Tranche 2 Notes

19 December 2016

CloudTag Inc.

("CloudTag" or the "Company")

Receipt of £0.85 million and Issue of Part of the Tranche 2 Notes

CloudTag (CTAG:LN), the company that brings personal monitoring to the wellbeing, fitness and digital health markets, confirms that further to the announcement of 15 December 2016, it has received net proceeds of £0.85 million (taking into account costs of £0.05 million) in respect of the first part of the Tranche 2 Notes and accordingly has now issued £1,000,000 (at nominal value) of the Tranche 2 Notes to L1 Capital Global Opportunities Master Fund.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.