Silex : Operational Update Presentation - 27 February 2017

Silex Systems Limited Operational Update

(ASX: SLX) (OTCQX: SILXY)

Dr Michael Goldsworthy CEO/Managing Director

27 February 2017

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 subject to engineering and market risks. 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 also remains subject to technology and market risks.

The commercial potential of these two technologies is currently unknown. Accordingly, the statements in this announcement 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: the outcome of the GLE restructure currently underway; 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.

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Disclaimer

Silex Systems Ltd (Silex) has prepared this presentation based on information available to it. The information in this presentation does not purport to be a complete description of Silex and/or its business activities. Except as required by law, no representation or warranty, express or implied, is made by Silex as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this document and discussed in the presentation, or as to the reasonableness of any assumption contained in this presentation. By receiving or viewing this presentation and to the extent permitted by law, you release Silex and its directors, officers, employees, agents and affiliates from any liability (including, without limitation, in respect of direct, indirect or consequential loss or damage, or loss or damage arising by negligence) arising as a result of the reliance by you or any other person on anything contained in or omitted from this presentation.

This presentation should be read in conjunction with other disclosures that have been lodged by the company with the Australian Stock Exchange.

No responsibility is accepted by Silex or any of its directors, officers, employees, agents or affiliates, nor any other person, for any of the information contained in this document and discussed in the presentation or for any action taken by you on the basis of the information or opinions expressed in the course of this presentation. This presentation does not constitute investment, legal, taxation or other advice and the presentation does not take into account your investment objectives, financial situation nor particular needs. You are responsible for forming your own opinions and conclusions on such matters and should make your own independent assessment of the information contained in this document and discussed in the presentation and seek independent professional advice in relation to such information and any action taken on the basis of the information.

This document is not a product disclosure statement or prospectus for the purposes of the Australian Corporations Act 2001 and does not constitute an offer, invitation, solicitation or recommendation in relation to the subscription, purchase or sale of shares or other securities in any jurisdiction, including in the United States or to any U.S. person, and neither this document nor anything in it shall form the basis of any contract or commitment. Securities may not be offered or sold in the United States, or to or for the account of any U.S. person, unless the securities have been registered under the U.S. Securities Act of 1933 or an exemption from registration is available.

The views and opinions expressed herein are solely those of Silex and do not reflect the view of GE-Hitachi Global Laser Enrichment LLC, or its owners or subsidiaries

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Silex Systems Limited

Silex Systems (Silex) is an advanced technology company focussed on the commercialisation of its innovative SILEX laser enrichment technology for nuclear fuel production

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