time to confess, page-3

Thank you for your email.

I do not agree that we have said nothing. To the contrary, we released our
full project update only three weeks ago (August 25th). Our response to the
ASX query was entirely appropriate in that we referred to that full update
as the current status - nothing material has changed since. Regarding
timelines, as you should be aware our projects are in the R&D phase. The timing of R&D activities is by nature uncertain and
subject to unforeseen changes. We therefore can not put firm timelines on
project milestones - only guidance on expectations regarding timing. This
has been our standard policy for as long as we have been listed.

As per our response to the ASX last week, we remain in full compliance with
our disclosure requirements under Listing Rule 3.1.

Regards,

Michael Goldsworthy.


...................................................................
Dr. Michael Goldsworthy
CEO / Managing Director
Silex Systems Limited
Lucas Heights Science & Technology Centre
Building 64, New Illawarra Road
LUCAS HEIGHTS NSW 2234
AUSTRALIA

Ph: + 61 2 9532 1331
Fx: + 61 2 9532 1332
Email: michael.goldsworthy@silex,com.au
Website: www.silex.com.au
This email contains information which is CONFIDENTIAL and that may be
subject to LEGAL PRIVILEGE. If you are not the intended recipient, you must
not read, use, disseminate, distribute or copy this email or its
attachments. If you have received this in error, please inform us
immediately by return email, facsimile or by telephone and delete this
email.