First Graphene Ltd. — Capital/Financing Update 2016

May 26, 2016

==> picture [311 x 35] intentionally omitted <==

27 May 2016

The Manager Company Announcements Office ASX Limited Level 6, 20 Bridge Street SYDNEY NSW 2000

NOTICE UNDER SECTION 708A (5) (e) OF THE CORPORATIONS ACT

On 27 May 23016, First Graphite Limited ( Company ) completed a placement by way of issue of 27,010,000 fully paid ordinary shares in the capital of the Company at a price of $0.09 to sophisticated and professional investors ( Shares ). As part of the placement the Company also issued 13,505,000 listed options (FGROB) exercisable at $0.10 on or before 21 May 2017 ( Options ) which were free attaching to the Shares on a 1 for 2 basis. The placement was previously announced on 20 May 2016.

The Company gives notice pursuant to section 708A(5)(e) of the Corporations Act 2001 (Cth) ( Corporations Act ) that:

1. the Company issued the Shares and Options without disclosure under Part 6D.2 of the Corporations Act; and

2. as at the date of this notice, the Company has complied with:

   • the provisions of Chapter 2M of the Corporations Act as they apply to the Company; and

   • section 674 of the Corporations Act; and

3. as at the date of this notice, there is no information to be disclosed which is excluded information (as defined in section 708A(7) of the Corporations Act) that is reasonable for investors and their professional advisers to expect to find in a disclosure document.

==> picture [126 x 98] intentionally omitted <==

Peter R. Youd Executive Director Chief Financial Officer & Company Secretary

Business & Corporate Office First Graphite Limited ABN: 50 007 870 760 ACN: 007 870 760 Suite 3 9 Hampden Road Nedlands WA 6009 T +61 1300 660 448 F +61 1300 855 044 E info@firstgraphite.com.au W www.firstgraphite.com.au

Subsidiaries: Sri Lanka

Sri Lanka

MRL Investments (Pvt) Ltd MRL Graphite (Pvt) Ltd PV 92247 PV92009 3[rd] Floor 3rd Floor 460 – 3/1 Galle Road 460 – 3/1 Galle Road Colombo – 03 Colombo – 03 Sri Lanka Sri Lanka

T: +94 11 432 4064

T: +94 11 432 4064

E: info@mrltd.com.lk