Mr. Craig Nicol reports

GMG ANNOUNCES BATTERY, TEAM AND RELATED UPDATES

Graphene Manufacturing Group Ltd. has provided an update as to relevant changes following the recent battery joint development agreement (JDA) with Rio Tinto (May 17, 2023) and the growing sales of energy-saving products. These changes are designed to further align development activities and support the progression of the battery JDA and the continuing expansion of Thermal-XR sales following the recently announced distribution agreements (May 24, 2023).

The company had been working in parallel to progress its graphene aluminum ion battery technically while also seeking feedback from customers as to the highest-priority applications. It became clear that pouch cell, rather than coin cell, batteries were of greatest interest to potential key customers. It is also clear that the progression of the battery from the current battery technology readiness level (BTRL) (level 2 to 3) (scientific proof of concept into electrochemical development) could be accelerated by having key potential customer partners help define operating and design characteristics.

The JDA with Rio Tinto crystalizes both elements of obtaining feedback from customers and progressing the battery's technical development. It further provides a clear development road map, including use specifications and development targets. In the battery industry, it typically takes three years or more to move from phase 1 to phase 3 when using existing battery production manufacturing systems, materials and equipment as Graphene Manufacturing Group expects to utilize.

Graphene Manufacturing Group is currently making single-layer pouch cells to proceed to a five-layer pouch cell testing and expects to have a greater-than-25-layer pouch cell prototype by the first half of 2024.

In the context of this strategic move, the company is aligning its organization by having all scientific, product development and operations teams combined under the chief operating officer. The mandate for the sale of all products is now the responsibility of the general manager (sales). This will provide a stronger battery deep science to product performance linkage, prioritize activities, and leverage learning across all product performance and also a streamlined engagement with customers with a single point of call for all products.

In addition, the chief financial officer, Frederick Kotzee, after leading a successful raise last year and supporting the company's strategic steps of establishing sales and selecting a battery development focus, has decided to leave the company and resign as a director due to a desire to move back to the resources sector and/or more flexible work arrangements effective on July 31, 2023, and hence the company has commenced an executive search for his replacement. The company thanks Mr. Kotzee for all his work to get Graphene Manufacturing Group into its current position over the previous year and the company wishes him well in his future endeavours.

The company has also recently secured an additional 1,200 square metres of laboratory, storage and office space adjacent to the existing factory to support the increasing analysis and development work needed for continuing battery development. The additional facilities will also improve logistics for production, storage and dispatch of anticipated TXR and lubricant sales and support the technical development of potential new applications for energy-saving TXR and lubricants.

The previously announced upgraded, expanded and relocated phase 1 graphene manufacturing project is under way, although completion is expected to be delayed until the second half of 2023. Costs have also increased to around $2-million (Australian) as a result of inflation and some scope changes. The company is also considering further upgrade to its battery development centre (BDC) and related equipment, including any relevant needs arising from the Rio Tinto JDA.

Graphene Manufacturing Group's four critical business objectives remain to:

• Produce graphene and improve/scale the production process;
• Build revenue from energy-savings products;
• Develop next-generation battery develop supply chain, partners and project execution capability.

About Graphene Manufacturing Group Ltd.

Graphene Manufacturing Group is a disruptive Australian-based clean technology company listed on the TSX Venture Exchange that produces graphene and hydrogen by cracking methane (natural gas) instead of mining graphite. By using the company's proprietary process, Graphene Manufacturing Group can produce high-quality, scalable, tunable and no-contaminant/low-contaminant graphene -- enabling demonstrated cost and environmental improvements in a number of world-scale planet-friendly/clean technology applications. Using this low-input-cost source of graphene, the company is developing value-added products that target the massive energy efficiency and energy storage markets. The company is pursuing additional opportunities for Graphene Manufacturing Group graphene, including developing next-generation batteries, collaborating with world-leading universities in Australia, and investigating the opportunity to enhance the performance of lubricant oil and performance-enhanced HVAC-R (heating, ventilation, air conditioning and refrigeration) coating system.

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