First Graphene Ltd. — Investor Presentation 2019

Mar 5, 2019

DELIVERING THE GRAPHENE REVOLUTION

Forward Looking Statements & Disclaimer

This is presentation has been prepared by First Graphene Limited (ACN 007 870 760) (“Issuer”) for the sole purpose of providing an overview of its current prospects and proposed development strategy to recipients (“Recipient”). This presentation and its contents are provided to the Recipient in confidence and may not be reproduced or disclosed in whole or in part to any other person, without the written consent of the Issuer.

The presentation is based on information available to the Issuer as at the date of the presentation. The information contained in this presentation has not been verified by the Issuer nor has the Issuer conducted any due diligence in relation to that information. The presentation contains selected information and does not purport to be all inclusive or to contain all information that may be relevant to the Recipient. The Recipient acknowledges that circumstances may change and this presentation may become outdated as a result. The Issuer accepts no obligation to update or correct this presentation.

This document includes forward-looking statements. When used in this document, the words such as "could," “plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are forward-looking statements. Although the Issuer believes that the expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties, and no assurance can be given that actual results will be consistent with these forward-looking statements.

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THE OPPORTUNITY

The lowest risk exposure to graphene

The world leader in the commercialisation of graphene

Established supply

• Fully operational plant with capacity of 100 tonne/year

• Secure raw material supply and robust process

• Low capital cost and short build time

Low capital costs

• Expansion of capacity to support global markets is modular

High quality product

• High performing and easy to use products.

• Low manufacturing costs delivering high margins

Commercial traction

• Commercialisation underway in multiple product verticals

• • Sales contracting in progress

Strong partnerships

• Tier 1 partner at Graphene Centre (GEIC), Mancheste.

• Raw material supplier to University of Manchester programmes

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TIMELINE OF ACHIEVEMENTS

Growth of expertise and capability in a short time frame

April 2015 First graphene produced in test work at University of Adelaide Sept 2016 Graphene Cell pilot plant (5 tpa) commissioned, verifying the production process

May 2017 Optimisation increased capacity of cell to 10 tpa Dec 2017 Opening of commercial scale production facility (90-100 tpa) Commissioning completed March 2018

June 2018 Sept 2018 Q1 2019

Joined with University of Manchester at GEIC

Launch of PureGRAPH™ range of graphene products

Series of product releases and industry sales

Commencing commercial sales

• § Capacity 100 tpa

• § Product PureGRAPH™ powdered graphene range

• § Platelet diameter sizes of 5, 10 and 20 microns

• § Generally 3-8 layers in thickness

• § High quality, fit for use in industry

• § Premium pricing

• § Target Markets Polymers, elastomers, composites, advanced coatings for heat exchange

• § Minimal regulatory hurdles & product liability issues

• § Shorter testing times to prove product compliance

• § Large volume potential

• § Multiple product verticals across a range of industries

• § “low hanging fruit”

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• § Graphene, isolated in 2004, is the thinnest, strongest, most flexible, best barrier, most transparent, most conductive (thermal & electrical) material ever developed.

• § Graphene is forecast to create a >$300m materials market by 2022[1] and enable downstream $billion markets in transportation, construction, industrial products, energy storage and electronics.

• § Graphene powders are typically added to other systems to provide new properties not previously available or enhance the existing properties to new levels.

• § Addition of <1% PureGRAPH™ by weight typically gives >40% improvement in performance of key parameters e.g. tensile strength, abration resistance, thermal disbursion

• § To deliver success in the graphene sector, a supplier must have;

• § a robust manufacturing platform,

• § competitive cost structure and

• § the capability to drive adoption through downstream investment and partnering[2]

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REAL COMMERCIAL	REAL COMMERCIAL
OPPORTUNITIES
	Industrial Composites
Commercial Product	Enhanced polymer liners for mining equipment
Customer	newGen Group(who supplies BHP, RIO, Fortescue)
Characteristic Sought	Strength and flexibility
Improvements	37% improvement in tensile strength
Achieved	100-500% improvement in abrasion resistance
Sales Potential	Global mining equipment market is US$128bn p.a., of
	which the lining market is US$1.2bn p.a.
Product Readiness	Full scale demonstration liner manufactured. Trials
	with a large international mining group underway.
	Moving forward with sales agreement with initial
	potential for initial sales of several tpa of
	PureGRAPH™ in 2019
Comment	Purchase order for 2,000 kg received

REAL COMMERCIAL OPPORTUNITIES

Industrial Composites

Commercial Product	Enhanced polymers - general
Customer	Multi-national polymer and materials manufacturer, based in Europe
Characteristic Sought	General benefits offered by graphene–strength, flexibility
Improvements Achieved	Subject to testing
Sales Potential	Company has annual sales of approx. US$1.5bn p.a.
Product Readiness	Purchased multi-kilogram quantities of PureGRAPH™ products to begin a programme of graphene technology enhancement in polymer products.
Comment	Testing program could take up to 12 months

REAL COMMERCIAL OPPORTUNITIES

Heat Transfer Fluids

Commercial Product	Next generation of coolants– automotive, computing
Customer	FlexeGRAPH
Characteristic Sought	Thermal dispersion in engine oils and coolant fluids for better efficiency
Improvements Achieved	Tests so far show PureGRAPH™ 5 to be superior additive • Reduced fuel consumption and emissions • Reduced volume of cooling systems
Sales Potential	Australian market was $3bn in 2016, growing to $4.5bn by 2025
Product Readiness	Still in laboratory with larger scale, 1,000 litre batches in 2019
Comment	Testing program on-going and scaling up. Small sales potential in 2019

REAL COMMERCIAL OPPORTUNITIES

Fire Retardant Polymers

Commercial Product	Fire retardant to be added to polymer shipping pallets
Customer	European masterbatch company
Characteristic Sought	Improved retardant that satisfies increasing strict environment rules
Improvements Achieved	Extensive tests confirm superior performance using PureGRAPH™
Sales Potential	Multi-billion dollar market
Product Readiness	Awaiting commercial orders
Comment	Cleared all technical hurdles, now awaiting orders

REAL COMMERCIAL OPPORTUNITIES

FireStop™

Commercial Product	Fire retardant coatings/paints
Customer	Not identified yet
Characteristic Sought	Thermal dispersion, non-toxicity
Improvements Achieved	Very effective in preventing ignition Avoids the intumescent effect
Sales Potential	Multi-billion dollar international markets
Product Readiness	Preparing for regulatory approvals
Comment	Appears to be a brilliant product, lower cost and more effective, whilst being non-toxic as well.

REAL COMMERCIAL OPPORTUNITIES

Construction

Commercial Product	Additive to cement products
Customer	Not identified yet
Characteristic Sought	Improved tensile and compressive strength, and reduced permiability
Improvements Achieved	34% increase in compressive strength 27% increase in tensile strength
Sales Potential	• Pre-cast concrete is US$130Bn • UHPCs is US$900m • Concrete Admixtures is US$18Bn
Product Readiness	Continuing research
Comment	Easily added into the mortar using standard methods

Secure

• § Captive supply of graphite from Sri Lanka.

• § +97% carbon ore used directly from the ground. § Several years of raw material stockpiled (at full capacity of 100 tpa).

Established

• § Single step high yield electrochemical exfoliation.

• § >90% conversion from graphite ore to PureGRAPH™ products.

• § 100 tonne p.a. capacity installed

Robust

• § Scaled finishing and drying steps.

• § Industrially available process tools.

• § Controlled product sizes of PureGRAPH™

• § Internal, industry recognised quality control processes

Consistent

• § In-house supply and logistics team.

• § Fully compliant safety data.

• § REACH registration completed.

• § NICNAS registration in progress.

• § Low capital cost & short build time.

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• § Graphene platelets with low defects and high sp[2] carbon levels.

• § High aspect ratio product contain high levels of few layer graphene primary particles.

• § PureGRAPH™ powders have well controlled particle sizes at 5µm, 10µm and 20µm for consistent and repeatable performance.

• § PureGRAPH™ powders disperse readily and easily in solvents, polymer resins, rubber and water based formulations.

• § High purity carbon materials.

• § Published representative, analytical data for all products.

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WORLD LEADING DEVELOPMENT PARTNERS

Universities, customers and distributors

• § GEIC – Graphene Engineering Innovation Centre § Tier 1 partners with access to multinational OEMs in aerospace, engineering, oil & gas

• § Collaborative projects in composite materials, construction materials and energy storage

• § Australian Research Council – Graphene Research Hub § Composite & rubber strengthening and testing § Fire Retardant coatings & polymers § Concrete strengthening § 2D Fluidics Pty Ltd. 50% owned by FGR § Green routes to graphene oxides § Equipment for thin film process chemistries in 2D materials § AUD$1.5 million Australian Government CRC-P funding

• § First Graphene offers investors an advanced entry into the graphene revolution.

• § The Company has an established direct manufacturing route which is already built and operational at a capacity of 100 tonnes per annum. Low capital costs mean straightforward expansion of manufacturing capability.

• § The high quality product combined with low manufacturing costs will deliver high margin product sales into the expanding graphene materials market.

• § Strong customer interactions which will be enhanced by an emphasis on B2B marketing and a strengthened sales & distribution team.

• § Continuing investment in process, products and applications yields strong know-how and intellectual property assets. Ongoing engagement with universities and customers is driving testing and evaluation prior to adoption of graphene raw materials.

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	Q1 2019	Year 1	Year 2
Commercial	First 2 tpa sales contract	Two additional 2-5 tpa sales contracts	Multiple contracts for tpa sales
	Multiple customers testing PureGRAPH™	Agents established in Europe, North America & Asia	Sales growth through global distribution network
		FireStop™ externally verified	Brand recognition - driving sales growth
		B2B marketing initiatives
Production	~~REACH (Europe & UK) registration for~~ PureGRAPH™ NICNAS (Australian) registration for PureGRAPH™	Ongoing process optimisation - increasing throughput & reducing costs	Global supply chain strategy implementation in progress
	Upgraded finishing equipment delivered & installed	Global supply chain strategy development	Extended product range: Functionalised PureGRAPH™, GO & other 2D materials

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It’s all about quality

Issued Capital and Share Price Performance

Shares On Issue Price (20/2/19) ($) $0.145 406,332,503 Market Cap ($m) ~$60m 52 Week High ($) $0.22 52 Week Low ($) $0.105 Cash (31/12/18) ($m) $3.2m ~~Debt ($m) $0.0~~ 0 p pp ( p ) y Date Range: 1d | 5d | 1m | 3m | 6m | YTD | 1y | 3y | 5y | 10y | All | Custom Draw trend lines Volume

(Source Comsec)

LEADERSHIP TEAM Successful, experienced and motivated

• Warwick Grigor § Previously Chairman of Canaccord Genuity Australia Limited. Non-Executive Chairman § Respected and experienced mining analyst. Graduate of the Australian National University with degrees in law and economics.

• § Held several directorships in private and publicly listed companies.

• Craig McGuckin § Qualified mining professional with in excess of 35 years experience in the Managing Director mining, petroleum and material processing industries.

Peter Youd Chief Financial Officer & Company Secretary

• § Bachelor of Business from the W.A Institute of Technology (Curtin University).

• § 35 years in senior management positions and directorships for publicly listed and private companies in Australia and overseas.

• § Chartered Accountant with extensive experience within the resources, oil and gas services, mining and technology industries.

Andy Goodwin Chief Technology Officer (non-Board)

• § Ph.D. scientist with extensive leadership experience in innovation and new business growth gained over 35 years within the specialty chemicals industry.

• § Previously with Sanofi, Dow Corning Corporations and Thomas Swan & Co. Ltd.

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INVESTOR BASE Stable and well informed technology investors

Shareholder	No. of shares	Percentage
J P Morgan Nominees Australia Limited	45,757,152	11.06%
Twynam Agricultural Group Pty Ltd	21,063,177	5.09%
IPS Nominees Limited	16,781,465	4.06%
Gregorach Pty Ltd	14,905,946	3.60%
Building On The Rock Limited	11,111,111	2.69%
Directors and Management		~7.50%
Shares in issue 413,679,002

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