Mr. Craig Nicol reports

GMG ANNOUNCES INDEPENDENTLY VERIFIED HEAT TRANSFER AND ENERGY SAVINGS RESULTS FROM THERMAL-XR

Graphene Manufacturing Group Ltd. has released further results of energy savings tests on a 4.3-kilowatt refrigeration system and heat transfer demonstrations on aluminum and copper. The results provide additional confidence in the potential benefits of Thermal-XR (TXR) in a range of applications.

Energy savings when Thermal-XR applied to a new condenser coil

In its ISO-approved facilities, Graphene Manufacturing Group's testing partner Supercool Asia Pacific Pty. Ltd. undertook two comparison tests to assess the impact of TXR in enhancing the operating efficiency of a cooling system. The equipment used in the tests was a new customised 4.3kW Refrigeration Unit with an electronic expansion valve with variability disabled (Figure 1 outlines the test room layout). The pre-TXR-treated condenser coil had an existing industry standard coating (as seen in Figure 2), on which tests were run. This condenser coil was then coated with TXR (as seen in Figure 2) and the same tests were run again.

The first comparison test conducted was a Pull Down Test which assessed the time and energy required to reach a set temperature of 20C in the heat controlled room with an initial set temperature of 300C, controlled constant humidity level, and an outdoor temperature of 350C. This simulates a typical cold storage room with traffic subject to heat losses and required to cool down on multiple occasions to the set temperature. The quicker time to reach the set point cooling temperature, under the same conditions, highlights a reduction in energy consumption for the Thermal-XR coated condenser coil.

As seen in Table 1 the Thermal-XR coated coil resulted in 15.7% Energy Savings and a 16.1% time savings for the Pull Down test.

The second comparison test was an uninterrupted 48-hour Temperature Cycle test. This tests the impact of TXR on maintaining a constant set point temperature (for example where there is no periodic access to a cool room). The test measured the energy required over a 48-hour period to keep a cooling set temperature of 20C in a heat-controlled room with an outside temperature of 350C and controlled constant humidity level. The lower amount of energy required by the Thermal-XR coated unit, under the same conditions, highlights the energy savings.

Table 2 shows the Thermal-XR coated coil delivered 4.69% Energy Savings for the 48-hour Temperature Cycle test.

Full test results will be available on Graphene Manufacturing Group's website.

Craig Nicol, Graphene Manufacturing Group's CEO summarised as follows "The Energy Savings results of Thermal-XR in an independent, third party, ISO-accredited testing laboratory with two testing methodologies is very exciting. The graphene-enhanced heat transfer properties of Thermal-XR have demonstrated that the performance of a new coil can be enhanced. This has significant potential for our targeted market of new air conditioners or Original Equipment Manufacturers (OEMs), as well as our existing target market of installed air conditioners. It also helps put into context those GMG projects where results on old equipment have achieved even higher energy savings."

Heat transfer verification

Graphene Manufacturing Group has also been working with potential industrial customers to demonstrate the potential for improved heat management through the application of TXR. As part of this demonstration programme, Graphene Manufacturing Group has commissioned the University of Queensland Materials Performance Consultancy to verify a number of heat transfer demonstrations.

Graphene Manufacturing Group is pleased to report that the University of Queensland Materials Performance Consultancy ("UQMP") verified that Graphene Manufacturing Group's Thermal-XR, demonstrations and results, when applied to Copper and aluminum, changed the surface temperature when operating between 700C and 900C.

Copper Top Side Coating: Surface Temperature Reduction ~16%

Graphene Manufacturing Group's Thermal-XR, when applied to a Copper plate, reduces the surface temperature by ~16% when operating between 700C and 900C compared with an uncoated plate. The chart below shows the temperature differences due to Graphene Manufacturing Group's Thermal-XR when applied on a Copper plate with the same heat load.

As seen in Figure 4, when the Thermal-XR coating was applied to the top side copper plate, greater heat transfer was observed away from the common heat source (compared to the panel with no coating). Furthermore, the non-coated underside of the coated panel - being the side directly exposed to the heat source - remained approximately 16% cooler than the heat-exposed side of the uncoated panel, within the temperature range of 70degreeC to 90degreeC.

Sluminum top side Coating: Surface Temperature Reduction ~15%

Graphene Manufacturing Group previously reported the UQ had verified a ~ 15% reduction when TXR was applied to the top side of aluminium, compared to un-TXR coated material (please refer to press release of 20th December 2022).

Underside Coating | aluminum and Copper: Surface Temperature Increase

In addition to these two 'top side' coating tests, Graphene Manufacturing Group is also pleased to release the results of testing of Graphene Manufacturing Group's Thermal-XR applied on the underside of both aluminum and Copper (see Table 4), where the result was to see the underside of the plates increase in temperature, again following the same testing methodology.

Summary of All Results to Date for TXR coating of aluminum and Copper, either top side or underside

These results, shown in Figure 5, are very encouraging in outlining the application of TXR for various heat management applications creating the potential for operating efficiency and / or energy savings.

Relevance to Heat Exchangers in Air Conditioners and Industrial Applications

Copper and aluminum are key metals used in HVAC-R equipment. This demonstration highlights that the external (top side) coating of the metal with Thermal-XR can improve heat transfer, potentially leading to Energy Savings because of reduced compressor and fan utilisation.

Relevance to Other Potential Applications

The coating of metal with Thermal-XR exposed to a heat source (Under side coating) can potentially act as a heat sink to keep heat within a requirement.

"GMG's Thermal-XR's ability to increase and reduce heat transfer is clear in this simple demonstration with operating temperatures between 70degreeC to 90degreeC. The graphene-enhanced heat transfer properties of Thermal-XR seemingly outweigh the traditional insulating effect of coatings when cooling. GMG believes the ability to increase or reduce temperature with a simple application of the technically advanced Thermal-XR can significantly contribute to improved performance and efficiency while reducing energy demand in a wide range of applications," stated by Managing Director and CEO, Craig Nicol.

Thermal-XR powered by the Graphene Manufacturing Group Graphene coating system is a unique method of improving the conductivity of heat exchange surfaces, resulting in an efficiency improvement and a potential power reduction when applied to air conditioning condenser coils or other industrial processes needing heat transfer.

The performance of existing air conditioners can also be increased with Thermal-XR process fluids (PREP and ACTIVATE) which clean and remove corrosion on the coil before applying the Thermal-XR RESTORE.

Graphene Manufacturing Group is undertaking further assessments on other metals used in heat transfer applications and at various temperature settings and will publish market updates from time to time on these.

Graphene Manufacturing Group is working with a number of companies globally including four recently signed distributors in Asia (announced 24th May 2023) and direct sales for the HVAC-R maintenance market. Furthermore, Graphene Manufacturing Group is engaging with various companies for direct selling of Thermal-XR for industrial applications with high energy requirements, and high emissions - including oil and gas production, power generation, liquified natural gas production, mining, and mineral processing.

In addition, a number of customers are interested in the protective features of TXR graphene-enhanced coating, especially in harsh environmental conditions.

Graphene Manufacturing Group's 4 critical business objectives are:

1. Produce Graphene and improve/scale the production process
2. Build Revenue from Energy Savings Products
3. Develop Next-Generation Battery
4. Develop Supply Chain, Partners & Project Execution Capability

About Graphene Manufacturing Group

Graphene Manufacturing Group is a disruptive Australian-based clean-tech company listed on the TSXV (TSXV: GMG) 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, low cost, scalable, 'tuneable' and no/low contaminant graphene - enabling demonstrated cost and environmental improvements in a number of world-scale planet-friendly/clean-tech 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 coating system.

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