Xtek : ASX Announcement - XTEK Equity Raising Presentation - June 2017

JUNE 2017 ASX: XTE

• A market leader in homeland security equipment for the military and police sectors in Australasia

• Forecasting A$9m revenue in FY17 with high revenue growth and shift to profitability during 2H FY171

• New revenue guidance from FY18 onwards represents an upgrade from that previously disclosed

• Strong revenue pipeline with major wins including success as tenderer for provision of up to A$100m in Small Unmanned Aerial Systems for the Australian Defence Force

• Senior management and Board have distinguished military and police backgrounds, experience in the homeland security market, and global commercialisation expertise

• Significant market opportunity with defence spending set to increase significantly in Australia

• Operational across the full value chain from development and manufacturing, to distribution and

  maintenance

• Broad product suite in the areas of Unmanned Aerial Systems and imagery, Tactical Weapons / ballistic protection and Explosive Ordnance Disposal

• Strategy focussed on leveraging existing exclusive distribution agreements, with development

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Note: 1. Assumes execution of A$101m UAS contract with Australian Defence Force (refer to important disclaimer on Slide 24)

XTEK is a supplier of high quality protective security, tactical and forensics solutions to the government, law enforcement, military and commercial sectors

Share price (Acps) Volume (m)

60 0.4

Up 62% since 30

50 April 2017

0.3

40 0.2

30

0.1

-

Source: IRESS

1. Excludes 0.5m unlisted options expiring 15 July 2018 at an exercise price of A$0.45

2. Does not include proceeds from the Placement or SPP, see pages 4 and 5

   Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Volume XTEK S&P/ASX Small Industrials

   A premier emerging defence and homeland security opportunity on the ASX

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   XTEK intends to raise A$3.0m via a placement and A$0.5m via a share purchase plan

   • A$3.0m placement to sophisticated and institutional investors

     ("Placement")

     • New shares to be issued at an offer price of A$0.46 per share, representing a 16.4% discount to the last closing price of A$0.55 and a 11.3% discount to the 5 day VWAP of A$0.52

     • New shares to be fully paid and rank equally with existing XTEK shares

     • Placement will utilise XTEK's existing placement capacity pursuant to

       ASX Listing Rule 7.1 and 7.1A

   • A share purchase plan will be offered to existing shareholders, targeting to raise A$0.5m at the same price ("SPP")

     • Board and management have also stated their intention to participate

up to the maximum available investment in the SPP

Placement & SPP use of funds

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Use of funds highlights

1▪ XTclaveTM commercialisation - Construction of XTEK's own commercial scale XTclaveTM production plant and ancillary equipment.

It will allow XTEK to continue the promotion of its technology on the world market. This will allow XTEK to produce commercial quantities of its advanced XTclaveTM personal hard armour ballistic protection plates.

2▪ XTatlasTM technology development - Research and development activity of XTEK's proprietary XTatlas™ software technology. The

commercialisation of XTatlasTM through its existing and future unmanned aircraft system contracts is a key focus for XTEK.

3▪ Expansion capital - Additional working capital to primarily to allow XTEK to pursue more and larger contracts in the future.

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