I am pleased to provide you with an update on our progress and significant achievements since our last communication.

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1 Bluebottles travel 2.5 times round the world

Ocius’ Bluebottle vessels have now completed 53,000 NM, equivalent to 2.45 times around the world at the equator. This number is steadily rising with operations in Australia 24/7 ongoing, and our vessels averaging 1,000 NM per week. This milestone reflects the resilience and performance of our Bluebottles in operation in a diverse range of maritime conditions from doldrums to storms.

At the time of writing on 17th September, I checked into the Bluebottles 160NM – 450NM offshore, operating in 30-knot plus Easterly winds without problems, a testament to our innovative design and operational excellence.

BB BEACON heading home into a 30-knot headwind: wave power + sail down

BB706 sailing downwind at 5-7 knots in 25 knot Easterly: sail up

2 Global operations expansion

Our Bluebottles are now operating across three strategic regions: Australia, New Zealand, and the United States.

BB BEACON photographed by BB703 as they passed in the Timor Sea

While Bluebottles cannot replace crewed ships, they can provide substantial operational cost reductions and efficiency enhancements for our customers. Our engineering and software teams continue to work tirelessly to uphold and improve these performance standards.

3 Increased Production Rates

We have ramped up production of our new improved 24-foot BETH 2.0 Bluebottles, with current output at one vessel per month. To streamline production and meet increasing demand, we’ve established a pre-production facility in Morrisett, near our boat builder. This new setup will facilitate just-in-time deliveries to our primary facility in Randwick. Looking ahead, we are on track to reach a production rate of one vessel per week by July 2025.

The first of our upgraded 6% bigger BETH 2.0 models, Bluebottle 708, has been successfully built and tested. As mentioned in the last update, we’ve aimed to improve sailing performance while carrying 300kg more payload and maintaining logistical advantages of being launched from a standard boat ramp by an SUV and fitting into a 40’ shipping container.

BB708 first of BETH 2.0 vessels first sea trial Botany Bay - sail up

BB708 first of BETH 2.0 vessels first sea trial Botany Bay - sail down

At the same time, we are designing a new factory layout ‘to build the machine that builds the machine’. More correctly it’s a ‘cyborg’ of people, machines and processes working together. The new factory layout will streamline production while retaining the flexibility to integrate various payloads and sensors. We aim to be at one/week by July 2025 and if we needed to double production, we can build another ‘machine that builds the machine’ very quickly.

4 Autonomous Warrior Naval Exercises Oct 2024

Ocius will participate in the Autonomous Warrior exercises again off Jervis Bay in October, demonstrating the capabilities of our Bluebottles in collaboration with AUKUS partners. This year, we will field four vessels, including two upgraded BETH 2.0 models, equipped with nine different payloads. The event presents a valuable opportunity to showcase our technology’s integration potential with other defence assets.

Four Bluebottles at last year’s AW23 Jervis Bay

5 Bluebottles presented to the Chiefs of the three AUKUS Navies

On July 23, 2024, at HMAS Stirling Perth, Bluebottle BATHY was inspected by the Chiefs of the US, UK and Australian Navies.

Robert Dane, Vice Admiral Mark Hammond Chief of the Australian Navy, Admiral Sir Ben Key UK First Sea Lord of Royal Navy, Admiral Lisa Franchetti Chief of Operations US Navy and Ian Milliner Ocius Business Development Manager

6 WINNER Indian Ocean Defence Summit Innovation Award July 26, 2024

We were honoured to have been nominated and then on July 26 in Perth named the winner of the Innovation Award at the Indian Ocean Defence & Security Summit (IODS) 2024. This recognition underscores the growing impact of Ocius and our technology in the defence sector. https://defencescienceinstitute.com/news/indian-ocean-defence-security-2024-innovation-awards-winners/

Hon. Hannah Mary Beazley MLA, Robert Dane and Mr Justin Giddings CEO of the AMDA Foundation the organisers of the IODS.

7 WINNER Hansa International Maritime Journal Innovation Award

I was proud to accept the Hansa Maritime Innovator Award on behalf of Ocius at the prestigious HIPER (High Performance Maritime) conference. This award further cements our position as a leader in maritime innovation https://www.linkedin.com/posts/hansa-international-maritime-journal_congratulations-to-robert-dane-and-oliwia-activity-7209503285420900352-yRHi/

Robert Dane accepting HANSA's Maritime Innovator Award from Professor Volker Bertram at the prestigious HIPER conference

8 Human Resources Milestone and Growth

Our team continues to grow, with 30 full-time and 26 part-time employees now on board. We plan to hire an additional 20 full-time engineers by Christmas. To support our expanding workforce, we have engaged an HR consultant to refine our compensation and development structures, ensuring we remain an attractive employer for top talent. Initiatives include implementing bonuses and employee share option plans that align with Ocius' long-term strategic goals.

9 Share price valuation

At our July 2024 Board meeting, the Directors reviewed our share valuation, resulting in a new share price of $5 for the purposes of determining the value of employee options and payment to Directors. This adjustment reflects our continued growth and progress. We look forward to discussing our four-year strategic plan at the upcoming AGM.

10 Update Ulladulla shareholders Tuesday 12 Nov 5pm-7pm Mollymook Surf Club

This year, just prior to our AGM we will host a shareholder update for our Ulladulla shareholders. This will be Tuesday, 12th November from 5:00 to 7:00pm at the Mollymook Surf Club. Formal invitations will be sent in due course.

11 Annual General Meeting (AGM) 4pm Monday 18 November

Please save the date for our AGM, which will be held on Monday, 18th November at 4:00 pm at our Randwick facilities. We look forward to engaging with you and discussing our ongoing strategic initiatives.

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In closing, I’d like to acknowledge our Board for their agility and wisdom in rapidly changing circumstances. Particularly I’d like to thank, Mark Bethwaite our Chairman, for his governance and setting up a Board HR Committee and a Board Finance Committee. I appreciate greatly RADM (Ret.) Lee Goddard and ex CFO Catherine Lloyd for their input and chairing those committees respectively. Thanks also to Rick Turner who has been invaluable in assisting me with our real estate initiatives.

I would also like to acknowledge our entire Ocius team for their dedication and hard work. Our progress is a direct result of their efforts. Lastly, I want to express my gratitude to all our shareholders, for your continued support as we continue to grow Ocius into a world-class technology leader.

Robert Dane CEO 20 September 2024