Mr. Craig Nicol reports

GMG APPROVES AU$900K FOR EARLY WORKS FOR 10 TONNE PER ANNUM SECOND GENERATION TECHNOLOGY GRAPHENE PRODUCTION PLANT

Graphene Manufacturing Group Ltd.'s board of directors has approved the investment of $900,000 (Australian) for the early works of an expected 10-tonne-per-annum Gen 2.0 Graphene Manufacturing technology plant (the Gen 2.0 plant) for an estimated $2.3-million (Australian) total capital cost. This expenditure was largely included in the proposed use of proceeds for the March, 2025, bought deal financing of $5,796,000.

The Gen 2.0 plant will be built at the existing natural gas to graphene production plant at its manufacturing facility in Richlands, Queensland, Australia. The early works include the procurement of long lead items and commencement of engineering and design works.

The Gen 2.0 plant is expected to be on line by end of June, 2026, with production limited to one tonne per annum until further work is completed on upgrading packaging systems expected shortly thereafter. The final project is expected to be largely self-powered from stand-alone energy generation from renewable sources, energy storage system and hydrogen enriched natural gas tail gas power generation. The final project is also expected to include a semi-autonomous bulk graphene packaging system.

The Gen 2.0 plant is based on the Graphene Manufacturing plasma technology, with which the company has been making graphene for over seven years. However, the Gen 2.0 plant will utilize newly iterated technology which is expected to produce up to 20 times more production per unit than the previous technology. This new technology is expected to deliver:

• A substantial reduction in capital cost per tonne of production capacity;
• A substantial reduction in cost of goods per kilogram produced;
• An increase in quality of the graphene materials produced.

The details of the proposed Gen 2.0 plant are as follows:

• Technology is based on continuing development of Graphene Manufacturing's plasma technology which splits natural gas into graphene and hydrogen gas and captures the graphene nanoplatelets.
• Automation is expected to allow for repeatable graphene quality, high plant reliability and lower requirement for operator activities.
• The graphene production technology is expected to be able to make the different graphene required for Graphene Manufacturing's end products -- including Thermal-XR, G Lubricant, Supa G and the graphene aluminum-ion battery.
• This type of new technology production plant can be built in various locations around the world, for example in North America where natural gas cost is low and abundantly available, significantly reducing the cost of the graphene. At scale the Graphene Manufacturing graphene production process will produce large amounts of hydrogen as well.

Graphene Manufacturing's managing director and chief executive officer, Craig Nicol, commented: "We are very excited to move ahead with our next generation technology for graphene production -- it is a significant milestone for the company. We expect to see better quality graphene at even lower costs and much higher production rates."

Graphene Manufacturing's chairman and director, Jack Perkowski, commented: "This is the next exciting step before we look to expand to likely North American-based expansion plants -- where 'cookie-cutter' projects can be rolled out with only minor changes for production expansion with lower cost gas and other benefits being in the North American market."

About Graphene Manufacturing Group Ltd.

Graphene Manufacturing is an Australian-based clean-technology company which develops, makes, and sells energy saving and energy storage solutions, enabled by graphene manufactured via in-house production process. Graphene Manufacturing uses its own proprietary production process to decompose natural gas (that is, methane) into its natural elements, carbon (as graphene), hydrogen and some residual hydrocarbon gases. This process produces high-quality, low-cost, scalable, tuneable and low/no-contaminant graphene suitable for use in clean technology and other applications.

The company's present focus is to derisk and develop commercial scale-up capabilities, and secure market applications. In the energy savings segment, Graphene Manufacturing has initially focused on graphene enhanced heating, ventilation and air conditioning (HVAC-R) coating (or energy-saving coating) which is now being marketed into other applications including electronic heat sinks, industrial process plants and data centres. Another product Graphene Manufacturing has developed is the graphene lubricant additive focused on saving liquid fuels initially for diesel engines.

In the energy storage segment, Graphene Manufacturing and the University of Queensland are working collaboratively with financial support from the Australian Government to progress R&D (research and development) and commercialization of graphene aluminium-ion batteries (G+AI batteries). Graphene Manufacturing has also developed a graphene additive slurry that is aimed to improve the performance of lithium-ion batteries.

Graphene Manufacturing's four critical business objectives are:

1. Produce graphene and improve/scale-cell production processes;
2. Build revenue from energy savings products;
3. Develop next-generation battery;
4. Develop supply chain, partners and project execution capability.

We seek Safe Harbor.