First Graphene Ltd. — Capital/Financing Update 2017

Jan 26, 2017

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27 January 2017

First Graphite Limited ACN 007 870 760 ABN 50 007 870 760

FGR raises funds for continuing development

Registered Office Suite 3 9 Hampden Road Nedlands WA 6009 Tel +61 1300 660 448 Fax +61 1300 855 044

Directors Warwick Grigor Craig McGuckin Peter R. Youd Chris Banasik

Company Secretary Peter R. Youd

Email: info@firstgraphite.com.au Website: www.firstgraphite.com.au

ASX Symbol FGR, FGROB

First Graphite Limited (ASX: FGR) is pleased to advise it has received firm commitments for a placement of shares at $0.11 raising $3.52 million. The issue of the 32m shares is within the Company’s capacity under Listing Rule 7.1 and will not require shareholder approval.

Far East Capital Limited, the Lead Manager, has advised that the placement was strongly supported by institutional and high net worth individuals.

Upon completion of the placement FGR will be well-positioned to continue with the development of its graphene technology strategies, including the recently announced BEST Battery project, and production from its own mines which are currently being developed.

Mr McGuckin, Managing Director, said “It is pleasing that we can commence 2017 with a strong cash balance, underpinning what promises to be a significant year of progress on multiple fronts, from graphite and graphene production to the advancement of application for graphene. This is the year that we make people stand up and take notice.”

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About First Graphite Ltd (ASX: FGR)

First Graphite produces high quality graphene from high grade Sri Lankan vein graphite.

First Graphite seeks to develop graphene production methods and acquire graphene related intellectual property which can provide further revenue related opportunities.

About Graphene

Graphene, the well-publicised and now famous two-dimensional carbon allotrope, is as versatile a material as any discovered on Earth. Its amazing properties as the lightest and strongest material, compared with its ability to conduct heat and electricity better than anything else, mean it can be integrated into a huge number of applications. Initially this will mean graphene is used to help improve the performance and efficiency of current materials and substances, but in the future it will also be developed in conjunction with other two-dimensional (2D) crystals to create some even more amazing compounds to suit an even wider range of applications.

For further information:

Warwick Grigor Non-Executive Chairman

Craig McGuckin Managing Director

Peter R. Youd Executive Director

www.firstgraphite.com.au

One area of research which is being very highly studied is energy storage. Currently, scientists are working on enhancing the capabilities of lithium ion batteries (by incorporating graphene as an anode) to offer much higher storage capacities with much better longevity and charge rate. Also, graphene is being studied and developed to be used in the manufacture of supercapacitors which are able to be charged very quickly, yet also be able to store a large amount of electricity.

Nature of vein graphite

Sri Lankan graphite deposition model is best described from the ‘bottom up’: tension fractures formed in the metamorphic sediments, caused by the folding of the sediments, creating ‘conduits’ for the hydrothermal deposition of high quality vein graphite. Historically, mining of these veins has found the veins generally increase in thickness and grade quality with increasing depth.