Xtek : ASX Announcement - XTEK Secures Contract to Suppy EOD Robots

Release to the Australian Securities Exchange

XTEK SECURES $1.7M SUPPLY CONTRACT WITH A STATE POLICE FORCE FOR TWO EOD ROBOTS

• XTEK wins $1.7m contract to supply two bomb disposal robots to a State Police Force
• Second EOD contract win in 2017 following sale of ICOR Caliber T5 robot to another Australian police force in January
• Further contract wins expected over the short to medium term

Canberra - Monday 19 June 2017: XTEK Limited (ASX: XTE, the "Company") is pleased to announce that the Company has been awarded a contract worth $1.7 million for the supply of two Explosive Ordnance Disposal (EOD) robots to a State Police Force.

The contract is for the supply of one Telerob Telemax robot and one Telerob tEODor robot which will primarily be used for bomb disposal operations. As with most equipment sales by XTEK, the contract includes the option of including a maintenance component.

The tEODor is a world-class EOD robot designed to perform all the standard tasks of a bomb disposal engineer, enabling it to replace people in particularly dangerous situations. The Telemax is a smaller version the tEODor, which enables it to operate in environments where the tEODor cannot be used, such as on aircraft, trains or buses.

The contract with the State Police force is the second EOD contract that XTEK has secured this calendar year following the agreement to supply one ICOR Caliber T5 robot to another Australian police force in January.

The Company is well placed to secure additional sales contracts as robots used by Australian law enforcement agencies are approaching the end of their useful lifecycle and will need to be either upgraded or replaced. Federal and state governments are also increasing their spending on security equipment during these uncertain times.

"XTEK doesn't only supply world-leading equipment, we also have the ability to offer value-added solutions, such as upgrading of the tEODor robot or customising a range of equipment to meet local requirements. This value-add is an important differentiator for our business as it allows us to further cement our position as the leading provider of EOD and other tactical and security equipment products for defence and law enforcement agencies in Australia," said XTEK's Managing Director Philippe Odouard.

"Our Company has won a number of significant tenders in recent time and we are well placed to win additional contracts off the back of the increase in spending by agencies in the area of homeland security."

About XTEK Limited

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 and maintenance of Small Unmanned Aerial Systems (SUAS) is becoming a major focus for XTEK.

In addition, XTEK has developed a range of new technologies which it is now commercialising for the international market. XTclave™ composite protection products and XTatlas™ real time geospatial video provide novel solutions for western military forces.

For more information visit the XTEK website at www.xtek.net

Signed for and on behalf of XTEK Limited:

Lawrence A Gardiner Media enquiries:

Company Secretary Harrison Polites

19 June 2017 E: [e-mail]

M: 0409 623 618