HAZER GROUP LIMITED — Capital/Financing Update 2016

Mar 16, 2016

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ASX RELEASE

HAZER GROUP AGREEMENTS FOR GRAPHENE AND DEMONSTRATION PLANT SCALE UP

• New agreement with UWA to develop Hazer technology for production of graphene

• UWA will identify conditions to improve quality and quantity of graphene

• New partnership with chemical engineering group Kemplant to assist in development and design of demonstration plant

• Hazer will continue to own all IP through both agreements

PERTH, AUSTRALIA; 17 MARCH 2016: Hazer Group Limited (“Hazer” or “the Company”) is pleased to announce that it has finalised negotiations with two partners on further developing the Hazer Process technology.

GRAPHENE DEVELOPMENT COLLABORATION WITH UNIVERSITY OF WA

Hazer has reached an agreement with the University of Western Australia (UWA), for an ongoing collaboration between the Company and the University on the further application of the Hazer Process for the production of graphene.

The development work will be done in collaboration with Prof Hui Tong Chua, one of the original inventors of the Hazer technology, and Chemical Engineering Program Chair in the University’s Department of Chemical and Mechanical Engineering. Prof Chua has extensive experience in graphene and has already demonstrated the successful synthesis of graphene using the Hazer Process. This collaboration will focus on further tailoring of the Hazer Process reaction conditions to improve the yield and quality of graphene produced.

Graphene is a one-atom-thick sheet of carbon atoms with a two-dimensional structure. It has attracted intense attention because of its unique properties such as fast charge carrier mobility, high thermal conductivity and large surface area, with potential applications in a broad range of areas, including improving battery performance, advanced medical devices and solar panels. Large-scale production of graphene remains a challenge to be addressed to enable the commercial development of applications for graphene.

Whilst the agreement is still subject to formal documentation being completed, the negotiations cover all core commercial aspects of the collaboration and execution of formal documentation is expected to require less than 6 weeks.

Hazer will provide the operating funds for the development work which will see the University provide a full time researcher to work with the Company.

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Hazer will own all Intellectual Property developed through the collaboration, and so will continue to own all the intellectual Property associated with the Hazer Process royalty and encumbrance-free.

“The establishment of this collaboration framework with UWA will enable Hazer to undertake further work on developing the Hazer Process into a commercial route to produce graphene” said Hazer Managing Director Geoff Pocock. “There is anticipated to be a significant demand for graphene in the future as commercial applications are developed, and a reliable and low costs synthesis for this material is a global necessity”. Prof John Dell, Dean of the Faculty of Engineering, Computing and Mathematics at UWA, commented “We are excited by this opportunity to further develop this innovative technology, and to continue to support Hazer as an example of UWA’s commitment to not just doing research, but of commercialising our research and delivering broader impact.”

DEMONSTRATION PLANT PARTNERSHIP WITH KEMPLANT

Hazer is also pleased to announce the finalisation of an agreement with South African chemical engineering group Kemplant, who will assist Hazer with its current scale up development and also work towards the design of an initial demonstration plant to showcase the Hazer technology.

Kemplant has specific expertise in process development & piloting, and in particular development of continuous flow/circulating reactor systems such as those operating within the Hazer process. Having recently opened an office in Sydney, Kemplant will collaborate with Hazer by providing personnel on a secondment basis to assist the Company with its immediate development work, as well as associated design work for the planned demonstration plant.

This demonstration plant, which is anticipated to be constructed and commissioned following the completion of development work currently underway at the University of Sydney, is a key aspect of the commercialisation of the Hazer Process to a scalable & implementable industrial technology.

Under the terms of the agreement, Kemplant has agreed to take a portion of its fees in Hazer ordinary shares and options to better align Kemplant’s interests with Hazer and its shareholders.

About Hazer Group Limited

Hazer Group Limited (“Hazer” or “The Company”) is an early stage technology development company undertaking the commercialisation of the Hazer Process, a low-emission hydrogen and graphite production process. The Hazer Process was developed by researchers at The University of Western Australia (UWA) over several years, before the intellectual property rights were assigned to the Company for further commercial development.

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The Hazer Process enables the effective conversion of natural gas, and similar feedstocks, into hydrogen and high quality graphite, using iron ore as a process catalyst. The aim of the Hazer Process will be to achieve savings for hydrogen producers, as well as providing 'clean' hydrogen (i.e. with significant lower production of carbon dioxide emissions), enabling such hydrogen to be used in a range of developing 'clean energy' applications, as well as in large existing chemical processing industries. The graphite produced by the Hazer Process is high purity (>90%wt), highly crystalline 'synthetic' graphite as is generally used in batteries and other high value graphite applications.

About the University of Western Australia

The University of Western Australia ranks 87th in the world in the highly respected ShanghaiJiao Tong University's Academic Ranking of World Universities.

UWA is the only Western Australian university to belong to the Group of Eight – a coalition of the top research universities in Australia – and it is one of only two Australian members of the Worldwide Universities Network, a partnership of 18 research-led universities from Europe, Africa, the Americas and the Asia-Pacific.

About Kemplant

Established in 1984, Kemplant Pty Ltd is a private chemical engineering company providing engineering, design, supply, project management, commissioning, plant operation & optimisation and similar services to the process industries for over 30 years. It has extensive "in-house" expertise for supplying equipment and turnkey plants to a large cross-section of the industries including, chemical, mining, energy and fine chemical clients.

For further information, please contact

Mr Geoff Pocock Ms Kym Coolhaas, gtmedia Managing Director, Tel: +61 8 9227 8195 Hazer Group Limited +61 438 920 460 Email: gpocock@hazergroup.com.au Email: kym@gtmedia.com.au

Hazer Group Limited - Social Media Policy

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