SILEX SYSTEMS LIMITED 
By About Silex
Silex Systems Limited (ASX: SLX) (OTCQX: SILXY) is a world leader in research, development and commercialisation of leading edge technologies in key strategic markets, including nuclear power, solar power, semiconductor materials and instrumentation. Silex is a member of the S&P/ASX 300 index and operates four divisions:
Silex has licensed its 'SILEX' laser-based uranium enrichment technology to Global Laser Enrichment, a business venture comprising GE (51%), Hitachi (25%) and Cameco (24%). Silex and GLE are commercialising the technology for potential deployment in the USA.
Solar Systems has developed ultra-high efficiency concentrating photovoltaic (CPV) technology based on its proprietary 'Dense Array' dish concentrator system, targeting deployment of utility-scale solar power stations in key global markets.
Translucent has developed novel semiconductor materials based on the 'rare earth oxide' family for application to the manufacturing of next generation devices in the semiconductor, power electronics and solar industries; and
ChronoLogic has developed the world's first high precision timing and control products based on the ultra-low cost
USB-inSync™ platform, targeting applications in the electronic instrumentation markets. For more information on Silex Systems Limited, please visit www.silex.com.au.
Forward Looking Statements and Business Risks
Silex Systems is a research and development Company whose assets are its proprietary rights in various
technologies, including, but not limited to, the SILEX technology, Solar Systems technology and business, Translucent technology and ChronoLogic technology. Several of the Company's technologies are in the development stage and have not been commercially deployed, and therefore are high-risk. Accordingly, the statements in this announcement regarding the future of the Company's technologies and 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 commercialisation program; the demand for enriched uranium; the risks associated with the development of Solar Systems technology and related marketing activities; the outcomes of the Company's interests in the development of various semiconductor, photonics, instrumentation and alternative energy technologies; the time taken to develop various technologies; the development of competing technologies; the potential for third party claims against the Company's ownership of Intellectual Property associated with its numerous technologies; the potential impact of government regulations or policies; and the outcomes of various commercialisation strategies undertaken by the Company.
HighlightsSILEX Uranium Enrichment:
• Test Loop Program Phase I Milestone successfully completed at GE-Hitachi Global Laser Enrichment's (GLE)
facility in USA, triggering a US$15 million milestone payment to Silex;
• Technology is now being engineered to commercial scale in the Phase II program;
• Approval from the US Nuclear Regulatory Commission for a construction and operating license for the
Wilmington, North Carolina, USA, facility; and
• GLE submits a proposal in response to a Request for Offers from the US Department of Energy to construct a new facility at Paducah, Kentucky to enrich depleted uranium inventories using the SILEX Technology.
Solar Systems
• Opening of Australia's largest Concentrating Photovoltaic (CPV) Solar Power Station in Mildura, Australia.
The 1.5MW facility, consisting of 40 large CPV dish concentrator systems, is connected to the local grid and generating clean energy;
• Preliminary project development activities to develop the 100MW Mildura Power Station advanced with construction expected to commence in late 2014, subject to successful operation of the 1.5MW facility and finalisation of financial prerequisites;
• Construction of a 1MW demonstration plant at the Nofa Equestrian Resort near Riyadh, Saudi Arabia is well advanced.
Translucent
• Continued progress of advanced substrate product development and industry validation activities targeting the
Power Electronics and CPV solar cell markets including:
- Improving the quality of Gallium Nitride (GaN) material which could significantly reduce costs of production for the Power Electronics industry; and
- Advancing low-cost germanium-tin (GeSn) substrates for application to ultra-high efficiency multi-junction solar cells with wafers being processed by industry partners.
Chronologic
• Following a strategic review, discussions continue to secure strategic partners for the Chronologic technology and products.
Letterto
Shareholders
Dear Shareholders,
The year ended 30 June 2013 has been an exciting year for Silex Systems Limited. Several of our unique technologies are approaching commercialisation, and we have achieved a number of important key milestones.
In May, the Company's ground-breaking laser-based
'SILEX' uranium enrichment technology, achieved the Test Loop Program Phase l Milestone at GE-Hitachi Global Laser Enrichment's (GLE) Wilmington facility
in North Carolina, USA. This event triggered a US$15 million milestone payment from GLE. The milestone followed approvai by the US Nuclear Regulatory Commission in September 2012 fora combined construction and operating license for the first commerciai production plant planned for Wilmington. These events are crucial steps towards constructing the world's first third-generation laser-based uranium enrichment plant.
In July, Solar Systems officially opened its 1.5MW Solar Demonstration Facility in Mildura, Victoria- the precursor to a 1OOMW facility which will eventually power up to 40,000 homes at peak capacity. The event was attended by more than 120 guests, with The Hon Nicholas Kotsiras, MP, Victorian Minister for Energy
and Resources officially opening the plant. The event received widespread media coverage. The 1.5MW operating piant will be evaluated over the next year
to provide performance and reliability data needed to establish commerciai viability of the technology, before proceeding with the much larger 1OOMW solar power station at the same location. State and Federai governments have conditionally committed $110 million towards this project.
Silex Operational Update 2013
With the relevance of our technologies and in particular, the SILEX uranium enrichment technology, growing substantially in the US market. there are new opportunities to broaden our investor base and attrae! investors from new geographies. To facilitate this, Silex commenced trading on the OTCQX lnternational market in June. This market is reserved for high-quality non-
US companies listed on a qualified international stock exchange and is a convenient way for US investors to trade in our company.
lt has been a busy period for Silex, with many positive achievements. As we move into a new financial year, we are firmly committed to progressing our unique
technologies through their respective commercialisation
phases and look forward to continuing to build on the milestone achievements of the last 12 months.
Sincerely,
Dr Michael Goldsworthy
CEO l Managing Director
4
Operations UpdateSilex Uranium Enrichment Project Update
Phase 1:Test loop Milestone Completion
In May 2013, Silex announced that the Test Loop Program Phase l Milestone: Technology Demonstration and Validation, had been successfully completed at GE-Hitachi Global Laser Enrichment's ('GLE') facility in Wilmington, North Carolina, USA. Completion of the Phase l milestone triggered a US$15 million milestone payment from GLE to Silex, which was received in July 2013.
The achievement of the Test Loop Phase l Milestone - involving advanced technology demonstration- is a key step in the commercialisation of the SILEX uranium enrichment technology by GLE. The milestone completion followed receipt of approvai from the US Nuclear Regulatory Commission in September 2012 fora combined construction and operating license for the first commerciai production plant planned for Wilmington, North Carolina.
Phase Il:Full-Scale Engineering and Economie Validation
The Project teams in Wilmington, North Carolina, Oak Ridge, Tennessee and Lucas Heights, Australia are now fully focused on Phase Il of the Commercialisation Program, which includes economie and engineering validation of the technology and full scale-up for the construction of the initial commerciai production module. Once optimised, this module would be replicated several times to build out the world's first laser enrichment piant.
The Path Forward
GLE is conducting a stage-gated approach to commercialisation of the SILEX laser enrichment technology, with the following three phases:
Phase Ob"ectives Status
Test Loop technology demonstration and NRC commerciai
Phase l
Phase Il
plant license approvai Completed
Economie and engineering validation for the initial commerciai
production module Commenced in 2012
Phase 111 Construction of the first full-scale commerciai production facility Yet to commence
While pursuing the Phase Il program and taking into account industry and economie conditions, commerciai opportunities and other factors, GLE plans to evaluate deployment of the technology and the construction of the first full-scale commerciai production facility at Wilmington, North Carolina.
The Paducah, Kentucky Opportunity Update
The US Department of Energy (DOE) issued a formai Request For Offers (RFO) for re-utilisation of the Paducah Gaseous Diffusion Piant facilities alter the piant ceased operations in May 2013. GLE submitted a response to the RFO on 14th August which included a non-binding proposal to establish an enrichment piant at Paducah using the SILEX Technology.
The Paducah enrichment piant proposal would potentially involve the processing of hundreds of thousands of tons of depleted uranium tails inventories owned by the DOE. The DOE expects to enter negotiations in the next few months and, ifviable, execute an agreement in early 2014, or sooner if possible.
Silex Operational Update 2013 5
Australia's largest Concentrating Photovoltaic (CPV) Solar Power Station was opened on 17 July 2013 by the Victorian Energy and
Resources Minister, The Hon. Nicholas Kotsiras MP, and Silex CEO, Dr Michael Goldsworthy.
Solar Systems - CPV Dish Concentrator Technology Update
Solar Systems Opens the Mildura Solar Demonstration Facility
Australia's largest Concentrating Photovoltaic (CPV) Solar Power Station was opened on 17 July 2013. The 1.5MW facility, consisting of 40 large CPV dish concentrator systems, is connected to the local grid and providing enough power for up to 500 average sized homes at peak power production. The operating plant will be evaluated over the next year to provide performance and reliability data needed to establish commercial viability of the technology, before proceeding with a much larger 100MW solar power station at the same location.
Mildura 100MW Solar Power Station Project
Preliminary project development activities for the 100MW Mildura Power Station are well advanced. Construction is expected to commence in late 2014, subject to successful operation of the 1.5MW facility and securing the necessary funding arrangements. Once built, the 100MW Mildura Solar Facility is expected to be the largest solar plant in Australia and one of the largest solar CPV plants in the world.
The 100MW Mildura Power Station Project has received conditional funding commitments of $75 million from the
Commonwealth Government and approximately $35 million from the Victorian Government.
Additional Demonstration Plants and Power Station Projects
Construction of a 1MW demonstration plant at the Nofa Equestrian Resort near Riyadh, Saudi Arabia, continues. This will be the first offshore demonstration facility using Solar Systems' 'Dense Array' CPV Dish technology. Significant opportunities exist for the development of solar projects in Saudi Arabia with a major 40GW solar initiative worth around US$109 billion announced in 2012 by the Saudi government.
Solar Systems has also secured an option over a site for the construction of a demonstration facility of up to 1MW at
Beaumont, California USA. Solar Systems will maintain this option and will review this opportunity later in CY2013.
During FY2014 Solar Systems' business development activities will primarily focus on additional mid-sized project opportunities (10 to 50MW) in Australia, the Middle East and potentially USA. The prospects for CPV project development in Australia are currently amongst the most favourable in the world. With the possibility of obtaining further support for project finance, implementation is potentially lower risk in the short term relative to offshore alternatives.
Silex Operational Update 2013 6
Translucent- Advanced Semiconductor Materials Update
Translucent continued to progress its advanced substrate producidevelopment and industryvalidation activities in the target Power Electronics and CPV solar celi markets. Ilsuccessfully commercialised, Translucent's proprietary substrates which utilise its novel rare earth oxide (REO) materials may provide significant cost advantages and potential performance improvements compared to sapphire, germanium and other expensive substrates that these industries currently use.
A pian to move Translucent to new premises in Mountain View, California was previously announced in order to establish a pilot manufacturing line. Process improvements have resulted in the existing premises at Palo Alto becoming capable of fulfilling the needs of pilot production. This enables Translucent to continue to focus on demonstrating the process engineering capability and prove up future volume manufacturing options for its proprietary substrates without the distraction of re-location.
(Q Substrates for Power Electronics
Translucent has continued to improve the quality of Gallium Nitride (GaN) materia! incorporated in its vGaN rM on silicon substrates which could significantly reduce costs of production for the Power Electronics industry. Prototype transistor test structures have been fabricated and tested with favourable initial results. Commerciai grade vGaN rM substrates are expected to be ready for customer evaluation later in CY2013.
(ii) Substrates for Ultra-High Efficiency Solar Cells
Development of Translucent's proprietary low-cost germanium-tin (GeSn) substrates for application to ultra-high efficiency multi-junction solar cells has advanced with wafers being processed by industry partners. Single junction solar cells have been demonstrated with encouraging results. Double and triple junction solar cells are currently being grown, with demonstration multi-junction cells expected to be produced later in CY2013 for subsequent evaluation.
Chronologic- USB-inSync™ lnstrumentation Update
Development of the core USB-inSyncrM technology continues to advance, with the demonstration of the third generation level of performance. Development of several new products has been completed in preparation for introduction into the Test and Measurement instrumentation market.
As previously disclosed, a strategie review is being undertalken for this business, with the aim of securing appropriate strategie partners for its technology and products. This has resulted in interest from several companies and discussions are continuing. The process has taken longer than anticipated, however, it is expected to be finalised by the end of the calendar year.
Silex Operational Update 2013 7
lnvestor RelationsSilex Systems Limited- 2013 Annual Generai Meeting
The date and venue for the 2013 Annual Generai Meeting is: Date: Tuesday, 19th November
Commencement time: 9.30am
Venue: Pullman Quay Grand, Sydney Harbour, Lachlan Macquarie Room
Address: 61 Macquarie Street, Sydney NSW 2000.
Limited parking is available on the day at the Pullman Quay Grand.
This year's AGM will be made available by webcast for shareholders post the event, via our website.
An invitation to attend the meeting will be emailed to shareholders during October along with the Notice of Meeting.
SydllQy
Opera
HouSQ
Pullman Quay Grand
Circutar Quay
The RoyalBotaric Gardons
Silex Operational Update 2013 8
Corporate Directory
Board of Directors
Prof Stephen Burdon, Chairman (Non-executive Oirectol')
Dr Michael Goldsworthy, Managing Director and GEO
(Executive Oirectol')
Mr Peter Campbell(Non-exocutive Director)
Dr Colln Goldschmidt (Non-exocutive Diroctol')
Dr Usa Mdntyre (Non-exocutive Directol')
Mr Andrew Stock (Non-executive Directol')
Mr Christopher Wilks (Non-executive Directol')
Company Secretary
Ms Julie Ducie
Corporate Office
Suite 8.03, Level 8
66 Clarence Street
Sydney NSW 2000
Registered Office
Lucas Helghts Science & Technology Centre
Building 64, New lllawarra Road
Lucas Heights NSW 2234
Postal Address
PO Box 364
Sydney NSW 2001
Website
www.silex.com.ru
l nvestor.Re l at i ons@s il ex.co m . au
ABN
69 003 372 067
Bankers
Australia and New Zealand Banking Group Limited
Auditors
PricewaterhouseCoopers
Solicitors
Baker & Mck.enzie
Stock Exchange
Listed on the Australian Stock Exchange, Ticker: SLX Listed on OTCQX lnternational, Ticker: SILXY
Share Registry
Computershare Reglstry Services Pty Ltd
Level 6
116 Grenfell Street
Adelaide SA 6000
GPO Box 1903
Adelaide SA 6001
Enquiries within Australia: 1300 666 161
Enquiries outside Australia: +61 (0)8 8236 2300
E m ai 1: web.querles@computer h sare.co m . au
Website: www.computershare.com.a u
Silex Systems
Level 8, Suite 8.03
56 Clarence St
Sydney NSW 2000
+61 2 9704 8888 www.silex.com.au
investor.relations@silex.com.au
Translucent
952 Commercial Street
Palo Alto CA94303
United States of America
+1 650 213 9311 www.translucentinc.com
info@translucentinc.com
Solar Systems
45 Grosvenor Street
Abbotsford VIC 3067
Australia
+61 3 9413 8000 www.solarsystems.com.au
info@solarsystems.com.au
ChronoLogic
227 Gouger St
Adelaide SA 5000
Australia
+61 8 8410 5955 www.chronologic.com.au
info@chronologic.com.au
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