Graphene Nanochem Regulatory News (GRPH)

Graphene NanoChem PLC

("Graphene NanoChem" or the "Group")

Technology Licensing Agreement

Graphene NanoChem (AIM: GRPH), the performance nanochemicals and advanced materials company, is pleased to announce the planned expansion of its chemicals portfolio, with the signing of a royalty-bearing patent license agreement with Cetane Energy LLC ("Cetane Energy"), for the use of its hydroprocessing technology. The licensing of the hydroprocessing technology is part of the Group's planned upgrade of its Lahad Datu refinery to produce high value chemicals for multiple industries.

Cetane Energy's innovative process, which is focused on product and cost performance and ease of integration into existing refineries, fits into our long term strategy of investing in higher value products. The integration of the hydroprocessing technology at the Lahad Datu facility would allow the Group to manufacture a range of high margin products, namely: hydrogen-derived renewable diesel, bioasphalt, bionaphtha and biopropane. Additional benefits of the technology also include a low-capital profile and flexibility to use the Group's current feedstock base, including waste oils.

The licence granted includes the right to sub-license the technology providing further avenues for market expansion.

Hydrogen-derived renewable diesel, which is a premium bio-based fuel, provides an unmatched quality in today's fuel additive segment and is also used as aviation or jet fuel. Bioasphalt, bionaphtha and biopropane are materials used to produce bio-based plastics.

The Lahad Datu facility is situated on a 14-acre site in the Sabah state Palm Oil Industry Cluster with full infrastructure in place, including bulking stations and direct pipeline to the jetty terminal. With over 1.4 million hectares of palm oil plantation, Sabah is the largest palm oil producing state in Malaysia, representing approximately 30% of Malaysia's production of palm oil. The Lahad Datu refinery currently occupies 4 acres of the site, with 10 acres of space available for further expansion.

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

"We are confident in the immediate and long-term demand for bio-based fuel additives, and advancing into the renewable diesel market is a natural progression for us in capturing value through higher margin products within the market segment.

We are replicating the same business model adopted in our Senawang Facility - retrofitting our assets to enable production of higher margin products with long term growth opportunities. The licensing arrangement with Cetane Energy provides a strong foundation upon which we could expand our products portfolio and take this project to commercialisation. Our technology is strong and the value proposition is attractive to both our targeted market segment and potential industry partners. We expect to commence the upgrade of our Lahad Datu Facility in 2015."

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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 Cetane

Cetane Energy, LLC, located in New Mexico, United States is involved in the development and provision of renewable energy solutions, and the distribution of conventional energy. Cetane is unique to the renewable energies market in that it offers the highest quality renewable diesel and the lowest cost producer, specifically, by developing a commercialised process to convert vegetable oils and waste oils to renewable diesel fuel.