Recce Pharmaceuticals Ltd. announced it was awarded an Advanced Overseas Finding for $43,774,907 of a synthetic antibiotic Research & Development (R&D) applicable expenditure by AusIndustry, a division of the Australian Government's Department of Industry, Innovation and Science. The Finding is one of the largest awarded in Australian history as a pillar of the R&D Tax Incentive Program administered by the Australian government. This Finding does not constitute a grant or an upfront payment of the amount awarded.

It is a binding, underwritten guarantee provided by the Australian Government, whichirms Recce's R&D activities are of national interest and extends the 43.5% R&D rebate from locally to cover those undertaken by the Company anywhere in the world. The Australian Government extends the R&D cash rebate to the Company, capturing its local and overseas R&D activities for three years (July 1, 2022 - June 30, 2025). With Recce's anti-infective program predominantly focused on synthetic antibiotic development, the Finding award will support its cash position, in addition to the recent $11,000,000 capital raise, and is received by the Company as caveat-free, non-dilutive cash whenclaimed or drawn proportionately against through R&D funding facilities.