Brisbane, Queensland, Australia--(ACN Newswire - May 21, 2025) - Graphene Manufacturing Group Limited (TSXV: GMG) ("GMG" or the "Company") is pleased to announce that the board of directors of GMG have approved the investment of AU$900k 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 AU$2.3 million total capital cost. This expenditure was largely included in the proposed use of proceeds for the March 2025 Bought Deal Financing of C$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 online by end of June 2026, with production limited to 1 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 standalone 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.

Figure 1: GMG Headquarters Layout 

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The Gen 2.0 Plant is based on the GMG plasma technology, Figure 2, 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

Figure 2: Artistic Image of Natural Gas to Graphene Plasma

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

• Technology is based on ongoing development of GMG'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 GMG's end products - including THERMAL-XR®, G® LUBRICANT, SUPA G® and the Graphene Aluminium 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 GMG graphene production process will produce large amounts of hydrogen as well.

GMG's Managing Director and CEO, 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."

GMG'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 GMG:

GMG 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. GMG uses its own proprietary production process to decompose natural gas (i.e. 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 de-risk and develop commercial scale-up capabilities, and secure market applications. In the energy savings segment, GMG 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 GMG has developed is the graphene lubricant additive focused on saving liquid fuels initially for diesel engines.

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

GMG's 4 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 & Project Execution Capability

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this news release.

Cautionary Note Regarding Forward-Looking Statements

This news release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends", "expects" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or will "potentially" or "likely" occur. This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include without limitation, expectations for the graphene production capacity and timing of construction of the Gen 2.0 Plant, temporary production volumes pending upgrading packaging systems, the use and benefits of the new technology to be deployed at the Gen 2.0 Plant, including on production efficiency and end products, largely self-powered from standalone energy generation, the implications of automation at the Gen 2.0 Plant, the semi-autonomous bulk graphene packaging system, the mobility of this type of production plant and the ability to benefit from geographic natural gas price variability and expectations for better quality graphene, lower costs and higher production at the Gen 2.0 Plant.

Such forward-looking statements are based on a number of assumptions of management, including, without limitation that G Lubricant has the potential to optimize efficiency and power for stationary or mobile engines, that G Lubricant has the potential to reshape the future of the global liquid fuels industry, that GMG will commercialize and market G Lubricant, that the Company's patent applications will progress as anticipated, and that the potential market and revenue available for G Lubricant will be as currently forecasted. Additionally, forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of GMG to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: that G Lubricant will not offer an innovative solution that optimizes efficiency and power for stationary or mobile engines, that G Lubricant will not reshape the future of the global liquid fuels industry, that GMG will commercialize and market G Lubricant as anticipated, that the Company's patent applications will not progress as currently anticipated, that the potential market and revenue available for the G Lubricant product is not as currently calculated, risks relating to the extent and duration of the conflict in Eastern Europe and its impact on global markets, the volatility of global capital markets, political instability, the failure of the Company to obtain regulatory approvals, attract and retain skilled personnel, unexpected development and production challenges, unanticipated costs and the risk factors set out under the heading "Risk Factors" in the Company's annual information form dated October 3, 2024 available for review on the Company's profile at www.sedarplus.ca.

Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.

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