SPRINTEX LIMITED — Capital/Financing Update 2024

Dec 16, 2024

ASX: SIX

==> picture [256 x 68] intentionally omitted <==

Sprintex Limited ABN: 38 106 337 599

ASX RELEASE

17[th] December 2024

UK Distribution Agreement Secures A$17.5 million Minimum Order, Driving A$30 million minimum Global Commitment

Sprintex Limited (ASX: SIX) ( Sprintex or Company ) has secured an A$17.5 million minimum order commitment from Air End Repair Ltd ( Air End Repair ), contributing to a current total global minimum order value of A$30 million through its recent exclusive distribution agreements in UK, Türkiye[1] and India[2] .

The UK agreement with Air End Repair Ltd represents the largest commitment at A$17.5 million over five years, demonstrating Sprintex’s strategic expansion into Europe’s industrial air solutions market.

Air End Repair is a leading specialist in compressor and blower solutions based in the United Kingdom. This transformative partnership represents a key milestone in Sprintex’s European growth strategy, positioning the Company to capitalise on one of the world’s largest industrial markets.

Key Highlights:

• Exclusive Partnership: Air End Repair has been appointed as the exclusive distributor for Sprintex G Series Blowers in the United Kingdom.

• Initial Order Secured: An initial order valued at US$80,100 (A$125,750)[3] has been confirmed.

• Energy Efficiency Proven: Sprintex’s high-speed electric blower technology offers significant energy efficiency improvements, providing a compelling solution for industrial applications across multiple sectors.

• Market Growth Opportunity: The United Kingdom Turbo Blower market had a market share of US$182.16 million in 2024 and is projected to grow at a CAGR of 4.3% during the forecast period driven by the implementation of sustainable industrial practices and the growing manufacturing sector[4] .

• Strong ROI Potential : With some of the world’s most expensive energy pricing, Sprintex’s blowers are uniquely positioned to deliver some of the fastest returns on investment (ROI) globally.

• Commitment Milestones: Quarterly minimum order targets ensure consistent market penetration, with total agreement value reaching US$11.2M (A$17.5M) over five years.

Terms of the Exclusive Agreement[5]

The Agreement outlines a five-year exclusivity period for Air End Repair, with an option to extend the partnership based on mutual agreement. The agreement covers the entire UK market, aligning with Sprintex’s strategic focus on sustainable and energy-efficient industrial solutions.

1 ASX. " G Series Blowers Exclusivity Awarded for Republic of Turkiye." ASX, 24 June 2024 2 ASX. "Sprintex Signs Evaluation Agreement with Euroteck India." ASX, 7 Nov. 2024 3 RBA 16/12/24 US$1:A$1.57 4 Cognitive Market Research Inc, (September 2024 5 See Appendix A for further details

283 Rokeby Road, Subiaco WA 6009 +61 8 9262 7277 enquiries@sprintex.com.au www.sprintex.com.au

==> picture [186 x 49] intentionally omitted <==

Key terms include:

• Exclusive distribution in the UK of Sprintex G15 and G25 blower units, with quarterly minimum orders required to maintain exclusivity.

• A total commitment of US$11.2M (A$17.5M) over five years, supporting robust growth and market presence.

These targets establish a strong foundation for market entry, with growing demand for energy-efficient solutions expected to surpass minimum commitments.

Strategic Importance

Air End Repair’s decades of industry experience and extensive infrastructure, including its Smethwick Works facility in Birmingham, ensure efficient service and market coverage. To support the agreement, Air End Repair has appointed a dedicated Sales Manager focused exclusively on Sprintex’s G-Series Blowers. The company’s strong relationships with UK water authorities also present unique opportunities to serve key sectors like wastewater treatment and industrial air solutions.

Sprintex’s cutting-edge blower technology integrates energy efficiency, reliability, and IoT-enabled features for real-time monitoring and predictive maintenance, making it highly appealing to industries focused on operational excellence and sustainability.

Future Growth Opportunities

Sprintex and Air End Repair have developed a collaborative roadmap to ensure seamless market entry and growth, including:

• Targeted marketing campaigns and on-site demonstrations to showcase energy savings and costefficiency.

• Integration into existing client networks, leveraging Air End Repair’s established relationships to accelerate adoption.

• Exploration of further expansion opportunities into adjacent European markets, laying the foundation for long-term regional growth.

Commentary

Jay Upton, Managing Director of Sprintex, commented:

"The UK agreement is a further transformative milestone for Sprintex, marking our expansion into the UK’s dynamic industrial market. Our G Series Blowers are uniquely positioned to address the region’s growing demand for energy-efficient solutions. Partnering with Air End Repair Ltd, with their industry expertise and infrastructure ensures a strong foundation for success. We are confident this collaboration will drive shareholder value and further establish Sprintex as a global leader in innovative blower technology.

"The roll out of these agreements mark a transformative milestone for Sprintex, reflecting our expansion into dynamic industrial markets across Türkiye, India, and the UK. Our G-Series Blowers are uniquely positioned to address the growing demand for energy-efficient solutions. Partnering with industry leaders ensures a strong foundation for success and long-term growth. We are confident these collaborations will drive shareholder value and further establish Sprintex as a global leader in innovative blower technology."

David Warren, Managing Director of Air End Repair Ltd, added:

"We are thrilled to partner with Sprintex to bring their state-of-the-art G Series Blowers to the UK market. With a shared commitment to delivering exceptional performance and sustainability, we aim to redefine

==> picture [186 x 49] intentionally omitted <==

standards for industrial air solutions in the region. Our dedicated team is fully aligned with Sprintex’s vision and ready to drive adoption across key sectors."

This ASX announcement has been authorized for release by the Board of Sprintex Limited.

For further information:

Sprintex Limited

Jay Upton Managing Director

P: +61 8 9262 7277 E: jay.upton@sprintex.com.au

MMR Corporate Services Pty Ltd Level 5, 52 Phillip Street Sydney, NSW 2000 Australia P: +61 2 9251 7177 E: Sprintex@mmrcorporate.com

About Sprintex

Sprintex is a clean air compressor engineering, research, product development, and manufacturing company, incorporated in Australia in 2003. Sprintex designs and manufactures electric and mechanically driven clean air compressors for a wide variety of applications, including:

• Combustion engines where Sprintex sells Sprintex® twin screw superchargers and supercharger systems in the automotive aftermarket and OEM market in Australia, Asia, Africa, the Middle East, and the United States.

• Hydrogen fuel cells requiring a constant flow of oxygen-rich air.

• Industrial oil-free clean air applications, including wastewater treatment.

About Air End Repair Ltd

Based in Birmingham, UK, Air End Repair Ltd specialises in the sales, servicing, reconditioning, and repair of compressors and blowers. With decades of experience and a reputation for excellence, the company is a trusted provider to industries across the UK, offering tailored solutions to meet diverse operational needs.

==> picture [186 x 49] intentionally omitted <==

Forward Looking Statements

This announcement contains ‘forward-looking information’ that is based on the Company’s expectations, estimates and projections as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to the Company’s business strategy, plans, development, objectives, performance, outlook, growth, cash flow, projections, targets and expectations and related expenses. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as ‘outlook’, ‘anticipate’, ‘project’, ‘target’, ‘potential’, ‘likely’, ‘believe’, ‘estimate’, ‘expect’, ‘intend’, ‘may’, ‘would’, ‘could’, ‘should’, ‘scheduled’, ‘will’, ‘plan’, ‘forecast’, ‘evolve’ and similar expressions. Persons reading this announcement are cautioned that such statements are only predictions, and that the Company’s actual future results or performance may be materially different. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance, or achievements to be materially different from those expressed or implied by such forward looking information.

Appendix A

Information required under Section 4.15 of ASX Guidance Note 8

Parties	Sprintex Limited Air End Repair Ltd (Air End Repair)
Term of the Agreement	60 months
Nature of the products or services to be supplied by Sprintex to the Aeristech	Air End Repair awarded exclusive distribution of Sprintex G Series high speed electric blowers in the United Kingdom.
Significance of the contract to the entity	The agreement strengthens Sprintex’s global footprint and establishes a solid foundation for long-term growth in one of the world’s most established industrial markets.
Material conditions that need to be satisfied before the customer becomes legally bound to proceed with the contract.	50% deposit of US$40,050 (~A$62,875) due in 7 days Otherwise. all other material conditions have been met.
Other material information relevant to assessing the impact of the contract on the price or value of the entity’s securities	The agreement provides Sprintex with a secured revenue stream of A$17.5 million minimum over five years, enhances its presence in the established UK market, and strengthens its reputation for energy-efficient solutions. These factors are expected to positively impact the company’s financial performance and bolster investor confidence, potentially enhancing the value of its securities.