Graphene Nanochem Regulatory News (GRPH)

29 March 2011

Biofutures International plc

("Biofutures" or the "Group")

Operations and Strategy Update

Operations Update

Biofutures is pleased to announce that feedstock supply agreements have been executed between its subsidiary, Zurex Corporation Sdn. Bhd. ("Zurex"), and two suppliers of Crude Palm Oil (CPO), namely the Teck Guan Group and CC Palm Trading Sdn Bhd. In addition, an off-take / contract manufacturing memorandum of understanding has been signed between Zurex and CC Palm Trading Sdn Bhd.

As prices of CPO have been highly volatile in the first three months of 2011, Zurex has been extremely cautious in its refining approach in the view of optimising the use of its resources and to avoid any unwarranted losses. These agreements should help reduce the impact of such volatility in the longer term.

The Group is also pleased to announce that, on the average, specifications of RBD Palm Oil produced by the Zurex refinery exceeds that of the Palm Oil Refiners Association of Malaysia (PORAM), an internationally accepted, Malaysian Palm Oil Board standard, as shown below:

RBD PALM OIL (RBD Palm Oil) PORAM Spec Zurex Spec

Free Fatty Acid (FFA) (As Palmitic) 0.1% Max 0.04%

Moisture & Impurities (M&I) 0.1% 0.02%

Peroxide Value 1.5 Meg/Kg Max 0.87 Meg/Kg

Iodine Value 50 -55 Meg/Kg 52.1 Meg/Kg

M.Pt (AOCS Cc3-25) 33 - 39C 34C

Colour (5 1/4" Lovibond Cell) 3 Red Max 2.2 Red

Strategy Update

In view of the extreme volatility nature of the feedstock prices, Biofutures has started exploring the viability of owning its own plantation. In addition, the Group is exploring the possibility of collaborating with reputable process plant suppliers to consider other downstream activities such as further fractioning of RBD Palm Oil into RBD Palm Olein as well as to produce niche and high valued derivatives that will complement the activities and revenue of our refinery.

For further information, please contact: