DROPSUITE LIMITED · Key Metrics – 2016 vs. 2015 Our backup solutions have been getting real...

DROPSUITE LIMITED

ANNUAL REPORTFINANCIAL REPORT FOR YEAR ENDED 31 DECEMBER 2016

F O R M E R LY E X C A L I B U R M I N I N G C O R P O R AT I O N L I M I T E D

ABN: 91 008 021 118ACN: 008 021 118

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OUR MISSION IS TO ENSURE SMALL BUSINESSES NEVER LOSE DATA AGAIN. DROPSUITE HELPS BUSINESS STAY IN BUSINESS.

Dropsuite is a Cloud based software platform that enables SMEs to easily backup, recover and protect their business information.

We do this through a network of reseller partners who have a combined reach of millions of SMEs worldwide.

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CONTENTSCORPORATE DIRECTORY

CHAIRMAN’S LETTER

MANAGING DIRECTORS’ REPORT

DIRECTORS REPORT

CORPORATE GOVERNANCE STATEMENT

AUDITOR’S INDEPENDENCE DECLARATION

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

STATEMENT OF FINANCIAL POSITION

STATEMENT OF CHANGES IN EQUITY

STATEMENT OF CASH FLOWS

NOTES TO THE FINANCIAL STATEMENTS

DIRECTORS’ DECLARATION

INDEPENDENT AUDITOR’S REPORT

ADDITIONAL SHAREHOLDERS INFORMATION

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CORPORATE DIRECTORY

Theo HnarakisCharif ElansariAlex BajadaBruce Tonkin

Non-Executive ChairmanManaging DirectorNon-Executive DirectorNon-Executive Director

Zoran GrujicRoland Berzins

Dropsuite Limited – formerly called Excalibur Mining Corporation Ltd

ABN 91 008 021 118ACN 008 021 118Suite 2 – 16 Ord StreetWest Perth, Western Australia, 6008Telephone: +61 8 9429 2900Facsimile: +61 8 9486 1011Website: www.dropsuite.com

DLA Piper Australia Level 31, Central Park 152-158 St Georges Terrace Perth, WA 6000

Advanced Share Registry Ltd150 Stirling HighwayNedlands, WA 6009Telephone: 08 9389 8033Facsimile: 08 9389 7871

Greenwich and Co Audit Pty LtdLevel 235 Outram StWest Perth, WA 6005

Company SecretaryCompany Secretary

DIRECTORS

COMPANY SECRETARY

REGISTERED OFFICE AND PRINCIPAL PLACE OF BUSINESS

SOLICITORS

SHARE REGISTRY

AUDITOR

STOCK EXCHANGE LISTING

Dropsuite Limited shares are listed on the Australian Securities Exchange

ASX code

DSE

FPO

Option

DSE

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CHAIRMAN’S LETTER

As Stakeholders in Dropsuite, you have placed your trust in our growing Cloud backup company and given this support, our team and I would like to express our sincerest appreciation.

In composing this letter, I reflected on the recent completion of our ASX listing in December 2016, which was a key milestone for our Company. You and your fellow investors have helped us to create even greater value, reach some more key milestones and have allowed us to work towards making our platform available to many more small businesses around the world.

Dropsuite has built a Cloud backup platform that is robust and secure and has demonstrated a strong capability to scale globally by building a network of reseller partners who have a combined reach of millions of small businesses worldwide. By the end of 2016, Dropsuite has enabled more than 125,000 small businesses globally to backup, recover and protect their business information in the Cloud. The Company has considerably strengthened its position and status in the Cloud backup small-to-medium business (SMB) sector delivering on its mission to, “ensure small businesses never lose data again”.

Thanks to the constant efforts, enthusiasm and hard work of our dedicated team, Dropsuite now works with some of the biggest IT Service Providers in the world, including:

• GoDaddy (NASDAQ:GDDY) - the world’s largest hosting company

• Dreamscape Networks (ASX:DN8), trading as Crazy Domains - world leading domain name registrar

• Ingram Micro (NYSE:IM) - world’s largest distributor of computer and technology products

• GMO Internet (9449:Tokyo) - Largest hosting company in Japan

• Blacknight Solutions - Largest hosting company in Ireland

• HostPapa - Leading hosting company in Canada and around the world

• Singtel (SGX: Z74) - Largest telco in Singapore and Southeast Asia

• In Europe, the Company has recently partnered with Atomia (18 January 2017) and Keenondots (14 February 2017)

Dear Shareholders,

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Theo Hnarakis31 March 2017

Sincerely,

Being a software company ‘born in the Cloud’, Dropsuite has a unique perspective on the needs, fears, frustrations, misconceptions, risks and opportunities of SMBs around the world that are increasingly interconnected via the Internet and Cloud services. Associated with this connectivity is the increasing prevalence of cyber security threats for businesses of all sizes, and those threats can be disruptive.

The statistics speak for themselves: 90% of company’s say they have been hacked at least once (Juniper), and 71% of data breaches occur in businesses with less than 100 employees. In Australia, based on Norton’s most recent SMB Cyber Security Survey, small to medium businesses — that is 97% of all Australian businesses — lose around $6,600 each time they suffer a cyber attack.

SMBs are a particularly vulnerable segment since they mostly have limited time, knowledge and resources to adequately protect their valuable data. As a vulnerable target for hackers, small businesses are at risk of losing customers, productivity and reputation if they don’t have adequate protection in place.

The Dropsuite Cloud backup platform has been built with the small business in mind, where simplicity and affordability is our key mantra. Small businesses can procure Dropsuite Cloud backup for websites, emails and servers from the Company’s reseller partners with one-click. The backup platform, once procured, is fully automated (set and forget) and the customer need only access their backup when they need to restore their data.

With so much data at risk around the world and with cyber threats growing at a rapid pace, I am confident that Dropsuite is well positioned to play a significant role in the data protection industry by offering a simple, comprehensive and affordable solution that so many SMBs need.

In closing, I wish to thank you for the confidence you have placed in our Company and look forward to the future with a great level of expectation.

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MANAGING DIRECTOR’S REPORT

2016 has been a pivotal year for Dropsuite.

We witnessed exponential growth in our revenue and user base numbers, scaled our partnerships and team globally and, in December 2016, successfully listed on the ASX. These achievements will serve as the foundation for the Company’s sustained growth and success in 2017 and beyond.

Dropsuite was created to fulfill its mission to enable small businesses, the most underserved segment, to protect their data in the Cloud. But when the Company first started offering backup services back in 2012, we struggled to find a way to grow, scale and monetise our products (and mission) into the thriving global business we imagined it could be.

When I assumed the position of CEO in October 2013, we redeveloped the Company’s ‘go-to-market strategy’ ,we also deployed a new channel-centric strategy that revolved around creating the best possible reseller partner experience coupled with an intuitive and affordable user experience for every small business - one-click to buy our backup software, and one-click to restore data. To date this strategy has certainly paid off.

Fast forward to the end of 2016 and we have more than 125,000 paid users (up from 200 at the beginning of 2014), many satisfied partners including some of the biggest names in the IT world, and a larger, more diverse and experienced team of employees spread out over six countries.

Strategic Growth Drivers

There are several factors that have, and will continue to, propel our growth forward:

Relentless Focus on Partner SuccessDropsuite has existing partnerships with some of the world’s biggest IT Service Providers such as Ingram Micro (one of the world’s largest tech distributors), Singtel (Singapore’s largest telco) and GoDaddy (the world’s largest domain name registrar). Ensuring existing and future partners’ success in reselling our products to their customers is a win-win proposition.

Dear Shareholders,

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Solving Problems for a Large Addressable MarketDropsuite is well positioned to increase market share well beyond our current numbers because cyber threats are on the rise and SMBs face a never ending series of internal and external threats to their businesses.

• Every 40 seconds a business gets attacked by ransomware

• 71% of data breaches occur in businesses with less than 100 employees

• 20% of all emails are hacked each year

• Approximately 20,000 websites a week are blacklisted by Google for malware

• The annual impact of cyber crime in Australia alone is over $17 billion

• There are one billion websites worldwide that may have a need for data backup and recovery services

Dropsuite will continue helping small and medium businesses to easily backup, recover and protect their critical information.

Developed and Scalable Cloud Backup PlatformDropsuite has built a Cloud backup platform that is robust and secure, and have demonstrated a strong capability to scale globally. Our platform seamlessly integrates with leading IT reseller platforms, enabling rapid rollout, recurring revenue streams and lower support costs.

Scalable Distribution ModelThe Dropsuite Cloud backup platform has been built with the small business in mind, where a simplicity and affordability is key. Small businesses can procure Dropsuite Cloud backup for websites, emails and servers from the Company’s reseller partners with one-click. The backup platform, once procured, is fully automated (set and forget) and the customer need only access their backup when they need to restore their data.

Efficient Business ModelWith so much data at risk around the world, with threats growing at a rapid pace, and by offering a simple, comprehensive and affordable solution that so many businesses need, I am confident that Dropsuite is well positioned to play a significant role in the data protection industry.

Highly Experienced TeamDropsuite has a talented and dedicated team. The executive team has more than 70 years of relevant and combined experience in software development, business development and marketing. Dropsuite is supported and supervised by a seasoned board of directors with relevant governance and industry expertise.

Key Metrics – 2016 vs. 2015

Our backup solutions have been getting real traction from small businesses and our reseller partners alike. The cyber security threats loom larger than ever, and having access to a reliable, affordable and secure data backup platform is an integral part of any company’s data protection and business continuity strategies.

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Key topline 2016 metrics:

Metrics 2016 2015

Partners 40 live partners 20 live partnersPaid Users 127,000 paid users 42,000 paid usersMontly Average Revenue per User

Dec’16 $1.15/month Dec’15 $1.00/month

Revenue $1,381,939 $295,418

Growth Strategy

As we continue our quest to build a thriving global company, our growth strategy will continue to revolve around four key areas:

1. Expand our partner base globallyAccelerate business development efforts, namely in North America, EU and Australia. Extend to new sales channels, especially the multibillion-dollar Managed Service Provider channel.

2. Increase sales from new products Boost revenue per user by increasing sales of our new product launches such as server backup and Office 365 archiving.

3. Increase sales through existing partnersReach our partners’ customer-base of millions of small businesses through world- class marketing programs.

4. Continue product innovationDeliver on products that protect, and well as delight, small businesses and support our partners’ growth, profitability and improved customer experience.

When executed well, these four key areas will fuel our future growth and put Dropsuite on the path to an enduring and profitable Company in 2017 and beyond.

Finally, to our team, your hard work and dedication over the past year is greatly appreciated. It is because of you and what you do for our customers each and every day that I have great confidence in our future. And to our Shareholders, thank you for the confidence you have placed in our Company and we look forward with great anticipation to a promising future ahead of us.

Sincerely,

Charif Elansari31 March 2017

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DROPSUITE LIMITED

DIRECTORS’ REPORT (cont.)

For the year ended 31 December 2016

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Directors’ReportYourdirectorssubmitthefinancialreportoftheconsolidatedgroupfortheyearended31December2016.Directors:Thenamesofdirectorswhoheldofficeduringtheyearanduptothedateofthisreport:TheoHnarakis Non-ExecutiveChairman(Appointed20December2016)CharifelAnsari ManagingDirector(Appointed20December2016)AlexBajada Non-ExecutiveDirectorBruceTonkin Non-ExecutiveDirector(Appointed22February2017)AngusMiddleton Non-ExecutiveDirector(Retired20December2016)TerrenceJones Non-ExecutiveDirector(Retired20May2016)RolandBerzins Non-ExecutiveDirector(Retired20December2016)PrincipalActivity:TherehasbeenasignificantchangeinthenatureofDropsuiteLtd’sprincipalactivitiesduringtheyear.PriortoDecember2016,theprincipalactivityofDropsuiteLtdwasmineralexplorationandprojectinvestigation.With effect from December 2016, Dropsuite Ltd acquired the issued capital of Dropmysite Pte Ltd via theacquisition of Greenbase Corporation Pty Ltd and commenced operations as a global Cloud-based softwareserviceprovider.The acquisition of the issued capital of Dropmysite Pte Ltd has been treated as a reverse acquisition foraccountingpurposes,whichhasDropmysitePteLtdastheacquirerandDropsuiteLtdastheacquiree.Dropsuite’sengineeringteamhasdevelopedthebackuptechnologyonastate-of-the-artsoftwarearchitecturethat is bothmodular and scalable. Dropsuite’s software architecture has been built for successful horizontalscalingandhasdemonstratedstrongabilitytoscaletohundredsofthousandsofusersworldwide.Dropsuite delivers its back-up experience for small and medium enterprise businesses (SME’s) by providinguserswithaneasy-to-use,platformthatenablesthemtobackuptheirkeybusinessinformation.

Dropsuite'scurrentproductsinclude:• Dropmysite(flagshipwebsiteanddatabasebackup);

• aCloud-basedwebsite(anddatabase)backupandmonitoringservicethatallowswebsiteownerstoautomaticallybackuptheirwebsitefilesanddatabases,monitorwebsiteavailabilityandperformanceworldwide,andrestorelostorcorrupteddatawithasingleclick

• Dropmyemail(emailbackupandarchiving);

• aCloud-basedemailbackupandarchivingsolutionthathelpsSMEsandevenconsumerssecurelybackup,manage,recoverandprotecttheiremaildata.Dropmyemailsimplifiesprovisioningandmanagingemailbackupandarchiving.TheDropmyemailuserinterfaceprovidesanywhereaccesstoview,search,migrate,downloadandrestoreemailsandfileattachments

• Dropsuite(DSE)Serverbackup(backupforLinuxandWindowsservers)

• aCloud-basedfilebackupsolutionidealforanSME’sVirtualPrivateServer(VPS),dedicatedandpubliccloudserversthatallowsthemtoautomaticallyandcontinuouslybackuptheirwebsitefilesanddatabasesandrestoreeitherthe

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entireserverorindividualfileswithasingleclick;and

• Dropmymobile(backupforAndroidmobilephones)

• amobile data backup app for Android. Dropmymobile provides automatic andsecure backups of contacts, SMSmessages, photos, videos and call logs in theCloud.Phonedata canbeviewed,migrated toanotherdeviceor restoredbackintotheuser'sphone.

Dropsuite deploys military-grade encryption to protect user data and AES (Advanced EncryptionStandard)256-bitencryption,atrestandintransit,aswellasSecureSocketsLayerendpoints.Dropsuite’sserviceisalreadydeployedtousersglobally,inmultiplelanguages.

OperatingResults:ThefinancialresultsfortheyearThefinancialresultsfortheyearincludeaconsiderableone-offreverseacquisitionaccountingexpense(listingfee)aswellasexpensesforthebuildofoperationsinfrastructureandmarketgrowthactivities.The operating loss after income tax of the consolidated group for the year ended 31 December 2016 was$7,351,326 which includes a $5,410,753 of listing fee. The prior year loss after tax of $986,932 was forDropmysitePteLtd.ReviewofOperationsDropsuite aims to simplify the backup experience for SMEs by providing users with an easy-to-use, unifiedplatformthatenablesthemtobackuptheirkeybusinessinformation.Dropsuite'scurrentproductsinclude:

• Dropmysite(flagshipwebsiteanddatabasebackup);• Dropmyemail(emailbackupandarchiving);• Dropsuite(DSE)Serverbackup(backupforLinuxandWindowsservers);and• Dropmymobile(backupforAndroidmobilephones).

Dropsuite’sserviceisalreadydeployedtousersglobally,inmultiplelanguages.

Dropsuitedeploysmilitary-gradeencryptiontoprotectuserdataandAES(AdvancedEncryptionStandard)256-bitencryption,atrestandintransit,aswellasSecureSocketsLayer(SSL)endpoints.

Dropsuite’s technology has all been built in-house under the supervision of its CEO, Charif Elansari, whopreviouslyheldseniorrolesatGoogleandDell,andco-ledbyacoreteamofcloudcomputingveteransincludingRonaldHart(ChiefTechnologyOfficer)andRidleyRuth(ChiefOperatingOfficer).

Dropsuite’s Cloud-based suite of backup solutions has been built to scale from the smallest to the world’slargest Partners by leveraging the latest in Cloud technology as well as a state-of-the-art unique horizontalscalingarchitecture.Theresultisaplatformthatcanscaleondemandataverylowcostpointwiththeabilityto bring systems online dynamically during peak load hours. Dropsuite’s Cloud backup system is deployed

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worldwide allowing the backed up data to remain in the Partner’s region of choice aswell as providing theshortestnetworkhopstoreachtheirdataresources.

Dropmysite:WebsiteandDatabasebackup

DropmysiteisaCloud-basedwebsite(anddatabase)backupandmonitoringservicethatallowswebsiteownersto automatically backup their website files and databases, monitor website availability and performanceworldwide,andrestorelostorcorrupteddatawithasingleclick.

Dropmysite's unique storage granularity allows the end users to access to download/restore single filesinstantaneouslyaswellasselecteddirectoriesortheentiresiteallinasimpletousebackupmanager.

Featuresinclude:

• Secureself-servicebackupwithone-clickrestoration/migrationfordatabasesandwebsites• Restorefilesfromanypointintime(upto30versions)• Track,Reviewandmanagefilerevisionhistory• End-to-end256bitAESencryption• Easy-to-useweb-basedinterfaceandfilebrowser• BackupDataisaccessibleafromanydevice/locationwithaninternetconnection• Automatedcloudbackupsidealforbusinesscontinuityanddisasterrecovery• Centralpointofmanagementviaadminpanel

Dropsuite(DSE)ServerBackup

Dropsuite’s file-based server backup solution in the Cloud works for both virtual private servers (VPS) anddedicatedserversandinstallsasastandaloneserviceontheclient’smachine.

DSEServerBackupisabusinesscontinuitytoolthatmakesdatabackupandrecoveryquickandaffordableforbusinesses.Itlookstoeliminatebusinessriskscausedbyavoidabledataloss,providingclosetoreal-timebackupcapabilityby“listening”totheserverforanyfile.

BytakingadvantageofDropsuite’sde-duplicationandcompressiontechnology,theapplicationgreatlyreducesthe client’s bandwidth and machine resources required to perform backup tasks. The solution is ideal forclients that need fine file granularity of backups and the ability to restore those quickly through the backupmanager.

Featuresinclude:

• Easy-to-usecentralizeddashboardaccessiblefromanydevice/location• Continuous,fastandautomatedserverbackupintheCloud• De-dupedandincrementalbackupsleadtolessstorageandfasterbackups• One-clickrecoveryoffile(s)orfolder(s)fromanypointintime• SecureAES-256militarygradeencryptionbothintransitandatrest• Processorthrottlingoptionssothatbackupsdonotinterferewithotherhigh-priority

applications

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Dropmyemail:Emailbackupandarchiving

DropmyemailisaCloud-basedemailbackupandarchivingsolutionthathelpsSMEsandevenconsumerssecurelybackup,manage,recoverandprotectalloftheiremaildata.Dropmyemailsimplifiessecuringandmanagingemailbackup. The Dropmyemail user interface provides anywhere access to view, search, migrate, download andrestoreemailsandfileattachments.

Featuresinclude:

• AutomatedIncrementalEmailBackup&Archiving• Centralpointofmanagementthroughanadminpanel• Download,Restore&MigrateemailswithOneClick• Endtoend256bitAESencryption• Idealforcomplianceandbusinesscontinuity• AdminPanelandMultipleUserAccessManager• Viewablefromanydevice/location• AdvanceSearch,eDiscovery,andAlertcreations• Unlimitedstorage&retentionperiod

Dropmymobile

DropmymobileisamobiledatabackupappforAndroid.Dropmymobileprovidesautomaticandsecurebackupsofcontacts,SMS,media(pictures/videos)andcalllogsintheCloud.Phonedatacanbeviewed,migratedtoanotherdeviceorrestoredbackintotheuser'sphone.

Featuresinclude:

• Multipledevicesbackup• One-clickdatarestore• Paranoid(highly-encrypted)mode• End-to-endencryption

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WhyItWorksDiagram:Dropsuite'sbackupproductsarebuiltforSMEsandareseamlesslyintegratedintotheITServiceProvidersplatforms.

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Capitalstructureandacquisition

AspartoftheAcquisitiontheCompanyhas:

i. Undertakenaconsolidationofitsissuedcapital,ona15:1basis;ii. Completed a public offer, with the issue of 53,048,377 fully paid ordinary shares in which it raised

$5,304,838(beforecost);iii. Issued 282,600,004 fully paid ordinary shares (at $0.10 each) as consideration to the vendors of

GreenbaseCorporationPtyLtd;iv. Issued 27,000,000 fully paid ordinary shares (at $0.05 each) to holders of converting notes of the

GreenbaseCorporationPtyLtdinlieuofoutstandingconvertingnotes;v. Issued20,000,000options(exercisableat$0.11eachandexpiringon31December2018afteranissue

price of $0.0001 each) to Advisors in lieu of their corporate advice and lead managers role in thecompletionofthecapitalraising;

vi. Issued44,800,0000performancesharestovendorsofDropsuiteLtdandDropmysitePteLtd,wherebyifcertainmilestonesareachieved,eachperformancesharewillconvertintoonefullypaidordinarysharein theCompany. Terms and conditions associatedwith thePerformance shares aredetails in Section11(d)intheNotestotheFinancialStatements;

vii. re-compliedwithChapters1and2oftheListingRulesbecausetheacquisitionchangedthenatureandscaleoftheCompany’sbusiness;and

viii. changeditsnametoDropsuiteLimited.Theacquisition,thechangeofname,theconsolidationofcapitalandvariousothermatterswereapprovedbyshareholdersatmeetingsheldin15August2016,andsubsequentlytheCompanylodgeditsprospectuswiththeASIC.TheofferwaseffectivelycompletedbytheendofDecember2016.

The nature of the transaction has been accounted for using reverse acquisition accounting metholody, anexplanationofwhichiscontainedintheSignificantAccountingPoliciesnotetothisreport.

MoreinformationcanbefoundintheCompany’svariousASXannouncements,includingthenoticesofmeetingandexplanatorymemorandafortheshareholdermeetingsandtheCompany’sprospectus.

Financialposition

Thenetassetsoftheconsolidatedgrouphaveincreasedby$3,285,662from31December2015to$3,965,780asat31December2016.Thisincreasewaslargelyduetothefollowingfactors:

• Proceedsfromtheshareandoptionsissue,includingConvertingnotes;and• AcquisitionoftheassetsofDropmysitePteLtdandit’scontrolledentity.

Thedirectorsbelieve the consolidatedentity is ina stable financialpositionandable toexpandandgrow itscurrentoperation.

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CapitalStructureandPerformanceShares

Following the completion of the acquisition and capital raising and other offer proposals as outlined in theProspectus(dated6September2016),thecapitalstructureoftheCompanyisdetailedbelow:

Capitalstructure Numberofsecuritiesonissue

SHARES

Sharesonissuefollowing15:1consolidation–18August2016 23,374,286

IssueofSharesunderthePublicOffer 53,048,377

IssueofSharesunderConvertingNoteConversionOfferuponconversionoftheConvertingNotes

27,000,000

IssueofSharesundertheVendorOffersasconsiderationoftheAcquisition 282,600,004

TOTALSHARESonIssue31DECEMBER2016 386,022,667

OPTIONS

Optionsonissuefollowingconsolidation–18August2016 2,334,167

IssueofAdvisorOptions 20,000,000

TOTALOPTIONS 22,334,167

FollowingthesuccessfulacquisitionofDropmysitePteLtdanditscontrolledentities,theCompanyhasthefollowingoutstandingfinancialsecuritiescontingentobligationundertheGreenbaseVendorOffer,beingperformanceShares,basedonspecificperformancecriteria.

PERFORMANCESHARES

OpeningPerformanceSharesonissue Nil

IssueofPerformanceSharesundertheVendorOffers 44,800,000

TOTALPERFORMANCESHARES 44,800,000

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Eachperformancesecurity,uponconversion,isequivalenttooneDropsuiteLtdfullypaidordinaryshare.Thenumberofperformanceshareandthespecificperformanceshareobligation(milestones)areitemisedbelow:

1,500,000ClassAPerformanceShares-APerformanceShareMilestonewillbetakentohavebeensatisfieduponDropsuiteachievingauditedgrossrevenuefromAAGsigneddistributorsorsalesrepresentativesunderthemasterdistributionagreementof$15,000ormorepermonthforaminimumofthreeconsecutivemonths.

1,500,000ClassBPerformance Shares - B Performance ShareMilestonewill be taken tohavebeensatisfied upon Dropsuite achieving audited gross revenue from AAG signed distributors or salesrepresentatives under the master distribution agreement of $30,000 or more per month for aminimumofthreeconsecutivemonths

1,500,000Class C Performance Shares - C Performance ShareMilestonewill be taken tohavebeensatisfied upon Dropsuite achieving audited gross revenue from AAG signed distributors or salesrepresentatives under the master distribution agreement of $60,000 or more per month for aminimumofthreeconsecutivemonths

13,433,333ClassDPerformanceShares-DPerformanceShareMilestonewillbetakentohavebeensatisfieduponDropsuiteachievingauditedmonthlyrevenuesof$150,000ormoreforaminimumofthreeconsecutivemonths.

13,433,333ClassEPerformanceShares -EPerformanceShareMilestonewillbetakentohavebeensatisfieduponDropsuiteachievingauditedmonthlyrevenuesof$300,000ormoreforaminimumofthreeconsecutivemonths

13,433,333ClassFPerformanceShares -FPerformanceShareMilestonewillbe takentohavebeensatisfieduponDropsuiteachievingauditedmonthlyrevenuesof$600,000ormoreforaminimumofthreeconsecutivemonths.

SignificantchangesinthestateofAffairs

Significantchangesinthestateofaffairsofthegroupoccurredduringthefinancialyear:

PursuanttoseparateSecuritiesSaleAgreements,theCompanyacquire100%oftheissuedcapitalinGreenbaseCorporationPtyLtd,whichacquired100%oftheissuedcapitalofDropmysitePteLtd.

Litigation:There is a legal action from a contractor against Dropsuite Ltd andGCP Capital Pty Ltd asmentioned in theprospectusdated6September2016.GCPCapitalPtyLtdhasindemnifiedDropsuiteLtdforanyliabilityandcostassociatedwiththedispute.F

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EventsaftertheReportingDate:Subsequentto31December2016:

- Zoran Grujic was appointed Joint Company Secretary and CFO on the 22 February 2017 and BruceTonkin,Non-ExecutiveDirectoronthe22February2017;and

- GreenbaseCorporationPtyLtdwasremovedfromtheGroup’sstructure,sothatDropmysitePteLtdisdirectlyowedbyDropsuiteLimited.

Otherthantheabove,therehasbeennoothermatterorcircumstancethathasarisensince31December2016which has significantly affect, or may significantly effect, the operations of Dropsuite Ltd and its controlledentities, the results of the operations or the state of affairs of Dropsuite Ltd and its controlled entities insubsequentfinancialyear.UseofCashandAssets

TheCompanyconfirmsthat ithasused itscashandassets that ithadat thetimeof itsadmissiontotheASXofficialquotationplatforminawayconsistentwithitsbusinessobjectives.Dividends:TheDirectorsdonotrecommendpaymentofanydividendsat this timeandnodividendwaspaidduringtheperiod.EnvironmentIssues:As a holding company, which derives its values largely through the operation of its subsidiaries and relatedcompanies,theCompanydoesnotconductsignificantactivities,andassuchhasminimalenvironmentalimpact.Prudent policies and procedures have been enactedwith respect to commonly accepted practice on energyconversation,recycling,andotherinitiativestoreduceenvironmentalimpactofongoingoperations.Therelatedcompaniesfollowsimilarethical,environmentalandclinicalstandards.Informationondirectorsandsecretaries:MrTheoHnarakis Non-ExecutiveChairman(appointed20December

2016)

Qualifications: B.Accounting

Experience

Theo Hnarakis brings a wealth of experienceworking in the media industry and scalingAustralian ASX listed technology businesses. Hegraduated from the University of South AustraliaandheldseniorroleswithNewsCorporation,BoralGroup, the PMP Communications group and wasthe Managing Director and CEO of Melbourne ITuntil 2013. He has also held director roles withNeulevel, a JV with US based listed company,Neustar and with Advantate, a JV with FairfaxMedia.

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InterestsinsharesandOptions 6,000,000 ordinary shares and 900,000 options toacquirefurtherordinaryshares

Othercurrentdirectorships CrowdMobileLtd MrCharifelAnsari Non - Executive director (appointed 20 December

2016)

Experience

CharifwasHeadofBusinessDevelopment,GoogleSoutheast Asia and negotiated and launched keypartnerships with top mobile operators, led thecompany’s first Chrome web browser distributionpartnershipinAsia,builtpartnershipsandallianceswithmediacompaniesandcontentownersandleda team to launch the first localized advertisingproductinIndonesia.PriortoGooglehewasDirectorofClientMarketingin Japan for Dell. Dell Japan was the largest andmost mature business in Asia and is the region’smost unique and complex market from acompetitiveandproduct landscapestandpoint.Hesuccessfully led two major transitions in first 6months to identify and fill Dell product gaps inJapanese market, set product strategy selection,positioning,pricingandlaunching,managedtrainedand developed 20-person marketing team in twolocations and owned country relationship withstrategic suppliers Intel, AMD and Microsoft. Hehad a number or roles with Dell includingProduction Control Manager, Senior Marketing &Pricing consultant in the USA, Sales director inSouthKorea,DirectorClientMarketinginChina.

InterestsinsharesandOptions 20,616,316 ordinary shares and 10,800,000

performancesharesconsistingofClassD3,600,000,ClassE3,600,000andClassF3,600,000

Othercurrentdirectorships NilMrAlexBajada Directorsince2004,ExecutiveChairmanappointed

8June2008to24February2017andiscurrentlyaNon-ExecutiveDirector

Qualifications BachelorofEconomicsExperience Alex is a corporate advisor with over 30 years

experience in the corporate sector and has beeninvolved in the management of ASX listedcompanies for many years fulfilling the roles ofchairmananddirector.

Othercurrentdirectorships OdinEnergyLtdOtherformerdirectorshipsinthelastthreeyears.

ActivisticLtd

InterestsinsharesandOptions 1,424,799ordinaryshares

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MrRolandBerzins Non-Executive Director from 20 May 2016 to 20

December 2016 and Joint Company Secretaryappointed20May2016tocurrent.

Qualifications BComm.ACPAFFINTA.Experience Mr. Berzins graduated from the University of

Western Australia with a Bachelor of Commercemajoringinaccountingandfinance.Since1996Mr.BerzinshasbeenCompanysecretaryfor a variety of ASX listed companies, and has alsohadexperience inretail,merchantbanking,venturecapital and SME business advisory.Mr Berzins alsohas experience in the financial management oftechnology based company’s and their corporatemanagement. In addition,Mr Berzins has extensiveexperience with respect to financial managementwithintheminingindustryandlargeorganizations.

Othercurrentdirectorships OdinEnergyLtd,TickforceLtd

Otherformerdirectorshipsinthelastthreeyears.

Mt Ridley Mines Limited (16/02/2005 to08/09/2014)ActivisticLtd(resigned31July2015)

InterestsinsharesandOptions 95,244 ordinary shares and 300,000 options toacquirefurtherordinaryshares

DrBruceTonkin AppointedasaNon-ExecutiveDirector22February

2017Qualifications B. Electrical and Electronic Engineering (1st class

honours), Ph.D. in Electrical and ElectronicEngineeringfromUniversityofAdelaide.

Experience Dr Bruce Tonkin is currently Chief StrategyOfficer

forMelbourne IT Limited,wherehe is responsiblefor managing the development of the company'sstrategic and operating plans, strategic initiativeswithmajorcustomersandsuppliers,andmanagingevaluation of merger and acquisitionopportunities. Bruce has been at Melbourne ITsince1999, andhasgainedmore than15yearsofexperience taking cloud based services to globalmarketsacrosstheUSA,Europe,andAsiaforbothSMBsandEnterprises.Inthattimeannualrevenuegrewfrom$15mtoapeakof$200mwithofficesin10 countries, before the sale of its internationalbusiness.Bruce also servedon theBoard of ICANN(InternetCorporation of Assigned Names and Numbers)whichisbasedinLosAngelesfor9years.

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Othercurrentdirectorships Director of various subsidiary and joint venture

companiesofMelbourneITLimited(ASX:MLB).Otherformerdirectorshipsinthelastthreeyears.

CANN(InternetCorporationofAssignedNamesandNumbers)basedinLosAngeles,USA

InterestsinsharesandOptions

Nil

MrZoranGrujic Appointed as Joint Company Secretary on 22

February2017Qualifications BachelorofCommerce(Accounting),Universityof

WesternSydney.MemberoftheCharteredAccountantsAustraliaandNewZealand.

Experience Zoran spent over a decade at leading Australian

accounting firms before launching CorporateResult Group, a successful accounting practicethatwaslatersold.Hehasalsoheldseniorfinanceroles ina variety of industries, including MoraitisGroup, one of the largest freshproducesuppliersto Woolworths and Coles; a peak trainingorganisation, the Australian Institute ofManagement (AIM); Couriers Please Pty Limited,oneoftheleadingfreightdistributionbusinessesinAustralia. More recently he was one of thefoundersof8commonLtdandlisteditontheASX.

Othercurrentdirectorships 8commonLtdOtherformerdirectorshipsinthelastthreeyears.

Nil

InterestsinsharesandOptions

Nil

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MeetingsofDirectors:Duringthefinancialyear,13meetingsofdirectors(includingcircularresolutions)wereheld.Attendanceswere:

Director

Numberofmeetingsattended

Numberofeligiblemeetings

toattendTheoHnarakis1 1 1AlexBajada 13 13CharifelAnsari2 1 1AngusMiddleton 12 12TerrenceJones3 8 8RolandBerzins 4 4Notes:1.TheoHnarakisappointeddirectoron20December20162.CharifElansariappointeddirectoron20December20163.TerrenceJonesretired20May20164.RolandBerzinswasappointedasdirectoron20May2016andresigned20December20165.AngusMiddletonwasretiredon20December2016.OptionsAtthedateofthisreport,theunissuedordinarysharesofDropsuiteLimitedunderoptionsareasfollows:GrantDate DateofExpiry ExercisePrice NumberunderOption10/12/2015 30April2017 $0.12 267,50016/08/2016 30April2017 $0.12 2,066,66729/12/2016 31December2018 $0.11 20,000,000 22,334,167OptionholdersdonothaveanyrightstoparticipateinanyissueofsharesandotherinterestsoftheCompanyoranyotherentity.TherehavebeennooptionsgrantedoverunissuedsharesorinterestsofanycontrolledentitywithintheGroupduringorsincetheendofthereportingperiod.Fordetailsofoptionsissuedtodirectorsandexecutivesasremunerations,refertotheremunerationsreport.

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RemunerationReport(Audited)The informationprovided in this remunerationreporthasbeenauditedasrequiredbysection308(3C)of theCorporationsAct2001.PrinciplesusedtodeterminethenatureandamountofremunerationTheCompany’spolicyfordeterminingthenatureandamountofemolumentsofKeyManagementPersonnel(or“KMP”)ofthecompanyisasfollows:

• The remuneration structure for executive officers, including executive directors, will emphasisepaymentsforresultsthroughprovidingvariousrewardschemes.

• TheobjectiveoftherewardschemesistobothreinforcetheshortandlongtermgoalsoftheCompanyandtoprovideacommoninterestbetweenmanagementandshareholders.

• Establishappropriateperformancehurdlesinrelationtovariableremuneration.• The aim of the policy is to reward employees for the success of the Company and its performance

overall.RemunerationCommitteeDuetothecurrentsizeoftheBoardandthenumberofstaff,thefullBoardisresponsiblefordeterminingandreviewing compensation arrangements for directors, the chief executive officer and all staff. The Boardmayseekindependentexpertadvicetoassessthenatureandamountofremunerationofallstaffincludingdirectorsand the chief executive officer by reference to relevant employment market conditions with the overallobjectivebeingtheretentionandattractionofahighqualityboard,executiveandcompany.RemunerationstructureIn accordance with best practice corporate governance, the structure of non-executive director and seniorexecutiveremunerationisseparateanddistinct.Non-executivedirectorremunerationObjectiveTheBoardseekstosetaggregateremunerationatalevelwhichprovidestheCompanywiththeabilitytoattractandretaindirectorsofthehighestcalibre,whilstincurringacostwhichisacceptabletoshareholders.StructureTheConstitutionandtheASXListingRulesspecifythattheaggregateremunerationofnon-executivedirectorsshallbedeterminedfromtimetotimebyageneralmeeting.Anamountnotexceedingtheamountdeterminedis thendividedbetween thedirectorsasagreed.Theboard considersadvice fromexternal consultantswhenundertakingtheannualreviewprocess.Due to tight financial constraints, every effort has been made to reduce all fees, including directorcompensation.Eachdirectorreceivesafeeforbeingadirector.Theremunerationofnon-executivedirectorsforthe6monthsendedendedis31December2016isdetailedbelow.

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SeniormanagerandexecutivedirectorremunerationObjectiveTheCompanyaimstorewardandattractseniormanagersandexecutiveswithalevelandmixofremunerationcommensuratewiththeirpositionandresponsibilitieswithintheCompany.StructureIndetermining the levelandmakeupof seniormanagerandexecutive remuneration, theBoardmayengageexternalconsultantstoprovideindependentadvice.Remunerationgenerallyconsistsofthefollowingelements:

• Fixedremuneration;• Variableremuneration;and• LongTermIncentive.

Furtherdetailsregardingremunerationofseniormanagersandexecutivedirectorsforthe6monthsended31December2016isdetailedinbelow.

FixedRemuneration

ObjectiveTheleveloffixedremunerationissetsoastoprovideabaselevelofremunerationwhichisbothappropriatetothepositionandiscompetitiveinthemarket.Itisreviewedannuallyanditinvolveswhereappropriatetheaccesstoexternaladvice.VariableRemunerationandlongtermincentiveStructureTheCompany’spolicyfordeterminingthenatureandamountofemolumentsofBoardmembersandseniorexecutivesoftheCompanyisasfollows:• The remuneration structure for executive officers, including executive directors, will seek to emphasise

paymentsforresultsthroughprovidingvariousrewardschemes.TheobjectiveoftherewardschemesistobothreinforcetheshortandlongtermgoalsoftheCompanyandtoprovideacommoninterestbetweenmanagementandshareholders.

NoKMPreceivedvariableremunerationduringthe6monthsended31December2016.ServiceagreementsCharifElansari’sremunerationiscurrentlySIN$24,000permonth(SIN$288,000perannum).Theagreementcanbeterminatedbyeitherpartybygivingnotlessthan3monthspriorwrittennoticeinadvance,orintheeventofterminationby theCompany,bypaymentof an amountequal to3months salary in lieuof suchnotice. TheBoardhasrecentlyapprovedanamendedagreement,whichisexpectedtobesignedinApril2017.TheoHnarakis’remunerationis$10,000permonth,withaonemonthterminationnoticeperiodbyotherparty.ZoranGrujicwas appointed as Chief Financial Officer and joint company secretary on 22 February 2017. HiscontractisexpectedtobesignedinApril2017.TherearenootherserviceagreementsinplacewithKMP.

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RemunerationofKMP:For6monthsended31December2016Non-ExecDirectors Salary

andfeesSuper-

annuationSubtotal Share

basedpayments

Total Portionofremunerationperformancerelated%

TheoHnarakis(i) 1,644 156 1,800 - 1,800 -AlexBajada 70,000 - 70,000 - 70,000 -AngusMiddleton(ii) - - - - - -RolandBerzins(iii) 19,998 - 19,998 - 19,998 -Total 91,942 156 91,978 - 91,978 -

(i) Appointed20December2016(ii) Retired20December2016(iii) Retiredasdirector20December2016

Executivedirector

Salaryandfees

Super-annuation

Subtotal Sharebased

payments

Total Portionofremuneration

performancerelated%

CharifelAnsari(MD)(iv)

8,462 - 8,462 - 8,462 -

8,462 - 8,462 - 8,462 -

(iv) Appointed20December2016

Fortheyearended30June2016Directors Salary

andfeesSuper-

annuationSubtotal

Sharebased

payments

Total Portionofremuneration

performancerelated%

Non-executive AlexBajada 140,000 - - - 140,000 -

AngusMiddleton 40,000 - - - 40,000 -

RolandBerzins 4,602 - - - 4,602 -

TerrenceJones(i) 35,525 - - 35,525 -

TotalDirectors 220,127 - - - 220,127 -

(i) Retired20May2016.

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(i) OrdinaryShareholdings

ThenumberofordinarysharesheldinDropsuiteLtdbyeachKMPduringthe6monthsto31December2016isasfollows:

NameandPositionheld

Balance01/07/2016or

atdateofappointment

ChangesBeforeConsolidation Consolidation

15:1

GrantedasRemuneration’sduringthe

period

OtherChanges

Balance31/12/16ordateofretirement

AlexBajada–NonExecutiveDirector

21,371,991-

(19,947,186) - - 1,424,799

TheoHnarakis - - - - 6,000,000 6,000,000

AngusMiddleton 17,500,000 - (12,600,000) - 1,000,000 1,900,000

RolandBerzins–NonExecutiveDirectorandCompanySecretary

1,428,667-

(1,333,422) - - 95,244

CharifelAnsari - - - - 20,616,316 20,616,316

Total 36,300,658 - (33,880,615) - 27,616,316 30,036,359

(ii) Options

AlloptionswereissuedbyDropsuiteLimitedandentitletheholdertooneordinaryshareinDropsuiteLimitedforeachoptionexercised.

Therehavenotbeenanyalterationstothetermsorconditionsofanygrantssincegrantdate.

NameandpositionheldBalance

01/07/2016

Grantedasremunerationduringperiod

ExercisedOtherchanges

Balanceat31/12/16

TheoHnarakis - - - 900,000 900,000CharifelAnsari - - - - -AlexBajada - - - - -RolandBerzins - - - 300,000 300,000TheoHnarakis - - - - -Total - - - 1,200,000 1,200,000

OtherEquity–relatedKMPtransactionsTherehavebeennoother transactions involvingequity instrumentsapart from thosedescribed in the tablesaboverelatingtooptions,rightsandshareholdings.

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OtherTransactionswithKMPand/ortheirRelatedPartiesTherewerenoother transactions conductedbetween theGroupandKMPor their relatedparties thatwereconducted other than in accordancewith normal employee, customer or supplier relationships an terms nomorethanthosereasonablyexpectedunderarm’slengthdealingswithunrelatedpersons.RemunerationConsultantsTheCompanydidnotengageanyremunerationconsultantsduringthe6monthsended31December2016.VotingandcommentsmadeattheCompany’s2016AnnualGeneralMeeting(“AGM”)Atthe2016AGM,thevoterssupportedtheadoptionof theremunerationreport for theyearended30 June2016.TheCompanydidnotreceiveanyspecificfeedbackattheAGMregardingitsremunerationpractices.EndofRemunerationReport(Audited)IndemnitiesandinsuranceofficersTheCompanyhasindemnifiedthedirectorsandexecutivesoftheCompanyforcostsincurred,intheircapacityasadirectororexecutive, forwhich theymaybeheldpersonally liable,exceptwhere there isa lackofgoodfaith.During the financial year, the Company paid a premium in respect of a contract to insure the directors andexecutivesoftheCompanyagainstaliabilitytotheextentpermittedbytheCorporationsAct2001.Thecontractofinsuranceprohibitsdisclosureofthenatureoftheliabilityandtheamountofthepremium.

IndemnityandinsuranceofauditorTheCompanyhas not, during or since the endof the financial year, indemnified or agreed to indemnify theauditorofthecompanyoranyrelatedentityagainstaliabilityincurredbytheauditor.Duringthefinancialyear,thecompanyhasnotpaidapremiuminrespectofacontracttoinsuretheauditorofthecompanyoranyrelatedentity.ProceedingsonbehalfoftheCompanyNopersonhasapplied for leaveof court tobringproceedingsonbehalfof theCompanyor intervene inanyproceedingstowhichtheCompanyisapartyforthepurposeoftakingresponsibilityonbehalfoftheCompanyforalloranypartofthoseproceedings.Noproceedingshavebeenbroughtor intervened inonbehalfof thecompanywith leaveof theCourtundersection237oftheCorporationsAct2001.Non-AuditServicesTheCompany’sauditor,GreenwichandCoAuditPtyLtd,completedanInvestigatingAccountantsReport,whichwasincludedintheprospectusdated6September2016.TheCompany’sauditorprovidednoothernon-auditservicesduringtheyear.

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Auditor’sDeclaration:Theauditor’sindependencedeclarationunders307CoftheCorporationsAct2001issetoutonpage43fortheyearended31December2016.This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of theCorporationsAct2001.

TheoHnarakisNon-ExecutiveChairmanDate:31March2017

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DROPSUITE LIMITED

CORPORATE GOVERNANCE

For the year ended For the year ended 31 December 2016

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The Board of Directors of Dropsuite Limited (“Dropsuite” or “the Company”) is committed toconductingtheCompany’sbusinessinaccordancewiththehigheststandardsofcorporategovernance.The Board is responsible for the Company’s Corporate Governance and the governance framework,policy and procedures, and charters that underpin this commitment. The Board ensures that theCompany complies with the corporate governance requirements stipulated in the Corporations Act2001(Cth),theASXListingRules,theconstitutionoftheCompanyandanyotherapplicablelawsandregulations.

ThetablebelowsummarisestheCompany’scompliancewiththeASXCorporateGovernanceCouncilsCorporateGovernancePrinciplesandRecommendations(3rdEdition),inaccordancewithASXListingRule4.10.3

PrinciplesandRecommendations Disclosure ComplyPrinciple1–Laysolidfoundationsformanagementandoversight1.1 Alistedentityshoulddisclose:

(a) therespectiverolesandresponsibilitiesofitsboardandmanagement;and

(b) thosemattersexpresslyreservedtotheboardandthosedelegatedtomanagement

ThesemattersaredisclosedintheCompany’sBoardCharter,whichisavailableontheCompany’swebsitewhichisintransition/reconstruction

Complies

1.2 Alistedentityshould:

(a)undertakeappropriatechecksbeforeappointingaperson,orputtingforwardtosecurityholdersacandidateforelection,asadirector;and

(b)providesecurityholderswithallmaterialinformationinitspossessionrelevanttoadecisiononwhethertonottoelectorre-electadirector

Whenarequirementarisesfortheselection,nominationandappointmentofanewdirector,theBoardformsasub-committeethatistaskedwiththisprocess,andincludesundertakingappropriatechecksandanypotentialcandidates.Whendirectorsretireandnominateforre-election,theBoarddoesnotendorseadirectorwhohasnotsatisfactorilyperformedtheirrole.

CompliesComplies

1.3 A listed entity should have awritten agreement with eachdirector and senior executivesetting out the terms of theirappointment.

TheCompanyexecutesaletterofappointmentwitheachdirectorandservicesagreementswithseniorexecutives.

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1.4 Thecompanysecretaryofalistedentityshouldbeaccountabledirectlytotheboard,throughthechair;onallmatterstodowiththeproperfunctioningoftheboard.

TheCompanySecretaryreportstothechairoftheboardonallmatterstodowiththeproperfunctionoftheboard.

Complies

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1.5 Alistedentityshould:(a) haveadiversitypolicywhich

includesrequirementsfortheboardorarelevantcommitteeoftheboardtosetmeasurableobjectivesforachievinggenderdiversityandtoassessannuallyboththeobjectivesandtheentity’sprogressinachievingthem;

(b) disclosethatpolicyorasummaryofit;and

(c) discloseasattheendofeachreportingperiodthemeasurableobjectiveforachievinggenderdiversitysetbytheboardsorarelevantcommitteeoftheboardinaccordancewiththeentity’sdiversitypolicyanditsprogresstowardsachievingthem,andeither:1. therespectiveproportions

ofmenandwomenontheboard,inseniorexecutivepositionsandacrossthewholeorganisation(includinghowtheentityhasdefined“seniorexecutive”forthesepurposes);or

2. iftheentityisa“relevantemployer”undertheWorkplaceGenderEqualityAct,theentity’smostrecent“GenderEqualityIndicators”,asdefinedinandpublishedundertheAct.

Duetoitssizeandlimitedscopeofoperations,theCompanydoesnotcurrentlyhaveadiversitypolicy.AstheCompany'sactivitiesincreaseinsize,scopeand/ornature,theboardwillconsidertheappropriatenessofadoptingadiversitypolicy.

Doesnotcomply

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PrinciplesandRecommendations Compliance Comply1.6 Alistedentityshould:

(a) haveanddiscloseaprocessforperiodicallyevaluatingtheperformanceoftheboard,itscommitteesandindividualdirectors;and

(b) disclose,inrelationtoeachreportingperiod,whetheraperformanceevaluationwasundertakeninthereportingperiodinaccordancewiththatprocess.

Currently,theBoarddoesnotformallyevaluatetheperformanceoftheBoardandindividualdirectors,howevertheBoardChairmanprovidesinformalfeedbacktoindividualBoardmembersontheirperformanceandcontributiontoBoardmeetings,onanongoingbasis.

Doesnotcomply


(a) haveanddiscloseaprocessforperiodicallyevaluatingtheperformanceofseniorexecutives;and

(b) disclose,inrelationtoeachreportingperiod,whetheraperformanceevaluationwasundertakeninthereportingperiodinaccordancewiththatprocess.

ThecurrentManagingDirector,MrCharifelAnsariwasappointedon20December2016.

Complies

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Principle2–Structuretheboardtoaddvalue


(a) haveanominationcommitteewhich;(1) hasatleastthreemembers,

amajorityofwhomareindependentdirectors;and

(2) ischairedbyanindependentdirector;anddisclose:(3) thecharterofthecommittee;(4) themembersofthe

committee;and(5) asattheendofeach

reportingperiod,thenumberoftimesthecommitteemetthroughouttheperiodandtheindividualattendancesofthemembersatthosemeetings;or

(b) ifitdoesnothaveanominationcommittee,disclosethatfactandtheprocessesitemploystoaddressboardsuccessionissuesandtoensurethattheboardhastheappropriateskills,knowledge,experience,independenceanddiversitytoenableittodischargeitdutiesandresponsibilitieseffectively.

Duetoitssizeandlimitedscopeofoperations,theCompanydoesnotcurrentlyhaveanominationcommittee,howeverboardsub-committeesareformed,asrequired,tomanagemattersthatwouldnormallybedealtwithbyaformallyconstitutednominationcommittee,.AstheCompany'sactivitiesincreaseinsize,scopeand/ornature,theboardwillconsidertheappropriatenessofanominationcommittee.

Doesnotcomply

2.2 Alistedentityshouldhaveanddiscloseaboardskillmatrixsettingoutthemixofskillsanddiversitythattheboardcurrentlyhasorislookingtoachieveinitsmembership.

Complies

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2.3 Alistedentityshoulddisclose:

(a) thenamesofthedirectorsconsideredbytheboardtobeindependentdirectors;and

(b) ifadirectorhasaninterest,position,associationorrelationshipofthetypedescribedinBox.2.3buttheboardisoftheopinionthatitdoesnocompromisetheindependenceofthedirector,thenatureoftheinterest,position,associationorrelationshipinquestionandanexplanationofwhytheboardisofthatopinion;and

(c) thelengthofserviceofeachdirector.

ThelengthofserviceofeachdirectorisdisclosedintheCompany’sannualandhalfyearlydirectorreportsandinnoticesofmeetingswhendirectorsarenominatedforre-election.

Complies

PrinciplesandRecommendations Compliance Comply2.4 Amajorityoftheboardofalisted

entityshouldbeindependentdirectors.

Therearethreeindependentnon-executivedirectors.TheBoardbelievesthisissatisfactorygiventheCompany’ssizeanditscurrentoperations.

Complies.

2.5 Thechairoftheboardofalistedentityshouldbeanindependentdirectorand,inparticular;shouldnotbethesamepersonastheCEOoftheentity.

MrTheoHnarakisistheChairmanandisanindependentnon-executivedirector.

Complies.

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2.6 Alistedentryshouldhaveaprogramforincludingnewdirectorsandprovideappropriateprofessionaldevelopment,opportunitiesfordirectorstodevelopandmaintaintheskillsandknowledgeneededtoperformtheirroleasdirectorseffectively

NewdirectorsareencouragedtodoeithertheKaplancourseortheAICDcourse.

Complies

Principle3–Alistedentityshouldactethicallyandresponsibly3.1 Alistedentityshould:

(a) haveacodeofconductofitsdirectors,seniorexecutivesandemployees;and

(b) disclosethatcodeorasummaryofit.

TheCompanycodeofconductisavailableontheCompanywebsite,whichisintransition/reconstruction.

Complies

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Principle4–Safeguardintegrityincorporatereporting4.1 Theboardofalistedentityshould:

(a) haveanauditcommitteewhich:(1) hasatleastthree

members,allofwhomarenon-executivedirectorsandamajorityofwhomareindependentdirectors;and

(2) ischairedbyanindependentdirector;whoisnotthechairoftheboard,

anddisclose(3) therelevant

qualificationsandexperienceofthemembersofthecommittee;and

(4) inrelationtoeachreportingperiod,thenumberoftimesthecommitteemetthroughouttheperiodandtheindividualattendancesofthemembersatthosemeetings;orifitdoesnothaveanauditcommittee,disclosethatfactandtheprocessesitemploysthatindependentlyverifyandsafeguardtheintegrityofitscorporatereporting,includingtheprocessesfortheappointmentandremovaloftheexternalauditorandtherotationsoftheengagementpartner.

Duetoitssizeandlimitedscopeofoperations,theCompanydoesnotcurrentlyhaveanauditcommittee,howevertheauditorsdomeetwiththefullboard,withoutmanagementpresenttoitsauditreportandanyothermattersthathavearisenduringitsauditwork.AstheCompany'sactivitiesincreaseinsize,scopeand/ornature,theboardwillconsidertheappropriatenessofanauditcommittee.

Doesnotcomply,howevertheauditorsdomeetwiththefullboard..

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4.2 Theboardofalistedentityshould,beforeitapprovestheentity’sfinancialstatementsforafinancialperiod,receivefromitsCEOandCFOadeclarationthat,intheiropinion,thefinancialrecordsoftheentityhavebeenproperlymaintainedandthatthefinancialstatementscomplywiththeappropriateaccountingstandardsandgiveatrueandfairviewofthefinancialpositionandperformanceoftheentityandthattheopinionhasbeenformedonthebasisofasoundsystemofriskmanagement,andinternalcontrolwhichisoperatingeffectively.

TheBoarddoesreceiveastatementsignedbythoseperformingtherolesoftheManagingDirectorandtheChiefFinancialOfficer.

Complies

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PrinciplesandRecommendations Compliance Comply4.3 AlistedentitythathasanAnnual

GeneralMeeting(AGM)shouldensurethatitsexternalauditorattendsitsAGMandisavailabletoanswerquestionsfromsecurityholdersrelevanttotheaudit,

TheCompany’sauditorsarepresentattheAnnualGeneralMeeting.

Complies

Principle5–Maketimelyandbalanceddisclosure5.1 Alistedentityshould:

(a) haveawrittenpolicyforcomplyingwithitscontinuousdisclosureobligationsundertheListingRules;and

(b) disclosethatpolicyorasummaryofit.

TheCompanydoeshaveaContinuousDisclosurepolicy,whichisavailableontheCompanywebsitewhichiscurrentlyintransition/reconstruction.

Complies

Principle6–Respecttherightsofsecurityholders6.1 Alistedentityshouldprovide

informationaboutitselfanditsgovernancetoinvestorviaitswebsite.

TheCompanydoeshaveacompanyinformationandgovernancestatement,whichisavailableontheCompanywebsitewhichiscurrentlyintransition/reconstruction

Complies

6.2 A Listed entity should design andimplement an investor relationsprogram to facilitate effective tow-waycommunicationwithinvestors.

TheCompanyhasimplementedaninvestorrelationsprogramtargetingretailinvestorsandencouragesallinvestorsorpotentialinvestorstocommunicatewiththeCompanyviaitswebsitewhichiscurrentlyintransition/reconstruction

Complies

6.3 Alistedentityshoulddisclosethepoliciesandprocessesithasinplacetofacilitateandencourageparticipationatmeetingsofsecurityholders.

TheCompanyShareholderCommunicationPolicyisavailableontheCompanywebsitewhichiscurrentlyintransition/reconstruction

Complies

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6.4 Alistedentityshouldgivesecurityholdertheoptiontoreceivecommunicationsfrom,andsendcommunicationtotheentityandissecurityregistryelectronically.

SecurityholdercanelecttoreceivecommunicationsfromtheCompanyelectronicallyeitherbycontactingtheCompany’sshareregistrar,ortheCompanydirectly.

Complies

Principal7–Recogniseandmanagerisk7.1 Theboardofalistedentityshould:

(a) haveacommitteeorcommitteestooverseerisk,eachofwhich::(1) hasatleastthreemembers,

amajorityofwhomareindependentdirectors;and

(2) ischairedbyanindependentdirectoranddisclose(3) thecharterofthecommittee;(4) themembersofthe


reportingperiod,thenumberoftimesthecommitteemetthroughouttheperiodandtheindividualattendanceofthemembersatthosemeetings;or

(b) ifitdoesnothaveariskcommitteeorcommitteesthatsatisfy(a)above,disclosethatfactandtheprocessesitemploysforoverseeingtheentity’sriskmanagementframework.

Duetoitssizeandlimitedscopeofoperations,theCompanydoesnotcurrentlyhaveariskcommittee;howevermanagementdoespresentanddiscussriskwiththefullboard.AstheCompany'sactivitiesincreaseinsize,scopeand/ornature,theboardwillconsidertheappropriatenessofariskcommittee.

DoesnotComply

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7.2 Theboardoracommitteeoftheboardshould:(a) reviewtheentity’srisk

managementframeworkatleastannuallytosatisfyitselfthatitcontinuestobesound;and

(b) disclose,inrelationtoeachreportingperiod,whethersuchareviewhastakenplace.

Theboardreviewsthecompany’sriskmanagementframeworkatleastannuallyanddisclosethisineachperiodicreport.

Complies

PrinciplesandRecommendations PrinciplesandRecommendations PrinciplesandRecommendations7.3 Alistedentityshoulddisclose:

(a) ifithasaninternalauditfunction,howthefunctionisstructuredandwhatroleitperforms;or

(b) ifitdoesnothaveaninternalauditfunction,thatfactandtheprocessesitemploysforevaluatingandcontinuallyimprovingtheeffectivenessofitsriskmanagementandinternalcontrolprocesses.

TheCompanydoesnothaveaninternalauditfunction.AstheCompany'sactivitiesincreaseinsize,scopeand/ornature,theboardwillconsidertheappropriatenessofaninternalauditfunction.

Doesnotcomply

7.4 Alistedentityshoulddisclosewhetherithasanymaterialexposuretoeconomic,environmentalandsocialsustainabilityrisksand,ifitdoes,howitmanagesorintendstomanagethoserisks.

TheCompanydoesmakethesedisclosures.

Complies

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Principle8–Remuneratefairlyandresponsibly8.1 Theboardofalistedentityshould:

(a) havearemunerationcommitteewhich:

(1) hasatleastthreemembers,amajorityofwhomareindependentdirectors;and

(2) ischairedbyanindependentdirectoranddisclose(3) thecharterofthecommittee;(4) themembersofthe


reportingperiod,thenumberoftimesthecommitteemetthroughouttheperiodandtheindividualattendanceofthemembersatthosemeetings;or

(b) ifitdoesnothavearemunerationcommittee,disclosethatfactandtheprocessesitemploysforsettingthelevelandcompositionofremunerationfordirectorsandseniorexecutivesandensuringthatsuchremunerationisappropriateandnotexcessive.

TheCompanydoesnotcurrentlyhavearemunerationcommittee.AstheCompany'sactivitiesincreaseinsize,scopeand/ornature,theboardwillconsidertheappropriatenessofaremunerationcommittee.

Doesnotcomply.

8.2 Alistedentityshouldseparatelydiscloseitspoliciesandpracticesregardingtheremunerationofnon-executivedirectorandotherseniorexecutive.

TheCompanydisclosesitspracticesinrelationtotheremunerationofnon-executivedirectorsandseniorexecutivesinitsannualremunerationreport.

Complies

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8.3 Alistedentitywhichhasanequity-basedremunerationschemeshould:(a) haveapolicyonwhether

participantsarepermittedtoenterintotransaction(whetherthroughtheuseofderivativesorotherwise)whichlimittheeconomicriskofparticipatinginthescheme;and

(b) disclosethatpolicyorasummaryofit.

TheCompany’sSecurityTradingPolicyobligesalldirectors,officersandemployeesoftheCompanytoadvisetheCompany,viatheCompanySecretary,oranysecuritisationofCompanysecurities.AcopyofthepolicyisavailableontheCompany’swebsite.AsatthedateofthisstatementtheCompanySecretaryhasnotbeenadvisedbyanofficeroremployeeoftheCompanyofanysecuritisationofCompanysecuritiesthattheyown.

Complies

AstheCompany'sactivitiesincreaseinsize,scopeand/ornature,theCompany'scorporategovernanceprincipleswillbereviewedbytheBoardandamendedasappropriate.

Diversity

The Company and all its related bodies corporate are committed to workplace diversity. The CompanyrecognisesthebenefitsarisingfromemployeeandBoarddiversity,includingabroaderpoolofhighqualityemployees,improvingemployeeretention,accessingdifferentperspectivesandideasandbenefittingfromallavailabletalent.

Diversityincludes,butisnotlimitedtogender,age,ethnicityandculturalbackground.

TheDiversityPolicyisavailableontheCompany’swebsitewhichisintransition/reconstruction..

Asstatedearlier,theCompanyisatastageofitsdevelopmentthattheapplicationofmeasurableobjectivesin relation to gender diversity, at the various levels of theCompany’s business, are not considered to beappropriatenorpractical.

TheparticipationofwomenintheCompanyandconsolidatedentityat31December2016wasasfollows:

• Womenemployeesintheconsolidatedentity 5%

• Womeninseniormanagementpositions 0%

• Womenontheboard 0%

Further details of the Company's corporate governance policies and practices are available on theCompany'swebsiteatwww.dropsuite.com.

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Auditor's Independence Declaration

As auditor for the audit of Dropsuite Limited for the year ended 31 December 2016, I declare that, to the best of my knowledge and belief, there have been:

I) no contraventions of the independence requirements of the Corporations Act 2001 in relation to the audit; and

II) no contraventions of any applicable code of professional conduct in relation to the audit.

Greenwich & Co Audit Pty Ltd

Andrew May

Audit Director 31 March 2017 Perth

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StatementofProfitorLossandOtherComprehensiveIncomeFortheYearEnded31December2016

CONSOLIDATED 2016

$2015$

Income Salesrevenue 4(a) 1,316,384 294,110Otherincome 4(a) 65,555 1,308TotalIncome 1,381,939 295,418 Expenses Hostingfees 337,656 246,307Advertisingandmarketingexpenses 178,515 91,283Conferenceandexhibitionexpenses 57,896 79,093Professionalfees 4(b) 350,470 125,729Employeeanddirectorexpenses 4(b) 1,548,223 468,398Listingfeeexpense 17 5,410,753 -Amortisationexpense 199,205 -Researchexpenses 44,276 -Officeexpenses 4(b) 152,590 169,919Otherexpenses 4(b) 453,681 101,621Totalexpenses 8,733,265 1,282,350Lossbeforeincometax Incometaxexpense 13 - -Lossfortheyear (7,351,326) (986,932)OthercomprehensiveincomeItemsthatmaybeenreclassifiedtoprofitandloss Exchangedifferencesintranslatingforeignoperations 1,705 3,057Totalothercomprehensiveincome 1,705 3,057Totalcomprehensivelossfortheyear (7,349,621) (983,875) Lossattributableto: -MembersofDropsuiteLimited 12 (7,351,326) (986,932)-Non-controllinginterests - - (7,351,326) (986,932) Totalcomprehensivelossattributableto: -MembersofDropsuiteLimited (7,349,621) (983,875)-Non-controllinginterests - - (7,349,621) (983,875) BasicLosspershare 5 (0.23) (0.06)Dilutedlosspershare 5 (0.23) (0.06)

Theabovestatementofcomprehensiveincomeshouldbereadinconjunctionwiththeaccompanyingnotes.

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StatementofFinancialPositionAsat31December2016

Theabovestatementoffinancialpositionshouldbereadinconjunctionwiththeaccompanyingnotes.

CONSOLIDATED Note 2016

$2015$

ASSETS CURRENTASSETS Cashandcashequivalents 6 5,338,507 16,151Tradeandotherreceivables 7 322,407 107,605Otherassets 96,472 5,740Totalcurrentassets 5,757,386 129,496 NON-CURRENTASSETSProperty,plantandequipment 9,108 -IntangibleAssets 8 1,142,632 810,251Investments 9,135 -Totalnon-currentassets 1,160,875 810,251 Totalassets 6,918,261 939,747 LIABILITIES CURRENTLIABILITIES Tradeandotherpayables 9 2,611,823 259,629Deferredincome 45,542 -Borrowings 10 295,116 -Totalcurrentliabilities 2,952,481 259,629 Totalliabilities 2,952,481 259,629 Netassets

3,965,780 680,118

EQUITY Contributedequity 11 16,640,291 3,802,239Reserves 11 (7,949) 2,083,051Accumulatedlosses 12 (12,666,562) (5,324,890) 3,965,780 560,400Non-controllinginterest - 119,718Totalequity 3,965,780 680,118

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StatementofChangesinEquityFortheYearEnded31December2016

2016CONSOLIDATED

Issuedcapital

Sharebased

paymentreserve

Foreignexchangereserve

AccumulatedLosses

Non-controllinginterest

Total

$ $ $ $ $Balanceat1January2016

3,802,239 2,083,051 - (5,324,890) 119,718 680,118

Comprehensiveincome

Lossfortheyear - - - (7,351,326) - (7,351,326)Othercomprehensiveincome(loss)fortheyear - - (7,949) 9,654 - 1,705Totalcomprehensivelossfortheyear

- - (7,949) (7,341,672) - (7,349,621)

Transactionswithownersintheircapacityasowners:

-

Issueofsharecapital 10,755,001 - - - - 10,755,001Derecognitionofnon-controllinginterestonderegistrationofsubsidiary - - - - (119,718) (119,718)Conversionofnotes 2,057,604 (2,057,604) - - - -Exerciseofoptions 25,447 (25,447) - - - -Totaltransactionswithownersandothertransfers

12,838,052 (2,083,051) - - (119,718) 10,635,283

Balanceat31December2016 16,640,291 - (7,949) (12,666,562) - 3,965,780

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StatementofChangesinEquityFortheYearEnded31December2016

2015CONSOLIDATED

IssuedCapital

Sharebased

paymentsreserve

Foreignexchangereserve

AccumulatedLosses

Non-controllinginterest

Total

$ $ $ $ $ $Balanceat1January2015

3,802,239 566,548 - (4,341,015) - 27,772

Comprehensiveincome

Lossfortheyear - - - (986,932) - (986,932)Othercomprehensiveincome(loss)fortheyear - - (6,152) - (6,152)Changesinnon-controllinginterest - 6,789 - - - 6,789Recognitionofnon-controllinginterest - - - 9,209 119,718 128,927Totalcomprehensivelossfortheyear

- 6,789 - (983,875) 119,718 (857,368)

Transactionswithownersintheircapacityasowners:

Convertiblenoteequitycomponent - 1,509,714 - - - 1,509,714Totaltransactionswithownersandothertransfers

- 1,509,714 - - - 1,509,714

Balanceat31December2015 3,802,239 2,083,051 - (5,324,890) 119,718 680,118Theabovestatementofchangesinequityshouldbereadinconjunctionwiththeaccompanyingnotes.

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StatementofCashFlowsFortheYearEnded31December2016

CONSOLIDATED Note 2016 2015

$ $CASHFLOWSFROMOPERATINGACTIVITIES Cashreceivedfromsales 1,179,971 293,219Paymentstosuppliersandemployees (2,443,390) (1,180,687)Interestpaid (1,558) -Netcashusedinoperatingactivities 6 (1,264,977) (887,468) CASHFLOWFROMINVESTINGACTIVITIES Paymentsforproperty,plantandequipment (9,108) -Cashproceedsfromissuanceofsharesfromsubsidiary - 134,875CashacquiredonacquisitionofDropsuite 17 5,307,265 -Paymentfordevelopmentcosts (531,586) (810,251)Netcashprovidedby/(usedin)financingactivities 4,766,571 (675,376) CASHFLOWFROMFINANCINGACTIVITIES Proceedsfromcapitalraising 412,735 -Proceedsfromissueofconvertiblenotes - 1,500,364Proceedsfromborrowings 1,408,027 -Netcashprovidedbyfinancingactivities 1,820,762 1,500,364 Netincrease/(decrease)incashandcashequivalentsheld 5,322,356 (62,480) Cashandcashequivalentsatthebeginningofthefinancialyear 16,151 78,631Cashandcashequivalentsattheendofthefinancialyear 6 5,338,507 16,151Theaboveconsolidatedstatementofcashflowsshouldbereadinconjunctionwiththeaccompanyingnotes.

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NotestotheFinancialStatements1SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIESThese consolidated financial statements and notes represent those of Dropsuite Limited (formerlyExcaliburMiningCorporationLimited) (or “theCompany”)andControlledEntities (“theConsolidatedgroup” or “Group”). Dropsuite Limited is a public listed company, incorporated and domiciled inAustralia.Theseconsolidatedfinancialstatementswereauthorisedforissueon31March2017.The separate financial statements of the parent entity, Dropsuite Limited, have not been presentedwithinthisfinancialreportaspermittedbytheCorporationsAct2001.TheaddressregisteredofficeisSuite2,16OrdStreet,WestPerth,WesternAustralia6005.The principal accounting policies adopted in the preparation of the financial statements are set outbelow. These policies have been consistently applied to all the years presented, unless otherwisestated.(a) GoingconcernThefinancialreporthasbeenpreparedonthegoingconcernbasis,whichcontemplatedthecontinuityof normal business activity and the realisation of assets and settlement of liabilities in the normalcourseofbusiness.Thedirectors have considered the funding andoperational statusof thebusiness in arriving at theirassessmentof going concern andbelieve that the going concernbasis of preparation is appropriate,baseduponthefollowing:

• The ability of the Company to obtain funding through various sources, including debt andequityissueswhicharecurrentlybeinginvestigatedbymanagement;

• The ability to further vary cash flow depending upon the achievement of certainmilestoneswithinthebusinessplan;and

• Theexpectedreceiptofsaleproceeds.Basisofpreparation

The financial statements are general purpose financial statements that have been prepared inaccordance with Australian Accounting Standards, Australian Accounting Interpretations, otherauthoritative pronouncements of the Australian Accounting Standards Board (AASB) and theCorporationsAct2001.TheGroupisafor-profitentityforfinancialreportingpurposesunderAustralianAccountingStandardsandthefinancialreporthasbeenpreparedonahistoricalcostbasis.ThefinancialreporthasbeenpresentedinAustralianDollars.AustralianAccountingStandardssetoutaccountingpoliciesthattheAASBhasconcludedwouldresultin financial statements containing relevant and reliable information about transactions, events andconditions.CompliancewithAustralianAccountingStandardsensuresthatthefinancialstatementsandnotes also comply with International Financial Reporting Standards as issued by the IASB. Materialaccountingpoliciesadoptedinthepreparationofthesefinancialstatementsarepresentedbelowandhavebeenconsistentlyappliedunlessstatedotherwise.

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Exceptforcashflowinformation,thefinancialstatementshavebeenpreparedonanaccrualsbasisandarebasedonhistoricalcosts,modified,whereapplicable,bythemeasurementatfairvalueofselectednon-currentassets,financialassetsandfinancialliabilities.

(c)AcquisitionofDropsuiteLtdOn 29 December 2016 Dropsuite Ltd completed the legal acquisition of Dropmysite Pte Ltd and it’scontrolledentity.UndertheAustralianAccountingStandardsDropmysitePteLtdwasdeemedtobetheaccountingacquirerbecause the substanceof the transactionwas such thatuponcompletionof theacquisition the former shareholdersofDropmysitePte Ltd as a grouphad the largest portionof thevotingrightsinthecombinedentity.AASB3BusinessCombinationssetsouttheaccountingprinciplestobefollowedinareverseacquisition.However,thedirectorsconcludedthattheCompanydoesnotmeet the definition of a “business” as prescribed in AASB 3 and, as such, it was deemed that theacquisitioncannotbeaccountedforasa“businesscombination”.Therefore,theacquisitionhasbeenaccounted for as a share based payment by which Dropmysite Pte Ltd acquired the net assets andlistingstatusofDropsuiteLtd.Accordingly,the2016consolidatedfinancialstatementofDropsuiteLtdarepreparedasacontinuationofthebusinessandoperationsofDropmysitePteLtd.AsthedeemedacquirerDropmysitePteLtdhasaccountedfortheacquisitionofDropsuiteLtdfrom29December2016.TheimplicationsoftheacquisitionbyDropmysitePteLtdonthefinancialstatementsareasfollows:

(i) Statementofcomprehensiveincome• The2016Statementofcomprehensiveincomecomprisesthetotalcomprehensiveincome

for the 12 months ended 31 December 2016 for Dropmysite Pte Ltd and its controlledentity,andtheperiodfrom29December2016until31December2016forDropsuiteLtd.Thecomparative informationasat31December2015isthestatementofcomprehensiveincomeofDropmysitePteLtdanditscontrolledentities.

(ii) Statementoffinancialposition• The 2016 Statement of financial position as at 31 December 2016 represents the

combinationofDropmysitePteLtd,DropsuiteLtdandtheircontrolledentities.• Thecomparativeinformationasa31December2015istheStatementoffinancialposition

ofDropmysitePteLtdanditscontrolledentities.

(iii) Statementofchangesinequity• The2016changesinequitycomprises:

o The equity balance of Dropmysite Pte Ltd and its controlled entities as at thebeginningofthefinancialyear(1January2016);

o Thetotalcomprehensiveincomeforthefinancialyearandtransactionswithequityholders, being the year ended31December2016 forDropmysite Pte Ltd and itscontrolledentityandfromtheperiodfrom29December2016until31December2016forDropsuiteLtd;

o Theequity balanceof the combinedDropmysite Pte Ltd,Dropsuite Ltd and theircontrolledentitiesat31December2016.

• The comparative information for the year to 31 December 2015 is the Statement ofchangesinequityofDropmysitePteLtdanditscontrolledentities

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(iv) Statementofcashflows;• The2016Statementofcashflowscomprises:

o ThecashbalanceofDropmysitePteLtdanditscontrolledentitiesatthebeginningofthefinancialyear(1January2016);

o Thetransactionsfortheyearended31December2016forDropmysitePteLtdandits controlled entities and for the period from 29 December 2016 until 31December2016forDropsuiteLtd;

o The cash balance of the combined Dropmysite Pte Ltd, Dropsuite Ltd and theircontrolledentitiesattheendofthefinancialyear31December2016.

• Thecomparative information for theyear to31December2015 is thestatementof cashflowsofDropmysitePteLtdanditscontrolledentities.

(d)ParententityinformationIn accordancewith theCorporations Act 2001, these financial statements present the results of theconsolidatedentityonly.Supplementaryinformationabouttheparententityisdisclosedinnote2.(e)PrinciplesofConsolidationTheconsolidatedfinancialstatementscomprisethefinancialstatementsoftheparententityanditssubsidiaries(‘Group’)asat31Decembereachyear.ControlisachievedwhentheGroupisexposed,orhasrights,tovariablereturnsfromitsinvolvementwiththeinvesteeandhastheabilitytoaffectthosereturnsthroughitspowerovertheinvestee.Specifically,theGroupcontrolsandinvesteeifandonlyiftheGrouphas:

• Powerovertheinvestee(i.e.existingrightsthatgiveitthecurrentabilitytodirecttherelevantactivitiesoftheinvestee)

• Exposure,orrights,tovariablereturnsfromitsinvolvementwiththeinvestee,and• Theabilitytouseitspowerovertheinvesteetoaffectitsreturns

WhentheGrouphaslessthanamajorityofthevotingorsimilarrightsofaninvestee,theGroupconsidersallrelevantfactsandcircumstancesinassessingwhetherithaspoweroveraninvestee,including:

• Thecontractualarrangementwiththeothervoteholdersoftheinvestee• Rightsarisingfromothercontractualarrangements• TheGroup’svotingrightsandpotentialvotingrights

TheGroupre-assesswhetherornotitcontrolsaninvesteeiffactsandcircumstancesindicatethattherearechangestooneormoreofthethreeelementsofcontrol.ConsolidationofasubsidiarybeginswhentheGroupobtainscontroloverthesubsidiaryandceaseswhentheGrouplosescontrolofthesubsidiary.Assets,liabilities,incomeandexpensesofasubsidiaryacquiredordisposedofduringtheyearareincludedinthestatementofcomprehensiveincomefromthedatetheGroupgainscontroluntilthedatetheGroupcreasestocontrolthesubsidiary.

ProfitorlossandeachcomponentofothercomprehensiveincomeareattributedtotheequityholdersoftheparentoftheGroupandtothenon-controllinginterests,evenifthisresultsinthenon-controllinginterestshavingadeficitbalance.Whennecessary,adjustmentsaremadetothefinancial

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statementsofsubsidiariestobringassetsandliabilities,equityincome,expensesandcashflowsrelatingtotransactionsbetweenmembersoftheConsolidatedEntityareeliminatedinfullonconsolidation.

(f)BusinesscombinationsBusinesscombinationsareaccounted forusing theacquisitionmethod.Thecostof theacquisition ismeasuredastheaggregateoftheconsiderationtransferred,whichismeasuredatacquisitiondatefairvalue, and the amount of any non – controlling interests in the acquiree. For each businesscombination, theGroupelectswhether tomeasure thenon–controlling interests in theacquireeatfairvalueorat theproportionatesharesof theacquiree identifiablenetassets.Acquisition– relatedcostsareexpensedasincurredandincludedinadministrativeexpenses.When the Group acquires a business, it assesses the financial assets and liabilities assumed to beappropriate classification and designation in accordance with the contractual terms, economiccircumstances and pertinent conditions as at the acquisition date. This includes the separation ofembedded derivatives in host contracts by the acquiree. Any contingent consideration to betransferred by the acquirer will be recognised at the fair value at the acquisition date. ContingentconditionsclassifiedasanassetorliabilitythatisafinancialinstrumentandwithinthescopeofIAS39FinancialInstruments:RecognitionandMeasurement,ismeasuredatfairvaluewiththechangesinfairvaluerecognisedinthestatementofprofitandloss.Goodwill is initially measured at cost (being the excess of the aggregate of the considerationtransferredand theamount recognised fornon–controlling interest)andanyprevious interestheldover the net identifiable assets acquired and liability assumed. If the fair value of the net assetsacquiredisinexcessoftheaggregateconsiderationtransferred,thegroupre-assesseswhetherithascorrectlyidentifiedalloftheassetsandalloftheliabilitiesassumedandreviewstheprocedureusedtomeasure theamounts tobe recognisedat theacquisitiondate. If the reassessment still results inanexcessofthefairvalueofnetassetsacquiredovertheaggregateconsiderationtransferred,thenthegainisrecognisedinprofitorloss.After initial recognition, goodwill ismeasured at cost less any accumulated impairment loss. For thepurposeofimpairmenttesting,goodwillacquiredinabusinessis,fromtheacquisitiondate,allocatedto each of the Group’s cash – generating units that are expected to benefit from the combination,irrespectiveofwhetherotherassetsorliabilitiesoftheacquireeareassignedtothoseunits.Wheregoodwillhasbeenallocatedtoacashgeneratingunit (CGU),andpartoftheoperationwithinthatunitisdisposedof,thegoodwillassociatedwiththedisposedoperationisincludedinthecarryingamount of the operationwhendetermining the gain or loss ondisposal.Goodwill disposed in thesecircumstancesismeasuredbasedontherelativevaluesofthedisposedoperationandtheproportionofcash–generatingunitsretained.(g)RevenuerecognitionRevenue is measured at the fair value of the consideration received or receivable. Revenue isrecognisedtotheextentthatitisprobablethattheeconomicbenefitswillflowtotheGroupandtherevenuecanbereliablymeasured.Thefollowingspecificrecognitioncriteriamustalsobemetbeforerevenueisrecognised:Interest income is recognisedusingtheeffective interestmethod.This isamethodofcalculatingtheamortisedcostofafinancialassetandallocatingtheinterestincomeovertherelevantperiodusingthe

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effectiveinterestrate,whichistheratethatexactlydiscountsestimatedfuturecashreceiptsthroughtheexpectedlifeofthefinancialassettothenetcarryingamountofthefinancialasset.(h)Currentandnon-currentclassificationAssets and liabilities are presented in the statement of financial position basedon current andnon-currentclassification.Anasset iscurrentwhen: it isexpectedtoberealisedor intendedtobesoldorconsumed innormaloperatingcycle;itisheldprimarilyforthepurposeoftrading;itisexpectedtoberealisedwithintwelvemonthsafterthereportingperiod;ortheassetiscashorcashequivalentunlessrestrictedfrombeingexchangedorusedtosettlea liability forat least twelvemonthsafterthereportingperiod.Allotherassetsareclassifiedasnon-current.Aliabilityiscurrentwhen:itisexpectedtobesettledinnormaloperatingcycle;itisheldprimarilyforthepurposeoftrading;itisduetobesettledwithintwelvemonthsafterthereportingperiod;orthereis no unconditional right to defer the settlement of the liability for at least twelvemonths after thereportingperiod.Allotherliabilitiesareclassifiedasnon-current.(i)CashandcashequivalentsCashandcashequivalents in thestatementof financialpositioncomprisescashatbankand inhandandshorttermdepositsthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttotheinsignificantriskofchangesinvalue.ForthepurposesoftheStatementofCashFlows,cashandcashequivalentsconsistofcashandcashequivalentsasdefinedabove,netofoutstandingbankoverdrafts.Bankoverdraftsareincludedwithininterestbearingloansandborrowingsinthecurrentliabilitiesofthestatementoffinancialposition.(j)OperatingsegmentsAnoperatingsegmentisacomponentofanentitythatengagesinbusinessactivitiesfromwhichitmayearn revenues or incur expenses) including revenues and expenses relating to the transaction withothercomponentsofthesameentity),whoseoperatingresultsareregularlyreviewedbytheentity’schiefoperatingdecisionmakerstomakedecisionsaboutresourcestobeallocatedtothesegmentandassessitsperformanceandforwhichdiscretefinancialinformationisavailable.Thisincludesstart–upoperationswhichareyettoearnrevenues.Managementwillalsoconsiderotherfactorsindeterminingoperating segments such as the existence of a line manager and the level of segment informationpresentedtotheboardofdirectors.(k)IncometaxThe incometaxexpenseor revenue for theperiod is the taxpayableon thecurrentperiod’s taxableincomebasedontheapplicable incometaxrateforeachjurisdictionadjustedbychangesindeferredtaxassetsandliabilitiesattributabletotemporarydifferencesandtounusedtaxlosses.The current income tax charge is calculated on the basis of the tax laws enacted or substantivelyenacted at the end of the reporting period in the countries where the company’s subsidiaries andassociatesoperateandgeneratetaxableincome.Managementperiodicallyevaluatespositionstakenintaxreturnswithrespecttosituations inwhichapplicabletaxregulationissubjectto interpretation. Itestablishes provisions where appropriate on the basis of amounts expected to be paid to the taxauthorities.

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Deferred income tax is provided in full, using the liabilitymethod, on temporary differences arisingbetweenthetaxbasesofassetsandliabilitiesandtheircarryingamountsintheconsolidatedfinancialstatements.However,thedeferredincometaxisnotaccountedforifitarisesfrominitialrecognitionofan asset or liability in a transaction other than a business combination that at the time of thetransaction affects neither accounting, nor taxable profit or loss.Deferred income tax is determinedusingtaxrates(andlaws)thathavebeenenactedorsubstantiallyenactedbytheendofthereportingperiodandareexpectedtoapplywhentherelateddeferredincometaxassetisrealisedorthedeferredincometaxliabilityissettled.Deferredtaxassetsarerecognisedfordeductibletemporarydifferencesandunusedtaxlossesonlyifitis probable that future taxable amountswill be available to utilise those temporary differences andlosses.Deferred tax liabilitiesandassetsarenot recognised for temporarydifferencesbetween thecarryingamountandtaxbasesof investments incontrolledentitieswheretheparententity isabletocontrolthetimingofthereversalofthetemporarydifferencesandit isprobablethatthedifferenceswillnotreverseintheforeseeablefuture.Deferredtaxassetsandliabilitiesareoffsetwhenthereisa legallyenforceablerighttooffsetcurrenttax assets and liabilities and when the deferred tax balances relate to the same taxation authority.Currenttaxassetsandtaxliabilitiesareoffsetwheretheentityhasalegallyenforceablerighttooffsetandintendseithertosettleonanetbasis,ortorealisetheassetandsettletheliabilitysimultaneously.(l)GoodsandServicesTax(GST)Revenues, expenses and assets are recognised net of the amount of associatedGST, unless theGSTincurredisnotrecoverablefromthetaxationauthority.Inthiscase,itisrecognisedaspartofthecostofacquisitionoftheassetoraspartoftheexpense.Receivables and payables are stated inclusive of the amount of GST receivable or payable. The netamount of GST recoverable from, or payable to, the taxation authority is included with otherreceivablesorpayablesinthestatementoffinancialposition.Cashflowsarepresentedonagrossbasis.TheGSTcomponentsofcashflowsarisingfrominvestingorfinancingactivitieswhicharerecoverablefrom,orpayabletothetaxationauthority,arepresentedasoperatingcashflows.(m)ImpairmentThe Group assesses at the end of each reporting periodwhether there is objective evidence that afinancial asset or group of financial assets is impaired. In the case of equity securities classified asavailable-for-sale, a significant or prolonged decline in the fair value of a security below its cost isconsideredasanindicatorthatthesecuritiesareimpaired.Ifanysuchevidenceexistsforavailable-for-salefinancialassets,thecumulativeloss-measuredasthedifferencebetweentheacquisitioncostandthecurrentfairvalue,lessanyimpairmentlossonthatfinancialassetpreviouslyrecognisedinprofitorloss - is reclassified from equity and recognised in profit or loss as a reclassification adjustment.Impairmentlossesrecognisedinprofitorlossonequityinstrumentsclassifiedasavailable-for-salearenotreversedthroughprofitorloss.IfthereisevidenceofimpairmentforanyoftheGroup’sfinancialassetscarriedatamortisedcost,theloss is measured as the difference between the asset’s carrying amount and the present value ofestimatedfuturecashflows,excludingfuturecreditlossesthathavenotbeenincurred.Thecashflows

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arediscountedatthefinancialasset’soriginaleffectiveinterestrate.Thelossisrecognisedinprofitorloss.(n)TradeandotherreceivablesTrade receivables are initially recognised at fair value and subsequentlymeasured at amortised costusingtheeffectiveinterestmethod,lessanyprovisionforimpairment.Tradereceivablesaregenerallydueforsettlementwithin30days.Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to beuncollectablearewrittenoffby reducing thecarryingamountdirectly.Aprovision for impairmentoftradereceivablesisraisedwhenthereisobjectiveevidencethattheconsolidatedentitywillnotbeableto collect all amounts due according to the original terms of the receivables. Significant financialdifficultiesof thedebtor,probability that thedebtorwillenterbankruptcyor financial reorganisationanddefaultordelinquencyinpayments(morethan90daysoverdue)areconsideredindicatorsthatthetradereceivablemaybeimpaired.Theamountoftheimpairmentallowanceisthedifferencebetweentheasset's carryingamountand thepresent valueof estimated future cash flows,discountedat theoriginaleffective interestrate.Cashflowsrelatingtoshort-termreceivablesarenotdiscounted if theeffectofdiscountingisimmaterial.Otherreceivablesarerecognisedatamortisedcost,lessanyprovisionforimpairment.(o)Property,plantandEquipmentPlantandequipmentisstatedathistoricalcostlessaccumulateddepreciation.Capitalworks–in–progressisstatedatcostandcompromisesallcostsdirectlyattributabletobringingtheassetsunderconstructionreadytotheirintendeduse.Capitalwork–in–progressistransferredtoproperty,plantandequipmentatcostoncompletion.Depreciation is calculatedona straight– linebasisover theestimated lifeof theassetwhich rangesbetween3and25years.DerecognitionAnitemofproperty,plantandequipmentisderecognisedupondisposalorwhennofutureeconomicbenefitsareexpectedtoarisefromthecontinualuseoftheasset.Any gain of loss arising on derecognition of the asset (calculated as the difference between the netdisposalproceedsandthecarryingvalueoftheitems) is includedinthestatementofcomprehensiveincomeintheperiodtheitemisderecognised.(p)IntangibleAssetsIntangibleassetsacquiredseparatelyaremeasuredatinitialrecognitionatcost.Thecostofintangibleassetsacquiredinabusinesscombinationistheirfairvalueatthedateofacquisition.Followinginitialrecognition, intangibleassetsarecarriedatcost lessanyaccumulatedamortisationandaccumulatedimpairment losses. Internally generated intangible, excluding capitalised development costs, are notcapitalised and the related expenditure is reflected in profit and loss in the period in which the

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expenditure is incurred. The useful lives of the intangible assets are assessed as either finite orindefinite.Intangible assets with finite lies are amortised over the useful economic life and assessed forimpairment whenever there is an indication that the intangible asset may be impaired. Theamortisationperiod and the amortisationmethod for an intangible assetwith a finite useful life arereviewed at least at the end of each reporting period. Changes in the expected useful life or theexpectedpatternofconsumptionofeconomicfuturebenefitsembodiedintheassetareconsideredtomodify theamortisationperiodormethod,asappropriate,andare treatedaschanges inaccountingestimates.Theamortisedexpenseofintangibleassetswithfinitelivesisrecognisedinthestatementofprofitorlossintheexpensecategorythatisconsistentwiththefunctionoftheintangibleassets.Intangibleassetswithindefiniteusefullivesarenotamortised,butaretestedforimpairmentannually,either individuallyoratthecash–generatingunit level.Theassessmentof indefinite life isreviewedannuallytodeterminewhethertheindefinitelifecontinuestobesupported.Ifnot,thechangesintheusefullifefromindefinitetofinitearemadeonaprospectivebasis.Gains or losses arising from derecognition of an indefinite asset are measured as the differencebetween thenetdisposalproceedsand the carryingamountof theassets andare recognised in thestatementofprofitandlosswhentheassetisderecognised.(q)ResearchanddevelopmentcostsResearch costs are expensed as incurred. Development expenditures on an individual project arerecognisedasanintangibleassetwhentheGroupcandemonstrate:

• Thetechnicalfeasibilityofcompletingtheintangibleassetsothattheassetwillbeavailableforuseorsale;

• Itsintentiontocompleteanditsabilityandintentiontouseorselltheasset;• Howtheassetwillgeneratefutureeconomicbenefits;• Theavailabilityofresourcestocompletetheasset;and• Theabilitytomeasurereliablytheexpenditureduringdevelopment.

Followinginitialrecognitionofthedevelopmentexpenditureasanasset,theassetiscarriedatcostlessany accumulated amortisation and accumulated impairment losses. Amortisationof the asset beginswhendevelopment iscompletedandtheasset isavailable foruse. It isamortisedover theperiodofexpectedfuturebenefit.Amortisationisrecordedinthestatementofprofitandloss.Duringtheperiodofdevelopment,theassetistestedforimpairmentannually.

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AmortisationAsummaryofthecurrentamortisationratesappliedtotheGroup’sintangibleassetsareasfollows DevelopmentcostsUsefullife Finite(5years)Amortisationmethod Amortisedonastraight–line

basisovertheperiodofexpectedfuturesalesfromtherelatedproject

Internallygeneratedoracquired Internallygenerated(r)InvestmentsandotherfinancialassetsInvestmentsandotherfinancialassetsareinitiallymeasuredatfairvalue.Transactioncostsareincludedaspartoftheinitialmeasurement,exceptforfinancialassetsatfairvaluethroughprofitorloss.Theyaresubsequentlymeasuredateitheramortisedcostorfairvaluedependingontheirclassification.Classificationisdeterminedbasedonthepurposeoftheacquisitionandsubsequentreclassificationtoothercategoriesisrestricted.

Financialassetsarederecognisedwhentherightstoreceivecashflowsfromthefinancialassetshaveexpiredorhavebeentransferredandtheconsolidatedentityhastransferredsubstantiallyalltherisksandrewardsofownership.FinancialassetsatfairvaluethroughprofitorlossFinancial assets at fair value through profit or loss are either: i) held for trading, where they areacquired for the purpose of selling in the short-term with an intention of making a profit; or ii)designated as such upon initial recognition, where they are managed on a fair value basis or toeliminate or significantly reduce an accounting mismatch. Except for effective hedging instruments,derivatives are also categorised as fair value through profit or loss. Fair value movements arerecognisedinprofitorloss.Available-for-salefinancialassetsAvailable-for-salefinancialassetsarenon-derivativefinancialassets,principallyequitysecurities,whichare either designated as available-for-sale or not classified as any other category. After initialrecognition, fair value movements are recognised in other comprehensive income through theavailable-for-salereserveinequity.Cumulativegainorlosspreviouslyreportedintheavailable-for-salereserveisrecognisedinprofitorlosswhentheassetisderecognisedorimpaired.ImpairmentoffinancialassetsThe consolidated entity assesses at the endof each reporting periodwhether there is any objectiveevidence that a financial asset or group of financial assets is impaired. Objective evidence includessignificant financial difficulty of the issuer or obligor; a breach of contract such as default ordelinquency in payments; the lender granting to a borrower concessions due to economic or legalreasons that the lender would not otherwise do; it becomes probable that the borrower will enterbankruptcyorother financial reorganisation; thedisappearanceof an activemarket for the financialasset;orobservabledataindicatingthatthereisameasurabledecreaseinestimatedfuturecashflows

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Theamountoftheimpairmentallowanceforfinancialassetscarriedatcostisthedifferencebetweentheasset's carryingamountand thepresent valueof estimated future cash flows,discountedat thecurrentmarketrateofreturnforsimilarfinancialassets.Available-for-sale financial assets are considered impaired when there has been a significant orprolongeddecline invaluebelowinitialcost.Subsequent increments invaluearerecognised inothercomprehensiveincomethroughtheavailable-for-salereserve.(s)TradeandotherpayablesTheseamounts represent liabilities for goodsand servicesprovided to thegroupprior to theendoffinancialyearwhichwereunpaid.Theamountsareunsecured.(t)SharebasedpaymentsFrom time to time, the Group provides benefits to employees (including senior executives) of theGroup in the form of share-based payments, whereby employees render services in exchange forsharesorrightsovershares(equity-settledtransactions).Thecostoftheseequity-settledtransactionswithemployeesismeasuredbyreferencetothefairvalueoftheequityinstrumentsatthedateatwhichtheyaregranted.Froptions,thefairvalueisdeterminedbyusingtheBinomialmethodorBlack-Scholesmodel.Thecostofequity-settledtransactionsisrecognised,togetherwithacorrespondingincreaseinequity,overtheperiodinwhichtheperformanceand/orserviceconditionsarefulfilled,endingonthedateonwhichtherelevantemployeesbecomefullyentitledtotheaward(thevestingperiod).Thecumulativeexpenserecognisedforequity-settledtransactionsateachreportingdateuntilvestingdatereflects(i)theextenttowhichthevestingperiodhasexpiredand(ii)theGroup’sbestestimateofthenumberofequityinstrumentsthatwillultimatelyvest.Noadjustmentismadeforthelikelihoodofmarket performance conditions being met as the effect of these conditions is included in thedetermination of fair value at grant date. The income statement charge or credit for a periodrepresentsthemovementincumulativeexpenserecognisedasatthebeginningandendofthatperiod.Noexpense is recognised forawards thatdonotultimately vest, except forawardswherevesting isonlyconditionaluponamarketcondition.Ifthetermsofanequity-settledawardaremodified,asaminimumanexpenseisrecognisedasifthetermshadnotbeenmodified.Inaddition,anexpenseisrecognisedforanymodificationthatincreasesthe total fair value of the share-based payment arrangement, or is otherwise beneficial to theemployee,asmeasuredatthedateofmodification.Ifanequity-settledawardiscancelled,itistreatedasifithadvestedonthedateofcancellation,andanyexpensenotyetrecognisedfortheaward isrecognised immediately.However, ifanewaward issubstituted for the cancelled award and designated as a replacement award on the date that it isgranted,thecancelledandnewawardaretreatedasiftheywereamodificationoftheoriginalaward,asdescribedinthepreviousparagraph.The dilutive effect, if any, of outstanding options is reflected as additional share dilution in thecomputationofearningspershare(seenote5).

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(u)ContributedequityOrdinary shares are classified as equity. Incremental costs directly attributable to the issue of newsharesoroptionsareshowninequityasadeduction,netoftax,fromtheproceeds.(v)Earningspershare

(i)BasicearningspershareBasic earnings per share is calculated by dividing the profit attributable to equity holders of thecompany,excludinganycostsofservicingequityotherthanordinaryshares,bytheweightedaveragenumber of ordinary shares outstanding during the financial year, adjusted for bonus elements inordinarysharesissuedduringtheyear.

(ii)DilutedearningspershareDilutedearningspershareadjuststhefiguresusedinthedeterminationofbasicearningspersharetotake into account the after income tax effect of interest and other financing costs associated withdilutivepotentialordinary shareand theweightedaveragenumberof sharesassumed tohavebeenissuedfornoconsiderationinrelationtodilutivepotentialordinaryshares.(w)ForeigncurrencytransactionsForeigncurrencytransactionsaretranslatedintoAustraliandollarsusingtheexchangeratesprevailingat thedates of the transactions. Foreign exchange gains and losses resulting from the settlement ofsuchtransactionsandfromthetranslationatfinancialyear-endexchangeratesofmonetaryassetsandliabilitiesdenominatedinforeigncurrenciesarerecognisedinprofitorloss.(x)NewAccountingStandardsforApplicationinFuturePeriodsThereareanumberofnewAccountingstandardsandinterpretationsissuedbytheAASBthatarenotyet mandatorily applicable to the Consolidated group and have not been applied in preparation oftheseconsolidatedfinancialstatements.TheGroupdoesnotplantoadoptthesestandardsearly.These standards are not expected to have amaterial impact on the Group in the current or futurereportingperiods.(y)Criticalaccountingjudgements,estimatesandassumptionsThepreparationofthefinancialstatementsrequiresmanagementtomakejudgements,estimatesandassumptions that affect the reported amounts in the financial statements.Management continuallyevaluates its judgements andestimates in relation toassets, liabilities, contingent liabilities, revenueandexpenses.Managementbasesitsjudgements,estimatesandassumptionsonhistoricalexperienceand on other various factors, including expectations of future events, management believes to bereasonableunder thecircumstances.The resultingaccounting judgementsandestimateswill seldomequaltherelatedactualresults.Thejudgements,estimatesandassumptionsthathaveasignificantriskof causing a material adjustment to the carrying amounts of assets and liabilities (refer to therespectivenotes)withinthenextfinancialyeararediscussedbelow.

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CapitaliseddevelopmentcostsThe Groups processes for calculating the amount of internally developed software costs to becapitalised is judgemental and involves estimating the time that employees spend developing theproducts.ImpairmentofcapitaliseddevelopmentcostsTheGroupassesses impairmentof capitaliseddevelopment costs forassetsavailable foruseateachreportingdatebyevaluatingconditionsspecifictotheGroupandtotheparticularassetsthatmayleadto impairment. Ifan impairmenttriggerexists,therecoverableamountoftheassetsaredetermined.Forcapitaliseddevelopmentcostsrelatingtoassetsnotyetavailableforuse,therecoverableamountsare determined annually. The determination of recoverable amount involves fair value less costs ofdisposalorvalue-in-usecalculations,whichincorporateanumberofkeyestimatesandassumptions.AmortisationofcapitaliseddevelopmentcostsTheusefullifeusedtoamortisecapitaliseddevelopmentcostsisestimatedbasedonananticipationoffutureeventswhichmayimpacttheirlife.TheusefulliferepresentsmanagementsviewoftheexpectedtermoverwhichtheGroupwillreceivebenefitsfromthedevelopmentandisregularlyreviewedforappropriateness.Share-basedpaymenttransactionsTheGroupmeasures the cost of equity-settled transactionswith employees by reference to the fairvalueof theequity instrumentsat thedateatwhichtheyaregranted.The fairvalueareoptionsaredeterminedbyusingeither theBinomialorBlack-Scholesmodelwhich incorporatevariousestimatesand assumptions. The accounting estimates and assumptions relating to equity-settled share-basedpaymentswouldhavenoimpactonthecarryingamountsofassetsandliabilitieswithinthenextannualreportingperiodbutmayimpactprofitorlossandequity.TaxationBalancesandnotes related to taxationarebasedon thebestestimatesofdirectors,pending furtherassessmentinthenextfinancialyear.AcquisitionofDropsuiteLimitedNote1coutlins theaccounting treatment relating to theacquisition.AsoutlinedatNote1c,AASB3Business Combinations sets out the accounting principles to be followed in a reverse acquisition.However, thedirectors concluded that theCompanydoesnotmeet thedefinitionofa “business”asprescribed inAASB3and, as such, itwasdeemed that theacquisition cannotbeaccounted for as a“businesscombination”.Thisiswasadecisionthatrequiredjudgement,whichwasbasedonthenatureofDropsuiteLimitedandguidancewithinAASB3.

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2PARENTENTITYINFORMATION 2016 2015InformationrelatingtoDropsuiteLimited(thelegalparententity): $ $Currentassets 5,090,845 188,156Non-currentassets 1,667,802 321,492Totalassets 6,758,648 509,648Currentliabilities 1,827,134 1,533,618Non-CurrentLiabilities - -Totalliabilities 1,827,134 1,533,618Issuedcapital 65,160,178 57,688,493Accumulatedlosses (58,132,866) (56,634,634)Reserves (14,680) -Costsofcapital (2,081,119) (2,077,829)Totalshareholders’equity 4,931,513 (1,023,970)Lossoftheparententity 1,498,232 773,529Totalcomprehensivelossoftheparententity 1,498,232 733,529Theparent companyhasnotentered intoanyguarantees,hasno significant contingent liabilities,orcontractualcommitmentsfortheacquisitionofproperty,plantorequipmentasat31December2016.Notes[1]–The2015and2016balancesarethatofDropsuiteLtd(formerlyExcaliburMiningLimited)3SEGMENTREPORTINGBasedontheinformationusedforinternalreportingpurposesbythechiefoperatingdecisionmaker(beingtheBoard),theGroupoperatedinonereportablesegmentduringtheyearended31December2016,beingtheprovisionofbackupservices.Thereportablesegmentfinancialinformationisthereforethesameastheconsolidatedstatementoffinancialpositionandtheconsolidatedstatementofprofitorlossandothercomprehensiveincome.

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4REVENUEANDEXPENSES4(a)Revenuefromcontinuingoperations CONSOLIDATED 2016 2015 $ $Salesincome 1,316,384 294,110OtherIncome 65,555 3,946Otherlosses-net - (2,638)TotalIncome 1,381,939 295,4184(b)Expenses (i)Professionalfees Accounting,auditandtaxationexpenses 89,372 -Salesconsultingexpenses 114,909 48,025Managementfees - 34,831Contractorfees 73,118 -Legalexpenses 25,334 -Otherconsultingexpenses 47,737 42,873Totalprofessionalfees 350,470 125,729(ii)Employeeanddirectorexpenses Wages,salariesandsuperannuation 1,242,104 468,398Directors 306,118 -Totalemployeebenefitsexpense 1,548,222 468,398 (iii)Officeexpenses ITexpenses 68,448 70,098Impairmentexpenses 9,676 58,443OfficeRentalexpenses 30,964 15,577BankFees 6,788 5,606OtherOfficeexpenses 36,714 20,195TotalOfficeexpenses 152,590 169,919 (iv)Otherexpenses Softwareexpenses - 45,281Transportationandtravellingexpenses 97,480 31,369Otheroperatingexpenses 315,281 9,124Impairmentondispo Insuranceexpenses 40,922 15,847Totalotherexpenses 453,683 101,621

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5LOSSPERSHAREBasic lossper shareamountsare calculatedbydividingnet loss for theyearattributable toordinaryequityholdersof theparentby theweightedaveragenumberofordinary sharesoutstandingduringtheyear.Dilutedlosspershareamountsarecalculatedbydividingthenetlossattributabletoordinaryequityholdersoftheparentbytheweightedaveragenumberofordinarysharesoutstandingduringtheyearplustheweightedaveragenumberofordinarysharesthatwouldbeissuedontheconversionofallthedilutivepotentialordinarysharesintoordinaryshares.The followingreflects thenet lossandnumberofsharesused in thebasicanddiluted losspersharecomputations: CONSOLIDATED 2016 2015 $ $Netlossafterincometaxbenefitattributabletomembers (7,351,326) (986,932)WeightedaveragenumberofordinarysharesoutstandingduringtheyearusedincalculationofbasicEPSanddilutedEPS(i) 32,170,925 15,402,723Earningspershare (0.23) (0.06)

NotesThe weighted average number of shares and resulting basic and diluted loss per share has beenadjustedtoreflecta15:1consolidationofcapitalthatoccurredon18August2016.Asat31December2016therewere22,314,173optionsonissue.Theseoptionshavenotbeenincludedintheabovecalculationofdilutedlosspershareastheyareanti-dilutive.Therehavebeennoconversionsto,callsof,orsubscriptionsforordinarysharesorissuesofpotentialordinarysharessincethereportingdateandbeforethecompletionofthisfinancialreport.

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6CASHANDCASHEQUIVALENTS

• ReconciliationofcashCash at the end of the financial year as shown in the statement of cash flows is reconciled to therelateditemsinthestatementoffinancialpositionasfollows: CONSOLIDATED 2016 2015 $ $Cashatbank 5,338,507 16,151Cashatbankearnsinterestatfloatingratesbasedondailybankdepositrates.Cashdepositsaremadefor varying periods of between one day and three months, depending on the immediate cashrequirementsoftheGroup,andearninterestattherespectiveshort-termdepositrates.

• Reconciliationoflossfromordinaryactivitiesafterincometaxtonetcashflowsfromoperatingactivities

CONSOLIDATED 2016 2015 $ $

Lossafterincometax (7,351,326) (986,932)Impairmentexpense 9,676 58,443Listingexpense 5,410,753 -Amortisationexpense 199,205 -Non-cash–deregistrationofsubsidiary (118,014) - Movementsinassetsandliabilitiesrelatingtooperatingactivities Increaseintradeandotherreceivables (262,927) (82,961)Decrease/(Increase)inothercurrentassets 5,741 (2,173)Increaseintradeandotherpayables 796,373 126,155Increaseindeferredincome 45,542 -Cashoutflowusedinoperatingactivities (1,264,977) (887,468)

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7TRADEANDOTHERRECEIVABLES CONSOLIDATED 2016 2015 $ $ Tradeandotherreceivables 322,407 107,605 322,407 107,605Allreceivablesarecurrentandnotimpaired.8INTANGIBLEASSETS CONSOLIDATED 2016 2015 $ $Capitalisedsoftwaredevelopmentcosts: Cost 1,341,837 810,251Accumulatedamortisation (199,205) - 1,142,632 810,251 Capitalised

DevelopmentCosts

Yearended31December2015 Balanceatthebeginningoftheyear -Additions 810,251Closingvalueasat31December2015 810,251 Yearended31December2016 Balanceatthebeginningoftheyear 810,251Additions 531,586Amortisation (199,205)Closingvalueasat31December2016 1,142,6329TRADEANDOTHERPAYABLES CONSOLIDATED 2016 2015

$ $ Tradecreditors 1,999,163 123,524Otherpayablesandaccruals 612,660 136,105 2,611,823 259,629Creditorsareunsecured,non-interestbearingandarenormallysubjecttonet30dayterms.

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10BORROWINGS CONSOLIDATED 2016 2015 $ $Loan–relatedparties(Note14) 157,443 -Loan–otherentities 137,673 - 295,116 -11CONTRIBUTEDEQUITY

(b)Movementsinordinarysharesonissue

SHARES Number $

Shareonissue1January2015 15,402,723 3,802,239

TOTALSHARESONISSUE31DECEMBER2015 15,402,723 3,802,239

Sharesonissue1January2016(i) 15,402,723 3,802,239

Conversionofnotes(ii) 2,422,854 2,057,604

Conversionofoptions(iii) 1,398,653 25,447

Sharebasedpayments(iv) 441,347 412,735

Eliminationofsharesonacquisition (19,665,577) -

ExistingsharesofDropsuiteLtdonacquisition(v) 103,422,663 -

AcquisitionofDropmysitePteLtd 282,600,004 10,342,266

TOTALSHARESONISSUE31DECEMBER2016 386,022,667 16,640,291

(i) OfDropmysitePteLtd(ii) InApril2016,2,422,854convertiblenoteswereconvertedintoordinarysharesatSIN$0.94per

shareunderthetermsofthenoteagreements.Theseconvertiblenoteswereheldbyvariousinvestors.

CONSOLIDATED 2016 2015 $ $(a)Issuedandfullypaidupcapital Ordinaryshares 16,614,844 3,802,239

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(iii) During2016,1,398,653optionsthathadbeenissuedbetweenOctober2013andJanuary2015were exercised for $0.001 per share. 274,490 of the options exercised were held by theManagingDirector,CharifElansari.TheremainingoptionswereheldbyseniormanagementofDropmysitePteLtdanditscontrolledentity.

(iv) Comprises:- 148,936sharesissuedtosettleloanspayabletoHatcherPteLtd,whowasasignificant

shareholderofDropmysitePtyLtduntil29December2016- 151,064sharesissuedtoacquireanadditional14.3%interestinKeygoPteLtd.Keygowas

subsequentlywoundupduring2016(Note14)- 141,347sharesawardedtoemployees,butnotKeyManagementPersonnel,ofDropmysite

PteLtd.(v) Comprises:

SharesonissuepostAugust201615:1consolidation 23,374,286IssueofsharesunderthePublicOffer–Dec2016 53,048,377IssueofsharesundertheConversionOffer–Dec2016 27,000,000

c)Termsandconditionsofcontributedequity

Holders of ordinary shares are entitled to receive dividends as declared from time to time and areentitled to one vote per share at shareholder’ meetings. In the event of winding up the Company,ordinary shareholders rank after all other shareholders and creditors and are fully entitled to anyproceedsofliquidation.

d)Performanceshares

PerformanceRightsonissueat31December2016areasfollows:

ClassAPerformanceRights1 1,500,000ClassBPerformanceRights1 1,500,000ClassCPerformanceRights1 1,500,000ClassDPerformanceRights1 13,433,333ClassEPerformanceRights1 13,433,333ClassFPerformanceRights1 13,433,334 44,800,000

Notes:1. 44,800,000 Performance Shares, approved by shareholders on 15 August 2016, have been

allocated to the former shareholders of Dropmysite Pte Ltd as part consideration for theAcquisition(Note17)F

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Class Shares ShareMilestoneConditions Expirydate

ClassAPerformanceShares

1,500,000 "ClassAMilestone"meansDropsuiteachievingauditedgrossrevenuefromAAGsigneddistributorsorsalesrepresentativesunderthemasterdistributionagreementof$15,000ormorepermonthforaminimumofthreeconsecutivemonths.

5yearsfromthedateofissueoftheClassAPerformanceShares

ClassBPerformanceShares

1,500,000 "ClassBMilestone"meansDropsuiteachievingauditedgrossrevenuefromAAGsigneddistributorsorsalesrepresentativesunderthemasterdistributionagreementof$30,000ormorepermonthforaminimumofthreeconsecutivemonths.

5yearsfromthedateofissueoftheClassBPerformanceShares

ClassCPerformanceShares

1,500,000 "ClassCMilestone"meansDropsuiteachievingauditedgrossrevenuefromAAGsigneddistributorsorsalesrepresentativesunderthemasterdistributionagreementof$60,000ormorepermonthforaminimumofthreeconsecutivemonths.

5yearsfromthedateofissueoftheClassCPerformanceShares

ClassDPerformanceShares

13,433,333 "ClassDMilestone"meansDropsuiteachievingauditedmonthlyrevenuesof$150,000ormoreforaminimumofthreeconsecutivemonths.

5yearsfromthedateofissueoftheClassDPerformanceShares

ClassEPerformanceShares

13,433,333 "ClassEMilestone"meansDropsuiteachievingauditedmonthlyrevenuesof$300,000ormoreforaminimumofthreeconsecutivemonths.

5yearsfromthedateofissueoftheClassEPerformanceShares

ClassFPerformanceShares

13,433,334 "ClassFMilestone"meansDropsuiteachievingauditedmonthlyrevenuesof$600,000ormoreforaminimumofthreeconsecutivemonths.

5yearsfromthedateofissueoftheClassFPerformanceShares

As at 31December 2016,Nil Performance Shares had vested. As itwas not certain at 31December2016whetherthePerformanceSharevestingconditionswouldbemet,noamounthadbeenbroughttoaccountatthistimeinrelationtothePerformanceShares.

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e)Shareoptions

Movementinoptions Number Weightedaverageexerciseprice($)

Optionsoutstandingasat1January2015 1,576,282 0.001

Granted 508,054 0.001

OPTIONSOUTSTANDINGASAT31DECEMBER2015 2,084,336 0.001

Forfeited (685,683) 0.001

Exercised (1,398,653) 0.001

ExistingoptionsofDropsuiteLtdonacquisition 22,334,167 0.11

OPTIONSOUTSTANDINGAT31DECEMBER2016 22,334,167 0.11

NooptionsweregrantedbyDropmysitePteLtdduringtheyearto31December2016.UnissuedordinarysharesofDropsuiteLimitedunderoptionat31December2016areasfollows:

Type ExpiryDate ExercisePrice NumberofOptions

Optionsonissueatthedateoftheprospectus 30/04/17 $0.12 267,500Optionsonissueatthedateoftheprospectus 30/04/17 $0.12 2,066,667Advisoroptions(i) 31/12/2018 $0.11 20,000,000 22,334,167(i) Issuedon 20December 2016 to advisors in lieu of corporate advice and leadmanager role in

relationtothecapitalraisingundertheProspectusdated6September2016.(f)CapitalRiskManagement

Theconsolidatedentity’sobjectiveswhenmanagingcapitalaretosafeguardtheirabilitytocontinueasagoingconcern, so that theycancontinue toprovide returns toshareholdersandbenefits forotherstakeholdersandtomaintainanoptimalcapitalstructuretoreducethecostofcapital.

Inordertomaintainoradjustthecapitalstructure,theconsolidatedentitymayissuenewshares,paydividendsorreturncapitaltoshareholders.

The consolidated entity monitors capital with reference to the net debt position. The consolidatedentity’scurrentpolicyistoensurethatcashandcashequivalentsexceedsdebtatalltimes.

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g)Reserves

CONSOLIDATED Sharebased

paymentsreserveForeignexchange

reserves $ $Carryingamountat1January2016 2,083,051 -Conversionofconvertiblenotes(Note11b) (2,057,604) -Conversionofoptions(Note11b) (25,447) -Othercomprehensiveincome - (7,949)Carryingamountat31December2016 - (7,949)

12ACCUMULATEDLOSSES CONSOLIDATED 2016 2015

$ $Balanceatbeginningofyear (5,324,890) (4,337,958)Net(loss) (7,351,326) (986,932)Othercomprehensiveincome(loss)fortheyear 9,654 -Balanceatendoffinancialyear (12,666,562) (5,324,890)

13INCOMETAXEXPENSE

Theprimafacietaxonlossbeforeincometaxisreconciledtoincometaxasfollows:

CONSOLIDATED 2016 2015 $ $Lossbeforetax (7,351,326) (986,932) Incometaxbenefitcalculatedat30% (2,205,398) (296,080) Effectofnon-deductible/assessableitemsincalculatingtaxableincome/loss

Unrealizedforeigncurrencygains (4,801) (4)Non-deductibleitemsarisingfromreverseacquisition 1,623,226 -Sharebasedpayments 20,676 -OtherNon-deductible/non-assessableitems 169,959 19,346Deferredtaxbalancesnotrecognised 396,338 276,738 Incometaxattributabletooperationloss - -

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Estimatedunusedtaxlosseshavenotbeenrecognisedasadeferredtaxassetasthefuture.Recoveryof these losses issubjecttotheGroupsatisfyingtherequirements imposedbytherelevantregulatoryauthoritiesineachofthejurisdictionsinwhichtheGroupoperates.Duetothenatureoftheacquisition in December 2016 (Note 17) it is doubtful as to whether a majority of the tax lossesaccumulatedbyentitiesintheGroupwillbeabletobecarriedforwardforrecoveryinthefuture.Thebenefitofdeferredtaxassetsnotbroughttoaccountwillonlybebroughttoaccountif:

(i) The Company derives future assessable income of a nature and of an amount sufficient toenablethebenefitfromthelossesanddeductionstoberealised;

(ii) The Company continues to complywith the conditions for deductibility imposed by the law;and

(iii) No changes in tax legislation adversely affect the Company in realising the benefit from thedeductionsforthelosses.

14RELATEDPARTYDISCLOSURE

Particularsinrelationtocontrolledentitiesofthelegalparententity,DropsuiteLimited

Controlledentities

CountryofIncorporation

OwnershipInterestheldbytheGroup

2016 2015 % %

DropmysitePteLtd(1) Singapore 100 -DropmysiteInc(2) USA 100 -KeygoPteLtd(2)(3) Singapore - -GreenbaseCorporationPtyLtd(4) Australia 100 -

• (1)SubsidiaryofGreenbaseCorporationPtyLtdasat31December2016(ReferalsotoNote20)• (2)SubsidiaryofDropmysitePteLtd• (3)SubsidiaryofDropmysitePteLtdduringtheyearended31December2016.KeygoPteLtdwaswoundupin2016• (4)SubsidiaryofDropsuiteLimitedasat31December2016(ReferalsotoNote20)

DirectorrelatedentitiesAsat31December2016$98,321wasowing toSpartanNomineesPtyLtd (2015:$Nil)and$103,309(2015:Nil)wasowingtoGondwanaPtyLtd.MrAlexBajadaisadirectorofthesecompanies.Asat31December2016,$28,560($2015:Nil)wasowingtoSealblueInvestmentsPtyLtdand$24,750(2015:$Nil) was owing to Roland H Berzins & Associates. Mr Roland Berzins is a director of thesecompanies.$100,000 as at 31December 2016 (2015:Nil)was owing toGCP Capital Pty Ld.MrAlex Bajada is adirectorofthiscompany.$57,443asat31December2016(2015:Nil)wasowingtoCharifElansari,theManagingDirectoroftheGroup.ThefundswerelenttoDropmysitePteLtdbyMrElansariduring2016.

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15DIRECTORANDEXECUTIVEDISCLOSURESAggregateremunerationofkeymanagementpersonnel CONSOLIDATED

2016$

2015$

Salaryandfees 318,051 242,079Superannuation - -Sharebasedpayments - -Total 318,051 242,079The above disclosure comprises the keymanagement personnel of Dropmysite Pte Ltd for the yearended31December2016.GrantedandexercisableoptionholdingsofdirectorsandexecutivesDuringthereportingperiod,nooptionsweregrantedtoadirectororexecutiveasremuneration,andnooptionswereexercisedbyadirectororexecutivefromoptionspreviouslygrantedasremuneration.16FINANCIALRISKMANAGEMENTOBJECTIVESANDPOLICIESThegroup’sprincipalfinancialinstrumentscomprisecash,short-termdepositsandreceivables.Themainpurposeof these financial instruments is to financetheGroup’soperations.TheGrouphasvariousother financial liabilities suchas tradepayables,whicharisedirectly from itsoperations. ThemainmarketrisksarisingfromtheGroup’sfinancialinstrumentsareinterestraterisk,foreignexchangerisk,andliquidityrisk.Details of the significant accounting policies and methods adopted, including the criteria forrecognition,thebasisofmeasurementandthebasisonwhichincomeandexpensesarerecognised,inrespectofeachclassoffinancialasset,financialliabilityandequityinstrumentaredisclosedinnote1tothefinancialstatements.RiskmanagementTheGroup’sexposuretomarketrisk,creditrisk, liquidityriskandforeigncurrencyriskandpoliciesinregardtotheserisksareoutlinedbelow:MarketRiskMarketriskistheriskthatchangesinmarketprices,suchasforeignexchangerates,interestratesandequitypriceswill affect theGroup’s incomeor thevalueof itsholdingsof financial instruments. Theobjectiveofmarketriskmanagementistomanageandcontrolmarketriskexposureswithinacceptableparameters,whileoptimisingthereturn.CreditRiskCredit risk refers to the risk that counterpartywill default on its contractual obligations resulting infinancial loss to theGroup. Credit riskarises fromthe financialassetsof theGroup,whichcomprisecashandcashequivalents,andreceivables. Themaximumexposuretocreditriskatthereportingto

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recognised financial assets is the carryingamountof thoseassets,netof anyprovisions fordoubtfuldebts,asdisclosedinthestatementoffinancialpositionandnotestothefinancialreport.Receivablebalancesaremonitoredonanongoingbasiswith the result that theGroup’sexposure tobaddebtsisnotsignificant.LiquidityRiskLiquidityriskistheriskthattheGroupwillnotbeabletomeetitsfinancialobligationsastheyfalldue.TheGroup’s approach tomanaging liquidity is to ensure, as far as possible, that it will always havesufficient liquidity to meet its liabilities when due, without incurring unnecessary losses or riskingdamage to the Group’s reputation. The Group’s objective is to maintain adequate resources bycontinuouslymonitoringforecastandactualcashflowsandmaturityprofilesofassetsandliabilities.InterestrateriskTheGroupdoesnothavesignificantborrowingsandthereforeexposuretointerestrateriskisminimal.TheGroup’sexposure to the riskofchanges inmarket interest rates relatesprimarily to theGroup’scashbalanceswithfloatinginterestrates.The Group’s exposure to interest rate risks and the effective interest rates of financial assets andfinancialliabilitiesatthereportingdateareasfollows;FINANCIALRISKMANAGEMENTOBJECTIVESANDPOLICIES(CONTINUED)FinancialInstrument FixedInterest

RateFloatingInterest

RateNon-Interest

BearingTotal

2016$

2015$

2016$

2015$

2016$

2015$

2016$

2015$

(i)Financialassets

Cash - - - - 5,338,507 16,151 5,338,507 16,151

Receivables - - - - 322,407 107,605 322,407 107,605

Totalfinancialassets - - - - 5,660,914 123,795 5,660,914 123,795

Weightedaverageinterestrate

- - - - - - - -

(ii)Financialliabilities

Payables - - - - 2,611,824 259,629 2,611,824 259,629

Totalfinancialliabilities

- - - -2,611,824 259,629 2,611,824 259,629

TheCompanyhasperformedsensitivityanalysisrelatingtoitsexposuretointerestrateriskatbalancedate. This sensitivity analysis demonstrates the effect on the current year results and equity whichcouldresultfromachangeintheserisks.F

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InterestRateSensitivityAnalysisFortheyearto31December2016,theeffectonprofitorlossasaresultofchangesintheinterestrate,withallothervariablesremainingconstantwouldbenotbematerial.Thereisnosignificantimpactofinterestrateriskascashistheonlyassetwithinterestrateexposure.(a) NetfairvaluesThecarryingamountapproximatesfairvalueforallfinancialassetsandliabilities.• ForeigncurrencyriskThe consolidated entity undertakes certain transactions denominated in foreign currency and isexposedtoforeigncurrencyriskthroughforeignexchangeratefluctuations.Foreignexchangeriskarises fromfuturecommercial transactionsandrecognised financialassetsandfinancialliabilitiesdenominatedinacurrencythatisnottheentity'sfunctionalcurrency.

ThefunctionalcurrencyofDropmysitePteLtdisSingaporeandollars.

17ACQUISITIONOFDROPMYSITEPTELTDOn29December2016DropsuiteLtd(formerlyExcaliburMiningLtd)completedthelegalacquisitionofDropmysitePteLtdandit’scontrolledentitiesviaanewlywhollyownedbasedsubsidiaryofDropsuiteLtdnamedGreenbaseCorporationPtyLtd.

Under the Australian Accounting Standards, Dropmysite Pte Ltd was deemed to be the accountingacquirerinthistransaction.TheacquisitionhasbeenaccountedforasasharebasedpaymentbywhichDropmysitePteLtdacquiresthenetassetsandlistingstatusofDropsuiteLtdresultingintheDropsuiteGroup.

Thepurchaseconsiderationissummarisedasfollows:

• The issueof282,600,004shares inDropsuiteLtd (legalparent) totheGreenbaseCorporationLtdVendorsinconsiderationfor100%ownershipofDropmysitePteLtd.

• 1,500,000ClassAPerformanceRightsupontheachievementofmilestone1,• 1,500,000ClassBPerformanceRightsupontheachievementofmilestone2,• 1,500,000ClassCPerformanceRightsupontheachievementofmilestone3,• 13,433,333ClassDPerformanceRightsupontheachievementofmilestone4,• 13,433,333ClassEPerformanceRightsupontheachievementofmilestone5,• 13,433,334ClassFPerformanceRightsupontheachievementofmilestone6,

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Thepurchaseconsiderationisdeemedtohaveavalueof$10,342,266determinedasfollows:

a) Purchaseconsideration

DropsuiteLimitedsharesonissueatdateofacquisition(29December2016)(i)

103,422,663

SharepriceofDropsuiteLtdonthedateofacquisition $0.10

Purchaseconsideration $10,342,266

(i) Includes 53,048,377 shares issued under the Public Offer and 27,000,000 issued toGreenbaseconvertiblenoteholderson20December2016.

b) Fairvalueofassetsacquiredandliabilitiesassumed

ThefairvaluesoftheidentifiableassetsandliabilitiesofDropsuiteLtdasthedateofacquisitionare:

Assets $ Cashandcashequivalents* 5,307,265Tradereceivables 58,023LoanreceivablefromDropmysitePteLtd 1,350,000Investmentinshares 9,135 6,724,423Liabilities Tradeandotherpayables (1,555,821)Loanspayable (237,089) (1,792,910)Totalidentifiableassetsatfairvalue 4,931,513*IncludescashraisedundertheProspectusissued2September2016(PublicOffer).

c) Excessofdeemedpurchaseconsiderationovernetassetsacquired $Deemedconsideration 10,342,266NetassetsofDropsuiteLtdacquired (4,931,513)Listingexpense 5,410,753

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18AUDITORS’REMUNERATION CONSOLIDATED 2016 2015 $ $Auditsorreviewofthefinancialreportoftheentityandanyotherentityintheconsolidatedgroup

- OneAssuranceLLP - 4,969- GreenwichandCoAuditPtyLtd 32,000 -- KaidenGroup 12,400 -

44,400 4,96919COMMITMENTSANDCONTINGENCIES

(i) Operatingleasecommitments

TheGrouphadnofuturenon-cancellableoperatingleaseliabilitiesat31December2016(2015:nil).TheGrouphadnocontingentliabilitiesasat31December2016.ThereisalegalactionfromacontractoragainstDropsuiteLtdandGCPCapitalPtyLtdasmentionedintheprospectusdated6September2016.

GCPCapitalPtyLtdhasindemnifiedDropsuiteLtdforanyliabilityandcostassociatedwiththedispute.

20EVENTSAFTERTHEREPORTINGDATESubsequentto31December2016:

- ZoranGrujicwas appointed Joint Company Secretary and CFO on the 22 February 2017 andBruceTonkin,Non-ExecutiveDirectoronthe22February2017;and

- GreenbaseCorporationPty Ltdwas removed fromtheGroup’s structure, so thatDropmysitePteLtdisdirectlyowedbyDropsuiteLimited.

Other than the above, there has been no other matter or circumstance that has arisen since 31December2016whichhassignificantlyaffect,ormaysignificantlyeffect, theoperationsofDropsuiteLtdanditscontrolledentities,theresultsoftheoperationsorthestateofaffairsofDropsuiteLtdanditscontrolledentitiesinsubsequentfinancialyear.

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Directors’DeclarationInaccordancewitharesolutionofthedirectorsofDropsuiteLimited,Istatethat:Intheopinionofthedirectors: (a) thefinancialstatementsandnotesofthecompanyandoftheconsolidatedentityare inaccordancewiththeCorporationsAct2001,including:

(i) givingatrueandfairviewoftheCompany’sandconsolidatedentity’sfinancialpositionasat31December2016andoftheirperformancefortheyearendedonthatdate;and

(ii) complyingwithAccountingStandardsandCorporationsRegulations2001;and

(b) therearereasonablegroundstobelievethattheCompanywillbeabletopayitsdebtsasandwhentheybecomedueandpayable.

(c) Note 1(a) confirms that the financial statements also comply with International Financial

ReportingStandardsasissuedbytheInternationalAccountingStandardsBoard.Thedirectorshavebeengiventhedeclarationsrequiredbysection295AoftheCorporationsAct2001.Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of theCorporationsAct2001.Onbehalfofthedirectors

TheoHnarakisDirector31March2017

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Independent Audit Report to the members of Dropsuite Limited

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of Dropsuite Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 31 December 2016, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration.

In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the Group's financial position as at 31 December 2016 and of its financial performance for the year ended; and

(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the

directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be a key audit matters to be communicated in our report.

Accounting for the acquisition of Dropmysite Pte Ltd

Refer to Note 17, Acquisition of Dropmysite Pte Ltd and accounting policy Notes 1(c) and 1(y)

Key Audit Matter How our audit addressed the matter

The acquisition of Dropmysite Pte Ltd has been accounted for by the Company as a continuation of the financial statements of the legal acquiree (Dropmysite Pte Ltd), together with a share based payment measured in accordance with AASB 2 Share Based Payments.

Accounting for this transaction is complex, requiring management to exercise judgement to determine whether or not the acquisition should give rise to reverse acquisition accounting methodology and whether the accounting acquiree meets the definition of a business under AASB 3 Business Combinations. We focused on this area as a key audit matter due to the size and scope of the acquisition and the judgement and complexity involved in accounting for this transaction.

Our audit work included, but was not restricted to, the following:

Reviewing the share sale agreements involving Greenbase Corporation Pty Ltd (immediate parent of Dropmysite Pte Ltd), Dropmysite Pte Ltd and the Company, and reviewing the Company’s Prospectus issued on 2 September 2016 to understand key terms and conditions;

Critically evaluating the basis for managements adoption of reverse acquisition and share based payment accounting methodology. This included an analysis of the aforementioned factors;

Assessing managements mathematical application of reverse acquisition accounting methodology, including the calculation of relative voting rights in the combined entity after the transaction;

Testing whether the accounting acquiree comprised an integrated set of activities and assets comprising inputs and processes and hence constituted a business under AASB 3; and

Assessing the appropriateness of relevant disclosures in the financial statements.

Capitalised software development costs

Refer to Note 8, Intangible Assets and accounting policy Notes 1(p) and 1(y)

Key Audit Matter How our audit addressed the matter

The Group capitalises costs for internally developed software and then amortises the software over its estimated useful life. We focused on this area as a key audit matter due to the significance of the asset balance to the Group’s consolidated statement of financial position and due to judgement involved in:

- The decision to capitalise or expense costs

- The Group’s process for calculating the amount of internally developed software costs, including estimating the amount of time staff spent developing software; and

- The Group’s assessment of the economic

useful life of the Software

Our audit work included, but was not restricted to, the following:

Assessing the nature of projects deemed by management to be capital in nature and evaluating these against the requirements of AASB 138 Intangible Assets;

Matching staff timesheets and payroll information to the amounts capitalised by management;

Reviewing job descriptions for staff that had time capitalised to assess whether they were appropriately included in the cost of internally developed software;

Reviewing and challenging management’s assumptions and analysing their assessment as to whether impairment indicators exist in relation to the capitalised software costs; and

Assessing the amortisation period established and comparing to revenue forecast prepared by management and benchmarking against similar companies in the industry; and

Reviewing minutes of meetings documenting beginning and end of product development stages.

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Other Information

The directors are responsible for the other information. The other information obtained at the date if this auditor's report is included in the annual report, (but does not include the financial report and our auditor’s report thereon).

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Directors for the Financial Report

The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the

directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

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We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on the Remuneration Report

Opinion on the Remuneration Report

We have audited the Remuneration Report included on pages 23 - 27 of the directors' report for the 6 months ended 31 December 2016. In our opinion, the Remuneration Report of Dropsuite Limited, for the 6 months ended 31 December 2016, complies with section 300A of the Corporations Act 2001.

Responsibilities

The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

Greenwich & Co Audit Pty Ltd

Andrew May

Audit Director 31 March 2017 Perth

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AdditionalShareholdersInformation

AdditionalinformationrequiredbytheAustralianStockExchange(ASX)listingrulesaresetoutbelow.

1. EquitySecurityHolders-Currentasat27March2017

Thenamesofthetwentylargestholdersofquotedequitysecuritiesarelistedbelow.

OrdinaryShares

Ranking Name SharesHeld %oftotalshares

1 JOHNANTHONYFEARON 37,415,184 9.72 QUEKSEOWKEE 24,568,260 6.43 CHARIFELANSARI 20,616,316 5.34 AAGMANAGEMENTPTYLTD 19,538,001 5.15 JASMEETKAUR 12,500,000 3.26 RIDLEYMCLEANRUTHJR 12,194,468 3.27 GALIAHOLDINGSINC 10,867,594 2.88 HATCHERPTELTD 10,363,022 2.79 PHILLIPCARLTON 9,780,000 2.510 CONTENTANDSYSTEMSPTELTD 9,774,821 2.511 CRYSTALHORSEINVESTMENTSPTE 8,615,677 2.212 MOHAMEDELANSARI 7,108,135 1.813 KEHPITALPRIVATELTD 6,504,233 1.714 RONALDTHOMASHARTJR 6,294,667 1.615 Group#889742 6,000,900 1.616 VINCENZOCIUMMO 5,433,797 1.417 GLORYWEALTHGROUPLTD 4,884,162 1.318 TRAPPHAMPTONREIDLEWIS 4,758,378 1.219 RADWANALHARIRI 4,500,805 1.220 ADELBITAR 4,260,000 1.1

225,978,420 58.5

ListedOptionsExerciseprice@$0.12expirydate30/04/17

Ranking Name SharesHeld %oftotaloptions

1 FUTURITYPRIVATEPTYLTD 400,000 17.12 MRGERRARDJOHNHUNTER 266,667 11.43 HILLCRESTINVESTMENTSPTYLTD 266,667 11.44 KENANGEOFFREYJAGGER 266,667 11.45 CLOUDAYPTYLTD 200,000 8.66 FILMRIMPTYLTD 133,334 5.77 CHALEYERHOLDINGSPTYLTD 133,334 5.78 ALLANLOCKEDRAKE-BROCKMAN 133,334 5.79 SUZIESHORT 133,334 5.710 AAGMANAGEMENTPTYLTD 133,334 5.711 MARCUSOLIVERWALTER 93,334 4.012 RUTHANNMETCALF 66,667 2.913 CARRELLOSINVESTMENTSPTYLTD 66,667 2.914 AFBDOMINIONINVESTMENTS 40,000 1.7

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15 MRMICHAELRICHARDDWYER 834 0.0 2,334,173 100

ListedOptionsExerciseprice@$0.11,expirydate31/12/18

Ranking Name SharesHeld %oftotaloptions

1 MRMARKTRENT 3,300,000 16.52 MRNICHOLASKAPES 3,000,000 15.03 TEMOREXPTYLTD 2,000,000 104 ILIM 1,500,000 7.55 HALLCRESTINVESTMENTSPTYLTD 1,200,000 6.06 ALLPOWERPTYLTD 1,200,000 6.07 GRAZIANPTYLTD 1,000,000 5.08 AUSTRALCOSUPERINVESTMENTS 900,000 4.59 REBECCAKELLY 600,000 3.010 BRANDONRICHARDPARTINGTON 486,000 2.411 JOSEPHANDARY 471,000 2.412 GEEQUITYINVESTMENTS 450,000 2.313 JHFUNKYINVESTMENTSPTYLTD 440,000 2.214 GAMMAINVESTMENTSPTYLTD 330,000 1.715 REDLEAFSECURITIESPTYLTD 325,000 1.616 SEALBLUEINVESTMENTSPTYLTD 300,000 1.517 RADWANALHARIRI 272,000 1.418 JOHNATHANASIOU 245,000 1.219 MRAGOSTINOTARULLI 225,000 1.120 SANDGROPERPTYLTD 225,000 1.1 18,469,000 92.4

2. SubstantialShareholders(Currentasat27March2017)SubstantialholdersofequitysecuritiesintheCompanyaresetoutbelow.

Name Sharesheld %oftotalsharesJOHNANTHONYFEARON 37,415,184 9.7QUEKSEOWKEE 24,568,260 6.4CHARIFELANSARI 20,616,316 5.3AAGMANAGEMENTPTYLTD 19,538,001 5.1 102,137,761 26.5

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3. DistributionofEquitySecurities(Currentasat27March2017)Analysisofnumbersofequitysecurityholdersbysizeofholdings:ClassofSecurity–OrdinarySharesHoldingRange Numberofshareholders Numberofshares1-1,000 3,008 534,0431,001-5,000 332 725,7385,001-10,000 86 615,53010,001–100,000 424 15,888,643100,001andover 274 368,258,713 4,124 386,022,667 Holdinglessthanamarketableparcel1-6067 3,362 1,381,225ClassofSecurity–ListedOptionsExerciseprice@$0.12expirydate30/04/17HoldingRange Numberofoption-holders Numberofoption1-1,000 834 11,001-5,000 0 05,001-10,000 0 010,001–100,000 266,668 4100,001andover 2,066,671 10 2,334,173 15ClassofSecurity–ListedOptionsExerciseprice@$0.11,expirydate31/12/18HoldingRange Numberofoption-holders Numberofoption1-1,000 0 01,001-5,000 2,000 15,001-10,000 10,000 110,001–100,000 186,000 4100,001andover 19,802,000 28 20,000,000 34Enquiries ShareholderswithanyenquiriesaboutanyaspectoftheirshareholdingshouldcontacttheConsolidatedEntity’sshareregisterasfollows: AdvancedShareRegistryServicesPtyLtd Tel: +61893898033 Fax: +61893897871 Web: www.advancedshare.com.au

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ElectronicAnnouncementsandReport;Shareholderswhowish to receiveannouncementsmade to theASX,aswellaselectronic copiesof theAnnualReportandHalfYearlyReport,are invitedtoprovidetheiremailaddresstotheCompany.Thiscanbedone inwritingtotheCompanySecretary.RemovalfromthePrintedAnnualReportmailinglistShareholderswhodonotwishtoreceivetheAnnualreportshouldadvisetheShareRegistryinwritingtoremovetheirnamesfromthemailinglist.Thoseshareholderswillcontinuetoreceiveallshareholderinformation.Changeofname/addressShareholderswhoareIssueSponsoredshouldadvisetheShareregistrypromptlyofanychangesofnameand/oraddresssothatcorrespondencewiththemdoesnotgoastray.Allsuchchangesmustbeadvisedinwritingandcannotbeacceptedviatelephone.FormscanbefoundontheshareRegistrywebsiteorobtainedbycontactingtheShareregistry.Shareholderswho are in CHESS andBrokered Sponsored should instruct their sponsoringbrokers inwriting tonotifytheShareRegistryofanychangesofnameand/oraddress.Inthecaseofanamechange,thewrittenadvicemustbesupportedbydocumentaryevidence.ConsolidationofShareholdingsShareholderswhowish toconsolidate their separateshareholdings intooneaccount shouldwrite to theShareRegistryortheirsponsoringbroker,whicheverisapplicable.StockExchangeListingTheConsolidatedEntity’ssharesare listedontheASX.Detailsofsharetransactionsandpricespublished inthefinancialpapersofthedailycapitalcitynewspapersunderthecodeDSE.RegisteredOfficeTheregisteredofficeoftheConsolidatedEntityis: DropsuiteLimited Suite2,16OrdStreet WestPerthWA6008Telephone: +61894292900Fax: +61894861011Website: www.dropsuite.comCompanySecretary: ZoranGrujic RolandBerzins

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