Mr. Craig Nicol reports

GMG ANNOUNCES INTERNAL G(R) LUBRICANT TESTING RESULTS SHOWING 10% FUEL SAVINGS AND 33% REDUCTION IN PARTICULATE EMISSIONS

Graphene Manufacturing Group Ltd. has released internal Graphene Manufacturing run engine test results when G Lubricant was added to a Caterpillar 22-kilovolt-ampere diesel engine run at an 80-per-cent load. Test results show a 10-per-cent increase in energy efficiency (kwh/litres), and also a 33-per-cent reduction in harmful diesel engine exhaust particulate matter emissions, when three doses of G Lubricant, with a maximum graphene dosage of 0.03 per cent, was added to the standard diesel engine oil.

It is noted that the test engine was not operating optimally before G Lubricant was added -- the engine was overheating at long runs of sustained high loads. As a result, after the initial dose of G Lubricant was added, an additional two dosages of G Lubricant were used to hopefully bring the engine into a more stable operating regime, an outcome that was generally achieved.

Detailed equipment and process for testing G Lubricant

The following describes the equipment used and the process followed by the company in demonstrating the fuel saving demonstration of the G Lubricant in the diesel engine generator:

• The same testing equipment, data systems and processes were used which was verified by the University of Queensland and detailed in Graphene's previous press release on Feb. 25.
• Graphene also added the following testing equipment to the testing program:
  • Testo 340 Diesel Kit 2 engine emissions test kit which was newly calibrated by the third party supplier.
  • PDSA DPM-RT-2 particulate matter test unit which was newly calibrated by the third party supplier.
• A 22 kVA Caterpillar diesel engine generator (with 1,959 hours of run time) was set up in the GMG Richlands warehouse.
• The generator was connected to a 40 kW power load bank which consumed the energy produced by the generator and created the load and a 500-litre self-contained fuel tank.
• Two calibrated flow sensors were connected (inflow and return/outflow) to the fuel lines and to a data logger which recorded the fuel consumption.
• An energy analyzer was used to log and track energy produced by the generator.
• Tests were conducted on 80-per-cent loads of the engine from the 40 kW power load bank -- 22 kW.
• A baseline to record diesel fuel consumption under normal engine oil and operating conditions was completed with newly changed recommended premium diesel engine oil and a new oil filter. This oil change was carried out by a professional engine maintenance service company.
• The engine was run at 80-per-cent load and the baseline and G Lubricant data set used for the analytics is when the maximum ambient temperature for the day was less than 33 degrees Celsius and relative humidity was between 50 per cent and 80 per cent with no rain. Fuel consumption for diesel engines changes when operating in rain or very high humidity or temperatures, so the fuel consumption data baseline and G Lubricant engine oil additive performance testing were excluded for these times.
• Only steady state data were used and so any variance or anomalous data seen in either baseline or G Lubricant data sets were removed from the analytics. Data sets were grouped into minute blocks.
• Once the baseline fuel tests were completed, G Lubricant with approximately 1:100 concentration was mixed at approximately 1-per-cent ratio by weight into the existing engine oil. This was done another two times. The end ratio of Graphene Manufacturing's graphene to the diesel engine oil was approximately 3:10,000 by weight.

Graphene's managing director and chief executive officer, Craig Nicol, commented: "G Lubricant is not only increasing fuel efficiency it is also reducing particulate matter -- which is amazing to see -- we will need to do more tests to see what the long-term performance is for this."

Graphene is continuing to conduct more tests to determine the total performance regime of the G Lubricant. These performance tests will be announced as the information becomes available.

Graphene's chairman and director, Jack Perkowski, commented: "Fantastic news -- G Lubricant testing data are exciting -- well done to the team -- showing great promise as a way to reduce fuel costs and emissions across the multitrillion-dollar liquid fuels industry."

About Graphene Manufacturing Group Ltd.

Graphene Manufacturing Group 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 Group 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 Group 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 Group has developed is the graphene lubricant additive focused on saving liquid fuels initially for diesel engines.

In the energy storage segment, Graphene Manufacturing Group 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 Group has also developed a graphene additive slurry that is aimed to improve the performance of lithium-ion batteries.

Graphene Manufacturing Group'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.

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