perth│[phone]

www.3dmetalforge.com

Houston

3D Metalforge's 20,000 sq.ft USA flagship facility is up and running in Houston

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In February 2022 3D Metalforge and Par Pacific signed a commercial agreement for 3D

Metalforge to supply a range of Additively Manufactured (AM) parts for Par Pacific's three US-based refineries4. The agreement represents an important step in expanding the current relationship with Par Pacific with a potential value of up to A$400,000 p.a. The agreement is exclusive, but there is no minimum order value and the exact value of the contract will depend upon the operational requirements of Par Pacific during the period of the agreement, with the estimated value of the agreement based on operational requirements in 2021.

3D Metalforge has continued to expand the range of printers in it's Houston facility including laser powder bed fusion, large format polymer printers and a dedicated PEEK printer.

3D Metalforge continues to see significant opportunity in the US AM market and expanding it's range of printers in Houston will allow the Company to further support it's growing US

customer base, including customers such as Par Pacific.

The expansion of equipment available to support customers in Houston is a further example of the benefits of additive manufacturing 3MF continues to bring to its global customer base.

In this case, further cutting delivery time for key components with local production capability.

The Company continues to be well advanced in field trials with a number of major US companies that are being led out of the Company's new Houston facility.

Singapore

3D Metalforge continued to work with numerous industry leaders including PSA, Bureau

Veritas, Lloyds Register and ABS on the Joint Industry Projects organised by Singapore's

Maritime Port Authority. The details of the project were released in a White paper by Maritime Port Authority of Singapore (MPA) and National Additive Manufacturing Innovation Cluster (NAMIC). The 4 projects that 3D Metalforge is involved include organisations such as American Bureau of Shipping, Bureau Veritas, Lloyds Register, PSA, Neptune Pacific Lines and Kompressorenbau Bannewitz GmbH These projects involve designing, printing and installing 3D printed parts onboard operating ships for up to 6 months to prove the usability and potential of additive manufacturing.

Corporate

3D Metalforge was very pleased that Srikrishnan (Sri) Vaidyanathan, was appointed as new Chief Finance Officer in early January5. Mr Vaidyanathan brings a wealth of Australian

• 4 ASX Announcement 1st February 2022 titled "3MF Signs a Commercial Agreement with Par Pacific"

• 5 ASX Announcement 6th January 2022 titled "Appointment of Chief Financial Officer"

3D Metalforge Limited (ACN 644 780 281)│ASX:3MF

16 Ord Street, West Perth│[phone]

www.3dmetalforge.com

industrial and engineering expertise and will continue to be based in Perth, Western Australia, in order to be in proximity of the key resources market and the Company's investor base.

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The Company also advises that Samantha Tough stepped down as a non-executive Director due to time commitments in other organisations and Sri Vaidyanathan was appointed as a non-executive Director on the 1st February 20226.

Technology Advancements - increasing fleet of printers and printing in new metal powders

3DMF has customised the range of printers now installed in the Houston facility to enable higher quality printing for high value materials such as PACF and PEEK.

PEEK (Poly Ether Ether Ketone) has been used widely in oil and gas applications due to its superior chemical resistance, high strength to withstand pressures and loads and also performance at high operating temperature. Typical applications could include motor and pump components, electrical connectors, instrument housings, compressor components, etc.

Outlook

3D Metalforge continues to execute its commercialisation strategy, with a focus on deepening traction and accelerating sales in existing markets via its core hubs, and ultimately shift clients from field trials to full production.

In addition, 3D Metalforge is actively seeking opportunities to embed its solutions right into client facilities, with its 'shop in a shop' solution, to improve customer supply chains and offer a tangible competitive advantage.

The Company continues to consider inorganic growth opportunities as and when deemed appropriate for the Company's strategy.

Financial Summary

The attached Appendix 4C provides details on the cashflows for the quarter ended 31 March

2022. The Company's net cash used in operating activities for the quarter amounts to

A$1.164m, which included research and development (A$0.034m), product manufacturing and operating costs (A$0.206m), staff costs (A$0.780m), administration and corporate costs including interest paid (A$0.360m), leased assets costs (A$0.119m), and advertising and marketing (A$0.001m). Staff costs and administration and corporate costs included expenditure in relation to international expansion.

6 ASX Announcement 2nd February 2022 titled "Board Changes"

3D Metalforge Limited (ACN 644 780 281)│ASX:3MF

16 Ord Street, West Perth│[phone]

www.3dmetalforge.com

Use of Funds

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3D Metalforge was admitted to the official list of the ASX on 25 February 2021 following completion of an IPO raising A$10m. The March 2022 quarter is included in a period covered by a use of funds statement in the IPO prospectus lodged with ASX under Listing rule 1.1 condition 3.

A comparison of the Company's actual expenditure since admission to 31 March 2022 against the estimated expenditure in the use of funds statement is set out below as required by ASX Listing Rule 4.7C.2.

Description	Prospectus A$	Actual to Date (25 February 2021 - 31 March 2022) A$
Equipment	1,500,000	879,523
International expansion	4,000,000	1,780,233
Research and Development	500,000	266,071
Loan repayment	1,000,000	637,364
General administration and working capital	3,074,672	4,161,507
Expenses of the Public Offer	997,621	1,130,727
Total	11,072,293	8,855,425

The Company notes:

• 1. For the quarter, 3D Metalforge received total cash receipts from customers of approximately A$294k.

• 2. In addition to the table above, during the March quarter the Company spent approximately A$206k in relation to product manufacturing and operating costs.

3.

General administration and working capital have exceeded the budgetary use of IPO funds estimates in the prospectus. This is due to lower-than-expected cashflow from sales growth due to the challenging market conditions.

Related Party Transactions

Payments in the March quarter to related parties of approximately A$95k included at item 6 in the attached Appendix C comprised of directors' fees and salary.

-ENDS -

This announcement has been approved for release by the Board of 3D Metalforge Limited.

3D Metalforge Limited (ACN 644 780 281)│ASX:3MF

16 Ord Street, West Perth│[phone]

www.3dmetalforge.com