Graphene Nanochem Regulatory News (GRPH)

Graphene NanoChem PLC

("Graphene NanoChem" or the "Group")

PlatDrill Commercial Deployment

Graphene NanoChem (AIM: GRPH), the performance chemicals and advanced materials company, is pleased to announce that it has achieved a prominent milestone with the first purchase order (the "Purchase Order") for its graphene-enhanced PlatDrill Series oilfield chemicals.

Highlights

· Order from Scomi Oiltools Sdn Bhd ("Scomi Oiltools") for use by a National Oil Company end-customer

· Framework agreement entered into with Scomi Oiltools as announced on 26 November 2013

· Initial deployment and field introduction of 7,800 barrels (approximately 1000 metric tonnes) into a fully-planned four well onshore drilling programme commencing in July 2014

· Purchase Order represents beginning of commercial roll-out following two years of extensive testing by Scomi Oiltools and end-customers

· Purchase Order, together with visibility of future orders under framework agreement, gives management significant confidence of meeting the market's expectations for 2014

· The revenue from the initial purchase order is estimated to be £1.0 million and is payable on delivery

· The Group remains fully funded to carry out its existing pipeline

Background

The PlatDrill Series formulation offers an attractive, environmentally friendly, solution for high performance drilling fluids that satisfy demanding technical, as well as increasingly stringent environmental, requirements of modern day drilling. The "smart" fluid solutions, produced from renewable sources, are designed to overcome the limitation of the traditional vegetable oil based drilling fluids in terms of performance, whilst maintaining its improved biodegradability and low toxicity functions. Enhanced by nanomaterials, using the Group's proprietary Simplat 5.1 dispersion technology, the PlatDrill Series exhibit:

· better thermal conductivity enabling high temperature operations which are the predominant expansionary activity for oil and gas exploration today;

· friction reducing capability which combines the improvement in lubricity with the reduction of torque and drag resulting in significant improvement in the rate of penetration of drilling activity; and

· viscosity stability and flat rheology which enables the customization of different mud weights without affecting the rheological properties thereby minimizing solids and fluid loss.

· Substantial potential cost-savings for end-customers

The global oilfields chemicals market is estimated to be US$21 billion today and growing.

The initial deployment is the culmination of the previously announced two years of intensive collaboration with Scomi Oiltools, and various end-customers, customizing the fluid solutions, including completing several stages of testing and validation to ensure successful deployment of the PlatDrill Series. The Group is able to meet its expected schedule of PlatDrill deliveries from existing manufacturing facilities and reserves using recently increased banking facilities and cash

Southeast Asia is the first launch pad for the planned rollout of the PlatDrill Series, focusing on Scomi Oiltools' existing customer pipeline with national oil companies in the region. Scomi Oiltools has presence in more than 25 countries worldwide and is one of the leading firms in the global supply of drilling fluid services to national and multinational oil and gas companies. Partnering with Scomi and its existing client-base allows the Group to greatly reduce marketing and adoption risk and accelerate deployment of the ground-breaking PlatDrill technology. It also enables Graphene NanoChem access to Scomi's existing customer base which today has an order book of RM4.6 billion (£844 million).

Outlook

This initial Purchase Order, together with the framework agreement entered into with Scomi Oiltools gives management significant confidence of meeting market expectations for 2014 as well as for substantial increases in revenues from 2015.

 Jespal Deol, Chief Executive Officer of Graphene NanoChem, commented:

"We are delighted to announce our commercial deployment of PlatDrill for field introduction, this is a milestone for Graphene NanoChem and its ongoing partnership with Scomi Oiltools. This represents a key success in our strategy to utilize low cost renewable feedstock, leveraging our first mover advantage to deliver growth in high value sectors.

Wan Ruzlan Iskandar Wan Salaidin, President - Market Units of Scomi Oiltools, commented:

"We are excited by the deployment of PlatDrill and the significant milestone it represents in market development and value building with our customers. Also this validates our decision to partner Graphene Nanochem in the production joint venture which will allow us to differentiate and strengthen our value proposition to our customers."

For further information:

About Graphene NanoChem

Graphene Nanochem plc is a technology commercialisation company that operates two commercial platforms, the Advanced Chemicals platform that manufactures renewable chemical products for high growth sectors and the Advanced Materials platform that focuses on graphene nanomaterials applications for selected industries targeting high performance use.

Headquartered in Malaysia, Graphene Nanochem was admitted to the AIM of the London Stock Exchange on 26 March 2013, following the reverse acquisition of Biofutures International plc, and trades under the symbol GRPH.L.

To find out more, please visit www.graphenenanochem.com.

About Scomi

Scomi Oiltools, a subsidiary of Scomi Group, is one of the world's leading providers of innovative high performance drilling fluids solutions and state-of-the-art drilling waste management services with a combined experience of almost 50 years and a global presence at 62 locations in 27 countries. Scomi Oiltools oilfield business comprises two core divisions - drilling fluids and drilling waste management. Together, these divisions form a workflow, which is time and cost effective, while in complete compliance with international environmental standards.