Ann: Sales agreement finalized and supply commences-AJX.AX, page-3

NEW SALES CONTRACT WITH U.S. BASED ASX MEDIA RELEASE | 26 SEPTEMBER 2016 GLOBAL APPAREL LEADER

Supply of AlexicoolTM Phase Change Material Solutions for Multiple Fabrics used in Wicking and Antimicrobial Technology

Perth, Australia and Greer, South Carolina: Alexium International Group Limited (“Alexium,” “the Company”) (ASX:AJX, OTC QX:AXXIY) today announced an agreement with one of the world’s leading household apparel companies to augment the manufacturer’s wicking and antimicrobial technology with Alexium’s innovative AlexicoolTM chemistry, an environmentally friendly, phase change material solution that gives fabrics a cool-to-the-touch feel.

The U.S.-based company has identified Alexium as a performance solutions supplier for more than five brands of inner wear and outer wear apparel over the next two years, and will be working with Alexium to qualify the use of AlexicoolTM with various fabric types in two U. S. plants, followed by expansion to global production facilities.

“Our new client is a major international player in the apparel industry, and we were able to reach this agreement in just over three months after introducing our products to the company,” said Vice President of Sales Michael Schwartz. “That’s a strong sign that Alexium has moved from being on the edge of a trend to a recognized mainstream standard for innovative, environmentally friendly chemistries.”

Alexium and the manufacturer are collaborating on AlexicoolTM applications for more than a dozen fabric types and blends, with more application opportunities being presented each week, according to Schwartz.

“Given our extensive knowledge of our award winning chemistries, we are able to customize formulas for a range of different fabrics which meets a key criterion for many customers when dealing with innovative technologies,” he added.