Silex : Operational Update Presentation - 22 August 2016

Silex Systems Limited

Operational Update

22 August 2016

(ASX: SLX) (OTCQX: SILXY)

Forward Looking Statements

Silex Systems is a research and development Company whose primary asset is the SILEX laser uranium enrichment technology, originally developed at the Company's technology facility in Sydney, Australia. The SILEX technology, licensed exclusively to GE-Hitachi Global Laser Enrichment LLC (GLE) in the USA, is currently in the engineering development stage and plans for commercial deployment remain distant and high risk.

Silex also has an interest in a unique semiconductor technology known as 'cREO™' through its ownership of subsidiary Translucent Inc. The cREO™ technology is exclusively licensed to IQE Plc based in the UK. IQE is progressing the cREO™ technology towards commercial deployment in various advanced semiconductor products. The outcome of IQE's commercialisation program remains high risk.

The commercial potential of these two technologies is currently unknown. Accordingly, the statements in this presentation regarding the future of the SILEX technology, the cREO™ technology and any associated commercial prospects are forward looking and actual results could be materially different from those expressed or implied by such forward looking statements as a result of various risk factors.

Some risk factors that could affect future results and commercial prospects include, but are not limited to: results from the SILEX uranium enrichment engineering development program being conducted jointly by the Company and GLE; the demand for natural uranium and enriched uranium; the time taken to develop the SILEX technology; results from IQE's commercialisation program and the demand for cREO™ products, the potential development of competing technologies; the potential for third party claims against the Company's ownership of Intellectual Property; the potential impact of government regulations or policies in the USA, Australia or elsewhere; and the outcomes of various commercialisation strategies undertaken by the Company and/or its Licensees GLE and IQE.

The forward looking statements included in this presentation involve subjective judgment and analysis and are subject to significant business, economic and competitive uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to Silex. Given these uncertainties, you are cautioned to not place undue reliance on such forward looking statements.

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The Company

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Key FY2016 Activities and Status of Silex

• The Company is primarily focused on commercialisation of the unique SILEX technology as the best path forward to re-build value for shareholders when nuclear fuel markets return to growth

• A Term Sheet was executed with GE-Hitachi on 29 April 2016 providing the framework for a restructure of GLE - the exclusive licensee of the SILEX laser enrichment technology

• Silex is leading the search for new investors for GLE with discussions advancing with several

  interested parties

• The SILEX technology engineering and economic validation program continues to achieve pleasing results in key program activities at both the Wilmington and Sydney project sites

• Translucent's unique 'cREO™' semiconductor materials technology was exclusively licensed to

  UK-based IQE Plc in September 2015 under a royalty-based license agreement

• IQE is advancing the cREO™ technology towards commercial deployment in several advanced

  semiconductor markets, potentially adding to future shareholder value

• Current cash reserves of $50.3 million, equivalent to $0.30 per share

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