Patrys : Appendix 4C - Quarterly - 30 June 2022

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ASX & Media Release

28 July 2022

Quarterly Activities Report and

4C Quarterly Cash Flow Report

Highlights:

• $250,000 non-dilutive funding to support research by the Telethon Kids' Institute into potential therapeutic applications for Patrys' deoxymabs;
• New research published showing potential to use PAT-DX1 to regulate Neutrophil Extracellular Traps that play a role in cancer metastasis and inflammation;
• Update on research collaboration with Imagion to develop new targeted antibody-based imaging agents for brain cancer;
• Subsequent to the quarter, successful engineering run of PAT-DX1 completed and granting of Canadian deoxymab patent;
• Balance sheet capacity with closing cash balance of $7.8M at 30 June 2022, with an additional $2M in short-term investments.

Melbourne, Australia; 28 July 2022: Patrys Limited (ASX: PAB, "Patrys" or the "Company"), a therapeutic antibody development company, today released its Quarterly Activities Report and Appendix 4C Quarterly Cash Flow report for the quarter ended 30 June 2022.

Patrys Chief Executive Officer and Managing Director, Dr. James Campbell said: "Patrys has madesubstantial progress this quarter building out and expanding the base of evidence supporting the range of potential clinical applications for our deoxymabs. This culminated in the successful completion of the second engineering run for PAT-DX1in early July which resolved the technical issues we experienced in the engineering run earlier this year. Pleasingly, we have ample material to conduct the remaining preclinical GLP toxicology studies, and are currently testing to confirm that it meets specifications. With this successful result, we now have a very clear line of sight for getting PAT-DX1into the clinic in 2023 and with the recent appointment of Dr. Rebecca Tunstall asVice President, Corporate Development, we are actively starting to resource Patrys to achieve that significant milestone for the Company."

R&D Update

In June, Patrys announced that the Telethon Kids Institute in Western Australia had been awarded $250,000 in funding from the Clinical Accelerator fund of Cure Brain Cancer Foundation (CBCF) to

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support a program of research focused on potential therapeutic applications for Patrys' PAT-DX1 and PAT-DX3 deoxymab for the treatment and management of brain cancers. This is the first award of funding from CBCF under this newly established initiative and will support a program of research that will be led by Professor Terence Johns. Professor Johns is internationally recognised for his strong track record in translational research in brain cancer, and is the Professor of Paediatric Cancer Research, the Head of Telethon Kids Cancer Centre, and the Co-Director of the Australian Brain Cancer Research Alliance (ABCARA). The research will initially focus on the potential to use PAT-DX1 and PAT-DX3 deoxymabs to increase the effectiveness of standard-of-care (SoC) treatment for high-grade glioma (HGG) such as radiotherapy and temozolomide.

Also in June, Patrys announced publication of a paper reporting results from a range of studies in the peer-reviewed journal ImmunoHorizons that identified a new mechanism by which PAT-DX1 potentially could be used to reduce cancer metastasis. These studies, which were conducted by Patrys academic collaborators Dr James Hansen of Yale School of Medicine and Dr Kim O'Sullivan of Monash University, showed that PAT-DX1 may be used to regulate the formation of Neutrophil Extracellular Traps, or NETs. NETs are structures that are composed of DNA strands and certain proteins produced by neutrophils (a type of white blood cell) which are believed to play an important role in the establishment and maintenance of cancer cells, cancer spreading (metastasis) and in regulating inflammation. These results open up the possibility that PAT-DX1 may have an even broader role in developing treatments for a range of indications from metastatic cancer through to chronic inflammatory diseases.

During the quarter, Patrys expanded its research collaboration with Imagion Biosystems (ASX: IBX). In May 2021 we first reported initiation of our collaboration with Imagion to explore combination of Imagion's MagSense® technology and Patrys' DNA-targetingPAT-DX1 to develop a highly effective imaging agent with high specificity for hard-to-diagnose cancers such as brain cancer. Both companies have recently engaged The University of Sydney to further explore the utility of our combined technologies as a diagnostic imaging marker in a patient derived animal model of Glioblastoma Multiforme. We expect to report on the progress of these studies in 2023.

Patrys is pleased to announce that Canadian patent number: 3,027,960, titled "Antibody-mediatedautocatalytic, targeted delivery of nanocarriers to tumors" has been granted. This new patent provides protection until June 2037. This patent covers Patrys novel deoxymab 3E10 nanoparticle technology (for example PAT-DX1-NP) and includes specific claims around the use of nanocarriers conjugated to the 3E10 targeting moiety for diagnosis and treatment of multiple types of cancer. This patent expands Patrys' intellectual property portfolio. The Company now has six patents covering the unconjugated form of deoxymab 3E10 (and derivatives thereof) granted in Europe, Japan, China, and three in the USA, and three patents granted covering nanoparticle conjugation in Australia, India and now Canada. This provides the Company with a significant and material patent estate covering the use of its deoxymab antibodies

Subsequent to the end of the quarter, in early July, Patrys announced it had successfully completed a second manufacturing run which used an updated purification process to produce large scale quantities of clinical grade PAT-DX1. The updated purification process appears to have addressed the

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technical issues that resulted in low recoveries of drug product in the first engineering run as the initial yield has exceeded what the Company was expected based on previous, smaller-scale production runs. Drug material from this production run still needs to complete testing to ensure it meets specification. However, as PAT-DX1 from all prior manufacturing runs to date have met specification, Patrys believes the drug product from this engineering run will be sufficient to complete the remaining preclinical GLP toxicology studies that are planned from Q4 CY2022 to Q2 CY2023.

Corporate Update

In April, Patrys announced the appointment of Dr. Rebecca Tunstall as Vice President, Corporate Development. Dr. Tunstall spent thirteen years with the pharmaceutical company GlaxoSmithKline (GSK) Australia in a number of different leadership positions that were primarily focused on clinical cancer research and development. Dr. Tunstall will be a key member of Patrys' executive team focusing on preparations for Patrys' deoxymab clinical trials as well as broader executive functions.

During the quarter ended 30 June 2022, Patrys had net cash outflows from operating activities of A$2,353k, with A$1,915k invested in R&D activities. As Patrys progresses to the clinic expenditure on operating activities is anticipated to increase. At 30 June 2022, Patrys held A$7.8M in cash and an additional A$2M in short-term investments. Payments to related parties and their associates during the quarter, which are outlined in Section 6 of the accompanying Appendix 4C to this quarterly activity report, were A$159k. These payments include non-executive director fees and consulting services as well as salary (including superannuation) for the CEO and Managing Director.

-Ends-

This announcement is authorised for release by the Board of Directors of Patrys Limited.

For further information, please contact:

General enquiries	Media enquiries:
James Campbell	Haley Chartres
Chief Executive Officer	H^CK
P: [phone]	P: [phone]
[e-mail]	[e-mail]
Registered Office Address
Level 4, 100 Albert Road
South Melbourne VIC 3205

About Patrys Limited

Based in Melbourne, Australia, Patrys (ASX:PAB) is focused on the development of its deoxymab platform of cell-penetrating antibodies as therapies for a range of different cancers. More information can be found at www.patrys.com.

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About Patrys' deoxymab platform:

Patrys' deoxymab platform is based on the deoxymab antibody that was first identified as an autoantibody in a mouse model of the human disease systemic lupus erythematosus (SLE). While most antibodies bind to cell surface markers, deoxymab penetrates into the cell nuclei and binds directly to DNA where it inhibits DNA repair processes. Cancer cells often have high levels of mutations and underlying deficiencies in the DNA repair mechanisms. For these reasons, the additional inhibition of the DNA repair processes by deoxymab can kill cancer cells, but appears to have little impact on normal cells. As a single agent, deoxymab has been shown to significantly enhance the efficacy of both chemo- and radiotherapies. Further, deoxymabs can be conjugated to nanoparticles to target delivery of chemotherapeutics and imaging agents to tumours.

Patrys has developed two humanised forms of deoxymab, both which have improved activity over the original deoxymab antibody. PAT-DX1 is a dimer (two joined subunits) of the short chain from the binding domain of deoxymab, while PAT-DX3 is a full-sized IgG antibody. In a range of pre-clinical studies, PAT-DX1 has shown significant ability to kill cancer cells in cell models, human tumour explants, xenograft, and orthotopic models. PAT-DX1 has been shown to cross the blood brain barrier, reduce tumour size, and increase survival in multiple animal models of brain cancer, other cancers, and cancer metastases. PAT-DX1 is tumour-agnostic, meaning that it can target many different tumour types in the body, regardless of specific tumour antigens. Patrys believes that PAT-DX1 may have application across a wide range of cancers including gliomas, melanomas, prostate, breast, pancreatic, and ovarian cancers.

Patrys has completed proof of concept studies showing that it is possible to conjugate small molecule payloads to PAT-DX3, and is advancing antibody drug conjugate (ADC) efforts using deoxymabs. In addition, deoxymabs such as PAT-DX1 and PAT-DX3 can be used to target nanoparticles carrying a payload of anti-cancer drugs specifically to tumours. This allows specific delivery of cancer drugs to multiple types of cancer while having minimal impact on normal, healthy cells.

Patrys' rights to deoxymab are part of a worldwide license to develop and commercialise a portfolio of novel anti-DNA antibodies and antibody fragments, variants and conjugates discovered at Yale University as anti-cancer and diagnostic agents. Six patents covering the unconjugated form of deoxymab (and derivatives thereof) have already been granted (Europe, Japan, China, and three in the USA), and three patent covering nanoparticle conjugation have been granted in Australia, India and Canada.

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Rule 4.7B

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

PATRYS LIMITED
ABN	Quarter ended ("current quarter")
97 123 055 363	30 June 2022

Consolidated statement of cash flows	Current quarter	Year to date (12
			$A'000	months)
				$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	-	28
1.2	Payments for
	(a)	research and development	(1,915)	(7,883)
	(b) product manufacturing and operating	-	-
		costs
	(c)	advertising and marketing	-	-
	(d)	leased assets	-	-
	(e)	staff costs*	(93)	(562)
	(f) administration and corporate costs	(267)	(1,169)
1.3	Dividends received	-	-
1.4	Interest received	3	11
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	1,189
1.8	Others - IP expenditure	(81)	(293)
1.9	Net cash from / (used in) operating	(2,353)	(8,679)
	activities

*A portion of staff costs are reallocated into payments for research and development.

2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(g)	entities	-	-
	(h)	businesses	-	-
	(i)	property, plant and equipment	(2)	(2)
	(j)	investments in term deposits	(4)	(2,004)

ASX Listing Rules Appendix 4C (17/07/20)	Page 1
+ See chapter 19 of the ASX Listing Rules for defined terms.