DE.MEM LIMITED — Capital/Financing Update 2018

Jul 17, 2018

ASX RELEASE | De.mem Limited (ASX:DEM)

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De.mem launches new domestic water filtration products

Highlights

• Products based on proprietary hollow fiber membrane technology to achieve superior output quality

• Allows for treatment of tap or municipal water prior to domestic consumption - installed as ‘point of use’ solution

• Company to commercialise through distribution partnerships

• Large worldwide market valued at an estimated US$24.5 billion per annum by 2020

• De.mem confirms CY2018 revenue guidance of $10m-12m – contract pipeline continues to strengthen

18 July 2018: Water and waste water treatment company De.mem (ASX:DEM) (“De.mem” or “the Company”) is pleased to advise the launch of a new product line targeting ‘point of use’ domestic water filtration.

The new product line uses De.mem’s proprietary hollow fiber ultrafiltration and nanofiltration membrane technology as a key filter process to treat tap or municipal water prior to domestic consumption. The system is installed as a ‘point of use’ solution, e.g., under a kitchen sink where the system treats water prior to it leaving the domestic tap.

Hollow fiber membrane technology is the key process step in removing large amounts of suspended solids, and nearly all bacteria (the De.mem hollow fiber membranes are tested to ‘6 log reduction’ – which means that a number of 1,000,000 (one million) microbes is reduced to only 1 (one) after filtration) and viruses from the water. Further, the membrane is combined with more traditional treatment processes for pre- and/or post filtration, to ensure highest output quality. The system does not require additional pressure or pumps and uses standard tap pressure. This ensures convenience for the end user and ease of installation.

De.mem will commercialise the new product range through distribution partnerships initially targeting the Asia-Pacific region. The new product line will be manufactured in De.mem’s Singapore facility using existing equipment.

The market for domestic ‘point of use’ filter systems is estimated at US$24.5 billion annually worldwide by 2020[1] . The Asia-Pacific region accounts for the largest share, followed by North America and Europe.

1 Source: Markets and Markets

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Image one: De.mem hollow fiber point-of use filter system

De.mem CEO Andreas Kroell said: “The introduction of this product line builds on our stated strategy of developing a diverse range of superior membrane technologies for commercial and domestic / residential use. Following commercialisation, these domestic products will not only broaden our customer base significantly, but also deliver additional revenue streams.

“The Company has a strong track record commercialising membrance technologies and will use its existing manufacturing capability, intellectual property, and technological expertise to ensure that its solutions are the highest quality for water filtration for domestic consumption.

“Discussions are advancing well with potential distributors for the Asia Pacific region and De.mem looks forward to updating shareholders as further developments materialise. We confirm CY2018 revenue guidance of $10m-$12m underpinned by a healthy, diversified and growing order book.”

- Ends-

For further information, please contact:

De.mem Limited Andreas Kroell CEO De.mem Limited investor@demem.com.sg

Media & Investor Enquires Six Degrees Investor Relations Henry Jordan +61 (0) 431 271 538

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About De.mem Limited

De.mem Limited (ASX:DEM) is a Singaporean-Australian decentralised water and waste-water treatment business that designs, builds, owns and operates water and waste water treatment systems for its clients. De.mem operates in the industrial segment providing systems and solutions to customers from the mining, electronics, chemicals, oil & gas and the food & beverage industries and in the municipal and residential segments. De.mem has licensed proprietary technologies from its partner in research & development Singapore’s Nanyang Technological University (NTU), including an exclusive worldwide license for a revolutionary low-pressure hollow fibre nanofiltration membrane. Through its wholly owned water and waste water treatment original equipment manufacturing (OEM) subsidiary Akwa-Worx Pty Ltd, De.mem has a strong presence in Australia. Akwa-Worx has a market reputation for building high quality Australian designed and manufactured products and has long-term customers in the Australian mining industry. To learn more please visit: www.demembranes.com

Forward Looking Statements

Statements contained in this release, particularly those regarding possible or assumed future performance, revenue, costs, dividends, production levels or rates, prices or potential growth of De.mem Limited, are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. Actual results and developments may differ materially from those expressed or implied by these forward-looking statements depending on a variety of factors.

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