Alexium And U.S. Air Force Sign New Cooperative Research And Development Agreement – Expands Collaboration For Military And Commercial Applications

PERTH, Australia, and GREER, S.C. — January 3, 2012 — Alexium International Group Limited (Alexium)
is pleased to announce that it has signed a new Cooperative Research and Development Agreement
(CRADA) with the US Air Force Research Laboratory (AFRL), Materials and Manufacturing Directorate,
Airbase Technologies Division,Tyndall AFB, Florida to continue to develop and commercialize the
patented and award winning Reactive Surface Treatment (RST) technology.

This agreement will leverage resources and capabilities of Alexium and the AFRL and advance
the effort of developing and transitioning products to the military and civilian markets.
Specifically, this collaboration is a joint effort that will explore the RST technology on a
variety of materials, integrate nanoparticles developed by the Air Force in various RST treatment
applications, and demonstrate a commercially feasible and scalable production process. The outcome
of this activity is anticipated to result in greater soldier protection from chemical and
biological threats and improved materials used in military and commercial applications.

More recent developments by Alexium have demonstrated significant improvements in RST liquid
repellency treatments for chemical/biological protection applications. Cleanshell CB nowoffers even
higher liquid repellency performance, tuned specifically to chemical warfare agent (CWA) simulants
such as tributylphosphate (TBP). Outershell fabrics treated with Cleanshell CB protect the
outershell fabric from TBP penetration for days. This is a significant improvement and industry
step-change over conventional fluorocarbon repellency treatments,which offer only minutes of TBP
protection. Cleanshell CB repellency treatment is currently being evaluated at the Army’s Natick
Soldier Systems Center and Alexium expects to enter US Department of Defense tenders as proposals
are invited.

We are also pleased to confirm that Alexium shares will be quoted via American Depositary
Receipts (ADR) on a 1 for 10 basis as from 17th January, with Merriman Capital Inc as Principal
American Liaison (PAL) and Bank of New York Mellon as the ADR sponsor.

Posted on January 10, 2012

Source: Alexium International Group Ltd.