Commercial & Residential Solar Solutions

Newsletter: Technology & Corporate Development Progress Update

To Our Valued Shareholders,

We’d like to share with you this week an update regarding the development efforts of XsunX’s co-evaporation processing chamber.

As mentioned in the previous newsletter, we had hoped to begin deposition testing last week. We succeeded in evaporating the copper element of our CIGS cell as part of our efforts to calibrate the system components. Essentially, this means we’re preparing for the deposition of each material – copper, indium, gallium and selenide – so they may work in unison to produce the best CIGS solar absorbing layer. You’ll be interested to know that copper demands significant attention as it requires the highest operating temperatures. While it is not the only material necessary to produce the CIGS absorber, it does operate under the harshest operating environment so establishing optimal parameters is crucial with this material.

Our progress is proceeding nicely. At week’s end we were still early in our process efforts, but so far we’ve achieved what we believe to be excellent results in both deposition rates and film uniformity. While these are small steps forward, they are still significant pieces of the puzzle in achieving a highly-efficient co-evaporated CIGS thin-film solar cell.

To form an optimal full size CIGS cell, there are still numerous aspects to establishing and verifying all of the processes parameters. With that said, we are very excited about the results so far and they bode well toward proving the value of our hybrid approach.

Thank you for your continued support of our company. As we make progress, we look forward to reporting back to you. As always, if you have any questions in the meantime, please contact our Investor Relations desk at investors@xsunx.com or (888) 797-4527.

Sincerely,

Joseph Grimes, President & COO, XsunX, Inc.

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