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1 Letter from Chairman Siegfried Konig ASX ANNOUNCEMENT 29 July 2015 Dear Fellow Shareholders Since the ASX Announcement on Monday 20 July 2015, ( QUANTUM LEAP FOR LWP ), a number of Shareholders have contacted our Brisbane Office with a number of additional questions and I would like to share the following Question and Answer sheet for the benefit of all our shareholders. Can you provide more information on LWP s first commercialisation transaction? We were delighted to report that LWP has entered into a Joint Venture Agreement with Indian company Hallmark Minerals Pvt Ltd for the production of LWP s flyash-based proppants. This is a major milestone for the Company. Under the JV, which will be owned 60% LPW and 40% Hallmark, our technology will be used to produce our unique flyash proppants in the Hallmark manufacturing facility, which has previously manufactured bauxite-based ceramic proppants. The significance of this JV is that LWP have created shareholder value in the form of effectively adding US$9 million dollars (replacement cost) in plant assets to our business, and through the sale of a Technology License for the State of Maharashtra in India earned US$1 million dollars in upfront License fees for our Technology, and a future earnings stream in the form of revenue and royalties for the sale of light weight proppants from our JV Facility in India using flyash feedstock. Hallmark is a leading manufacturer of ceramic proppants in India. Its plant currently has a maximum manufacturing capacity of 12,000tpa, as an element of our JV we will significantly increase capacity for the production of LWP s flyash-based proppant by upgrading the plant to a 24/7 operation from the current batch process. We look forward to providing further detail on timelines and expected output from the JV plant in due course. How much do you expect the upgrade of Hallmark s plant to process LWP proppants to cost? The preliminary Capex budget is US$1.3 million plus US$700,000 for working capital. We expect to have more visibility once a comprehensive review is completed. Any funding above this level will be in the form of loans to the Joint Venture Company.

2 If your budget for the Indian Joint Venture is US$2million, why did the company raise US$4.7 million and thereby further dilute LWP s share capital? The company made the decision to raise the additional capital to give LWP the capacity to bid at auction, together with a potential USA JV partner for the dormant Oxane assets in the United States that have a replacement cost of over US$60 million, which could have been potentially purchased for cents on the dollar. At that time there was only one bidder at US$3.3 million. LWP withdrew from the auction process after our executives had completed final due diligence on the assets, and it became apparent the quantum of additional funds that would be required to modify the assets and commence production would be far greater than initially envisaged. During the capital raise, we had exited the auction process for those assets, however, in parallel the Chinese stock market was in meltdown, the Greek exit from the Euro was in the headlines and the fallout from those events was, and still is, unknown. To manage these global capital risks it was decided to complete the placement that had commenced. We accepted funds of circa 20% over our initial target, in fact we could have raised far more and rejected a further USD $4 million offered by US institutional and sophisticated investors. With this deal done, we intend to utilise our strong balance sheet to pursue other appropriate EPS accretive transactions. The Company recently completed a significant capital raise at a price of 1.1 cents per share and also at 1.0 cent per share. Why were different prices applied to this placement? At the start of the capital raising process some stable, long term investors were offered a placement at 1.0 cent per share, which at that time represented a 10% discount to VWAP. Later in the process, the Company offered investors the lower of 1.1 cents, or 10% off VWAP, in order to best accommodate investor demand. Also, an exception was made for investments of over $1 million. We were delighted with the strong investor support for this placement. At this point, what future placements do you envision? There are none planned. There are now around 3.9 billion shares on issue. Will you consider a share consolidation? We are mindful of the structure of our share registry, and are of the view that at some stage a consolidation may be prudent. We are also of the view that such a corporate action will be best received by the market when it is supported by significant positive action from the Company, such as the generation of profits or a substantial value

3 accretive transaction. If not implemented at the appropriate time, shareholders often lose value in a share consolidation. As the Company s largest shareholder, my interests are closely aligned with that of every LWP Shareholder in seeking to grow the value of our Company. Given the highly positive announcement in relation to the JV in Indian, were you surprised by the subsequent movement in the share price? We couldn t be more pleased with the transactions announced in that ASX release (Monday 20 July, 2015). LWP acquired a commercial-scale proppant plant for a fraction of replacement cost, which will facilitate the commencement of commercial production and the Company now has sufficient cash at bank to take advantage of other potential opportunities. Further, the 100% acquisition of the Ecopropp proppant business by LWP was formally completed, securing our significant technology rights. Notwithstanding, the share price has softened since the announcement. While it is LWP s goal to attract long-term investors committed to our business plan, some investors took the opportunity to sell the stock to achieve a short-term profit. While this is disappointing in terms of our current share price, we maintain a strong belief and confidence in the Company s technology and business plans that will deliver EPS accretive transactions and as a result I expect our share price to follow our business growth curve for the benefit of all shareholders. We look forward to delivering news on our progress in the weeks and months ahead. There has been some commentary on investor social media platforms that the Company s US-based advisors, EAS Advisors have sold down their holding, is that true? I m happy to correct this commentary. The fact is that the reverse is true. EAS have actually increased their holding and we welcome EAS as the 5 th largest LWP Shareholder.

4 What can investors expect from LWP in the near term? First and foremost, our focus is on producing proppants at the Brisbane pilot plant, which is in the final stages of commissioning. The fine grinding mill has performed beyond expectation, the US suppliers of the mixer granulation equipment completed their work and left site last week, and sintering - the final and longest step - is commencing and as previously announced the completion of which is expected at the end of August. We are excited at the prospect of completing commissioning and validating our proppant production capabilities in a live environment. The LWP flyash proppants produced in Brisbane will then be validated by third party experts. We are confident the results will be, at a minimum, equal to the proppant results produced in our laboratory environment using our patented technology process. Commercialisation can then commence in earnest, and we intend to expand the executive team to accelerate current and new commercialisation opportunities. Comprehensive planning for conversion of the Indian manufacturing plant from batch processing to a 24/7 operation will commence shortly, with discussions with our JV partners underway. Our strategic focus is on North America, which currently represents about 87% of the world s market for proppants. To that end, we have been in discussions with multiple potential JV partners in this region. Specifically, preliminary due diligence has commenced with a potential licensee located in a leading shale oil producing state in the USA. The location has been identified by independent expert reports with potential feedstock sources identified. Potential feedstock analysis is now underway to ensure best source for production of LWP flyash proppants. Further, ongoing discussions are taking place in China, where we believe dormant manufacturing facilities have the potential to offer opportunistic acquisitions at cents-in-the-dollar valuation relative to replacement costs. On behalf of the board, I thank each and every Shareholder for your continued support. Siegfried Konig Chairman

5 For further information please contact: Siegfried Konig Sean Corbin Chairman Director/Company Secretary Ph: Ph: E: E: James Moses Media and investor relations Mandate Corporate Ph: E: About LWP Technologies is an Australian oil and gas technology company focused on developing a next generation, fly-ash based, proppants for use in hydraulic fracturing (fracking) of oil and gas wells globally. Proppants are the single largest cost item in the fracking process and represent a multi-billion dollar global market annually. Proppants are a sand-like commodity used to prop open fractures in shale rocks which allows oil and gas to flow. LWP Technologies is seeking to commercialise its proppants as a cost effective, superior alternative to bauxite and clay based ceramic proppants, typically used in fracking operations currently. The Company is in the final stages of commissioning its pilot scale proppant manufacturing plant in Queesnland, Australia, and plans to commence production in Q3, LWP then plans to seek joint venture partners and/or licensing agreements to commercialise its proppant product, and deliver significant returns to shareholders. About Proppants Proppants are a sand-like commodity which are a major input and cost item in the hydraulic fracturing (fracking) of oil and gas wells. Proppants are pumped into an oil and gas well under pressure to prop open the tiny fractures created in hydrocarbon-bearing shale rocks during fracking, to allow oil and gas to flow from the ground fractures. Traditional ceramic proppants are made from clay and/or bauxite. L W P T e c h n o l o g i e s ceramic proppant is majority manufactured from fly-ash, a by product of coal fired power stations. The Company is of the view that its unique proppant product has the potential to lead the industry due to; the widespread availability of fly-ash; the fly-ash proppants ultra-light weight; and its ability to withstand very high pressures in deep wells. LWP Technologies proppants have been certified to meet or exceed both the American Petroleum Institute standards and the ISO standards.