Haydale Plc Regulatory News (HAYD)

2 November 2015

Haydale Graphene Industries plc

("Haydale" or the "Company")

Additional Subscription to raise £0.38 million at 160 pence per share

Directors' Dealing

Further to the announcement made earlier today regarding the Fundraising and the results for the year ended 30 June 2015 (together the "Prior Announcements"), Haydale Graphene Industries plc (AIM:HAYD) is pleased to announce that certain Directors of the Company together with Gerry Boyce, a director of Haydale Composite Solutions Limited (a subsidiary of the Company), have agreed to subscribe for a total of 239,375 new ordinary shares of 2 pence each in the Company ("Ordinary Shares") at 160 pence per share (the "Subscription" and the "Subscription Shares").

Other than where defined, capitalised terms used in this announcement have the meanings given to them in the circular which will be sent to shareholders in connection with the Fundraising and will be available on the Company's website shortly.

The Subscription has raised approximately £0.38 million and is in addition to the £5.6 million conditionally raised through the Fundraising as announced earlier today. The Directors were unable to participate in the Fundraising by virtue of the Company being in a close period in relation to the matters set out in the Prior Announcements.

The Subscription will utilise the Company's existing authorities to allot Ordinary Shares, therefore the Subscription is not conditional on the resolutions to be passed at the General Meeting. Completion of the Subscription is conditional on admission of the Subscription Shares to trading on AIM. The Subscription Shares will rank pari passu in all respects with the existing Ordinary Shares.

The Directors' and Gerry Boyce's interests as at today and following completion of the Subscription and the Fundraising (the latter of which is conditional on the passing of resolutions at the General Meeting to be held at 10.00 a.m. on 23 November 2015) are as follows:

* Gerry Boyce is Managing Director of Haydale Composite Solutions Ltd, a wholly owned subsidiary of the Company.

** Following completion of the Subscription and the Fundraising.

The Subscription is a related party transaction for the purposes of AIM Rule 13. The Directors of the Company not participating in the Subscription and who are therefore independent of the Subscription, consider, having consulted with the Company's nominated adviser, Cairn Financial Advisers LLP, that the terms of the Subscription are fair and reasonable insofar as the Company's Shareholders are concerned.

Admission to AIM

Application for admission to trading on AIM of the Subscription Shares ("Admission") will be made and it is expected that Admission will become effective and dealings in the Subscription Shares will occur on 24 November 2015.

Assuming admission of the New Shares (pursuant to the conditional Fundraising) and the Subscription Shares to trading on AIM on 24 November 2015, the number of Ordinary Shares of the Company in issue is expected to be 15,196,446.

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About Haydale (www.haydale.com)

Haydale has developed a patented scalable plasma process to functionalise graphene and other nanomaterials. This enabling technology can provide Haydale with a rapid and highly cost-efficient method of supplying tailored solutions to enhance applications for both raw material suppliers and product manufacturers.

Functionalisation is carried out through a low-pressure plasma process that treats both mined, organic fine powder and other synthetically produced nanomaterial powders, producing high-quality few layered graphenes and graphene nanoplatelets. The process can functionalise with a range of chemical groups, with the level of functionalisation tailored to the customer's needs. Good dispersion improves the properties and performance of the host material and ensures the final product performs as specified.

The Haydale plasma process does not use wet chemistry, nor does it damage the material being processed; rather, it can clean up any impurities inherent in the raw material. The technology is a low energy user and most importantly environmentally friendly. The Haydale process is an enabling technology, allowing the Company to work with a raw material producer who seeks to add value to the base product and tailor the outputs to meet the target applications of the end user.

Haydale, based in South Wales and housed in a purpose-built facility for processing and handling nanomaterials, is facilitating the application of graphenes and other nanomaterials in fields such as inks, sensors, energy storage, photovoltaics, composites, paints and coatings.