ALEXIUM INTERNATIONAL GROUP LIMITED — Capital/Financing Update 2013

Jul 7, 2013

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ASX/MEDIA RELEASE 8 JULY 2013

SOUTH CAROLINA LAUNCH GRANT

TO ACCELERATE COMMERCIALIZATION OF FIRE RETARDANT (FR) CHEMICAL TREATMENTS

• Grant for technical, commercial and IP protection

• Support comes from the South Carolina Research Authority (SCRA) via the SC Launch program

• Funding will assist Alexium in the development, extension, and commercialization Alexium flame retardant (FR) chemistry

Perth, WA and Greer, South Carolina, Alexium International Group Limited (Alexium) (ASX:AJX, AX:AJX, OTC QX:AXXIY) announced today that its US affiliate, Alexium Government Solutions LLC (AGS) has received a $40,000 grant from the South Carolina Research Authority (SCRA). The grant was awarded by SCRA as part of the SC Launch Matching SBIR/STTR program, and will be administered and managed via AGS, Alexium’s affiliate organized to pursue government sponsored research and development contracts.

“We appreciate the support of SC Launch. We view this as further validation of our technology and business strategy. These funds will act as a catalyst to help us focus on key technical and commercial tasks to support the commercial roll-out of Alexium’s FR chemicals, as well as intellectual property protection.” stated Stefan Susta, AGS President and AJX’s Chief Operating Officer.

SCRA has been recognized as one of the most effective economic development organization in the United States. Since 2006, SCRA has invested more than $65 million to support the growth and commercialization of technology companies, and currently manage national and international programs, worth over $2 billion in contract value. The grant to Alexium is based on a matching SBIR/STTR grant program, which is administered by the SCRA’s SC Launch program. SC Launch is involved in each step of the innovation pipeline, from discovery through development and deployment, continuing with support during commercialization activities in order to strengthen the state's knowledge economy and help create high paying jobs.

Corporate Headquarters, Alexium International Group Limited, Suite 7, Norfolk House, 85 Forrest Street, Cottesloe, WA 6011

Managed and administered by AGS, Alexium is currently completing Phase I of an SBIR contract with the US Marine Corps. Awarded earlier this year, this project is focused on an FR treatment on standard nylon-cotton blend fabrics used in military combat uniforms. An additional $70K option can be exercised at the discretion of the DoD in Phase I. After Phase I completion, Alexium can be invited to participate in Phase II with additional funding of up to $1Mil.

“We are very pleased with the technical progress we have made on Nycolon™ and under the AGS SBIR contract. AGS continues to attract State and Federal Government support as a result of the effective implementation of our strong technical and business strategies.” stated Nicholas Clark, AJX’s Chief Executive Officer.

For more information visit: www.alexiuminternational.com

United States Contacts Stefan Susta Chief Operating Officer ssusta@alexiuminternational.com T: +1 864.908.6946

U.S. Operating Headquarters 8 Distribution Court Greer, SC 29650 T: +1 864.416.1060 F: +1 864.551.4555

Nicholas Clark UK Contact Chief Executive Officer Gavin Rezos nclark@alexiuminternational.com.au Executive Chairman AUS +61 432 412 663 grezos@alexiuminternational.com.au US +1 864 991 6687 UK +44 7447 560 303 AUS +61 412 898 235

About Alexium

Alexium International Group Limited (ASX:AJX, AX:AJX OTC QX:AXXIY) holds proprietary patent applications for a process developed initially by the US Department of Defense , which allows for the surface modification and attachment of nano-particles or multiple chemical functional groups to surfaces or substrates to provide functions such as water proofing, oil proofing, anti-microbial, non-stick and UV protection. Applications under development include but are not limited to textiles, paints, packaging, glass and building materials. Alexium’s fire retardant treatment for 95% Nylon based products is marketed under the Ascalon™ trademark. Alexium’s fire retardant treatment for nylon blended materials such as nylon/cotton (Nyco), is marketed under the Nycolon™ trade mark.

Corporate Headquarters, Alexium International Group Limited, Suite 7, Norfolk House, 85 Forrest Street, Cottesloe, WA 6011

About SCRA

SCRA has been recognized as one of the most effective economic development organization in the United States. Since 2006, SCRA has invested more than $65 million to support the growth and commercialization of technology companies, and currently manage national and international programs, worth over $2 billion in contract value.

SCRA has supported over 280 high-tech, early-stage enterprises, directly investing over $13 million in South Carolina start-ups, who have subsequently attracted over $200 million in private investment. This includes $12 million of SCRA's retained earnings that were used to establish the SC Launch economic development program to design and build three Innovation Centers for research and commercialization and an annual fund in tax-incented private donations each year.

Corporate Headquarters, Alexium International Group Limited, Suite 7, Norfolk House, 85 Forrest Street, Cottesloe, WA 6011