On July 31, 2012, Visualant, Inc. ("Visualant" or the "Company"), an emerging leader in photon imaging technology, closed the acquisition of the environmental field of use of its Spectral Pattern Matching ("SPM") technology from Javelin LLC ("Javelin").

With this acquisition, the Company will consolidate all intellectual property relating to the SPM technology.

With the closing of this acquisition transaction, Javelin and its principals Peter Purdy and Matt Creedican have entered into a business development agreement with the company.

The Company acquired the Visualant related assets of Javelin for the following:

a. One million two hundred and fifty thousand shares (1,250,000) of our common stock at closing valued at thirteen ($0.13) per share, the price during the negotiation of this agreement.

b. One hundred thousand dollars ($100,000), with twenty thousand dollars ($20,000) payable at closing and eighty thousand dollars ($80,000) to be paid in four equal installments over a period of eight months.

c. A business development agreement which will pay Javelin ten percent (10%) on the gross margin received by Visualant from license agreements and joint venture developments sourced by Javelin

(d) Exhibits -

Exhibit No.                                  Description

                Asset Purchase Agreement dated July 31, 2012 by and between
   10.1         Visualant, Inc. and the Javelin LLC.

                Business Development Agreement dated July 31, 2012 by and between
   10.2         Visualant, Inc. and Javelin LLC.

                Press Release of Visualant, Inc. dated August 22, 2012 related to the
   99.1         acquisition of the Javelin LLC assets.