ELECTRO OPTIC SYSTEMS HOLDINGS LIMITED — Capital/Financing Update 2011

Aug 4, 2011

==> picture [154 x 65] intentionally omitted <==

Electro Optic Systems Holdings Limited

A.C.N. 092 708 364

Suite 2, Level 12, 75 Elizabeth Street, Sydney NSW 2000 Tel +61 2 9233 3915 Fax +61 2 9232 3411 http://www.eos-aus.com

5 August 2011

The Manager Company Announcements Office Australian Stock Exchange Limited Exchange Centre 20 Bridge Street Sydney NSW 2000

Dear Sirs,

Cancellation of Unlisted Options

Electro Optic Systems Holdings Limited (ASX:EOS; OTC:EOPSY) reports the cancellation of 234,000 unlisted options over ordinary shares in the Company, which had been granted to employees of the Company who have since resigned.

The details of the cancelled options are as follows:

ASX Code Number of Options Exercise Price Expiry Date EOSAI 234,000 $1.30 8 December 2013

There are still 1,566,000 of this series of options on issue.

Yours faithfully,

==> picture [115 x 51] intentionally omitted <==

Ian Dennis Director

1