Announcement PDF ASX ANNOUNCEMENT 03 June 2026 Biome signs Australian manufacturing agreement to bring Activated Probiotics production onshore Highlights ● Biome Australia (ASX: BIO) has signed a commercial manufacturing agreement with Specialty Probiotics Australia (SPA) to bring production of its Activated Probiotics range onshore. ● The agreement is binding and does not require Biome to make any upfront capital investment. ● Biome's strong gross margin of approximately 61% is expected to progressively increase to 65%+ as a result of onshore production over the next 18 months, commencing from the first commercial batch. ● A meaningful working capital benefit is expected through lower inventory days, faster stock turn and the elimination of extended international sea freight. ● The first commercial batch is targeted for September 2026, with the full range to progressively transition over approximately 18 months, subject to commercial scale-up. ● Australian-made production adds a point of difference across global markets and furthers Biome's positive impact as a certified B Corporation. ● Biome will retain its European supply partnerships to service EU markets, providing supply chain diversification and de-risking. ● The agreement forms phase one of Biome's Vision 27 strategy to take greater control of its supply chain. Biome Australia (ASX: BIO) is pleased to announce it has entered into a commercial manufacturing agreement with Specialty Probiotics Australia (SPA), an Australian GMP-licensed manufacturer specialising in probiotic production. The partnership will see Biome progressively transition manufacturing of its Activated Probiotics® range to Australia, adding a locally made, competitive advantage to its product range as it continues to scale internationally. A summary of the key terms of the agreement is set out in Appendix A to this announcement. SPA is led by Craig Silbery, co-founder and former Chief Executive Officer of Life Space. Mr Silbery brings significant expertise in probiotic manufacturing and commercialisation, and SPA and Biome will work closely together to support Biome's ongoing growth across its domestic and international markets. Commenting on the partnership, Specialty Probiotics Australia Chief Executive Officer, Craig Silbery, said: "We are excited to be working with Biome and to support them strategically as they scale, by removing barriers in production and the supply chain and by supporting new opportunities in product development. Biome and its Activated Probiotics brand are among the most exciting, high-growth brands in the Australian market, and increasingly in global markets, and we look forward to the journey ahead together." Working capital and margin benefits The transition to onshore manufacturing is expected to deliver meaningful improvements to Biome's working capital position. Producing in Australia in smaller, more frequent batches is expected to reduce inventory holdings, improve stock turn and remove the extended international freight lead times currently associated with each batch. This is expected to reduce capital tied up in inventory and in-transit stock, while also improving the usable shelf life of finished product before it reaches customers. Onshore manufacturing is also expected to progressively lift Biome's gross margin from the first commercial batch, with the financial impact summarised by the CFO below. Importantly, the agreement requires no capital expenditure from Biome. Commenting on the financial benefits, Biome Australia Chief Financial Officer, Lauren Dwyer, said: "Our current gross margin of approximately 61% is already strong and has been delivered without a single retail price rise since we launched Activated Probiotics in 2019. From a financial perspective, we believe this partnership will progressively lift our gross margin to 65%+ over the next 18 months as the range transitions to Australian production. This will be achieved while reducing the working capital tied up in larger inventory orders as well as inventory in transit, and importantly without any capital expenditure from Biome, allowing us to capture these benefits while maintaining a disciplined approach to the balance sheet." Australian made and positive impact Australian-made production is expected to provide Biome with a meaningful point of difference across key export markets, particularly with consumers and practitioners who value product origin and quality manufacturing standards. The transition also reduces the international freight footprint associated with Biome's supply chain, supporting Biome's commitments as a certified B Corporation. Supply chain diversification Biome will maintain its supply relationships with its European manufacturing partners to continue servicing its European markets. Retaining this capability alongside new Australian production further de-risks Biome's supply chain and provides the Company with greater optionality and flexibility as it scales. Timing The first commercial batch is targeted for September 2026, with the balance of the range targeted to progressively move onshore over approximately the following 18 months, subject to successful commercial scale-up and transition of production. Commenting on the agreement, Biome Australia Founder and Chief Executive Officer, Blair Vega Norfolk, said: "This move has been under consideration for more than two years and represents phase one of Biome's journey to take greater control of its supply chain, manufacturing inputs and product intellectual property. As one of the cornerstones of our Vision 27 strategic plan, we are pleased to begin onshoring with SPA while continuing to assess further manufacturing opportunities over time." – ENDS – Approved for release by the Biome Australia board of directors. Investor Hub Biome has launched a new interactive investor hub. To view a video presentations, ask questions or sign up for future company updates, please visit the investor hub at https://investorhub.biomeaustralia.com/. About Biome Australia Limited Biome Australia develops, licences, commercialises and markets innovative, evidence-based live biotherapeutics (probiotics) and complementary medicines, many of which are supported by clinical research. Biome aims to improve health outcomes and quality of life, and make its products accessible to all. Incorporated in Australia in 2018, Biome distributes locally and abroad. In partnership with some of the world's leading organisations in microbiome research and development, Biome produced several unique live biotherapeutic (probiotic) products with innovative delivery technologies that improve their stability and efficacy to create its flagship range of complementary medicines: Activated Probiotics®. Supported by clinical research, including randomised double-blind placebo- controlled trials, Activated Probiotics and Activated Therapeutics help prevent and support the management of various health concerns, including low mood and sleep, bone health, iron malabsorption, mild eczema and IBS. Through practitioner-only distribution, Biome is committed to educating health professionals on the newfound systemic health effects of the gut microbiota, helping them to provide innovative, evidence-based natural medicines for the management of some of humanity's most prevalent and chronic health concerns. For more information visit: www.biomeaustralia.com Investor Relations Lauren Dwyer corporate@biomeaustralia.com (03) 9017 5800 Forward Looking Statements This release may contain forward looking statements, including but not limited to projections, guidance on future revenues, earnings, other potential synergies and estimates and the future performance of Biome (Forward Looking Statements). Forward Looking Statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Actual results, performance or achievements may differ materially from those expressed or implied in such Forward Looking Statements and any projections and assumptions on which these Forward Looking Statements are based. Such statements may assume the success of Biome's business strategies. You are cautioned not to place undue reliance on Forward Looking Statements. The Forward Looking Statements are based on information available to Biome as at the date of this release. Nothing in this release is a promise or representation as to the future. No representation or warranty, express or implied, is made as to the accuracy, likelihood of achievement or reasonableness of any Forward Looking Statements contained in this release. Patent applications are subject to examination processes and grant is not guaranteed. Clinical trial results cannot be predicted and may not support commercial development. Except as required by law or regulation (including the ASX Listing Rules), Biome does not undertake to provide any additional or updated information whether as a result of a change in expectations or assumptions, new information, future events or results or otherwise. To the maximum extent permitted by law, Biome excludes and expressly disclaims all liabilities in respect of, and makes no representation or warranty, express or implied as to the fairness, currency, accuracy, reliability or completeness of information in this release or the accuracy, likelihood of achievement or reasonableness of any Forward Looking Statements contained in, implied by, the information in this release or any part of it, or that this release contains all material information about Biome or which a prospective investor or purchaser may require in evaluating a possible investment in Biome or acquisition of securities in Biome. Appendix A: Summary of key terms of the Commercial Supply Agreement The following is a summary of the material terms of the Commercial Supply Agreement between Biome and SPA. It is a summary only and is qualified in its entirety by reference to the agreement. Term Detail Parties Biome Australia Limited (ASX: BIO) and Specialty Probiotics Australia Pty Ltd (SPA). Scope SPA will manufacture, test and package Biome's Activated Probiotics range in Australia. Biome supplies the active ingredients and SPA carries out domestic manufacture and finishing. Effective date 2 June 2026. Term Initial term of two years from the effective date, with the parties to review the agreement's operation, pricing and renewal at least once in each 12-month period. Customary early-termination rights apply. No upfront capital The agreement requires no upfront capital investment by Biome, and Biome is not obliged to purchase any minimum volume. Exclusivity During the term, Biome will source domestic manufacture of the products from SPA on an exclusive basis within Australia, subject to carve-outs for Biome's existing suppliers and for alternative suppliers where SPA fails to meet agreed quality or delivery standards and does not remedy. Biome retains its European supply partnerships to service EU markets. Delivery EX WORKS (Incoterms 2020) from SPA's facility. Liability and insurance Each party's aggregate liability is capped, subject to customary carve- outs (including personal injury, fraud, Term Detail intellectual property and confidentiality breaches, and indemnities). Mutual indemnities apply and SPA maintains public and product liability insurance of not less than $10 million per event. Intellectual property Biome retains ownership of its intellectual property and formulations. Improvements to Biome's IP vest in Biome, and SPA's licence is limited to manufacturing the products for the term. Termination Either party may terminate for uncured material breach (60-day cure period), insolvency, or force majeure exceeding three months. Biome may also end exclusivity without terminating the agreement if SPA fails to meet quality or delivery standards.