BLUGLASS LIMITED — Capital/Financing Update 2014

Nov 4, 2014

The Manager

==> picture [191 x 49] intentionally omitted <==

ASX Announcements Platform

05 November 2014

BLUGLASS RECEIVES FIRST TRIAL RPCVD FOUNDRY ORDER & APPOINTS INTERNATIONAL AGENT FOR CUSTOM MOCVD EPITAXY

Key Points:

• BluGlass has received its first order for its unique low temperature RPCVD process for a trial on specialty engineered silicon wafers

• BluGlass has appointed an expert custom epitaxy (foundry) agent xVI Technologies for its MOCVD custom epitaxy service

• Results being produced by BLG-300 are now on par with the results of the BLG-180, the 5[th] generation system

First RPCVD Custom Epitaxy Order

BluGlass Limited (ASX:BLG) has today announced that it has received its first customer order for low temperature RPCVD custom epitaxy on specialty engineered silicon substrates. BluGlass has been providing MOCVD work for this customer and an opportunity has arisen for a lower temperature deposition to be trialed for their application. This customer is developing a unique GaN application for power electronics where a lower temperature process has the potential to be highly advantageous.

To date, BluGlass has generated revenue is excess of $400,000 from its custom epitaxy business. The Company intends to continue to offer custom epitaxy services utilising spare capacity on its MOCVD equipment with the potential to generate up to $1M per year without incurring any significant additional costs or changes to the hardware or impacting the core RPCVD research and development. As the RPCVD technology matures, BluGlass will be looking to expand its custom epitaxy offering to include more RPCVD work.

BluGlass Appoints Expert Custom MOCVD Epitaxy Agent – xVI Technologies

BluGlass has also appointed an expert custom epitaxy agent, based in the US for the Company’s growing foundry business. xVI Technologies offers engineering, prototyping and manufacturing solutions for a number of international customers across a number of industries and technologies. BluGlass will continue to expand its

custom epitaxy (foundry) business using both its MOCVD and RPCVD capability. Not only will this provide revenue

==> picture [540 x 116] intentionally omitted <==

==> picture [191 x 49] intentionally omitted <==

for the Company, but it also provides a unique opportunity for BluGlass’ RPCVD technology to be used at the cutting edge of the opto-electronics industry.

BLG-300 is producing GaN films with electrical properties on par with the BLG-180

The recently commissioned ex production scale RPCVD system, the BLG-300 is now producing GaN films on par with the films produced by the 5[th] generation RPCVD tool the BLG-180 as measured by electrical properties. This enhanced design RPCVD system has produced markedly encouraging results after demonstrating GaN material on par with the industry electrical performance benchmarks within a matter of weeks of being operational. The technology team is pleased with the initial performance of this larger scale RPCVD system and expects to accelerate the pace of results with two RPCVD systems running concurrently. The BLG-300 system is a retrofitted ex-production scale 19x2 inch system and is the same model MOCVD system that was installed at Silverwater in November 2013. This system is two generations behind the current MOCVD systems being used to manufacture LED’s, however the fundamental technology is very similar to MOCVD systems used today in LED fabs.

The Company’s technology roadmaps remain the principle focus for the business and we are continuing to make progress towards the Brighter LED and other key milestones. The Company now has one MOCVD and two RPCVD systems installed and operating at the Silverwater increasing the research activity on the three key roadmaps.

-Ends-

About xVI Technologies:

xVI Technologies is a full service provider of Optoelectronic and Semiconductor Integrated Solutions. xVI Technologies combines high energy density optical, electrical and thermal systems at the nano-scale to create a built in advantage for customers. Incorporating decades of manufacturing know-how and proprietary integration techniques, xVI Technologies can assist with prototype development through high-volume manufacturing, while removing the challenges associated with working with multiple engineering, manufacturing and component development partners.

About BluGlass:

BluGlass Limited (winner of the 2013 Australian Technologies Competition) is an Australian green technology company formed to commercialise a breakthrough in the Semiconductor Industry.

BluGlass has invented a new process using Remote Plasma Chemical Vapour Deposition (RPCVD) to grow semiconductor materials such as gallium nitride (GaN) and indium gallium nitride (InGaN), crucial to the production of high efficiency devices such as next generation lighting technology Light Emitting Diodes (LEDs) with advanced performance and low cost potential. The RPCVD technology, because of its low temperature and highly flexible nature, offers many potential benefits over existing technologies including higher efficiency, lower cost, substrate flexibility including GaN on silicon and greater scalability. Media Contact: Stefanie Winwood +61 2 9334 2300 swinwood@bluglass.com.au

==> picture [540 x 48] intentionally omitted <==