ENTITLEMENT OFFER - NON-RENOUNCEABLE RIGHTS ISSUE

Key Points: - BluGlass rights issue to provide capital to expedite laser diode opportunity - Rights issue priced and structured to encourage broad shareholder participation - Issue price represents a 43.32% discount to the Company’s 15 day VWAP of $0.0387 - Top-up facility made available for shareholders to apply for shares over and above their entitlement - Directors and key executives to take up full entitlement under the rights issue

Dear Shareholder,

BluGlass Limited (ASX:BLG) ("BluGlass" or the "Company") has today announced a non-renounceable entitlement rights issue on a 1 for 1 basis ("Entitlement Offer") to holders of ordinary shares in the Company ("Shareholders") held at 7:00pm (AEDT) on 27 March 2020 ("Record Date").

The issue price of $0.02 represents a 23.08% discount to the Company’s last close of $0.026 on 23 March 2020, and a 43.32% discount to the Company’s 15 day VWAP to 23 March 2020 of $0.0387.

The Entitlement Offer will be offered to those Shareholders who are registered as a holder of ordinary shares in the Company as at the Record Date with a registered address in Australia, New Zealand and certain other jurisdictions in which the Company has decided to extend the Entitlement Offer and are not in the United States ("Eligible Shareholders"). Eligible Shareholders will receive an Entitlement Offer Booklet including a personalised entitlement and acceptance form which will provide further details of how to participate in the Entitlement Offer. A copy of the Offer Booklet was lodged with the ASX on 24 March 2020 and is available on the ASX website.

The Entitlement Offer booklet will be dispatched to Eligible Shareholders on or before 30 March 2020. Details of the Entitlement Offer

Pursuant to the Entitlement Offer, the Company will issue up to 418,907,072 new ordinary shares ("New Shares") to raise up to A$8,378,141 (before costs). The New Shares will rank equally with existing ordinary shares in the Company.

Under the Entitlement Offer, Eligible Shareholders will be invited to subscribe for 1 New Share at $0.02 (“Issue Price”) for every 1 ordinary share held at the Record Date. Fractional entitlements are being rounded up to the next whole New Share. The Company will make application to the ASX for the official quotation of the New Shares.

The Entitlement Offer is being conducted under section 708AA of the Corporations Act 2001 (Cth) as notionally modified by ASIC Corporations (Non-Traditional Rights Issues) Instrument 2016/84 and does not require a disclosure document.

Entitlements are non-renounceable and will not be tradeable on ASX or otherwise transferable. The Entitlement Offer is not underwritten. Eligible Shareholders who do not take up their entitlements will not receive any value in respect of those entitlements that they do not take up (and their shareholding in the Company will be diluted). Shareholders who are not eligible to receive entitlements will not receive any value in respect of the entitlements they would have received had they been eligible. No shareholder approval is required for the Entitlement Offer.

Purpose of the Entitlement Offer and use of funds BluGlass intends to invest the proceeds of the Entitlement Offer as follows: - Ongoing development of the laser diode product pipeline and business; - Product development and testing to expedite delivery of laser diode products in our selected markets; - Investment in sales and distribution channels for successful laser diode product launch in early 2021; - Continuing investment in our specialist laser diode epitaxy and commercialisation expertise; - Advance development with existing and potential new industry strategic partners, including LED, microLED and RPCVD market participants; and - General working capital to enable ongoing execution of business strategy

Available funds from the Entitlement Offer will also be used by the Company to pay for the costs of the Entitlement Offer and provide working capital to support continued sales growth. BluGlass Directors and key executives intend to take up their full entitlement under the Entitlement Offer.

The full announcement is available to download here

The offer booklet is available to download here

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BluGlass is an Australian public company listed on the Australian Stock Exchange to bring to market a breakthrough in the semiconductor technology industry.

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