ABN 11 124 426 339

Level 3, 2-4 Ross Place, South Melbourne, VIC 3205

P +61 (3) 9673 9690 F +61 (3) 9673 9699

www.WaterResourcesGroup.com E corporate@WaterResourcesGroup.com

ASX Announcement

20 December 2016

Operational Ozone System shipped to Australia for Trials

Water Resources Group Limited ("WRG") is pleased to advise that as a result of the previously announced successful trial of a small scale Air2O3 generator during November in Australia, the Company has received a request for an operational scale unit to undergo a series of field trials. The objective of these trials will be to validate the performance of the unit in typical operating conditions and will be managed by an established and experienced supplier of water treatment systems who has specified the size and capability of a system, consistent with market requirements.

Consequently, the Company has completed reliability testing on a 10 gram per hour ozone generating system at Somnio Global's Detroit facility. The unit has been dispatched to Australia.

WRG is excited at the opportunity to have independent validation of its Air2O3 system by a well established supplier of ozone systems. Testing for a specific market application will commence in January and continue for several weeks.

Somnio Global is working through a full Bill of Materials Costing Analysis, which will be completed shortly. The Company is, however, confident that the technology can be manufactured and delivered to Australia at a suitable and competitive price point to compete with existing water treatment technologies. The Company believes that an outcome of the testing will show that the Air2O3 price point will be enhanced through superior water treatment performance levels and equipment sizing relative to competitive treatment systems.

WRG Chairman, Steve Morris, said: "We look forward to 2017 - field trials on our Air2O3 system is an important precursor to the commencement of sales. We also anticipate delivery of a Radical Free Generator pilot plant for similar capability testwork. The FRG will provide the Company with a more comprehensive water treatment capability."

End

For further information: Steve Morris (Chairman) Simon Lill (Director)

Phone +61 408 644 916 Phone +61 407 998 354

Water Resources Group Limited published this content on 20 December 2016 and is solely responsible for the information contained herein.
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