Xtek : ASX Announcement - XTEK XTEK to Supply SUAS to the ADF

Release to the Australian Securities Exchange‌ XTEK to supply Small Unmanned Aerial Systems to the Australian Defence Force Canberra - Thursday 1 June 2017: XTEK Limited (ASX:XTE) is pleased to announce that the Minister for Defence, Senator the Hon Marise Payne and the Minister for Defence Industry, the Hon Christopher Pyne MP, have today announced the acquisition and support of a new world class Small Unmanned Aerial Systems (SUAS) capability through XTEK Limited.

The Ministerial Release is attached and forms part of this announcement.

XTEK will work with Defence to progress towards signature of a contract for the SUAS as soon as possible.

The announced investment includes an amount for management of the contract by the Australian Defence Force.

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 contextual 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 Gardiner Media enquiries:

Company Secretary Harrison Polites

1 June 2017 E: [e-mail]

M: 0409 623 618

THE HON CHRISTOPHER PYNE MP Minister for Defence Industry Leader of the House Federal Member for Sturt

SENATOR THE HON MARISE PAYNE Minister for Defence Senator for New South Wales

JOINT MEDIA RELEASE

1 June 2017

NEW SMALL UNMANNED AERIAL SYSTEMS FOR ADF

A new world-class surveillance and reconnaissance capability acquired by Defence will give our soldiers an edge on the front line.

Minister for Defence, Senator the Hon Marise Payne, and Minister for Defence Industry, the Hon Christopher Pyne MP, today announced the $101 million investment into Small Unmanned Aerial Systems will directly create up to 10 new jobs in Canberra plus supporting dozens of jobs in the supply chain.

Minister Payne said the systems were small enough to be carried, assembled and used by one person, and allowed the soldier to 'see over the hill, around the corner and down the road'.

"Similar systems, including the Skylark, have been used by our soldiers in Afghanistan and Iraq with tremendous success," Minister Payne said.

"They provide our military with a faster and better understanding of the battlefield than our adversaries."

Minister Payne said the capability would be acquired in two tranches; with the WASP AE chosen as the preferred option for the first tranche to meet an immediate need.

This funding is for the first tranche of the capability.

Minister Pyne said the WASP AE will be modified with Australian content utilising other companies such as Sentient in Melbourne and Mediaware in Canberra and acquired through Canberra based company, XTEK.

"It's a proven capability used by militaries around the world, including with the US Marine Corps," Minister Pyne said.

"Importantly, a significant proportion of this investment will remain in Australia, with local industry content valued at approximately $11 million for acquisition, plus up to $4 million each year for sustainment."

"The majority of maintenance and support will be carried out in Australia by XTEK."

The second tranche will upgrade the WASP AE or acquire a replacement system within the next decade.

"This will also provide opportunities for Australian industry," Minister Pyne said.

"Upgrading or replacing the WASP AE will ensure our troops continue to have the latest technology available to keep them safe on the battlefield."

"Defence will work closely with Australian industry through the Centre for Defence Industry Capability to maximise opportunities for local companies to get involved in this important project," he said.

Video link - http://video.defence.gov.au/play/5161

Images link - https://images.defence.gov.au/S20171067

Minister Pyne Media Contacts Rory Grant: 0439 764 809, [e-mail] Eleisa Hancock: 0427 981 990, [e-mail] Minister Payne Media Contact Henry Budd: 0429 531 143 Department of Defence Media [phone]