SPRINTEX LIMITED — Capital/Financing Update 2025

Feb 16, 2025

Sprintex Limited ABN: 38 106 337 599

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ASX: SIX

ASX RELEASE

17 February 2025

Compressor commissioning completed for Mest Water with first large-scale purchase order pending

Highlights:

• First large-scale purchase order of 200 Sprintex-Mest compressor systems expected next month, valued at €3.8 million (A$6.3 million)

• Maiden purchase order to unlock a significant and near-term revenue stream for Sprintex, with continued growth anticipated in the coming months

• Initial production volumes: System production to commence in March at 30 units per month, equating to EUR €570,000 (A$942,000) per month in ongoing revenue for the Company

• Near-term production growth: Monthly increases expected with an anticipated minimum production of 1,000 total units in 2026, valued at €19 million (A$31 million)

• Order volumes: 1,000 annual units is for the Netherlands only. Delivers critical validation of the technology for Sprintex and Mest Water to target other EU member states with similar emissions laws

• This maiden purchase order would represent a significant milestone in the deployment of the innovative ZLD-Up system for sustainable manure processing and ammonia emission reduction

Sprintex Limited (ASX: SIX) ( Sprintex or Company ) is pleased to report on excellent progress with regard to its strategic collaboration with leading European environmental technology company, Mest Water, which is focused on developing a custom compressor for reducing ammonia emissions from agriculture, in response to Dutch regulations (refer ASX announcement: 1 July 2024).

Successful commissioning & first large-scale production order:

The Company is pleased to advise that commissioning of the Sprintex-Mest compressor operation on saturated steam was successfully completed in the Netherlands, and with the performance and efficiency validated, Mest Water is preparing for full-scale production at its newly established 31,000m² manufacturing facility in Tubbergen, Netherlands.

Production is set to commence in the coming weeks, alongside an initial order of 200 units from a major farming company. The systems will be priced at €19k (A$31k) per unit, representing a total order value €3.8m or A$6.3m and highlighting a considerable and near-term revenue opportunity for the Company. This maiden purchase order would represent a significant milestone in the deployment of the innovative ZLD-Up system for sustainable manure processing and ammonia emission reduction.

Alongside the initial order for 200 units, the Company and Mest Water anticipate monthly production volumes to increase from April 2025, ahead of a minimum production of 1,000 units per annum in 2026.

1 Exchange rate of EUR to AUD based on the Reserve Bank of Australia (RBA) rate of: 1 EUR = 0.6051 AUD.

283 Rokeby Road Subiaco WA 6008 Phone: +61 8 9262 7277 Email: enquiries@sprintex.com.au URL: www.sprintex.com.au

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Total minimum order volumes from these 1,000 units will be valued at €19 million (A$31 million) and underpin a meaningful revenue stream for Sprintex.

Management commentary:

Mest Water CEO Arjan Mensink commented: “We are excited by the recent progress in commissioning and evaluation of Sprintex Compressors, bringing our innovative ZLD-Up systems to a practical reality. Our patented ZLD-Up is the culmination of nine years of development and systems manufacture in manure processing, representing the most advanced system available today. With our new factory and the inclusion of Sprintex specialised compressors, we expect to commence production in March with a 200-unit order from a large farming company, making a real difference in the circular treatment of manure and reduction of ammonia emissions across the Netherlands in the first instance.”

Sprintex CEO Jay Upton added: “This is an outstanding commercial development for Sprintex and highlights the Company’s potential value add in the environmental sector. Walking through rural towns in the Netherlands, it’s striking how prevalent ammonia emissions are in the air — it is something that millions of people are exposed to daily in the Netherlands, as well as other European Union Member states.

“We are proud to be part of Mest Water’s groundbreaking solution, delivering technology that reduces emissions and also transforms waste into valuable resources. This partnership demonstrates how innovation can drive real environmental improvements and economic benefits."

Optimising future production:

As previously announced (refer ASX announcement: 28 January 2025), the Company anticipated developing two additional compressor models (500kg/hr and 1,500kg/hr) following successful commissioning. However, discussions are ongoing as to whether a single model can be used in parallel for larger capacity (1500kg/hr) requirements instead of developing two additional sizes.

Decisions in this regard will be made shortly. It is likely that at least one additional model at the lower capacity (500kg/hr) will be developed to ensure optimal efficiency. This has the potential to result in streamlined production, lower costs, and faster market deployment. The ability to use multiple units of the same compressor model presents scalability advantages, allowing Sprintex to optimise its production perunit costs through higher volume output.

Market expansion & Growth objectives:

The European Union has stringent ammonia emission regulations under the National Emission Reduction Commitments Directive (NECD), driving increasing demand for solutions like Mest Water’s ZLD-Up system. The Netherlands alone has approximately 21,000 cattle and pig farms, representing a considerably large market opportunity.

Sprintex remains committed to supporting Mest Water in its mission to reduce ammonia emissions and provide circular economy solutions for livestock waste treatment.

In addition to this collaboration, Sprintex is confident that its mechanical vapour recovery (MVR) compressor technology will have broader applications across multiple industries. The Company’s compressors are ideal for processes requiring efficient vapor recompression, including food and beverage production, chemical processing, wastewater treatment, and renewable energy applications.

Sprintex will offer three MVR compressor models this year, catering to different industry requirements and expanding its market presence beyond the agricultural sector. This is anticipated to considerably increase industry engagement across the EU.

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

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-ENDS-

For further information:

Sprintex Limited

Jay Upton Managing Director

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

Six Degrees Investor Relations

Henry Jordan

P: +61 431 271 538 E: Henry.jordan@sdir.com.au

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 Mest Water:

Mest Water is a Netherlands-based environmental technology company specialising in Zero Liquid Discharge (ZLD) solutions for the agricultural and industrial sectors. Its patented ZLD-Up system transforms manure into clean water, granulated fertiliser, and high-value industrial materials, while significantly reducing ammonia emissions.

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.