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Rule 4.7B Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16 Name of entity Mesoblast Limited ABN Quarter ended ("current quarter") 6

Key Takeaway: Quarterly report for entities subject to Listing Rule 4.7B Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16 Consolidated statement of cash flows Current quarter Year to date (3 months) US$ '000 US$ '000 1 Cash flows from operating activities

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Quarterly report for entities subject to Listing Rule 4.7B
Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16
Consolidated statement of cash flows
Current quarter Year to date (3 months)
US$ '000 US$ '000
1 Cash flows from operating activities
1.1 Receipts from customers 361 361
1.2 Payments for:
(a) research and development (9,404 ) (9,404 )
(b) manufacturing commercialisation (5,738 ) (5,738 )
(c) advertising and marketing - -
(d) leased assets - -
(e) staff costs (2,437 ) (2,437 )
(f) other expenses from ordinary activities (3,407 ) (3,407 )
(g) other:
- intellectual property portfolio expenses (383 ) (383 )
1.3 Dividends received (see note 3) - -
1.4 Interest received 181 181
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Government grants and tax incentives - -
1.8 Other (provide details if material) - -
1.9 Net cash from / (used in) operating activities (20,827 ) (20,827 )
Current quarter Year to date (3 months)
US$ '000 US$ '000
2 Cash flows from investing activities
2.1 Payment to acquire:
(a) property, plant and equipment (290 ) (290 )
(b) businesses (see item 10) - -
(c) investments - -
(d) intellectual property - -
(e) other non-current assets - -
2.2 Proceeds from disposal of:
(a) property, plant and equipment - -
(b) businesses (see item 10) - -
(c) investments - -
(d) intellectual property - -
(e) other non-current assets - -
2.3 Cash flows from loans to other entities - -
2.4 Dividends received (see note 3) - -
2.5 Other (provide details if material) - -
2.6 Net cash from / (used in) investing activities (290 ) (290 )
Quarterly report for entities subject to Listing Rule 4.7B
Current quarter Year to date (3 months)
US$ '000 US$ '000
3 Cash flows related to financing activities
3.1 Proceeds from issues of shares - -
3.2 Proceeds from issue of convertible notes - -
3.3 Proceeds from exercise of share options - -
3.4 Transaction costs related to issues of shares, convertible notes or options (55 ) (55 )
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
3.7 Transaction costs related to loans and borrowings - -
3.8 Dividends paid - -
3.9 Other (provide details if material) - -
3.10 Net cash from / (used in) financing activities (55 ) (55 )
Current quarter Year to date (3 months)
US$ '000 US$ '000
4 Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of quarter/year to date 80,937 80,937
4.2 Net cash from / (used in) operating activities (item 1.9 above) (20,827 ) (20,827 )
4.3 Net cash from / (used in) investing activities (item 2.6 above) (290 ) (290 )
4.4 Net cash from / (used in) financing activities (item 3.10 above) (55 ) (55 )
4.5 Exchange rate adjustments to item 1.21 590 590
4.6 Cash and cash equivalents at end of quarter 60,355 60,355
Current quarter Previous quarter
US$ '000 US$ '000
5 Reconciliation of cash and cash equivalents
at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts
5.1 Bank balances 7,194 10,687
5.2 Call deposits 43,096 58,969
5.3 Bank overdrafts - -
5.4 Other (Term deposits) 10,065 11,281
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 60,355 80,937
Current quarter
US$ '000
6 Payments to directors of the entity and their associates
6.1 Aggregate amount of payments to these parties included in item 1.2 409
6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 -
6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2
Payment to directors (for the current quarter) = $409k
+ See chapter 19 for defined terms.
01/09/2016 Appendix 4C Page 2
Quarterly report for entities subject to Listing Rule 4.7B
Current quarter
US$ '000
7 Payments to related entities of the entity and their associates
7.1 Aggregate amount of payments to these parties included in item 1.2 -
7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 -
7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2
not applicable
Amount available Amount used
US$ '000 US$ '000
8 Financing facilities available
Add notes as necessary for an understanding of the position
8.1 Loan facilities - -
8.2 Credit standby arrangements - -
8.3 Other (please specify) - -
8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.
not applicable
US$ '000
9 Estimated cash outflows for next quarter
9.1 Research and development (10,730 )
9.2 Manufacturing commercialisation (6,870 )
9.3 Advertising and marketing -
9.4 Leased assets -
9.5 Staff costs (2,029 )
9.6 Other expenses from ordinary activities (2,584 )
9.7 Other (provide details if material):
(a) Other working capital (2,000 )
(b) Intellectual property portfolio expenses (651 )
9.8 Total estimated cash outflows (1)(2) (24,864 )
+ See chapter 19 for defined terms.
01/09/2016Appendix 4C Page 3
Quarterly report for entities subject to Listing Rule 4.7B
Acquisitions Disposals
US$ '000 US$ '000
10 Acquisitions and disposals of business entities
(items 2.1(b) and 2.2(b) above)
10.1 Name of entity - -
10.2 Place of incorporation or registration - -
10.3 Consideration for acquisition or disposal - -
10.4 Total net assets - -
10.5 Nature of business - -
Compliance statement
Sign here:/s/ Charlie HarrisonDate: 31 October 2016
Print name:Charlie Harrison
+ See chapter 19 for defined terms.
01/09/2016 Appendix 4C Page 4
Quarterly report for entities subject to Listing Rule 4.7B
+ See chapter 19 for defined terms.
01/09/2016Appendix 4C Page 5
Last updated: Nov 3, 2016