DE.MEM LIMITED — Capital/Financing Update 2021

Dec 7, 2021

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

De.mem signs first water treatment contract with Australian Snow resort

8 December 2021: Australian-Singaporean water and waste water treatment company De.mem (ASX:DEM) (“De.mem” or “the Company”) is pleased to announce the signing of a new Build, Own, Monitor and Transfer (“BOMT”) contract, contributing to the Company’s objective of growing recurring revenues. It is the first time that De.mem’s products and technology is deployed within a ski & snow resort, designed to operate under extreme weather conditions.

Water Treatment for Australian Snow Resort

Under the BOMT contract, De.mem will treat the waste water from an Australian snow resort. The treatment process is based on a Membrane Bioreactor (MBR) process incorporating hollow fibre membrane technology. The treated water is of high quality and can be re-used/recycled by the customer.

Under the contract, De.mem will remotely monitor the performance of the plant using the Company’s advanced monitoring platform, and provide support to the customer’s local operations team.

The contract has a term of 5 years with a total value of approx. $1,000,000 in revenues and can be terminated only with cause. It is expected to start in the June Quarter 2022.

The waste water treatment plant will be deployed at the Selwyn Snow Resort in the northern part of the Kosciuszko National Park, a day visitor snow resort with easy access from Canberra and New South Wales. The Selwyn Snow Resort is currently preparing for its planned re-opening on 11 June 2022.

System operating under extreme weather conditions

The system to be deployed under the BOMT contract has been designed to operate under extreme weather conditions. In particular, it will be able to operate at temperatures near or below zero degrees Celsius and is the first time that De.mem’s technology has been deployed in such a low temperature environment within a ski resort.

There is significant market potential for the Company by expanding the offering of this product into similar locations, with 15 ski resorts in Australia and 39 in New Zealand alone, and a total of 6,109 ski resorts worldwide (source: www.skiresort.info).

Growing recurring revenues

The new contract award contributes further to De.mem’s strategy of promoting and developing its recurring revenue segments, which have been driving overall revenue growth over the past years.

It also advances De.mem’s position with clients from the hospitality sector, as De.mem recently announced the award of another service contract for a water treatment facility at an Australian holiday resort (see ASX release dated 15 September 2021).

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CEO Commentary

De.mem CEO Andreas Kroell comments:

“The new Build, Own, Monitor and Transfer agreement announced today, a variation of our Company’s unique Build, Own, Operate offering to industrial customers, continues our move towards building our recurring revenue segments.

It incorporates a membrane process delivering superior treated water quality plus our remote monitoring platform, which allows us to monitor plant performance at any time.

Our Build, Own, Operate solutions for industrial customers, driven by our unique membrane technology, form a key part of our offering and provide us with a unique position within the water treatment industry.”

This release was authorized by the Company’s Chief Executive Officer, Mr. Andreas Kroell.

-ENDS-

For further information, please contact:

De.mem Limited

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

De.mem Limited (ASX:DEM) is a decentralised water and wastewater treatment business that designs, builds, owns and operates turnkey water and wastewater treatment systems for some of the world’s largest companies in the mining, electronics, chemical, oil & gas, and food & beverage industries. Its systems also provide municipalities, residential developments and hotels/resorts across the Asia Pacific with a reliable supply of clean drinking water.

De.mem’s technology to treat water and wastewater is among the most advanced globally. The Company is headquartered in Australia and has international locations in Singapore, Germany and Vietnam. It is commercialising an array of innovative proprietary technologies from its research and development partner, Nanyang Technological University (NTU) in Singapore, a world leader in membrane and water research. Technologies uniquely offered by De.mem include a revolutionary low-pressure hollow fibre nanofiltration membrane that uses less electricity and is cheaper to operate than conventional systems, as well as a new Forward Osmosis membrane deployed in de-watering applications or the concentration of liquids.

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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