AGM.L Regulatory News (AGM)

14 October 2016

Applied Graphene Materials plc

("Applied Graphene Materials", "the Group" or "the Company")

First Production Order

Applied Graphene Materials, the producer of specialty graphene materials, is pleased to announce that it has secured its first production order and commercial application.

Applied Graphene Materials has supplied its graphene material for use in the production of a range of high performance fishing rods, made by Century Composites Ltd ("Century"). Century has introduced a new range of fishing rods to the market, containing the Group's graphene nanoplatelets. These fishing rods are being sold under the brand Graphex.

Century has manufactured composite fishing rods in the UK for nearly 40 years, utilising a range of reinforcing materials including glass, aramid, polyethylene and carbon fibres. Intrinsic to the optimum performance of composite materials used to produce rods at the higher end of the price spectrum is the supporting polymer matrix that carries load between the fibres. This critical reinforcing component has seen considerable advances over the past decade.

Following a period of collaboration, our work with Century has culminated in the incorporation of graphene nanoplatelets into a high specification range of fishing rods. Century has recognised the considerable benefits that a customised graphene material, developed by Applied Graphene Materials, has generated. This work has been validated in the latest designs of coarse, game and sea fishing rods. The mechanical property enhancement displayed in Century's Graphex rod ranges, which incorporate graphene-polymer nanocomposites, is attributed to the high specific surface area, excellent mechanical properties of graphene and its capacity to initially prevent and then deflect crack growth in a far more effective way than other fillers.

Simon Chilcott, Managing Director of Century, commented:

"We are delighted to have launched our Graphex range of rods which are now available. The development collaboration with AGM has been impressive and we are delighted by the added performance that their graphene nanoplatelets bring."

Jon Mabbitt, Chief Executive Officer of Applied Graphene Materials, said:

"We are pleased to be able to announce our first production order with Century Composites. This follows a period of successful collaboration with Century to ensure the effective transfer of the properties of our graphene nanoplatelets into Century's existing production processes."

Ends

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014

For further information, please contact:

Applied Graphene Materials +44 (0) 1642 438 214

Jon Mabbitt, Chief Executive Officer

Oliver Lightowlers, Chief Financial Officer

N+1 Singer +44 (0) 207 496 3000

Richard Lindley / Nick Owen

Hudson Sandler +44 (0) 207 796 4133

Charlie Jack / Emily Dillon

Notes to Editors

About Applied Graphene Materials

Applied Graphene Materials works in partnership with its customers using its knowledge and expertise to provide bespoke graphene dispersions and formats to deliver enhancements and benefits for a wide range of applications. The Group's strategy is to target commercial application in three core markets: coatings, composites and polymers and functional fluids.

The Group has developed proprietary bottom-up processes which are capable of producing high purity graphene nanoplatelets using a continuous process. The manufacturing processes are based on sustainable, readily available raw materials and therefore do not rely on the supply of graphite, unlike a number of other graphene production techniques. Applied Graphene Materials owns the intellectual property and know-how behind these processes.

Applied Graphene Materials was founded by Professor Karl Coleman in 2010 with its operations and processes based on technology that he initially developed at Durham University. The Group was admitted to AIM in November 2013, raising £11 million, and is based at the Wilton Site on Teesside. In January 2016 the Group raised a further £8.5 million to support its ongoing activities.

About Century Composites Ltd

Century has produced fine rods in England for over 30 years and is in its fourth decade of manufacturing, development and research. Century is a specialist in an era of generalists. Very few have the detailed technical knowledge to produce precision tackle and most contract their product ranges to large mass manufacturers based in the Far East. Critically, Century has access to grades of materials that genuinely make a difference to the action, durability and performance of a rod.

Century's links with prime suppliers of raw materials are long standing and they have a detailed understanding of the materials used- from high strength to high modulus carbon fibres supported by complex resin systems that carry the load between the fibres. Century understands the interaction between these raw materials and how to bring maximum benefit to the angler.

A passion for fishing is about escape. To change the routines and stresses of everyday life into the thrill of the environment, brimming with anticipation. Becoming one with yourself and your surroundings. Century understands this precious time is supported with tackle that works and performs. Simon Chilcott, who founded Century has always focused on the importance of understanding technology and where it meets the water. Its manufacturing processes are demanded by intelligent anglers, World Champions, leading aerospace companies and Formula 1™ teams.