Commercial & Residential Solar Solutions

XsunX Business and Technology Newsletter

Hello,

With many aspects of the CIGSolar™ process chamber build well underway, we wanted to provide another update to outline progress and plans of our build and update investors on important business development progress.

During the past weeks, with many milestones completed, the large visible aspects of the CIGSolar™ chamber assembly have taken shape. During this same time, many internal and external parts and components were fabricated or delivered. Now, we are in the process of assembling the hundreds of parts that make up support systems including the material handling conveyor systems.

To make installation and future service of this assembly easier, we designed our material handling and heating systems as integrated packs or cartridges with a separate cartridge for each process zone. This strategy allows each cartridge to be pre-assembled, bench tested, and then simply slid into the process chamber. This strategy not only allows ease of assembly, testing, and installation, but will also aid in reducing system down time during normal service cycles – a necessity in a commercial production setting.

Once these assemblies have been completed and tested, we can install them into the eight separate process zones that make up our CIGSolar™ evaporator. At this point, another significant visible change will occur to the system as we will then be able to attach the material feed-ins and vacuum load locks to the main process chamber. For more information you can view additional pictures and descriptions at our CIGSolar project update page.

On the sales and licensing side of operations, our recent efforts have focused on a customer with whom we have entered into a Memorandum of Understanding (MOU) and have been developing a business relationship since late last year. While there are still several action items necessary to complete a sales and license deal, both companies have agreed to sales terms and we are now working through the definitive agreements. We hope to be able to provide more news related to this opportunity as soon as possible.

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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