First Webcast summary

Dear Shareholders,

As you may know, on Wednesday Morning Sydney time, Alexium held the first in a series of webcasts intended to answer shareholder questions and increase the clarity of Alexium’s operations and progress. Dr. Bob Brookins, Vice President of R&D, Aaron Krech, CFO and I took your questions and answered as many as possible for roughly 60 minutes, and the audio of that webcast can be found in the link below. The feedback has been mostly positive along with some helpful, constructive criticism for future podcasts, such as improved audio quality and a less extemporaneous feel. Below are some highlights of the call:

• Debt Facility - Expanded debt facility with better terms for Alexium in final stages of approval with closing targeted for August 30th, 2017
• Cash Neutrality - Cash neutrality achieved in combination of June and July with August tracking well
• Military - Efforts toward a military program are very active but not yet in the LUE (limited user evaluation) stage
• Alexiflam NF - Alexium is currently working through REACH and TSCA registration, assessing various NF markets, such as FR cotton, fleece, and wood, and working with several parties interested in a range of potential licensing arrangements
• NASDAQ – Alexium is working through necessary steps to list on the NASDAQ, and the timing of the NASDAQ listing will be determined by a combination of optimum market conditions and financial strength of the Company
• Tenting – Alexium has developed and launched the first all-in-one combination of FR, water repellent, and coating that is all Oeko-Tex registered and is being well received by the tenting industry
• Pillows – None of the cash neutrality in June was due to sales for Pegasus Home Fashions pillows, but sales have now commenced for that account
• Washington, D.C. Efforts – Alexium efforts in Washington, D.C. will continue but will be streamlined, more targeted and more focused on state government interaction

Thanks to the shareholders who participated in the webcast and we are working right now to schedule and improve the execution of the second event.


Sincerely,

Dirk L. Van Hyning, Ph.D.

Chief Executive Officer