Appendix 4C - Q1 FY21 Quarterly Cash Flow Report Highlights: Continued scientific and clinical validation of lead compound ATH434 End of period cash balance of $7.4M Post reporting period, Alterity raised $35M via an Ins

Appendix 4C - Q1 FY21 Quarterly

AUSTRALIA AND SAN FRANCISCO, USA - 30 October 2020. Alterity Therapeutics Limited (ASX: ATH, NASDAQ: ATHE) ("Alterity"

or "the Company") releases its Appendix 4C Quarterly Cash Flow Report and update on company activities for the quarter

ending 30 September 2020 (Q1 FY21).

Alterity continues to progress

its clinical program for lead compound ATH434 for the treatment of Parkinsonian diseases, with growing international scientific

and clinical interest. The potential of Alterity's therapeutic pipeline was validated with the company securing $35M funding

from institutional investors in Australia, the US and UK as part of a placement to wholesale and sophisticated investors that occurred

after the reporting period.

During the period, Alterity

announced that new clinical and experimental pharmacology data were selected for presentation at the 2020 International Congress

of Parkinson's Disease and Movement Disorders and the American Neurological Association's 2020 Annual Meeting. The

new data were generated from experiments testing ATH434 in an animal model of Multiple System Atrophy (MSA) in the laboratory of

Dr. Nadia Stefanova, Professor of Translational Neurodegeneration Research at the Medical University of Innsbruck. They independently

confirmed and extended previous findings demonstrating that ATH434 reduces -synuclein pathology, preserves neurons and improves

The company also presented

new cardiac safety data evaluating electrical activity in the heart as measured by the QT interval. The data reinforce previous

safety findings from the Phase 1 clinical study that ATH434 was generally well tolerated at all doses and had an adverse event

profile comparable to placebo in adult and older adult volunteers. The new data indicate that there is no evidence of cardiac liability

at clinically tested doses.

Post the reporting period, Alterity

announced it has commenced enrolling patients with MSA in its bioMUSE Study in the United States. BioMUSE is a natural history

study that aims to track the progression of patients with MSA, a Parkinsonian disorder without approved therapy. 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

such as bioMUSE 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 in the upcoming Phase 2 study.

The Company's $7.4M cash

balance was bolstered after the reporting period with the receipt of Tranche 1 funds of $10M forming part of a larger $35M Placement

to Australian and International institutions and other unrelated sophisticated, professional or exempt investors. A further $25M

in committed funds are subject to shareholder approval at the company's AGM on 18th November.

The proceeds will enable Alterity to

continue advancing its clinical development program for ATH434, including the bioMUSE Natural History study and Phase 2 trial,

both in MSA patients, ongoing research and discovery, and working capital.

In accordance with ASX Listing Rule 4.7C, payments

made to related parties and their associates included in item 6.1. of the Appendix 4C incorporates directors' fees, remuneration

and superannuation at commercial rates.

Authorisation & Additional information

This announcement was authorised by Geoffrey Kempler,

CEO and Chairman of Alterity Therapeutics Limited.

Rebecca Wilson, WE Communications

E: WE-AUAlterity@we-worldwide.com

About Alterity Therapeutics

Alterity's lead candidate,

ATH434 (Formerly PBT434), is the first of a new generation of small molecules designed to inhibit the aggregation of pathological

proteins implicated in neurodegeneration. ATH434 has been shown to reduce abnormal accumulation of -synuclein and tau proteins

in animal models of disease by restoring normal iron balance in the brain. In this way, it has potential to treat Parkinson's

disease and atypical forms of Parkinsonism such as Multiple System Atrophy (MSA) and Progressive Supranuclear Palsy (PSP).

ATH434 has been granted

Orphan designation for the treatment of MSA by the US FDA and the European Commission.

For further information please

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

About Multiple System

Multiple System Atrophy

(MSA) is a rare and rapidly progressive neurological disorder affecting adults. It has no known cause. In addition to

presenting with motor symptoms like those in Parkinson's disease, individuals with MSA may also experience loss of

ability to coordinate voluntary movements and impaired regulation of involuntary body functions such as blood pressure, bowel

and bladder control. Most of these symptoms are not addressed by available drugs for patients with Parkinson's disease.

As the condition progresses, daily activities become increasingly difficult and complications such as increased difficulty

swallowing, vocal cord paralysis, progressive immobility, and poor balance become more prominent. Symptoms tend to appear

after age 50 and rapidly advance, leading to profound disability and death.

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, uncertainties relating to the impact of the novel coronavirus (COVID-19) pandemic on the company's

business, operations and employees, 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, ATH34, that could

slow or prevent products coming to market, the uncertainty of patent protection for the Company's intellectual property or trade

secrets, including, but not limited to, the intellectual property relating to ATH434.

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.

Quarterly cash flow report

subject to Listing Rule 4.7B

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments

Quarterly cash flow report for entities subject to Listing Rule 4.7B