Novaccess Global Inc XSNX

XsunX Reports Progress on Expanded Business Develo

[coloradonorth]

To Our Valued Shareholders,

In last month's progress update we told you that our scientific staff had established full-time operations on-site with a hard disc drive (HDD) equipment manufacturer. In a subsequent press release we were pleased to announce that our HDD equipment partner is Intevac, Inc., the world's leading provider of magnetic media deposition equipment to the HDD industry.

In case you missed the news release announcing Intevac, please visit the News page on our website:
https://xsunx.com/news-archives.aspx

We stated in our August progress report that a September project goal was to begin testing an evolving evaporation source design that we plan to then adapt to existing high-rate processing tools from Intevac's extensive line of proven, world-class magnetic media and imaging systems.

Our progress has been consistent with that goal, and we began evaporating metal, analyzing results, and establishing deposition rates for both the evaporation source and sputtering tools. There are a number layers to the CIGS structure and for the next several months our work effort will be to analyze results and refine designs, leading to the combination of these designs within a tool set and the ability to deposit CIGS devices.

Over the past month we have received numerous questions from investors related to Intevac and the use of Intevac technologies for our announced CIGS manufacturing technology development. The easiest way to explain what we are doing is to first mention that two of the established methods for manufacturing a CIGS solar device are (1) sputtering and (2) sputtering combined with evaporation. Using sputtering technologies alone, it is possible to manufacture all of the layers necessary to make a CIGS device. However, industry research has shown that sputtering alone has not achieved the same efficiency milestones that have been achieved when sputtering is used in combination with evaporation techniques to make the CIGS device.

What we are working towards is to adapt process recipes for the deposition of the non-core solar absorbing and conversion layers to sputtering tools previously developed by Intevac. These sputtering tools have benefited from years of proven industrial use, and we are finding them to be highly adaptable to our needs and well suited for use in the solar field. Separately, and with a focus on establishing what we believe to be the basis for achieving higher conversion efficiencies, we are developing evaporation source technology to produce the CIGS core solar absorber. We plan to adapt these designs to other Intevac equipment leveraging numerous existing system features with the goal of reducing costs and time to market. To our knowledge the use and adaptation of HDD equipment in this hybrid manner for CIGS PV manufacturing applications is not available in the market today.