Kazia Therapeutics : Appendix 3B amended

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12, 04/03/13

Name of entity

Kazia Therapeutics Limited ("Kazia")

ABN 37 063 259 754

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

• 1 +Class of +securities issued or to be issued

  Employee Share Options

• 2 Number of +securities issued or to be issued (if known) or maximum number which may be issued

250,000 options issued 4 January 2019 1,200,000 options to be issued upon receipt of shareholder approval

• 3 Principal terms of the +securities (e.g. if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)

• 4 Do the +securities rank equally in all respects from the +issue date with an existing +class of quoted +securities?

  If the additional +securities do not rank equally, please state:

  • • the date from which they do

  • • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment

  • • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

• 5 Issue price or consideration

  All options have an exercise price of $0.4925 and expire on 4 January 2024

  250,000 options vest as follows:

  • • 25% on 4 July 2019

  • • 25% on 4 January 2020

  • • 25% on 4 July 2020

  • • 25% on 4 January 2021 1,200,000 options vest as follows:

  • • 50% (600,000) on issue date

  • • 16.6% (200,000) on 4 January 2020

  • • 16.6% (200,000) on 4 January 2021

  • • 16.6% (200,000) on 4 January 2022

  Apart from the exercise price, vesting dates and expiry date as outlined above, these options rank pari passu with existing employee options.

  Nil: issued in compensation for services provided

• 6 Purpose of the issue

  (If issued as consideration for the acquisition of assets, clearly identify those assets)

  The options are issued as part of remuneration for key staff

• 6a Is the entity an +eligible entity that has obtained security holder approval under rule 7.1A?

  If Yes, complete sections 6b - 6h

  in relation to the +securities the

  subject of this Appendix 3B, and

  comply with section 6i

• 6b The date the security holder resolution under rule 7.1A was passed

  N/A

• 6c Number of +securities issued without security holder approval under rule 7.1

  N/A

• 6d Number of +securities issued with security holder approval under rule 7.1A

  N/A

• 6e Number of +securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting)

  N/A

• 6f Number of +securities issued under an exception in rule 7.2

  N/A

• 6g If +securities issued under rule 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the +issue date and both values. Include the source of the VWAP calculation.

  N/A

• 6h If +securities were issued under rule 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements

  N/A

• 6i Calculate the entity's remaining issue capacity under rule 7.1 and rule 7.1A - complete Annexure 1 and release to ASX Market Announcements

  Listing Rule 7.1: 3,102,404

  Listing Rule 7.1A: nil

  Total = 3,102,404

• 7 +Issue dates

  Note: The issue date may be prescribed by ASX (refer to the definition of issue date in rule 19.12). For example, the issue date for a pro rata entitlement issue must comply with the applicable timetable in Appendix 7A.

  Cross reference: item 33 of Appendix 3B.

250,000 options issued on 4 January 2019 1,200,000 options to be issued upon receipt of shareholder approval

8

Number and +class of	all
+securities quoted on	ASX
(including the +securities	in
section 2 if applicable)

Number	+Class
62,166,673 3,148,948	Ordinary Shares Equity options

Number

+Class

1,856,000

Unlisted convertible notes, with combined face value of $464,000

2,906,503

Unlisted options with exercise price of $4.00 and expiry date of 30 June 2020

9

Number and +class of all +securities not quoted on ASX (including the +securities in section 2 if applicable)

46,647 Unlisted options with exercise price of $1.50 and expiry date of 16/12/2019.

19,954 Unlisted options with exercise price of $1.50 and expiry date of 18/12/2019.

236,667 Unlisted options with exercise price of $2.20 and expiry date of 16 November 2020

500,000 Unlisted options with exercise price of $1.998 and expiry date of 1 February 2021

250,000 Unlisted options with exercise price of $2.605 and expiry date of 1 February 2021

50,000 Unlisted options with exercise price of $1.63 and expiry date of 5 September 2021

62,000

Unlisted options with exercise price of $1.559 and expiry date of 17 October 2021

16.667

Unlisted options with exercise price of $1.38 and expiry date of 1 November 2021

50,000

Unlisted options with exercise price of $1.376 and expiry date of 23 November 2021

224,000

Unlisted options with exercise price of $0.668 and expiry date of 7 August 2022

440,000

Unlisted options with exercise price of $0.7802 and expiry date of 5 February 2023

250,000

Unlisted options with exercise price of $0.4925 and expiry date of 4 January 2024