Graphene Nanochem Regulatory News (GRPH)

Graphene NanoChem plc

("Graphene NanoChem" or the "Group")

PlatClear receives EPA Approval

Graphene NanoChem (AIM: GRPH), the performance chemicals and advanced materials company, is pleased to announce that PlatClear, the Group's waste-based second generation biofuel and the Group's Senawang chemicals facility ("Senawang") have both received approval from the US Environmental Protection Agency ("EPA"). This allows PlatClear to be sold into the US market which is forecast to be the world's largest biofuels market by 2017.

PlatClear, which is used as an additive into road-grade diesel and has greenhouse gas emission savings of more than 83%., received approval from the EPA after it was agreed that the product and Senawang complied with the Renewable Fuel Standards 2 ("RFS2"), the requirement in the US for the use of advanced biofuels.

PlatClear is currently sold into the EU market and the Group supplies its PlatAmber second generation biofuel into the Malaysian market. The EPA approval opens up the US high priced export market for the Group. As the Group is now RFS2 compliant, products sold into the US would also allow the Group to generate Renewable Identification Numbers ("RINS") that can be traded separately in the market. RINS is an alternative system administered by EPA, which allows obligated companies to comply with the RFS2 through purchase of RINS. On 16 September 2013 RINS traded at US$0.69 - US$0.72 each1, A tonne of PlatClear would generate 450 RINS, making US a very attractive market in terms of pricing support.

The US market is expected to emerge as the world's largest biofuels market by 2017, where the US biofuels market consumption was valued at US$62.2bn in 2011 and is expected to reach US$102.3bn by 20162.

Jespal Deol, Chief Executive Officer of Graphene NanoChem, commented: "Having targeted approval for over a year, we are extremely pleased to have received approval from the EPA to allow our PlatClear product to expand into the US market.

The US represents an important market for us, with exciting growth prospects due to its growing demand for biofuels and highly attractive pricing structure and we are looking at entry into the US market in 2014. We are especially pleased to be the first Malaysian company to have received approval from the EPA to supply waste-based biofuels to the US market."

1 Bloomberg 13 September 2013

2 Biofuels Consumption in the United States, Markets and Research

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