DE.MEM LIMITED — Capital/Financing Update 2017

May 7, 2017

De.mem Limited (ASX:DEM) ACN 614 756 642 Registered Office 16 Ord Street West Perth WA 6005 investor@demem.com.sg

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ASX RELEASE | De.mem Limited (ASX:DEM) De.mem Advances Proprietary Technology With Production Of First Industrial Standard Membrane Module

Highlights

• De.mem achieves key milestone with production of first industrial standard membrane module

• Production of membrane module paves way for commercial market launch

• Clusters of De.mem’s membrane are held within closed cylinders facilitating water treatment with significant energy and cost savings compared to other processes

• Membrane module produced at NTU Singapore ahead of production moving to De.mem’s new manufacturing site

Monday 8 May, 2017: Singapore-based waste-water treatment company De.mem Limited (ASX:DEM) (‘De.mem’ or ‘the Company’) is pleased to announce the achievement of a key milestone of its proprietary technology with the production of the first industrial-sized low-pressure hollow fibre nanofiltration (NF) membrane module in conjunction with Nanyang Technological University, Singapore (“NTU Singapore”).

The module is a closed cylinder filled with NF membrane fibres. The NF membrane allows clean water to pass through the outside of the membranes while the dirt stays behind.

The proprietary technology can reduce the energy needed to treat wastewater by up to five times, relative to standard Reverse Osmosis (RO) systems. It requires only 2 bars of water pressure while generating treatment results almost as good as a standard RO process, which requires a much higher pressure of 10 to 15 bars. This translates to lower operating cost and lower investment relative to other conventional water treatment technologies.

The module has been built at Nanyang Technological University (NTU) in Singapore, who exclusively licensed its innovative low-pressure hollow fibre nanofiltration membrane technology to De.mem in June 2016.

The successful production of the industrial-sized membrane module further validates the technology and demonstrates it can be produced at a commercial level.

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Photo of the industrial-sized NF membrane module

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Following the successful production of the industrial sized membrane module at NTU, De.mem intends to commence production of the NF membrane at its new manufacturing facility in Singapore shortly. Once production of the membrane is replicated it will be sent for pilot testing at select customer sites ahead of a planned full commercial market launch of the technology later this year.

De.mem Chief Executive Officer Andreas Kroell: “The production of this first industrial standard membrane module underlines the great partnership between our company and NTU’s Singapore Membrane Technology Center (SMTC), led by Professor Wang Rong and her team. It sets a strong example of successful technology transfer from research to industry. We have moved exceptionally fast in getting this technology to the manufacturing stage within less than a year of signing the license. We thank NTU and Professor Wang for their great support. De.mem is now preparing for the membrane production at our membrane pilot manufacturing plant and the near-term commercial market launch of this technology.”

NTU Professor Wang Rong, Chair of the School of Civil and Environmental Engineering and the Director of the Singapore Membrane Technology Centre: “This industrial sized module is the result of a successful collaboration between NTU researchers and De.mem engineers. With commercialisation in mind, we are now working closely to scale up the membrane fabrication process, which will provide a strong manufacturing foundation for our made-in-Singapore nanofiltration membranes.”

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Photo of SMTC and De.mem team with the NF membrane module People left to right; Dr. Shi Lei, Senior Research Fellow, NTU-SMTC, Prof. Wang Rong, Director, NTU-SMTC, David Chua, Director Manufacturing, De.mem, Dr. Zhao Shanshan, Research Fellow, NTU-SMTC

Ends

For further information, please contact:

De.mem Limited Corporate Enquiries Media Enquires Andreas Kroell Shane Wee Julia Maguire CEO Director Director De.mem Limited Alto Capital The Capital Network investor@de.mem.com.sg shane@altocapital.com.au julia@thecapitalnetwork.com.au +61 419 815 386

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About De.mem Limited

De.mem Limited (ASX:DEM) is a decentralised waste-water treatment business that designs, builds, owns and operates customised and high-quality industrial waste water treatment systems for its clients. The company presents its product offering in two industry segments (i) the industrial segment where De.mem provides systems and solutions to customers from the electronics, chemicals, oil & gas and the food & beverage industries and (ii) the municipal and residential segment. The company has licensed a number of proprietary technologies from its partner in research & development, Singapore’s Nanyang Technological University (NTU). De.mem is headquartered and has a manufacturing site in Singapore. To learn more please visit: www.demembranes.com

About Nanyang Technological University

Nanyang Technological University (NTU) is a noted leader in the development of water technologies. In 2013, independent researcher Lux Research listed NTU as the number 2 water treatment research institution in the world. NTU is ranked 13th globally according to the 2016 QS World University Ranking. NTU has colleges of Engineering, Business, Science, Humanities, Arts & Social Sciences and an Interdisciplinary Graduate School. To learn more please visit: www.ntu.edu.sg