First Graphene Ltd. — Capital/Financing Update 2020

Jun 1, 2020

ASX Announcement

2 June 2020

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Aquatic Leisure Technologies Signs Supply Agreement

New pool range incorporating PureGRAPH[®] to be released

HIGHLIGHTS

• Aquatic Leisure Technologies and First Graphene Ltd execute a two-year sales agreement for the supply of PureGRAPH[®] graphene powders.

• A new range of fibreglass swimming pools incorporating PureGRAPH[®] 20 in the laminate is to be launched in August 2020.

Advanced materials company, First Graphene Limited (“FGR” or “the Company”) (ASX: FGR) is pleased to advise the execution of a Supply Agreement with Aquatic Leisure Technologies (ALT) for supply of PureGRAPH[®] products over the next twenty-four months.

FGR and ALT have conducted extensive test work over the last two years for the incorporation of PureGRAPH[®] into the ALT resin systems used for the construction of ALT’s award-winning swimming pools.

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FGR and ALT have been able to demonstrate improved flexural strength with the addition of small percentages of PureGRAPH[®] graphene powders. Immersion testing has been completed in accordance with ASTM D750 standards, and this has confirmed reduced sorption curves, which will reduce the potential for osmotic blistering.

ALT have been the industry leaders in pool innovation and the new range of pools from ALT incorporating PureGRAPH[®] will enable a totally new proprietary construction process and provide the next generation of fibreglass pool technology.

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Lew Beale, Chairman ALT, Warwick Grigor and Lynley Papineau, Managing Director ALT

Other Key Terms of Supply Agreement

Pursuant to the Supply Agreement, ALT will exclusively source graphene and any other graphite or graphene products from FGR.

FGR’s supply of its graphene products to ALT will initially be exclusive for application in the production of fibreglass swimming pools for sale in Australia, New Zealand the United States of America, and Reunion Island. Following the initial term, exclusivity will continue subject to ALT achieving (and continuing to maintain) an annualised minimum order quantity. The initial annualised minimum order quantity to be achieved in the first two years of the Supply Agreement is 2,500 kg (2.5 tonnes) per annum of PureGRAPH[®] .

Each party has the right to early termination if there is a material breach of the obligations of the other party. Additionally, ALT has the option to extend the initial 24-month term for an additional 36 months.

There are no other material terms to this contract and the Company is not able to quantify the economic impact on the Company at this time.

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Craig McGuckin, Managing Director for First Graphene Ltd, said, “The execution of this Supply Agreement represents one of several anticipated for 2020. We are pleased to have worked with Aquatic Leisure Technologies to develop a unique range of fibreglass swimming pools for local and export markets. Graphene is helping our customers to develop new products not previously seen with non-graphene technologies. PureGRAPH[®] additives are a key enabler in taking elastomers, composites, coatings and concrete materials to a new level and we will continue to seek out further new applications and markets where graphene can add value.”

Lynley Papineau, Managing Director, for Aquatic Leisure Technologies, said,

“Aquatic Leisure Technologies is committed to developing innovative solutions for our customers. We are excited by the product we have developed with First Graphene. These are two innovative, Australian founded companies who are taking new technologies to a world market. The implementation of PureGRAPH[®] into our company’s range of swimming pools is the beginning of a new era for pre moulded fibreglass swimming pools. Greater strength, durability, water and chemical resistance. After two years of extensive research and development we can truthfully boast that this breakthrough in material science has allowed Aquatic Leisure Technologies Pty Ltd, in conjunction, with First Graphene Ltd, to be world leaders.

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About First Graphene Ltd (ASX: FGR)

First Graphene Ltd. is the leading supplier of high-performing, graphene products. The company has a robust manufacturing platform based upon captive supply of high-purity raw materials and an established 100 tonne/year graphene production capacity. Commercial applications are now being progressed in composites, elastomers, fire retardancy, construction and energy storage.

First Graphene Ltd. is publicly listed in Australia (ASX:FGR) and has a primary manufacturing base in Henderson, near Perth, WA. The company is incorporated in the UK as First Graphene (UK) Ltd. and is a Tier 1 partner at the Graphene Engineering and Innovation Centre (GEIC), Manchester, UK.

About Aquatic Leisure Technologies

Aquatic Leisure Technologies has been a WA owned and operated family company for over 44 years. Their purpose built, world-class manufacturing facility is the largest in Australia and is where they build the world’s best fibreglass swimming pools. Brands within the ALT Group include Aqua Technics, Buccaneer Pools, Sapphire Pools and the recently acquired Riverina Pools. They have built and installed more than 52,000 pools since commencing operations 1976.

PureGRAPH[®] Range of Products

PureGRAPH[®] graphene powders are available in tonnage volumes with lateral platelet sizes of 20μm, 10μm and 5μm. The products are high performing additives, characterised by their high quality and ease of use.

With authority of the board, this announcement has been authorised for release, by Peter R. Youd

Director, Chief Financial Officer and Company Secretary

For further information, please contact

Craig McGuckin Managing Director First Graphene Limited + 61 1300 660 448

Warwick Grigor Non-Executive Chairman First Graphene Limited +61 417 863187

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