Alterity Therapeutics Limited ACN 080 699 065 Appendix 4E Preliminary Final Report 30 June 2020 Lodged with the ASX under Listing Rule 4.3A. This information should be read in conjunction with the Appendix 4E. Alterity T

Alterity Therapeutics Limited

Appendix 4E Preliminary Final Report

Lodged with the ASX under

This information should be read in conjunction with the Appendix 4E.

Alterity Therapeutics Limited

4E - Preliminary Final Report

For the year ended 30 June 2020

Results for announcement to the market

Net tangible assets per share

Explanation of results

Alterity Therapeutics

Limited recorded revenue of $17,117 for the year ended 30 June 2020 (2019: $108,538), which is interest received on the

Group's bank accounts. Alterity Therapeutics Limited has incurred a loss for the year of $10,059,684 (2019:

$12,337,830). T his loss has decreased due to the reduced research and development expenditure relating to the Group's

lead product candidate ATH434 following completion of the Phase 1 clinical trial in July 2019.

For further details relating

to the current period's results, refer to the Review of operations and activities contained within this document.

Changes in controlled entities

Other information required

by Listing Rule 4.3A

This preliminary financial

report is based on accounts which are in the process of being audited. The 30 June 2020 financial report, when audited, is likely

to contain an independent auditor's report which includes an emphasis of matter related to a material uncertainty that may cast

significant doubt about the Company's ability to continue as a going concern. Additional disclosure has been included in Note 22(a)(vi)

to the preliminary financial report.

Alterity Therapeutics Limited

Appendix 4E Preliminary Final Report

Alterity Therapeutics Limited

Therapeutics Limited

of operations and activities

Review of Operations and Activities

This report provides details

of activities and progress for Alterity Therapeutics Limited for the year ended 30 June 2020.

Alterity is developing first-in-class

therapies to treat neurodegenerative diseases. The Company's lead drug candidate, ATH434 (formerly PBT434), is the first

of a new generation of small molecules designed to block the accumulation and aggregation of alpha-synuclein ( -synuclein).

Alpha-synuclein, when aggregated in the brain, is a pathological hallmark of Parkinsonian conditions and is considered an important

biologic target for treating these neurodegenerative diseases.

ATH434 is an oral small molecule

drug candidate with potential for treating synucleinopathies such as Parkinson's disease and Multiple System Atrophy (MSA), a type

of parkinsonian disorder which has been selected as the first disease target. MSA is a rare and rapidly progressive neurological

disorder affecting adults.

ATH434 has demonstrated pre-clinical

evidence as a potential treatment of MSA and produced encouraging results in its Phase 1 clinical program. The company is in the

preparatory phase of planning for its Phase 2 clinical trial.

Meeting with US FDA provides development pathway

In June 2020, Alterity received

guidance from the US Food and Drug Administration (FDA) in relation to the development pathway for ATH434 following the successful

completion of its Phase 1 clinical trial. The pre-IND (Investigational New Drug) meeting was to obtain input on the clinical development

plan for ATH434, including feedback on the Phase 2 study design.

Alterity reached agreement

with the FDA on the non-clinical investigations required to support the Phase 2 study. In addition, the FDA agreed to key aspects

of the Company's Phase 2 study design including the proposed patient population, safety monitoring plan and strategy for

evaluating drug exposure during the study.

As there are currently no

approved treatments for MSA and, therefore, no regulatory precedent regarding accepted efficacy endpoints, the FDA and Alterity

will work together to develop an endpoint that is best suited for the MSA patients to be studied. The FDA has also encouraged Alterity

to utilise data from a natural history study that Alterity has planned with clinical and neuroimaging experts at Vanderbilt University

Medical Center in the US.

This natural history study,

referred to as bioMUSE, or biomarkers of Progression in Multiple System Atrophy, will enrol early stage MSA patients and track

change in clinical parameters and biomarkers for up to one year. Natural history studies are important for characterizing disease

progression over time in selected patient populations. Well-conducted, these studies can provide vital information to optimize

clinical trial design and inform the selection of biomarkers to evaluate target engagement of drug candidates.

In parallel with the US strategy,

Alterity is also pursuing a regulatory pathway in Europe and Australia. Given the uncertainty of study conduct and recruitment

in the COVID-19 era, and with the need to target sites that are minimally impacted, it is prudent for the Company to be flexible

in identifying and recruiting sites around the world and maintaining optionality. Planning is underway to meet with European authorities.

European Commission approves Orphan Designation for

The European Commission (EC)

granted Orphan Drug designation to ATH434, which entitles Alterity to ten years of market exclusivity in the European Union for

the use of ATH434 in the treatment of MSA and other benefits including assistance in developing clinical protocols, reduced fees

and access to EU-funded research grants. This followed the US FDA granting ATH434 orphan drug status for the treatment of MSA in

The approval was based on the

recommendation of a positive opinion from the European Medicines Agency's Committee for Orphan Medicinal Products, which

was announced on the 18th of November 2019.

Therapeutics Limited

of operations and activities

Completion of Phase 1 Clinical Trial

In July 2019 Alterity announced

that it had successfully completed its Phase 1 study of ATH434. The completed trial included data from elderly volunteers receiving

repeated doses and demonstrated that the drug was safe and well-tolerated, with an adverse event profile like adult volunteers.

As was observed in healthy adult volunteers, no elderly subject experienced a serious adverse event or an adverse event that led

to discontinuation of the study drug.

The findings built on the

data from healthy volunteers announced in May 2019 at the American Academy of Neurology Annual Meeting.

Systemic exposure to the drug

was comparable between elderly and healthy volunteers. This information, along with previous results in the Phase 1 study, indicate

that clinically tested doses achieve concentrations in the brain that are comparable with those associated with efficacy in animal

The Phase 1 Clinical Trial

for ATH434 recruited healthy adult and elderly ( 65) volunteers with the primary goals of assessing the safety and tolerability

of ATH434 after single and multiple oral dose administration. Secondary goals included evaluating pharmacokinetics in plasma and

cerebrospinal fluid that enabled determination of how ATH434 is absorbed and metabolized by the body.

Growing scientific interest for ATH434

In May, data on ATH434 was