Graphene Nanochem Regulatory News (GRPH)

Graphene NanoChem plc

("Graphene NanoChem" or the "Group")

Commissioning Update

Graphene NanoChem (AIM: GRPH), the performance nanochemicals and advanced materials company, is pleased to announce the recommencement of production, on 29 January 2014, at its Senawang speciality chemicals facility (the "Facility"). The Facility produces the Group's PlatAmber and PlatClear second-generation biofuels and the base fluid for the Group's graphene-enhanced drilling fluid for the oilfield services market, of which the Company anticipates the first bulk deployment by the end of H1 2014.

The Facility was shut down in October 2013 in order to permit an increase in capacity from 80,000 MT per annum to 120,000 MT per annum. The expansion work has been concluded satisfactorily and production has recommenced on a phased basis, with full capacity production expected, as scheduled, by April 2014. In addition, work has been completed on the layer esterification unit, which is expected to reduce costs substantially. Furthermore, the Group expects to be able to deliver further improvements to historic production uptime levels, and thus modest margin improvements, through the installation of an upgraded conversion unit by the end of February 2014.

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