First Graphene Ltd. — Capital/Financing Update 2003

Dec 15, 2003

TOLHURST NOALL GROUP LTD

A.C.N 007 870 760 Level 29, 35 Collins Street, Melbourne Victoria 3000 Australia Telephone: (03) 9242 4000 Facsimile: (03) 9242 4040

TNL

16 December 2003

Companies Announcements Office Australian Stock Exchange Limited Exchange Centre 20 Bond Street SYDNEY NSW 2000

Dear Sir/Madam,

RIGHTS ISSUE OVER-SUBSCRIBED

The Company has received applications for Entitlements of approximately 95% of the rights issue.

The Applications for additional shares exceed the number of available shortfall shares.

The Directors will allocate the shortfall to those shareholders who have made applications for additional shares under the terms of the issue.

Yours faithfully,

CRAIG GRAHAM-SMITH Company Secretary