BLUGLASS LIMITED — Capital/Financing Update 2017

May 16, 2017

The Manager Market Announcements Platform ASX Limited

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17 May 2017

BLUGLASS BUSINESS UPDATE

Key Points

• BLG-300 upgrade installation to be commenced in the coming weeks

• Continued progress in delivery of Lumileds Phase II & IQE Collaborations

• Technology team expanded with the addition of two Process Engineers

Australian technology innovator BluGlass Limited (ASX:BLG) is making positive progress on a number of key projects critical to commercialising its breakthrough semiconductor technology called Remote Plasma Chemical Vapour Deposition (RPCVD) in the global multi-billion dollar LED and power electronics markets.

Scaling Project, BLG-300 Upgrade – Enabling uniform RPCVD deposition over larger areas

As reported in February, the upgraded chamber of the smaller RPCVD system, the BLG-180 has brought the deposition uniformity to a suitable level that meets our industry demonstration requirements. This is a good advancement towards the scalability milestones required for the commercialisation of RPCVD. This successful RPCVD chamber design has been applied to the design and manufacture of the upgraded BLG-300 chamber - which is onsite at Silverwater and will be installed in the coming weeks.

The BLG-300 upgrade was paused to allow the progress on the Lumileds and IQE collaborations.

Managing Director, Giles Bourne, said today “The scaling project milestones are critical to the commercialisation of RPCVD. Despite progress on our industry collaborations, BluGlass will now move forward immediately with the scaling project, and implement the new BLG-300 chamber. During this time, the BLG-180 will become the main workhorse to continue development”. He added “The successful completion of the BLG-300 upgrade is required to support the positive completion of our numerous industry evaluations, and enable us to further discussions on the competitive advantages of RPCVD with other potential customers and collaborators. Therefore, this has become a priority for the company.”

Industry Collaborations – Delivering Industry Acceptance of RPCVD

Good progress is being made on both the Lumileds Phase II milestones and the IQE deliverables.

BluGlass is working closely with Lumileds to develop a new implementation of LEDs and with IQE to develop specific enabling technology for high quality nitride films on silicon and Rare Earth Oxide on silicon substrates. Both collaborations aim to capitalise on the benefits of low temperature RPCVD.

Details of these projects are subject to confidentiality agreements.

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BluGlass Expands Technology Team

BluGlass has expanded its technology team to better enable the company’s growing commercialisation activity with the addition of two Process Engineers. Joining the engineering staff, the Process Engineers will assist in the further design and optimisation of RPCVD, device design and characterisation; and deliver custom epitaxy services. BluGlass continues to attract exceptional talent to our specialist team, and the new additions bring a strong blend of skills and expertise to further enhance our world-class team.

-Ends-

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 www.bluglass.com.au

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