CALIX LIMITED — Capital/Financing Update 2018

Oct 23, 2018

ASX ANNOUNCEMENT 24 October 2018

CALIX’S LEILAC PROJECT ACHIEVES MAJOR MILESTONE AND GRANT FUNDING DRAWDOWN

Sydney, Australia | October 24, 2018 – Multi-award-winning Australian technology company Calix Limited (ASX: CXL, ‘Calix’ or ‘the Company’), is pleased to announce that its Low Emissions Intensity Lime and Cement (LEILAC) Project has successfully completed its second European Commission review, will receive €4.1m (~A$6.6m) in grant funding drawdown, out of the total €12m (~A$19.4m) funding for the project. The total funds drawn down in the project are now around €9m (~A$14.6m), with the project remaining on time and budget for commissioning in April, 2019.

Calix’s portion of the funding drawdown will be €3m (~A$4.85m), which will be used to pay back ~€1.15m (~A$1.85m) on an EFIC facility put in place to help with financing the project, as well as pay back Calix on cash and resources spent on the project over the last 18 months. As a result, Calix’s cash balance is expected to increase by A$3m. The payment brings Calix’s total grant income to A$4.9m for the year, on top of over A$27.5m received over the past four years, fully funding the Company’s R&D programs.

The LEILAC Project (www.project-leilac.eu) is a €21m (~A$34m) project (€12m is funded by the EU Horizon 2020 Research and Innovation program) piloting Calix’s technology in CO 2 abatement for the lime and cement industries. As part of this project, Calix is leading a consortium of some of the world’s largest cement and lime companies, as well as leading European universities and research institutes.

For more information:

Darren Charles Phil Hodgson Company Secretary and CFO Managing Director and CEO dcharles@calix.com.au phodgson@calix.com.au +61 2 8199 7400 +61 2 8199 7400 Simon Hinsley Michelle Taylor Investor Relations Media simon@nwrcommunications.com.au Michelle_Taylor@recognition.com.au +61 401 809 653 +61 2 9252 2266

About Calix

Calix is a multi-award-winning Australian technology company that is developing new processes and materials to solve global challenges.

The core technology is a world-first, patented kiln built in Bacchus Marsh, Victoria that produces mineral honeycomb, which are very highly active minerals.

Calix uses these minerals, which are safe and environmentally friendly, to improve waste water treatment and phosphate removal, help protect sewer assets from corrosion, and help improve food production from aquaculture and agriculture with reduced antibiotic, fungicide, and pesticide use.

Calix's technology has also been adopted overseas, where the company is working with some of the world's largest companies, governments and research institutions on CO2 capture. www.calix.com.au