Alterity Therapeutics Announces Shareholder Approval of Tranche Two Placement and Security Purchase Plan MELBOURNE, AUSTRALIA AND SAN FRANCISCO, USA - 29 December 2023: Alterity Therapeutics (ASX: ATH, NASDAQ: ATHE) ("Al

Alterity Therapeutics Announces Shareholder

Approval of Tranche Two Placement and Security Purchase Plan

MELBOURNE, AUSTRALIA AND SAN FRANCISCO, USA

- 29 December 2023: Alterity Therapeutics (ASX: ATH, NASDAQ: ATHE) ("Alterity" or "the Company"), a

biotechnology company dedicated to developing disease modifying treatments for neurodegenerative diseases, today announced that shareholders

approved the resolution to proceed with Tranche Two of the Placement and Security Purchase Plan (SPP) first announced on 22 November 2023.

The resolution was obtained at the Company's Extraordinary General Meeting (EGM) earlier today.

The Company has lodged relevant documentation

to proceed with Tranche Two of the Placement and SPP with the Australian Securities and Investments Commission (ASIC) and the ASX.

As announced on 29 November 2023, Tranche One

of the Placement raised approximately A$1.3M in accordance with the Company's available placement capacity pursuant to ASX Listing

Rules 7.1 (362,462,762 shares). Tranche Two is anticipated to raise approximately A$3.5M (1,008,965,809 shares and all free attaching

options). The new shares rank equally with ATH fully paid ordinary shares.

Eligible shareholders with a registered address

in Australia and New Zealand at the record date (7.00 pm on 21 November 2023) will be invited to participate in an SPP under which

shares and free-attaching options will be offered on the same terms as the Placement up to a maximum of A$30,000 per eligible shareholder.

The maximum total subscription under the SPP is A$2 million. The SPP offer is only being made to shareholders with a registered address

in Australia or New Zealand in the register of members of the Company, having regard to the compliance costs of making the SPP offer in

other jurisdictions.

Key Dates for Tranche Two of the Placement

above is indicative only and subject to variation. The Company reserves the right to alter the timetable as its absolute discretion and

without notice, subject to the ASX Listing Rules and Corporations Act 2001 (Cth).

The proceeds from this financing will provide

ongoing funding of Alterity's Phase 2 clinical trials in Multiple System Atrophy (MSA), planning for a potential Phase 3 clinical

trial in MSA, continuing discovery and research efforts in neurodegenerative diseases, including Parkinson's Disease, and general

working capital. The placement was managed by MST Financial Pty Ltd.

About Alterity Therapeutics Limited

Alterity Therapeutics is a clinical stage biotechnology

company dedicated to creating an alternate future for people living with neurodegenerative diseases. The Company's lead asset,

ATH434, has the potential to treat various Parkinsonian disorders and is currently being evaluated in two Phase 2 clinical trials in Multiple

System Atrophy. Alterity also has a broad drug discovery platform generating patentable chemical compounds to treat the underlying pathology

of neurological diseases. The Company is based in Melbourne, Australia, and San Francisco, California, USA. For further information please

visit the Company's web site at www.alteritytherapeutics.com.

Authorisation & Additional information

This announcement was authorized by David Stamler, CEO of Alterity

Therapeutics Limited.

Investor and Media Contacts:

Forward Looking Statements

This press release contains "forward-looking

statements" within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934.

The Company has tried to identify such forward-looking statements by use of such words as "expects," "intends," "hopes,"

"anticipates," "believes," "could," "may," "evidences" and "estimates," and

other similar expressions, but these words are not the exclusive means of identifying such statements.

Important factors that could cause actual results

to differ materially from those indicated by such forward-looking statements are described in the sections titled "Risk Factors"

in the Company's filings with the SEC, including its most recent Annual Report on Form 20-F as well as reports on Form 6-K, including,

but not limited to the following: statements relating to the Company's drug development program, including, but not limited to the initiation,

progress and outcomes of clinical trials of the Company's drug development program, including, but not limited to, ATH434, and any other

statements that are not historical facts. Such statements involve risks and uncertainties, including, but not limited to, those risks

and uncertainties relating to the difficulties or delays in financing, development, testing, regulatory approval, production and marketing

of the Company's drug components, including, but not limited to, ATH434, the ability of the Company to procure additional future

sources of financing, unexpected adverse side effects or inadequate therapeutic efficacy of the Company's drug compounds, including, but

not limited to, ATH434, that could slow or prevent products coming to market, the uncertainty of obtaining patent protection for the Company's

intellectual property or trade secrets, the uncertainty of successfully enforcing the Company's patent rights and the uncertainty

of the Company freedom to operate.

Any forward-looking statement made by us in

this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake

no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as

a result of new information, future developments or otherwise.