Sparc Technologies : December 2021 Quarterly Activities Report - Revised

ASX ANNOUNCEMENT

14 February 2022

DECEMBER 2021 QUARTERLY ACTIVITIES REPORT - REVISED

onlySparc Technologies Limited (ASX: SPN) (Sparc or the Company) wishes to provide its revised December 2021 Quarterly Activities Report.

The Quarterly Activities report has been revised with an amended Statement of Commitments that compares the Company's actual expenditure from reinstatement to 31 December 2021 against the useexpenditure described in the Use of Funds of the Company's re-compliance prospectus. The Company has

also included short narratives for each line of expenditure where there is a significant difference.

Appendix 4C has been revised with a updated answers to question 8, with the key point that normal spend going forward is approximately $914k a quarter for operating expenses and that at the end of December the Company had $3.375m in the bank adjusted up for the $512k reimbursement.

Regards,

personalStephen Hunt Executive Chairman

Sparc Technologies Ltd

For

Sparc Technologies Ltd	Registered Office	Directors
ACN 009 092 068	Level 2 480 Collins Street	Stephen Hunt - Executive Chairman
ASX: SPN	Melbourne VIC 3000 Australia	Mike Bartels - Managing Director
	E: [e-mail]	Tom Spurling - Non-Executive Director
		Daniel Eddington - Non-Executive Director
www.sparctechnologies.com.au

DECEMBER 2021 QUARTERLY ACTIVITIES REPORT

HIGHLIGHTS
Sparc's ecosparc Graphene Based Coatings Additives
only	Up to 40% improvement verified in the anticorrosive performance of coatings
	subjected to a 6 month globally recognised test program
	Tests results confirm Sparc's research capabilities to develop proprietary graphene-
	based additives and positions the company to pursue commercial agreements
	In support of the Commercialisation of graphene-based additives, the Company's
use	products intended for the P&M Coatings market will carry the "ecosparc Graphene
Enhanced" branding
Sparc Hydrogen Joint Venture
personal	Sparc Technologies executed a non-binding Term Sheet with strategic partner and
cornerstone shareholder, the University of Adelaide to form a Joint Venture (JV)
	hydrogen technology company
	As part of the JV Agreement, Sparc Technologies has made an initial Stage 1
	investment of $1.06m in support of advancing the project for the first 12 months
	Next generation hydrogen technology to employ photocatalysis and solar radiation
	to deliver Ultra-Green Hydrogen (UGH), with Sparc to focus on developing graphene
	coatings for use in conjunction with photocatalysts
	An Investor Presentationwas released to the ASX detailing Ultra Green Technology
	and the opportunities now available to Sparc to exploit rapid hydrogen demand
	growth
Corporate
For	At the Annual General Meeting of shareholders of the Company held on 30 November,
all resolutions were put to a vote on a Poll and were passed
$3.375m cash at bank as at 31 December 2021

Sparc Technologies Limited (ASX: SPN) (Sparc or the Company) is pleased to provide its December 2021 Quarterly Activities Report.

www.sparctechnologies.com.au

ecosparc Graphene Based Coatings Additives

At the end of the quarter, Sparc advised that after 6 months of comprehensive testing to the ISO standards employed within the Protective & Marine (P&M) Coatings' market, Sparc graphene-basedadditives delivered up to 40% improvement in the anticorrosive performance of atmospheric epoxy coatings.(ASX

onlyAnnouncement 23 December 2021)Of note is the fact that the epoxy coatings used in testing with ecosparc, are amongst those that are commercially available from leading coatings manufacturers.

This test program built on test results previously announced, again confirming that significant results continue for the Company's proprietary graphene-based additives targeted for use in improving the performance of anti-corrosive coatings. Sparc's addressable coatings market is estimated to be US$$44bn by 2025 and these results support the Company's further engagement with major industry participants. (See Sparc Presentation dated 22 March 2021)

useWith a continued focus on employing graphene as a raw material with which to formulate products, Sparc has screened and selected specific grades of graphene for the development of graphene-based additives for targeted end uses within the P&M Coatings market.

Sparc graphene-based additives are much more than simple dispersions, where the latter is primarily intended to aid the handleability of graphene. Graphene based additives are specifically formulated with the aim of delivering an intended performance outcome.

personalAn improvement in anticorrosive performance translates into an extension in the life of a coating thereby extending 'time to first maintenance'. Improved performance outcomes not only serve to lower the lifetime

cost of a coatings' system, the extension of coatings' life also delivers quantitative benefits in terms of environmental and sustainability outcomes; a primary business objective for Sparc Technologies.

Chart 1 below illustrates improvement in corrosion performance achieved by addition of Sparc graphene- based additive to current commercially available anticorrosive coatings.

For

Chart 1: Scribe Corrosion Creep Results - 4200 Hours Cyclic Testing

Note: 6 month (4,200 hours), test referenced is designed to simulate high durability performance (15-25 years' service) in severe offshore environments, e.g., offshore oil platforms, wind towers

www.sparctechnologies.com.au

Commercialisation

In support of the Commercialisation of graphene-based additives, Sparc Technologies' products intended for the P&M Coatings market will carry the "ecosparc Graphene Enhanced" branding.

onlyDisruptive Technologies

Testing continues of Sparc Technologies Antibacterial and Antifouling Coatings technologies - both technologies are well advanced in terms of testing and in the delivery of a finished product; both products

userepresent novel technology platforms.

Outlook for Next Quarter - Graphene

Coatings - With the launch of ecosparc, the Company is uniquely placed to advance discussions with Coatings companies especially since few companies are in a position to provide the necessary data in support of product claims. Sparc has the data that aligns with that typically generated and recognised by

personalthe global Coatings Industry and has delivered these results using commercially available products. Importantly, Sparc's additives are 'drop-in', meaning that ecosparc can be readily incorporated into existing

products without any significant modification to existing formulations. Ecosparc is ready for market adoption.

Composites and Concrete - The commitment to product development and testing is also being applied to activities in Composites and Concrete. The Company aims to be in a position to clearly demonstrate to Customers that it has products whose performance can be demonstrated to industry standards. After much research, Sparc understands what to look for when selecting a grade of graphene for its additives and will welcome any opportunity to work collaboratively with Customers operating within the Industrial Materials sector.

Health - Advancing the Sensor project and industry partner discussions to continue throughout the next quarter.

Research & Development - Establishment of further agreements with institutions aimed at supporting

current activities and accelerating product commercialisation in Coatings, Composites and Concrete. For

www.sparctechnologies.com.au

Sparc Hydrogen Joint Venture

In late October, Sparc Technologies announced that it had entered a joint venture (JV) agreement with its strategic partner and cornerstone shareholder, the University of Adelaide, to jointly progress a project that will deliver a unique process with the aim of producing commercially viable ultra-green hydrogen (UGH) (the

onlyProject). (ASX Announcement 27 October 2021) The Ultra-Green Hydrogen technology has been developed by the University of Adelaide and Flinders University .

NOTE: Discussion of this JV announcement was already included in the September 2021 Quarterly.

An Investor Presentationwas released to the ASX the following week detailing Ultra Green Technology and the opportunities now available to Sparc to exploit rapid hydrogen demand growth.

The Project will seek to further develop a process known as Thermo-Photocatalysis, which employs the suns radiation and thermal properties to convert water into hydrogen and oxygen. Adopting this process to produce ultra-green hydrogen means that renewable energy from wind farms, and/or photovoltaic solar panels, does not need to be exploited for hydrogen production, nor does the process of electrolysis need to be employed. (See Figure 1 below.)

As such, Capital Expenditure (CAPEX) and Operational Expenditure (OPEX) costs are anticipated to be
usesignificantly lower, supporting the production of ultra-green commercially viable energy in the form of
hydrogen. Furthermore, without the need of the footprint associated with massive scale wind and/or solar
personal	Figure 1: Sparc Ultra Green Hydrogen Process

farms, this technology can also be adopted remotely and for onsite use, thereby reducing the reliance on long distance hydrogen transportation and/or electricity transmission.

It is important to note that, an electrolyser is not required so no electricity is used to split the water into Foroxygen and hydrogen. In keeping with Sparc's expertise in graphene, Sparc will seek to develop graphene

coatings to be used in conjunction with photocatalysts.

Project to date

The technology developed to date was supported by ASTRI (Australian Solar Thermal Research Institute), with contributions totalling A$2.5m over a 4.5-year period from the University of Adelaide and Flinders University. Current research is focused on using the entire solar spectrum to increase the STH (Solar to Hydrogen) percentage with laboratory results demonstrating a significant increase in hydrogen production under optimised conditions. A provisional patent application (Australian Provisional Patent Application No. 2021900997 - Photocatalytic Apparatus) was filed by University of Adelaide in April 2021 for the use of the entire solar spectrum to increase the Solar to Hydrogen (STH) percentage rate.

www.sparctechnologies.com.au