Commercial & Residential Solar Solutions

XsunX Newsletter

Good Morning,

With the delivery of the CIGSolarTM system to the new facility in July, we successfully reached one of our major milestones. The new facility is working out very well and we are excited to be working under our own roof to integrate all of the components, controls, and support systems to finalize the build of the multi-chamber CIGSolarTM tool. We have posted some pictures of the delivery and assembly at the following link.

There’s been a lot of work to get to this stage. As a small company without the benefit of extensive project development budgets and large in-house design and fabrication capabilities we have had to work smartly to get our CIGSolarTM project to this point. From the tone of the emails we have been receiving from shareholders it looks like they are as excited as we are and we thank all of you for your support and patience.

Even as we write this newsletter, parts and support systems necessary to complete the assembly and to operate the tool are being delivered (as they have been on an almost daily basis). Unsurprisingly, our rolling pallet jack has been kept very busy moving and jockeying pallets of CIGSolarTM components, valving, wet processing, chilling, air compression, and work systems around the shop floor to make room for assembly and new deliveries.

In addition to re-assembling the major chamber components that had previously passed acceptance testing prior to shipment, we have also been working with contractors to schedule and complete the electrical, chemical, and other certifications necessary to operate the CIGSolarTM tool. Our goal has been to have progress with the facility and system preparation to a point where we can begin to focus on the installation of our proprietary thermal evaporation system as early as mid-August. These next two weeks will be very busy with the goal of accelerating progress with each day.

Thanks for your time, have a great week, and we look forward to providing more updates in the near future.

The XsunX Team

To learn more about XsunX’s’ breakthrough technology please visit http://www.xsunx.com.

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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