First Graphene Ltd. — Capital/Financing Update 2011

Jun 29, 2011

30 June 2011

«REG_ADDRESS_LINE_1» «REG_ADDRESS_LINE_2» «REG_ADDRESS_LINE_3» «REG_ADDRESS_LINE_4» «REG_ADDRESS_LINE_5»

==> picture [94 x 158] intentionally omitted <==

Dear shareholder,

On 29 June 2011, Robe Australia Limited ( Robe Australia ) announced a non-renounceable rights issue of fully paid ordinary shares at an issue price of 0.5 cents per new share ( Rights Issue ), on the basis of 2 new shares with an attaching 1:1 free option exercisable at 1 cent on or before 31 December 2014 for every 3 fully paid ordinary shares held.

The Rights Issue is made under a prospectus dated 29 June 2011 ( Prospectus ) and lodged with the Australian Securities and Investments Commission ( ASIC ) and ASX Limited ( ASX ) on that date. The Rights Issue will only be open to existing holders of ordinary shares in Robe Australia with registered addresses in Australia or New Zealand. Participation in the Rights Issue will not be extended to Robe Australia shareholders with registered addresses outside Australia and New Zealand ( Ineligible Overseas Shareholders ).

Rights Issue

The Rights Issue comprises an offer of fully paid ordinary shares to existing holders of ordinary shares as at the record date of 5:00 pm (Melbourne time) on 7 July 2011 ( Record Date ). That offer will be made in the Prospectus. Under the Rights Issue, 2 new shares with an attaching 1:1 free option exercisable at 1 cent on or before 31 December 2014 will be offered for every 3 fully paid ordinary shares held by a Robe Australia shareholder at the Record Date. If you are an Ineligible Overseas Shareholder, an offer under the Rights Issue will not be made to you.

On completion of the Rights Issue, Robe Australia will issue up to approximately 182.4 million new ordinary shares to raise up to approximately $0.91 million before costs and expenses and up to approximately 182.4 million new options.

The Rights Issue is non-renounceable. This means that you will not have the opportunity to sell your entitlements under the Rights Issue on ASX, or transfer your entitlement to another person.

The new shares issued under the Rights Issue will rank equally with existing fully paid ordinary shares in Robe Australia.

There is one holder of options to acquire fully paid ordinary shares in the Robe Australia ( Optionholder ). The Optionholder must exercise the options by the Record Date in order to participate in the Rights Issue.

The funds raised pursuant to the Rights Issue (net of costs and expenses) will be used to supplement the working capital of Robe Australia to enable it to evaluate investment proposals to indentify an appropriate investment for Robe Australia.

The Rights Issue is underwritten.

Level 2, 409 St Kilda Rd, Melbourne Vic 3004. ABN 50 007 870 760. Telephone: (03) 9820 2322. Fax: (03) 9820 2158

Page 2

Prospectus

Robe Australia shareholders with a registered address in Australia or New Zealand will be forwarded a copy of the Prospectus. You should read the entire Prospectus carefully before deciding whether to acquire securities under the Rights Issue.

You will also be entitled to apply for new shares and new options which are not taken up under the Rights Issue in addition to your entitlement ( Additional New Shares and Options ). Any Additional New Shares and Options will be placed at the discretion of the directors in accordance with the listing rules of ASX. A shareholder is not guaranteed to receive any Additional New Shares and Options.

Ineligible Overseas Shareholders

The Rights Issue is not extended to Ineligible Overseas Shareholders (ie. Robe Australia shareholders with registered addresses outside Australia and New Zealand). If you are an Ineligible Overseas Shareholder, an offer under the Rights Issue will not be made to you. To the extent that a person holds Robe Australia shares on behalf of another person resident outside Australia or New Zealand, it is that person’s responsibility to ensure that any acceptance complies with all applicable foreign laws.

Effect on capital of Robe Australia

The following table shows the effect that the Rights Issue will have on the issued share capital of Robe Australia (assuming all the shares offered under the Rights Issue are taken up or subsequently placed):

	Number of	Number of
	shares	options
Total on issue at date of	198,628,702	25,290.583
Prospectus
New securities issued under	182,419,135	182,419,135
the Rights Issue
Total	381,047,837	207,709.298

Note: the figures in this table are subject to the individual rounding of entitlements under the Rights Issue and any exercise of options prior to the Record Date.

Timetable

Robe Australia expects the Rights Issue to be conducted according to the following timetable:

**Lodgement Date –**The date the Prospectus was lodged with ASX and	29 June 2011
ASIC
**Ex Date –**The date on which Robe Australia shares commence trading	1 July 2011
ASX without the entitlement to participate in the Rights Issue.
**Record Date –**The date for determining entitlements of Robe Australia	7 July 2011
shareholders to participate in the Rights Issue (at 5:00 pm Melbourne
time).
**Prospectus sent to Shareholders –**Anticipated despatch of	12 July 2011
Prospectus and entitlement and acceptance forms to Robe Australia
shareholders.
**Closing Date –**The last day for receipt of acceptances and payment (at	26 July 2011

Level 2, 409 St Kilda Rd, Melbourne Vic 3004. ABN 50 007 870 760. Telephone: (03) 9820 2322. Fax: (03) 9820 2158

Page 3

5:00 pm Melbourne time).
Trading of New Shares & New Options– Date on which new shares	27 July 2011
and new options will commence trading on ASX on a deferred
settlement basis
**Despatch Date –**Anticipated entry of new shares and new options into	3 August 2011
uncertificated holding accounts.
**Normal Trading Date –**Trading of new shares and new options	4 August 2011
commences.

Robe Australia reserves the right to change this timetable without notice subject to the ASX Listing Rules and the Corporations Act 2001. Changes to this timetable will be announced to ASX.

The Prospectus for the Rights Issue has been lodged with ASIC and ASX and is available on Robe Australia’s website at www.robeaus.com.au and ASX website at www.asx.com.au.

Yours faithfully,

==> picture [121 x 28] intentionally omitted <==

Peter Reilly Chairman

Level 2, 409 St Kilda Rd, Melbourne Vic 3004. ABN 50 007 870 760. Telephone: (03) 9820 2322. Fax: (03) 9820 2158