Mr. Craig Nicol reports

GMG ANNOUNCES EXCLUSIVE G LUBRICANT DISTRIBUTOR IN MEXICO

Graphene Manufacturing Group Ltd. has signed a distribution arrangement with Grafnomex SA de CV for the exclusive distribution of G lubricant within the country of Mexico.

Alvaro Navarro Garate, chairman of GrafnoMex, commented: "We look forward to working with GMG and bringing GMG's G lubricant graphene engine oil additive to the Mexican market. Our testing to date in Mexico of the G lubricant product has provided significant emission and fuel reduction in heavy diesel engine trucks."

Craig Nicol, chief executive officer and managing director of the company, commented: "We look forward to working with Alvaro and his team at GrafnoMex on launching and distributing G lubricant throughout Mexico. Mexico is one of the largest opportunities for our graphene products, and we are happy to be working with Alvaro and his team to launch G lubricant there."

Jack Perkowski, non-executive chairman and director of the company, commented: "Mexico is one of the largest diesel markets in the Americas, with a heavy-duty trucking and industrial base that sits at the heart of North American supply chains, so it is a natural extension of GMG's focus on the North American market. Having spent much of my career in the automotive components industry, I know how important it is to have a partner on the ground who understands local fleet operators, regulators and business networks. Alvaro brings decades of experience in the business and economic development of northern Mexico, including as secretary of economy for the State of Chihuahua, and the fact that GrafnoMex has already put G lubricant to work in heavy-duty diesel trucks in Mexico before committing to exclusive distribution gives the board real confidence in this partnership. Building a network of committed regional distributors is exactly how we intend to convert G lubricant's verified fuel savings into a growing, recurring revenue stream for GMG's shareholders."

About G lubricant

G lubricant is a transformative graphene liquid concentrate additive designed to enhance the performance of diesel and gasoline (petrol) engines. This product has the potential to reshape the future of the global liquid fuel industry and offers an innovative solution that optimizes efficiency and power for stationary or mobile engines. G lubricant, a graphene liquid concentrate that can be added to any mineral or synthetic oil used in an internal combustion engine in a one to 100 dosage, has been verified by a world-class university to increase fuel efficiency by up to 8.4 per cent in a diesel engine.

The amount of graphene in the final engine oil once G lubricant is mixed in is only approximately one to 10,000. As a result, G lubricant can be used safely in any internal combustion engine. Over the past four years, Graphene Manufacturing has conducted environmentally controlled testing of G lubricant in internal combustion engines monitored and verified by the University of Queensland. Graphene Manufacturing's test results have been corroborated by similar savings realized by customers over a number of years of field testing.

$1.4-trillion (U.S.) global diesel industry

Whilst G lubricant can be used to reduce fuel consumption in both diesel and gasoline/petrol engines, Graphene Manufacturing intends to focus on the diesel market initially, which is largely business to business focused and, therefore, more targeted as far as fuel cost savings and performance. Graphene Manufacturing calculates, prior to the recent increase in diesel prices, global diesel fuel sales totalled $1.4-trillion (U.S.) per annum1 including taxes and duties on approximately 28 million barrels of diesel per day as detailed by the EIA.

Estimated $1.2-billion (U.S.) per annum global diesel market for G lubricant

Assuming an average fuel savings of 8.4 per cent, Graphene Manufacturing believes that a conservative estimate of the potential market for G lubricant is 10 per cent of the fuel savings realized by users annually. Assuming G lubricant pricing equal to 10 per cent of the savings realized, Graphene Manufacturing estimates that the potential global revenue for G lubricant is $1.2-billion (U.S.) sales per annum.

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 through 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 coating (or energy saving coating), which is 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 is working with financial support from the Australian government to progress research and development and commercialization of graphene ion batteries. Graphene Manufacturing has also developed a graphene additive slurry that is aimed at improving 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.