Xtek : ASX Announcement - Completion of XTEK SPP

Completion of XTEK Share Purchase Plan

• Strong shareholder response to XTEK's SPP
• Scale back will apply to all SPP applications above $5,000
• 3.2m new securities to be allotted and issued on 31 July 2017, representing a raising of A$1.5m Canberra, Thursday 27 July 2017: XTEK Limited (ASX: XTE) advises that the Company's Share Purchase Plan (SPP) announced to the market on 3 July 2017, has successfully closed with a very pleasing shareholder response as at the Closing Date (24 July 2017).

  The Directors of XTEK would like to thank shareholders for their strong support for the SPP which exceeded the target raising of $500,000. A key intention of the SPP was to provide smaller shareholders with the opportunity to increase their shareholdings in the Company, following the successful recent share Placement to institutions and professional investors.

  As a result, XTEK has elected to accept all applications for parcels of securities of up to $5,000 in full. Applications above $5,000 will be scaled back by 11%, similar to the scale back that was applied to investors who participated in the recent Placement.

  After the application of the scale back, 3,216,438 new securities will be allotted and issued under the SPP at $0.46 cents per security, raising $1,479,561.48. The allotment of the new securities is scheduled for Monday, 31 July 2017.

  Recent commercial developments - particularly with respect to potential international demand for XTEK's XTclaveTM products - means that the surplus funds raised under the SPP can be put towards compelling uses in the interests of driving shareholder returns. Specifically, funds raised from the SPP will be primarily used for:

• XTclaveTM commercialisation - including the construction of XTEK's own commercial scale XTclaveTM production plant and ancillary equipment, allowing XTEK to continue the promotion of its technology on the world market. This will allow for the production of commercial quantities of its advanced XTclaveTM personal hard armour ballistic protection plates and helmet liners. The additional funds raised under the SPP will largely be put towards provide working capital to support a full manufacturing capability which will accelerate the commercialisation of XTEK's composite protection products;

• XTatlasTM technology development - the commercialisation of XTatlasTM through its existing and future unmanned aircraft system contracts is a key focus for the Company; and
• Expansion capital - to allow the achievement of revenue guidance and the pursuance of more and larger contracts in the future.

XTEK Limited is a leading company in the Australian Homeland Security Market. XTEK's knowledge and expertise is focused on the delivery of protection and sustainment solutions for the government, law enforcement, military and commercial sectors.

The supply, maintenance and value adding to Small Unmanned Aerial Systems is a major focus for XTEK.

In addition, XTEK has developed a range of new technologies which it is now commercialising for the international market. XTclaveTM composite protection products and XTatlasTM real time contextual video provide novel solutions for western military forces. For more information visit the XTEK website at www.xtek.net

Media enquiries:

Lawrence A Gardiner Alexander Liddington-Cox

Company Secretary E: alex.liddingtoncox@mcpartners.com.au

27 July 2017 M: 0474 701 469