Xtek : ASX Announcement - XTEK Signs US CTTSO Agreement

Release to the Australian Securities Exchange

XTEK SIGNS SECOND AGREEMENT WITH THE US MILITARY TO EVALUATE ITS XTclaveTM TECHNOLOGY

• XTEK to receive funds from the U.S. Government's Combating Terrorism Technical Support Office.
• Funds will be used to fabricate and test helmets and panels produced using XTEK's XTclave composite consolidation technology for U.S. Special Operations Forces.
• The contract includes provision to propose manufacturing of such helmets if the project is successful.
• This is the second time that XTEK has received funding from the US military to test the XTclave technology after the Company was awarded a Foreign Comparative Testing (FCT) program contract in 2013.

Canberra - Wednesday 14 June 2017: XTEK Limited (ASX: XTE) is pleased to announce that it has signed an agreement with the U.S. Government's Combating Terrorism Technical Support Office (CTTSO) to fabricate and test combat helmets and flat panels produced using XTEK's XTclaveTM technology.

Under the agreement, the U.S. Government CTTSO will cover the costs related to this 18-month project, which aims to create advanced, lightweight combat helmets capable of defeating more serious battlefield threats. The value of this agreement is US$644,000.

This is the second time that the U.S. Government has provided funding for research on the Company's XTclaveTM technology. The first test program, which was announced in 2013, was undertaken under the US Foreign Comparative Testing (FCT) program with the U.S. Army. The FCT program was to test XTclaveTM manufactured rigid armour inserts used in body armour.

This latest agreement confirms the U.S. military's interest in the Company's patent protected technology, which can not only produce stronger and lighter ballistic-resistant composites, but is also ideally suited to complex shaped geometries like helmets.

"The U.S. Government is the world leader in military technology, and for the second time they have committed funds to XTEK for research and testing, which demonstrates their interest in our XTclaveTM and associated technology," said XTEK Managing Director Philippe Odouard.

"We are confident that we will achieve a good result from the latest research initiative as we have proven on a number of occasions that XTclaveTM is capable of producing composites with complex shapes and structures that are lighter and that can offer a higher level of protection."

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

14 June 2017 E: [e-mail]

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