XRF SCIENTIFIC LIMITED — Capital/Financing Update 2011

Jul 12, 2011

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13 July 2011, Perth:

XRF announces Placement and SPP

Highlights

• Placement of $3.342m successfully completed to institutions and sophisticated investors

• Underwritten Share Purchase Plan to raise an additional $1.0m

• Funds raised to fund future acquisitions

• BGF Equities Lead Manager to Placement and Underwriter to the SPP

XRF Scientific Limited (“XRF” or “the Company”) is pleased to announce a capital raising of up to $4.342m million via a Placement to institutions and sophisticated investors and a Share Purchase Plan (“SPP”). The funds from the capital raising will be used to fund future acquisitions.

XRF’s Managing Director, Terry Sweet said “Following the successful acquisition and integration of Sigma Flux and Precious Metals, the Company is now well positioned to consider further expansion via acquisition to complement our organic growth. The equity raising will provide the Company with the required funding to expand the business through the acquisition of complementary businesses”.

Placement and SPP details

XRF has successfully completed a placement of 15.544 million new ordinary shares (Placement Shares) at $0.215 per share to raise $3.342million. The issue price represents a discount of 9.8% to the volume weighted average price of the Company’s shares for the 5 trading days up to and including 8 July 2011.

The Placement was made to new and existing institutional and sophisticated investors. The Placement Shares will rank equally with existing ordinary shares.

The Placement Shares will be issued on or around Monday, 18[th] of July 2011 upon receipt of cleared funds, and pursuant to the Company’s existing 15% capital issue limit under ASX Listing Rule 7.1.

BGF Equities acted as Lead Manager to the Placement.

In addition, XRF will also offer its current shareholders an opportunity to participate in an SPP, to raise up to $1.0 million. The SPP will be fully underwritten by BGF Equities.

Eligible shareholders will be entitled to subscribe for up to $15,000 worth of new XRF shares at $0.215 per share. The Record Date for eligibility to participate in the SPP is Tuesday, 12 July 2011. The Company reserves the right to scale back applications.

Any shortfall under the SPP will require shareholder approval. XRF may seek shareholder approval in the future to ratify the issue of the Placement Shares so as to reinstate its capacity to issue Shares pursuant to the ASX Listing Rules.

A full timetable and documentation for the SPP will be issued in due course.

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Please direct any inquiries to:

Terry Sweet Vance Stazzonelli Managing Director Chief Financial Officer terry.sweet@xrfscientific.com vance.stazzonelli@xrfscientific.com

About XRF Scientific XRF Scientific Limited is an Australian listed company (ASX: XRF) based in Perth, Western Australia. XRF manufactures equipment and chemicals, which are distributed to laboratories in Australia and overseas and used in the preparation of samples for analysis.

XRF has manufacturing, sales and support facilities located in Perth and Melbourne plus a global network and distributors. The Company has representation in the United States, South America, Canada, Europe, Africa, the Middle East and Asia and has a customer base that includes multinational blue‐chip customers such as:‐ BHP Billiton, Rio Tinto, Iluka, Xstrata, Nickel West, Robe River Iron Associates, Alcoa, CSIRO, Intertek, PT Inco, Pilbara Iron, Amdel/Ultratrace, SGS, Campbell Brothers.

XRF’s technology is used to measure the composition and purity of materials and is mainly applied in industrial quality control and in process control for manufacturing processes in industries such as metals and mining, construction materials, chemicals and petrochemicals.

XRF products help customers to improve product quality and performance, increase productivity and yield and reduce downtime and waste. Its businesses have established positions in their specialized markets.

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