ELECTRO OPTIC SYSTEMS HOLDINGS LIMITED — Capital/Financing Update 2017

Jun 20, 2017

==> picture [154 x 64] 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

EOS DEFENCE SYSTEMS EXECUTES ORDER

Canberra, 21 June 2017

Electro Optic Systems Holdings Ltd (ASX: EOS) confirmed today that it has executed a $170 million contract to supply weapons systems to Orbital ATK. The contract was foreshadowed in announcements from 3 March 2017.

The contract, deliverable from 2017 to 2020, relates to EOS’ new R-400S-Mk2 weapon system product, released to the market early in 2017. Prior to market launch, EOS developed a variant of the system to extract optimum performance from weapons produced by Orbital ATK for US, NATO, Commonwealth and other forces.

EOS announced on 27 March 2017 that the Orbital ATK contract value would be in the range AU$150-170 million, deliverable from 2017-2020.

EOS advised on 11 May 2017 that contract execution was delayed in order to determine whether production could be expanded to meet additional demands. Orbital ATK then increased its temporary purchase order with EOS to US$14 million to ensure that the initial contract moved forward while the companies jointly assessed new orders. The US$14 million of temporary purchase orders issued by Orbital ATK to initiate this program now lapse in favour of the main contract.

EOS and Orbital ATK have now executed the initial contract, first disclosed on 3 March 2017.

EOS has now secured access to sufficient resources and supplies to expand its order intake for 2017 well beyond this initial AU$170 million contract. EOS now expects to exceed AU$500 million in 2017 orders for its new R-400S-Mk2 weapon system.

Information: Dr Ben Greene CEO, EOS Group Ph: +61 414 365 658

Dr Warwick Holloway CEO, EOS Defence Systems Ph: +61 455 093 828

Page 1 of 2

ABOUT ELECTRO OPTIC SYSTEMS (ASX: EOS; OTC: EOPSY)

EOS operates in two sectors: Space Systems and Defence Systems.

EOS Space Systems sector specialises in applying EOS-developed optical sensors to detect, track, classify and characterise objects in space. This information has both military and commercial applications, including managing space assets to avoid collisions with space debris.

EOS Defence Systems specialises in technology for weapon systems optimization and integration, as well as ISR (intelligence, surveillance and reconnaissance) for land warfare. Its key products are next-generation armored vehicle turrets and remote weapon systems.

ABOUT ORBITAL ATK (NYSE: OA)

Orbital ATK is a global leader in aerospace and defense technologies. The company designs, builds and delivers space, defense and aviation systems for customers around the world, both as a prime contractor and merchant supplier. Its main products include launch vehicles and related propulsion systems; missile products, subsystems and defense electronics; precision weapons, armament systems and ammunition; satellites and associated space components and services; and advanced aerospace structures.

Headquartered in Dulles, Virginia, Orbital ATK employs approximately 12,000 people in 18 states across the U.S. and in several international locations. For more information, visit www.orbitalatk.com

Page 2 of 2