Commercial & Residential Solar Solutions

XsunX Business and Technology Update

Good morning,

January has already seen significant progress with the build of our CIGSolar™ evaporator. It’s only been a week since our last build update in which we outlined numerous aspects to our assembly plans, but with progress picking up in the later stages of the build we thought shareholders might like us to keep them posted on continuing progress this month.

Today’s newsletter provides incidental updates to our assembly progress and plans as we push to complete the core assemblies and begin testing of the major systems and operations.

Last week we outlined plans to complete the welding of the chamber and the numerous ports and feed-through flanges attached to the system, to complete the fabrication of the entry and exit systems and begin to assemble them, and to provide initial testing of the system material handling and automation systems. We are on track with our goals to complete the welding of the main chamber, flanges & ports, and are completing the aluminum parts this week for the entry and exit systems. For more information you can view additional pictures and descriptions at our CIGSolar project update page.

We are excited to now begin work on bench testing and programing of the material conveyors and automation system which is scheduled to start later this week. We also plan to install and begin load testing system motors in the process chamber to ensure fit and function. The operation of material conveyors and automation are comprised of numerous stainless steel and graphite components and are areas that can often require the most time to adjust so we are fortunate to initiate this phase as early as possible.

The support frame for the system is near completion and we will be attaching the system to its support frame as early as next week.  The next area of fabrication will be the liquid cooling system. Thermal evaporation can cause the CIGS process chamber to build-up heat over time so we have designed and implemented a cooling system to reduce the build-up of heat to maintain a safe working environment.

As for progress with potential customers, the good news is that we are continuing to negotiate with interested customers. These customers continue to be engaged and we are working hard to try and find ways to close deals prior to completion of our first multi-chamber CIGSolar™ evaporator.

Thanks again for your time, support, and interest. Have a great week.

The XsunX Team
To learn more about XsunX’s’ breakthrough technology please visit http://www.xsunx.com , and follow us on Twitter and Facebook.

Safe Harbor Statement: Matters discussed in this shareholder newsletter contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this shareholder newsletter, the words “anticipate,” “believe,” “estimate,” “may,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.

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