XTEK Limited signed the contract to provide Small Unmanned Aerial Systems for the ADF, as part of the Government's planned AUD 101 million investment in this capability. This contract is worth $42 million for the supply of the equipment over 3 years. Maintenance of this capability may represent an additional up to $50 million over the next 5 to 7 years. This contract represented a major step-change for
XTEK in regard to sales and has the Company strongly placed for future contract wins.

The company has a strong sales pipeline that is expected to drive further revenue growth for the company in 2018. The revenue contribution for 2018 should include contributions from across the Company's three key revenue sources. Sales will be built on the growing spending by Australian State and Federal Governments on defence and tactical capabilities as well as the focus on
commercial opportunities for the in-house XTatlas and XTclave technologies.