XREALITY GROUP LTD — Capital/Financing Update 2025

Aug 6, 2025

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xReality Group Limited (ASX: XRG) ACN 154 103 607

ASX Release

Sydney, Australia – 07 August 2025

XRG awarded $2.1m Industry Growth Program grant to accelerate AI roadmap for Operator XR

XRG has been awarded a merit based grant for $2.1m as part of the Australian Government’s Industry Growth Program, to accelerate Operator XR’s AI product roadmap and become the leading VR tactical training offering across the Law Enforcement and Defence markets globally.

The Industry Growth Program grant will enable Operator XR to:

• Accelerate the integration of advanced AI and cloud services into the training system enabling real time feedback to users, augmenting instructors and increasing the value and throughput of the training system.

• Increase manufacturing capacity of training weapons at the Sydney HQ by 100% through the addition of new additive manufacturing equipment and electronics design.

• Achieve a suite of global security and quality certifications required for large defence and government prime contracts.

XRG CEO Wayne Jones said “Operator XR has seen extraordinary growth over the last 3 years which shows no signs of slowing down. The IGP grant will allow XRG to fast track Operator XR’s AI roadmap, which will further position Operator XR the market leader in tactical simulation, increasing both the training ROI for customers and the Company’s growth.”

Commercial Terms

The $2.1m Industry Growth Program grant will be paid quarterly over a 24 month period commencing 1[st] August 2025. The funding will be used for existing and new headcount, and capital equipment, with payments aligning to eligible expenses incurred through each quarter.

Delivering on AI Roadmap announced in March

This builds on XRG announcing Ash Crick appointment to actively advance XRG’s AI roadmap in the first half of the year. Ash has been driving the adaptive learning, automated scenario creation and AIpowered decision support to keep XRG at the forefront of immersive training.

Continuing to build on long-term product differentiation for customers

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XRG is continuing to embed AI across Operator XR to deliver further value through personalised training, real-time feedback and scalable solutions. This ensures reduced costs and a clear advantage for military and law enforcement customers.

xReality Group Limited: ACN 154 103 607 123 Mulgoa Road, Penrith, NSW 2750 | Australia

xrgroup.com.au

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About Operator XR

Operator XR is a wholly-owned subsidiary of XReality Group Limited, specialising in extended reality (XR) training solutions designed specifically for law enforcement and military. The company's immersive training platform helps agencies enhance decision-making, stress management, and tactical response in high-pressure situations.

This ASX Release is authorised by the Board of xReality Group Limited.

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About xReality Group Limited (ACN: 154 103 607)

xReality Group Limited are leaders in enterprise software development for mission critical simulations for military and law enforcement. The company develops and operates physical and digital simulations. Portfolio companies include Indoor Skydiving facilities, Virtual Reality (VR) and Augmented Reality (AR) entertainment, training, and production.

Operator XR provides Military and Law Enforcement agencies with a unique, integrated Mission Planning & Rehearsal System, which is portable, secure and highly immersive. See operatorxr.com

The Company is listed on ASX on under the code XRG.

For further information visit: www.xrgroup.com.au

Wayne Jones, Chief Executive Officer, wjones@xrgroup.com.au Stephen Tofler, Company Secretary, stofler@xrgroup.com.au

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xReality Group Limited: ACN 154 103 607 123 Mulgoa Road, Penrith, NSW 2750 | Australia

xrgroup.com.au