Alterity Therapeutics Limited Appendix 4D Half year ended 31 December 2020 Name of entity: Alterity Therapeutics Limited ABN: 37 080 699 065 Half-year ended: 31 December 2020 Previous period: 31 December 2019 Results for

Alterity Therapeutics Limited Appendix 4D

Half year ended 31 December 2020

Results for announcement to the market

Net tangible assets per security

Explanation of results

Alterity Therapeutics Limited recorded

income of $6,553 for the half year ended 31 December 2020 (2019:$14,133) which is interest received on the Group's bank accounts.

Alterity Therapeutics Limited has incurred a loss of $8,561,862 for the half year ended 31 December 2020 (2019: $5,640,258).

An explanation of the key financial elements contributing to

the revenue and result above can be found in the review of operations included within the directors' report.

No dividends have been paid or declared by the Group for the

current financial period. No dividends were paid for the previous financial period.

Changes in controlled entities

There have been no changes in controlled entities during the

period ended 31 December 2020.

Other information required by Listing Rule 4.2A

The interim financial statements have been reviewed by the Group's

independent auditor without any modified opinion, disclaimer or emphasis of matters.

Alterity Therapeutics Limited

Alterity Therapeutics Limited

Your directors present their report on

the Consolidated Entity (referred to hereafter as the group) consisting of Alterity Therapeutics Limited and the entities it controlled

at the end of, or during, the half-year ended 31 December 2020.

The following persons were directors of

Alterity Therapeutics Limited during the whole of the half-year and up to the date of this report:

Mr. Geoffrey Kempler

Review of operations - 31 December 2020

Detailed below is an update on the status

of the Group's research and development projects and overall operations for the half-year ended 31 December 2020 .

The Group's 30 June 2020 Annual Report

contains detailed background information relating to its operations including its research and development projects and collaboration

partners and should be read in conjunction with this report.

Alterity Therapeutics' lead compound

ATH434 is an orally bioavailable, brain penetrant, small molecule inhibitor of -synuclein aggregation, which is being developed

for Multiple System Atrophy (MSA). Alpha-synuclein aggregation is implicated in the pathology of MSA and Parkinson's disease.

MSA is a rare and rapidly progressive Parkinsonian

disorder. It is a neurodegenerative disease with major sources of disability resulting from motor symptoms characteristic of Parkinson's

disease and impaired ability to maintain normal blood pressure, bowel function and bladder control. Current treatment includes

medications and lifestyle changes to help manage symptoms, but there is no treatment to address the underlying cause and no cure.

The Company's Phase 1 Clinical trial

reported in 2019 found ATH434 was considered safe and well-tolerated in adult and older adult ( 65 years) human subjects, with

an adverse event profile comparable to placebo. The safety profile was similar for adult and older adult volunteers. The results

also indicated that ATH434 crosses the blood brain barrier in humans and that well-tolerated doses achieved concentrations in the

brain that exceed those associated with robust efficacy in animal models.

ATH434 has Orphan drug designation both

with the US FDA and European Commission for the treatment of MSA.

Several significant advancements were achieved

during the reporting period, as well as the continued strengthening of the safety profile of ATH434.

In addition, the company continued to explore

opportunities for PBT2 and identify potential expansion of its therapeutic portfolio.

Alterity Therapeutics Limited

Review of operations - 31 December 2020 (continued)

bioMUSE natural history study for

Patients with MSA are being enrolled in

Alterity's bioMUSE Study in the United States.

BioMUSE is a natural history study that

intends to track the progression of patients with early MSA. The study is being conducted in collaboration with Vanderbilt University

Medical Center in the US under the direction of Daniel Claassen, MD, Associate Professor of Neurology and Principal Investigator.

Natural history studies are important for characterizing disease progression in selected patient populations.

The study will provide vital information

on early stage MSA patients to optimize the design of Alterity's Phase 2 study in MSA. The study will also inform the selection

of biomarkers suitable to evaluate target engagement and preliminary efficacy of ATH434.

The study is enrolling early stage MSA

patients and will track changes in clinical measures and biomarkers for up to one year. Over the course of the study, patients

will undergo comprehensive evaluation with detailed neurological examination and clinical rating scales of motor, autonomic and

activities-of-daily-living symptoms along with specialized neuroimaging and assessment of protein biomarkers in diverse biological

Data from bioMUSE will also be used to

inform patient selection in the Phase 2 clinical trial of ATH434. The US FDA has encouraged Alterity to utilize data from the bioMUSE

study to aid in the development of efficacy endpoints for the Phase 2 study.

Vanderbilt University Medical Centre is

one of the largest academic medical centres in the southeast US managing more than 2 million patients each year. The School of

Medicine's biomedical research program is among the nation's top 10 in terms of National Institutes of Health peer

Next generation compounds to treat

neurodegenerative diseases

In November, the US Patent and Trademark

Office (USPTO) advised allowance of a new composition of matter patent. The new patent is the product of in-house discovery research

and is central to Alterity's next generation drug development portfolio focussed on neurodegenerative diseases.

The patent, entitled "Compounds for

and Methods of Treating Diseases" (Application No. 16/818,641), covers more than 150 novel pharmaceutical compositions that

are designed to redistribute the labile iron implicated in Parkinson's disease, Alzheimer's disease and other neurodegenerative

Alterity's strategy is based on the

hypothesis that its therapeutics can disrupt the underlying pathology of neurodegenerative conditions in which labile iron is implicated

in disease pathology.

This includes Parkinsonian disorders such

as Parkinson's disease and Multiple System Atrophy, as well as Alzheimer's disease. The patent confers on Alterity

20 years of exclusivity, providing a strong basis for continued drug development and commercialization and new compound identification

within its extensive drug discovery library to target important neurodegenerative diseases.

This new patent will support the expansion

of Alterity's drug development portfolio.

Alterity Therapeutics Limited

Review of operations - 31 December 2020 (continued)

New data independently confirms and

extends laboratory findings and expands safety profile of ATH434

New animal data for ATH434 from the laboratory

of Dr Nadia Stefanova, Professor of Translational Neurodegenerative Research at the Medical University of Innsbruck was presented