SPRINTEX LIMITED — Capital/Financing Update 2024

Jun 17, 2024

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Sprintex Limited ABN: 38 106 337 599

ASX: SIX

ASX RELEASE

18 June 2024

Sprintex Signs Evaluation Agreement with Leading Vacuum Pump and Blower Manufacturer

Sprintex Limited (ASX: SIX) ( Sprintex or the Company ) is pleased to advise that it has commenced supply of its G15 commercial blowers for evaluation purposes by prominent developers of advanced blower technologies.

Highlights

• G Series Blower Supply

• Sprintex to supply G15 blowers for evaluation by global developers

• Signed an agreement with a top US-based manufacturer

• Initial order of 10 G15 blowers for Tassal Group

• Developing custom compressor for agricultural project in the Netherlands

• Strategic Partnership

• Significant private label opportunity, boosting market presence

• Units to undergo intensive testing in Germany

Sprintex has signed an evaluation agreement with a leading global designer and manufacturer of vacuum pumps and blowers headquartered in the United States and has also supplied additional units to several other customers.

These units will be tested internally by the customers before potential specification switches to Sprintex. The Company expects these evaluations to potentially lead to significant annual purchases, underscoring the market's strong interest in Sprintex's innovative solutions.

The evaluation agreement initiates a strategic partnership which represents a significant private label opportunity for Sprintex. Our partner has extensive distribution channels and a large customer base, while Sprintex brings groundbreaking technology to the table. This collaboration is anticipated to open new markets and significantly enhance Sprintex's market presence. Additionally, Sprintex is in discussions with other OEM manufacturers also interested in private label opportunities, highlighting the robust demand for the Company's technology.

The purpose of the evaluation agreement is to extensively test Sprintex G-15 units. The units will be sent to the customer's facility in Germany next week and will undergo intensive performance and efficiency testing before any private label terms are agreed upon. Sprintex has 100% confidence in its units to perform reliably at maximum speed and load for very long periods, and our intent is that this in-house testing will provide the partner with the same confidence that we have.

Suite 6, Level 1, 251 Adelaide Terrace, Perth, WA 6000 Phone: +61 8 9262 7277 Email: admin@sprintex.com.au URL: www.sprintex.com.au

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The Company would require a minimum of A$5mn in annual revenue for any private label arrangement for its G15 Series machines.

Further Evaluations

Sprintex added over 100 interested companies to its database and received several evaluation orders following a successful attendance at IFAT Munich. Industry feedback highlighted the Sprintex G Series as a 'gamechanger' in the blower segment. The following companies have ordered samples for testing with their systems:

• Martin Membrane Systems : A Wilo Group company, specialising in on-vessel (ship) wastewater treatment, integrating our energy-efficient solutions into their systems.

• MAT Filtration : Known for their advanced filtration technologies, with divisions in filtration, wastewater treatment, aquariums, and aquaculture, testing the integration of our blowers with a focus on detailed energy consumption comparisons.

• Equimar : A Mexican company specialising in industrial equipment and materials, evaluating our innovative products. They will showcase the blower at Aquatech in Mexico City, September this year.

• Flexbio Technologie : A German company focused on sustainable biological solutions, interested in testing our blower technology. Specialists in containerised wastewater treatment systems, the size, weight, and energy efficiency of the G15 are extremely appealing for these system manufacturers.

These companies will monitor the energy efficiency and overall performance of our blowers before deciding on potential procurement switches.

Additional Opportunities

• Aquaculture : Sprintex has secured an initial order of 10 G15 units from "Fresh by Design" to supply Tassal Group, Australia’s largest seafood producer, owned by Cooke Seafood, Canada. This order follows successful evaluations of Sprintex's G-15 units where the Sprintex 3.5kW unit was able to replicate the flow and pressure of nearly three of their existing 2.2kW rotary lobe blowers.

• Agriculture : Sprintex is collaborating with a Netherlands-based company to develop a custom compressor to integrate with their ammonia reducing technology for agriculture. This project is in response to the Dutch government mandated limits on ammonia emissions from animal manure. The customer requires 360 units in the first year, with an existing waitlist of over 1000 farmers. Sprintex’s specialist compressor team is confident that its ultra-high-speed electric compressor technology can meet this challenge, bringing real environmental benefits and addressing significant pollution issues.

• Appointing Distributors : The Company is in discussions with potential distributors in the UK, Turkey, Taiwan, Peru, Paraguay, Thailand, Vietnam, Brazil and Mexico.

Commentary

Jay Upton, Sprintex Managing Director, commented, "We are excited to announce that Sprintex Limited has commenced supplying our G15 commercial blowers for evaluation by leading developers of advanced blower technologies. This includes an evaluation agreement with a prominent global designer and manufacturer of vacuum pumps and blowers based in the United States, along with additional units supplied to several other customers. These evaluations underscore the market's strong interest in our innovative energy efficient solutions and represent a significant private label opportunity for Sprintex. We have full confidence that our G15 units, which will undergo intensive testing at customers' facilities, will demonstrate superior performance and reliability, paving the way for substantial annual purchases and new market opportunities.”

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This ASX announcement was authorised for release by the Board of Sprintex Limited.

For further information

Sprintex Limited MMR Corporate Services Pty Ltd Jay Upton Level 5, 52 Phillip Street Managing Director Sydney, NSW 2000 Australia P: +61 8 9262 7277 P: +61 2 9251 7177 E: jay.upton@sprintex.com.au E: Sprintex@mmrcorporate.com

About Sprintex

Sprintex, established in Australia in 2003, is a prominent company specialising in the engineering, research, product development, and manufacturing of ultra high-speed electric motors and clean air compressors. The Company is dedicated to creating energy-efficient solutions for various applications, significantly impacting both industrial and automotive sectors. Sprintex’s innovation-driven approach has positioned it as a leader in the development of clean air technologies, continually advancing the standards in these industries.

In the industrial sector, Sprintex's G Series blowers are designed for high-speed air movement in wastewater treatment, aquaculture, paper milling, and pharmaceuticals, ensuring efficient and reliable performance. Additionally, Sprintex develops fuel cell compressors for clean energy applications, particularly in hydrogen and natural gas fuel cells, promoting sustainable energy solutions. In the automotive realm, the Company focuses on enhancing hybrid and petrol vehicles with high-speed electric motor-driven compressors, while its legacy in twin screw superchargers continues to influence modern advancements.

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.

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