ASX Announcement

31 January 2017

HotCopper Holdings Limited l www.hotcopper.com.au l ASX: HOT l Level 3, 40 St Georges Terrace, Perth WA 6000

HotCopper Reports Strong December Quarter Revenue

The Directors of HotCopper Holdings Limited (ASX: HOT) (HotCopper or the Company) are pleased to provide the quarterly report for the three months ending 31 December 2016.

Highlights

> Record sales revenue of $0.97 million for the December Quarter

> Year-to-date sales revenue of $1.88 million

> Strong cash position - $2.1 million cash on hand as at 31 December 2016

> Execution of material 12-month sponsorship agreement for the HotCopper iPhone App

> New initiative Corporate Spotlight launched; distribution agreements in place with industry leaders to further sales revenue

HotCopper is pleased to report to the market a strong quarter of financial and operational growth, including the launch of new initiative, Corporate Spotlight, and the execution of a material sponsorship agreement for the forthcoming iPhone app.

Based upon unaudited management accounts, the Company recorded sales revenue of approximately $0.97 million in the December Quarter, generating positive operating cash flow of $0.12 million. Sales revenue figures from the quarter suggest the Company is on track to meet its prospectus forecasts ($2.69 million in FY17). The net cash outflow for the quarter was $0.38 million inclusive of funds used under the Company’s On-Market Share Buy-Back. During the December Quarter, the Company bought back 2,285,000 shares for total consideration of $0.5 million. Steve James, Chairman of HotCopper Holdings Limited, said: “We have had a very solid quarter with encouraging growth in our sales revenue and a strong cash position. The Company is well placed to utilise this momentum to grow our revenue streams and enhance the HotCopper user experience, further strengthening our position as Australia’s number one destination for stock market discussion and analysis.” Launch of Corporate Spotlight On the 21st of November 2016, HotCopper announced the launch of its new investor relations platform, Corporate Spotlight. Designed to address the difficulties that ASX-listed companies have in reaching Australia’s growing number of self-directed investors, Corporate Spotlight offers a dedicated space above a company’s HotCopper sub-forum to display company information, videos and insight.

Example of Corporate Spotlight

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HotCopper Holdings Limited l www.hotcopper.com.au l ASX: HOT l Level 3, 40 St Georges Terrace, Perth, WA

6000

HotCopper Holdings Limited l www.hotcopper.com.au l ASX: HOT l Level 3, 40 St Georges Terrace, Perth WA 6000

The product is offered on an annual subscription basis ($12,000 plus GST/annum), providing listed companies with the opportunity to effectively target their most engaged investors via the HotCopper site. Several companies have signed up during the quarter and HotCopper has also executed a number of distribution agreements with industry leaders (including investor relations firms and market participants) to further the uptake and success of the product. Material Sponsorship Agreement for iPhone Application

In December 2016, HotCopper entered into a material, 12-month sponsorship agreement for its iPhone application with a long-standing advertising client. The app, to be launched within the current quarter, will be free to use for HotCopper members and will provide enhanced functionality and flexibility for users. The app is an important step in strengthening the Company’s value proposition relative to its competitors and further engaging the site’s member base. The iPhone application is currently undergoing user acceptance testing and refinements; HotCopper expects to update the market as to the proposed date of release upon completion.

As outlined in the HotCopper Prospectus, an Android application will also be developed. HotCopper anticipates strong interest in similar sponsorship opportunities for its Android application. Corporate Update During the quarter, HotCopper announced the appointments of Mr Colin Chenu and Mr Gavin Argyle as Non-Executive Directors of the Company. These appointments bring extensive industry expertise to the board, including within the legal, corporate governance and equity capital markets spheres. In October, HotCopper also announced its intention to undertake an on-market share buy-back (Buy-Back) of up to 10 percent of the Company’s issued share capital, to be funded from existing cash reserves and operating cash flow. The Buy-Back commenced on the 2nd of November 2016; as at the 31st of December the Company had purchased 2,285,000 shares on market. Further information on the Buy-Back can be found in the Company’s announcement on the 18th of October 2016, and most recent Appendix 3E. For further information, please contact investors@hotcopper.com.au.

About HotCopper Holdings Limited

HotCopper Holdings Limited operates www.hotcopper.com.au – Australia’s #1 internet discussion forum for ASX-listed companies and stock market analysis. HotCopper has 250,000 registered members and over 700,000 unique site visitors per month, a number that has been growing strongly since 2004. HotCopper derives revenue from commercial and corporate advertising. HotCopper is developing a range of new website enhancements and investor services to enhance the HotCopper user experience and create value for shareholders through new revenue streams.

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

+ See chapter 19 for defined terms 1 September 2016 Page 1

+Rule 4.7B

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

Name of entity

HOTCOPPER HOLDINGS LIMITED

ABN Quarter ended (“current quarter”)

611 717 036 31 DECEMBER 2016

Consolidated statement of cash flows Current quarter $A’000

Year to date (6 months) $A’000

1. Cash flows from operating activities 1,093 2,104 1.1 Receipts from customers

1.2 Payments for

- - (a) research and development

(b) product manufacturing and operating costs

(295) (612)

(c) advertising and marketing - -

(d) leased assets - -

(e) staff costs (298) (497)

(f) administration and corporate costs (374) (729)

1.3 Dividends received (see note 3) - -

1.4 Interest received - 1

1.5 Interest and other costs of finance paid - -

1.6 Income taxes paid - -

1.7 Government grants and tax incentives - -

1.8 Other (provide details if material) - -

1.9 Net cash from / (used in) operating activities

126 267

2. Cash flows from investing activities

(5) (10)

2.1 Payments to acquire:

(a) property, plant and equipment

(b) businesses (see item 10) - (10,184)

(c) investments - -

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

+ See chapter 19 for defined terms 1 September 2016 Page 2

Consolidated statement of cash flows Current quarter $A’000

Year to date (6 months) $A’000

(d) intellectual property - -

(e) other non-current assets - -

2.2 Proceeds from disposal of:

- - (a) property, plant and equipment

(b) businesses (see item 10) - -

(c) investments - -

(d) intellectual property - -

(e) other non-current assets - -

2.3 Cash flows from loans to other entities - -

2.4 Dividends received (see note 3) - -

2.5 Other - -

2.6 Net cash from / (used in) investing activities

(5) (10,194)

3. Cash flows from financing activities - 12,184 3.1 Proceeds from issues of shares

3.2 Proceeds from issue of convertible notes - -

3.3 Proceeds from exercise of share options - -

3.4 Transaction costs related to issues of shares, convertible notes or options

- (285)

3.5 Proceeds from borrowings - -

3.6 Repayment of borrowings - -

3.7 Transaction costs related to loans and borrowings

- -

3.8 Dividends paid - -

3.9 Other – On market share buy-back (499) (499)

3.10 Net cash from / (used in) financing activities

(499) 11,400

4. Net increase / (decrease) in cash and cash equivalents for the period

2,480 629 4.1 Cash and cash equivalents at beginning of

quarter/year to date

4.2 Net cash from / (used in) operating activities (item 1.9 above)

126 267

4.3 Net cash from / (used in) investing activities (item 2.6 above)

(5) (10,194)

4.4 Net cash from / (used in) financing activities (item 3.10 above)

(499) 11,400

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

+ See chapter 19 for defined terms 1 September 2016 Page 3

Consolidated statement of cash flows Current quarter $A’000

Year to date (6 months) $A’000

4.5 Effect of movement in exchange rates on cash held

- -

4.6 Cash and cash equivalents at end of quarter

2,102 2,102

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

Current quarter $A’000

Previous quarter $A’000

5.1 Bank balances 2,102 2,480

5.2 Call deposits - -

5.3 Bank overdrafts - -

5.4 Other (provide details) - -

5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)

2,102 2,480

6. Payments to directors of the entity and their associates Current quarter $A'000

6.1 Aggregate amount of payments to these parties included in item 1.2 167

6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3

-

6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

7. Payments to related entities of the entity and their associates

Current quarter $A'000

7.1 Aggregate amount of payments to these parties included in item 1.2 -

7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3

-

7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

+ See chapter 19 for defined terms 1 September 2016 Page 4

8. Financing facilities available Add notes as necessary for an understanding of the position

Total facility amount at quarter end

$A’000

Amount drawn at quarter end

$A’000

8.1 Loan facilities - -

8.2 Credit standby arrangements - -

8.3 Other (please specify) - -

8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

9. Estimated cash outflows for next quarter $A’000

9.1 Research and development -

9.2 Product manufacturing and operating costs 219

9.3 Advertising and marketing -

9.4 Leased assets -

9.5 Staff costs 144

9.6 Administration and corporate costs 119

9.7 Other (provide details if material) -

9.8 Total estimated cash outflows 482

10. Acquisitions and disposals of business entities (items 2.1(b) and 2.2(b) above)

Acquisitions Disposals

10.1 Name of entity

10.2 Place of incorporation or registration

10.3 Consideration for acquisition or disposal

10.4 Total net assets

10.5 Nature of business

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

+ See chapter 19 for defined terms 1 September 2016 Page 5

Compliance statement

1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2 This statement gives a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 31 January 2017 (Director/Company secretary)

Print name: Susan Hunter

Notes 1. The quarterly report provides a basis for informing the market how the entity’s activities have

been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

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