Commercial & Residential Solar Solutions

Company Shareholder Update

Good Morning,

As the headline above from a report offered by the Solar Energy Industries Association (SEIA) outlines, the solar industry is making tremendous and significant progress not just as a viable power production source, but as a sales and revenue source as well.

For XsunX, this type of growth domestically, in addition to growth occurring internationally, provides an immense opportunity for the Company to diversify and leverage its knowledge and extensive contact base in the PV industry.

Over the past several newsletters, we have been outlining how XsunX is expanding our marketing and sales efforts to add solar business solutions to our service offerings. With these additions, we are working to take advantage of new sales and revenue generating opportunities.

As we move into September, our sales efforts will be multi-pronged. We will be working and meeting with prospective customers for our CIGSolar® manufacturing technology, and responding to quote requests for commercial and utility scale projects.

We believe that this expansion will increase exposure of our CIGSolar® and technology offerings, improve our opportunities to generate revenues in the near term, and by generating revenues, may reduce or eliminate dependency on equity capital to fund operations – a positive for all shareholders.

For more information on what we are doing, you can view a recent interview from last Friday on MoneyTV with our CEO, Tom Djokovich here.

In regards to updating the web site: our web designer is back from vacation and we are making good progress with the updates and plan to launch in the near future.

Thanks for your time and have a great week.

Tom Djokovich, CEO

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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