VERILUMA : VRI Partners with US-based Diamond Capture Associates

ASX Announcement 26 April 2017 Veriluma enters the US with partnership deal to access Federal Government opportunities in National Security, Counter-Terrorism and Fraud Highlights

• Veriluma partners with US-based Diamond Capture Associates
• Diamond Capture works with US government on National Security, Counter-Terrorism and Fraud Detection
• Advanced analytics being used for range of criminal problems
• Partnership opens opportunities to tender US government

Sydney, Australia, 26 April 2017: Veriluma (ASX: VRI), a leading Australian prescriptive analytics company, today announced its expansion into the United States through a partnership with US-based Diamond Capture Associates, LLC. As a result, Veriluma and Diamond Capture will be able to respond to tenders from the US Federal Government, focusing on the national security and law enforcement markets.

Diamond Capture Associates is a US-based Software-as-a-Service (SaaS) solutions integrator focused on fraud detection and authentication, advanced analytics, enterprise solutions, cyber security and mobile security and business intelligence. Using big data analytics, Diamond Capture works closely with the US Federal Government on a number of national security issues including national security, counter-terrorism and fraud detection.

The partnership was developed by Veriluma's Global Vice President of Public Safety, Mark Carrick, who was a former Commander of NSW Police Force Counter Terrorism Intelligence, Diamond Capture's President, Bailey Spencer and renowned former Special Agent and national security expert John Cassara. With 26 years' experience working in the US Federal Government intelligence and law enforcement communities, Cassara is considered an expert in anti-money laundering and counter-terrorism financing. Cassara and Spencer's networks and understanding of the sector ensures that technological solutions, such as those provided by Veriluma, are presented to those with decision-making powers in the US Federal Government as they look to fight money laundering and terrorism.

With the threat of global terrorism growing and the increasing complexities involved in identifying and disabling terrorism financing, there is an increasing need for prescriptive analytics technology to

support governments in identifying, understanding and mitigating this complex threat environment and developing tactical and strategic decisions.

Commenting on the partnership agreement Veriluma's CEO, Elizabeth Whitelock, says the prescriptive analytics firm is thrilled to be moving into the US Federal Government sector through this new partnership. "Our partnership with Diamond Capture and John has opened up exciting opportunities for Veriluma in the US market. Through previous shared projects, they have tested the market and its willingness to deploy solutions like ours in US Federal Government projects, allowing for easier penetration of the market."

"The deal will help US Government departments to use prescriptive analytics to make better decisions when working through complex national security and counter-terrorism issues. This is a natural progression from our Australian Defence Force intelligence roots. Through our unique public safety portfolio, we will leverage access to the US Federal Government that Diamond Capture provides."

Bailey Spencer, President of Diamond Capture, "We are pleased to be partnering with Veriluma to bring the power of prescriptive analytics to the US national security sector. Given the major threat of global terrorism and the complexity of identifying and disabling the financial networks that support terrorism, we see enormous opportunity for Veriluma to support decision-makers in developing anti- terrorism policies."

For more information, please contact:

Elizabeth Whitelock Peter Taylor

Chief Executive Officer Investor Relations

[e-mail] [e-mail]

[phone] + 61 412 036 231

www.veriluma.com

About Veriluma and Prescriptive Analytics:

Veriluma has developed and patented an advanced algorithm dealing in Prescriptive Analytics. Prescriptive Analytics is a form of advanced, forward-looking analytics, which provides assessments about future outcomes. Although most types of analytics aim to assist and improve in the decision making process, only Prescriptive Analytics delivers a preferred course of action. Developed by a Commonwealth Research Centre for the Australian Defence Intelligence Organisation, which has been utilising Veriluma's technology since 2013, Veriluma's software assists decision makers with rapid and accurate assessments of terrorism and national security threats using its proprietary technology based on Prescriptive Analytics. Developed in Defence, Veriluma's software engine is now applicable across a broad range of industry.

In complex decision making situations, the ability to comprehensively manage incomplete or uncertain inputs is highly valuable for businesses, governments and individuals. ¹The Prescriptive Analytics software market is expected to reach US$1.1 billion in the next 3 years, with a 22% Compound Annual Growth Rate (CAGR) from 2016. Currently, 10% of organisations have some form of prescriptive analytics and this is expected to grow to 35% by 2020.

¹Source: Gartner Forecast Snapshot: Prescriptive Analytics, Worldwide, 2016; 5 February 2016

Veriluma's software has wide applications across multiple industries including banking and financial services, government, defence and national security, insurance, legal, health, pharmaceutical and resources. The following organisations have partnerships with Veriluma for use of its Prescriptive Analysis engine, and the Company expects to announce further partnerships and licensing agreements with organisations both in Australia and internationally in the near term.

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