Silex Systems - Update23 April 2019Silex Systems Limited (Silex) (ASX: SLX) (OTCQX: SILXY) is pleased to provide the followingbrief update on its recent activities.SILEX technology and the GLE restructure:As disclosed in our announcements on 6 and 25 February 2019, the Company is workingtowards finalisation of a binding purchase agreement for the restructure of SILEX technologylicensee GE-Hitachi Global Laser Enrichment LLC (GLE). This follows the signing of a TermSheet on 5 February 2019 which provides the key terms for a proposed joint purchase by Silexand Cameco of GE-Hitachi’s (GEH) 76% interest in GLE. Negotiation of a binding purchaseagreement and associated documentation is well advanced and, providing there are nounforeseen difficulties, is expected to be finalised for execution in the current quarter. Subjectto obtaining US Government approvals, the proposed restructure of GLE would result in Silexacquiring a 51% interest, and Cameco increasing its interest in GLE from 24% to 49%.We believe this acquisition is potentially a positive turning point which could underpin a newphase of growth for the Company. In particular, the proposed transaction provides an idealpath to market for GLE and the SILEX technology in the US, with the Paducah tails reenrichment project and the associated agreement between GLE and the US Department ofEnergy (DOE) pivotal on this path. The proposed transaction also supports the continuationof a reduced but focused technology development program at both the Company’s LucasHeights facility and at GLE’s Wilmington Test Loop facility.Translucent cREO™ technology and IQE:IQE Plc (LON: IQE), who acquired Translucent’s innovative cREO™ semiconductor materialstechnology in March 2018, disclosed on 20 March in the commentary to its full year resultsthat positive progress continues to be made in the commercialisation of cREO™ for applicationin several of its key target markets. A perpetual royalty of between 3% and 6% will be payableto Translucent on the sale of any IQE products worldwide that utilise the cREO™ technology,with minimum annual royalties due to commence being paid in FY2020 for the first 6 years. 2 | PageFurther information on the Company’s activities can be found on the Silex website:
www.silex.com.au or by calling +61 2 9704 8888.Forward Looking Statements and Business Risks:Silex Systems Limited (Silex) is a research and development company whose primary asset is the SILEX laser uranium enrichmenttechnology, originally developed at the Company’s technology facility in Sydney, Australia. The SILEX technology was licensed exclusivelyin 2006 to GE-Hitachi Global Laser Enrichment LLC (GLE) in the USA. GLE has been undergoing a restructure for a number of years afterGE-Hitachi disclosed it was seeking to exit the venture. In view of the continuing uncertainty surrounding the GLE restructure and thecontinuing depressed nuclear fuel market conditions, plans for commercial deployment of the SILEX technology have been significantlydelayed, and remain at risk. The future of the SILEX technology is therefore highly uncertain and any plans for commercial deployment arespeculative.Silex also has an interest in a unique semiconductor technology known as ‘cREO™’ through its ownership of subsidiary Translucent Inc.The cREO™ technology developed by Translucent has been acquired by IQE Plc based in the UK. IQE is progressing the cREO™technology towards commercial deployment in various advanced semiconductor products. The outcome of IQE’s commercialisation programis also highly uncertain and remains subject to various technology and market risks.The commercial potential of these two technologies is currently unknown. Accordingly, the statements in this announcement regarding thefuture of the SILEX technology, the cREO™ technology and any associated commercial prospects are forward looking and actual resultscould be materially different from those expressed or implied by such forward looking statements as a result of various risk factors.Risk factors that could affect future results and commercial pr
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