Calix November 2021 Quarterly Newsletter

For personal use only

ASX Announcement

November 11, 2021

November Quarter Newsletter - Issue 40

Sydney, Australia | November 11, 2021 - Multi-award-winning Australian technology company Calix Limited (ASX: CXL 'Calix' or 'the Company') is pleased to announce it has released a comprehensive update on activities across its business segments. The newsletter is attached overleaf.

This announcement has been authorised for release to the ASX by:-

Phil Hodgson

Managing Director

Calix Limited

9-11 Bridge Street

Pymble

NSW 2073

Ph [phone]

For personal use only

About Calix

Calix is a team of dedicated people developing a unique, patented technology to provide industrial solutions that address global sustainability challenges.

The core technology is being used to develop more environmentally friendly solutions for advanced batteries, crop protection, aquaculture, wastewater and carbon reduction.

Calix develops its technology via a global network of research and development collaborations, including governments, research institutes and universities, some of world's largest companies, and a growing customer base and distributor network for its commercialised products and processes.

Because there's only one Earth - Mars is for Quitters.

Website:	https://www.calix.global/
Twitter:	@CalixLimited
Youtube:	CalixLimited

For more information:
Phil Hodgson	Darren Charles
Managing Director and CEO	CFO and Company Secretary
[e-mail]	[e-mail]
[phone]	[phone]
Simon Hinsley
Investor Relations
[e-mail]
[phone]

Innovating for the Earth
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Calix News
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November 2021
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In this issue:
P2	P16-17
Editorial	AMALGAM-60 Success Story
A word from our CEO	City of Snohomish
P3	P18-19
The Team is Growing!	R&D Update
	Advanced marine coatings
P4-7	P20-21
ASX Announcement
Carbon Direct invests €15M	United Nations Sustainable
($A24.5M) for a 7% stake in	Development Goal Number 17
Calix's LEILAC business	Partnering for a better world
P8-13	P22-23
Project Leilac Update	Our People
Capturing CO2 in the cement	Joshua Menzies
For
and lime industries

P14-15	P24-25
Media
Salmon Farming
Impacts of open pen
aquaculture systems

Because there's only one Earth - Mars is for Quitters.

CALIX NEWS ISSUE 40

Welcome to Issue 40 of the Calix Newsletter

The Calix Team is Growing!

Meet Ruth Barajas	Meet Chris Song
BATMn Plant Coordinator	Battery Materials Laboratory Technician

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Phil Hodgson

CEO

"In this first quarter of the new financial year, Calix completed one of the most important commercial deals since listing the company in July 2018

• the investment by US-based Impact Fund Carbon Direct into our LEILAC (Low Emissions Intensity Lime And Cement) Technology. The investment of 15m euro for a 7% equity in the technology puts a significant value stake-in-the[1]ground, and is a testament to the hard work in technical development and value creation the Calix team have put into this exciting technology, at a time when there is accelerating interest and investment in global climate solutions. Please explore this deal a bit further in our article in this newsletter, as well as an in-depth look at our development projects in Europe - the LEILAC-1 and LEILAC-2 projects.

To support this important phase of growth, I am also very pleased to confirm that a seasoned Calix executive - Daniel Rennie - has been promoted to lead our CO2 business as CEO. Dan has been instrumental in winning grant funding for, and co-ordinating, both our LEILAC-1 and LEILAC-2 projects, and in raising the profile of Calix's LEILAC technology from an unknown new technology only a few years ago to the European and then world stage.

In response to the growing interest in our technology and in line with our March 2021 capital raise, we have continued to recruit some great new talent into our organisation - our engineering and R&D teams have been bolstered by the addition of Ruth, Chris, Rana and Andrea - read about their impressive backgrounds in this newsletter also. And we also feature one of our longer-serving loyal staff members in Joshua Menzies on the back page.

In our water business, off the base of our AQUA-Cal+ solution to prawn farm pollution, we are launching a new project to look at whether AQUA-Cal+ can help with the environmental pressures associated with salmon farming - particularly on the sea bed of salmon pens and also typical salmon diseases. We look forward to the results from this program, given the environmental pressures the industry is beginning to face. We also take a look at a customer case study in the US, where our US team continues to expand the business based upon technical expertise, customer service and great product. We also share a link through to an interview I conducted with Nick Chiarelli of the Ocean Impact Organisation, of which Calix is now a sponsor. Click the link to hear about Nick's vision for a cleaner ocean and help get behind this great initiative.

An article on our Biotech business features the on-going successful testing our marine coatings developments. Again, global pressure to reduce environmental impact is a great tailwind for this potential business, where our safe, environmentally friendly very high surface area magnesium oxide coating additives are dramatically improving the performance and life of existing marine coatings.

Our R&D update features two projects based upon our LEILAC Technology, both of which are helping to address the UN Sustainable Development Goals ("SDG's") through a novel energy storage system "SOCRATCES" powered by concentrated solar radiation, and a "calcium looping" system "ANICA" which is looking at the wider application of the LEILAC Technology in more general flue gas CO2 capture.

Ruth Barajas joined Calix in July 2021 as a R&D pilot plant coordinator. She brings to the company over 8 years of experience in the petrochemical, and oil and gas fields. Over her professional career she has worked as a process engineer, applying state-of-the-art modelling systems, to develop new revenue streams and cost reduction projects that resulted in annual savings of more than US$5 million.

Prior to joining Calix, Ruth completed her PhD in Chemical Engineering with her thesis titled "Engineered nanocellulose superabsorbents for application in agricultural soils" at Monash University, Australia. During her time at Monash University, she was part of the COVID-19 task force team developing PPE Medical Gowns from laminated paper. Passionate about the environment, Ruth looks forward to working with Calix on creating novel, sustainable and safe solutions for future generations.

Meet Rana Hawly

Project Engineer

Rana graduated in 2018 as a Material Engineer from Polytech Sorbonne University in Paris. She also has a bachelor's degree in chemistry from Sorbonne University. Rana started her professional career by working as a Cost Analyst at Renault, a French automobile company, for two years.

She recently joined Calix Europe as a Project Engineer, and will be supporting the engineering team, especially Project Managers and Senior Project Engineers, on all aspects of the LEILAC-2 project, from early design phases through to detailed engineering, procurement, construction, and commissioning.

In her free time she enjoys being around the kitchen and trying new recipes, especially Asian cuisine. "I believe that cooking is a rewarding and satisfying experience; it highlights my creativity skills. It's also a perfect way to connect with one another and to share great moments with family and friends."

Chris recently joined Calix as a Laboratory Technician, having previously completed his studies at Monash University with a Bachelor of Chemical Engineering and Pharmaceutical Science. He is working as part of the Research and Development team developing and scaling production of active electrode materials for lithium ion battery applications.

During his studies at Monash University, Chris worked with leading researchers in the Chemical Engineering department on the development of ultrasound responsive pH nanosensors.

Meet Andrea Passariello

Senior Mechanical Engineer

Andrea obtained a BSc and a MSc in Aerospace Engineering at the University of Pisa, specialising in Structural Analyses and Fluid Dynamics. His BSc thesis involved the development of software for the preliminary design of Shell and Tube Heat exchangers for ENEL ENERGIA SpA. His MSc thesis involved the publication of a well renowned AIAA journal article about understanding non-linear buckling behaviour of anisotropic structures.

Andrea worked mainly in the Aerospace industry, with the majority of his experience developing and maintaining the safe operation of Rolls-Royce aeroengine fleets as a Structural Analysis Specialist.

He worked also for other companies in different roles such as Mechanical Designer and Aerothermal Engineer on flight control systems, avionics cooling systems, composite impact tests, pressure vessels and their testing, innovative heat exchanger technologies and new thermodynamic cycles research.

Andrea joined Calix to contribute to reducing greenhouse emissions to try to mitigate climate change, by analysing and developing the components which operate for long periods of time at very high temperatures. He will be contributing to the future development of the core components that make up Calix's core technology.

As always, we continue to very much appreciate the support of all our shareholders and stakeholders as we continue another year of significant development for the company."

WE ARE HIRING FOR OUR GLOBAL ENGINEERING TEAM.

To learn more and apply, contact us or check out our LinkedIn page:

https://www.linkedin.com/company/calix-limited/

www.calix.global

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CO2 MITIGATION

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ASX ANNOUNCEMENT | 15 SEPTEMBER 2021

Carbon Direct invests €15M ($A24.5M) for a 7% stake in Calix's LEILAC business

Calix will use these funds to accelerate deployment of its lime and cement decarbonisation technology

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Calix is pleased to announce global decarbonisation investor Carbon Direct Capital Management has invested €15m for a 6.98% equity stake in Calix's subsidiary, the LEILAC Group, which is dedicated to the commercialisation and ongoing development of Calix's LEILAC CO2 capture technology.

Calix will continue to own the remaining 93% of the LEILAC Group.

In addition, as part of the transaction, Calix has entered into a licence agreement with the LEILAC Group under which it will retain 30% of royalties earned by the LEILAC Group from deployment of the technology, regardless of Calix's equity stake in the LEILAC Group. The LEILAC Group will operate autonomously, with its own management team and a Board composed of three Calix directors, with one appointee nominated by Carbon Direct, and one independent appointee.

The LEILAC Group, comprising Calix (Europe) Ltd (UK) and its subsidiaries, is the exclusive licensee of Calix's Low Emissions Intensity Lime and Cement (LEILAC) CO2 capture technology. The LEILAC technology was successfully piloted at 25,000 tonnes per annum scale at HeidelbergCement's plant in Lixhe, Belgium, and is being scaled up to 100,000 tonnes per annum scale in the "LEILAC-2" project for a HeidelbergCement plant in Hannover, Germany. Further commercial pilot plants for lime production are under development with Tarmac, the UK division of CRH, and AdBri in Australia, among others.

US-based Carbon Direct's investment arm, Carbon Direct Capital Management, makes direct investments into leading carbon removal and utilisation technology companies. The firm also operates a scientific advisory business, which advises leading corporations on how to fulfil their carbon removal and utilisation commitments. Carbon Direct's advisory work spans 28 countries and includes clients such as Microsoft and Shopify.

Pottinger (https://www.pottinger.com/) acted as financial and strategic advisor to Calix on this transaction, and Hamilton Locke acted as legal advisor.

Carbon Direct investment to accelerate LEILAC technology uptake

Along with existing capital already invested in the LEILAC Group, Carbon Direct's investment will be used by the LEILAC Group to accelerate and continue to de-risk deployment of the LEILAC technology, both technically and commercially. Technically, additional resources will be deployed in engineering and research to speed optimisation. Commercially, new resourcing in business development, especially project development and CO2 use or sequestration, will be deployed to help develop complete project solutions for customers.

A new CEO will be appointed to run the business as a stand- alone entity.

The investment marks the conclusion of work led by Pottinger to accelerate commercialisation of the LEILAC technology and identify the optimal financial and strategic partner(s) to support this business' critical next phase of development.

Calix Limited CEO Phil Hodgson said the deal represented a critical milestone in Calix's stated strategy of seeking equity "farm-ins", after initial development undertaken by Calix, to accelerate and deploy its underlying platform technology into each line of business, with Calix remaining head licensor.

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