DE.MEM LIMITED — Capital/Financing Update 2018

Feb 5, 2018

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

De.mem to Benefit from New Singapore Government Initiative

Highlights

• De.mem is a founding member of a new initiative by the Singapore government (“SG-MEM”), which aims to promote the water and membrane industry

• Objective of the initiative is to connect world-leading Singaporean research centres with SME’s, to promote and foster the commercialization of technological innovations

• De.mem believes that the program can help to bring further innovative technologies into the company. As one of few Singaporean companies with the capability of manufacturing membranes in Singapore, combined with a track record of successful technology transfer for its hollow fiber nanofiltration membrane technology which had been in-licensed from Nanyang Technological University (NTU) in June 2016, De.mem sees itself well placed to benefit from the initiative

• De.mem CEO Andreas Kroell presented during the launch event on Monday, 5 February 2018, in Singapore

6 February 2018: Water and waste water treatment company De.mem (ASX:DEM) (“De.mem” or “the

Company”) is pleased to announce its participation in a Singapore Government initiative that stands to greatly benefit the Company.

The Singapore Government’s National Research Foundation (NRF) announced yesterday a new strategic initiative called the Singapore National Membrane Consortium (SG-MEM). This national-level consortium on membrane science and technology aims to promote the research, collaboration, and commercialisation of innovative membrane products and technologies.

To achieve these objectives, the SG-MEM will connect expertise in Singaporean research institutes with companies that can utilise cutting-edge research in membrane technologies to meet industry needs. Under the SG-MEM, world-leading research centres such as the Singapore Membrane Technology Centre at Nanyang Technological University (NTU) and Membrane Science and Technology Consortium (MSTC) at National University of Singapore (NUS) will be connected with Small and Medium Enterprises (SME’s) such as De.mem.

De.mem is ideally placed to benefit from the SG-MEM as it is one of the 15 founding members. Among those, De.mem is one of the very few companies that have the capability to manufacture membranes in-house. Furthermore, De.mem brings in a successful track record in technology transfer for the low pressure hollow fiber nanofiltration membrane technology, which the company exclusively licensed from NTU in June 2016.

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The new membrane allows for significantly lower operating costs and capital expenditure compared to other conventional water treatment technologies. De.mem completed the set-up of a new factory for the production of this membrane, as well as other types of hollow fiber membranes, in July 2017 [ASX Announcement: July 12, 2017].

De.mem intends to expand its proprietary technology portfolio around further innovative membrane technologies in the coming months.

De.mem CEO, Andreas Kroell, presented at the launch event of SG-MEM on 5 February 2018.

De.mem CEO Andreas Kroell said: “The new SG-MEM initiative provides an excellent platform for us to further benefit from the outstanding capabilities of the Singapore research institutions such as the SMTC/NTU, which we have partnered with in the past. The platform will help us to further expand our product portfolio and accelerate product development and commercialisation efforts. Based on our existing manufacturing facility for membranes and our position in the market with strong customer relationships and growing revenues, these research institutions also stand to benefit from their partnership with De.mem. I believe De.mem can provide an excellent opportunity for researchers to commercialise their inventions.”

NRF Director (Programmes) George Loh said: “Singapore has built up a strong reputation as a leader in membrane technologies for water treatment. However, larger water companies are more likely to benefit from advancements in membrane technology due to heavy outlay in research and innovation activities. The new membrane consortium will provide smaller companies, such as our SMEs, access to membrane technologies for diverse application beyond water, to include the food and beverages, fragrance, and medtech sectors. This will help our SMEs build stronger capabilities to adopt the latest innovation for new growth opportunities.”

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@demem.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 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

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