Haydale Regulatory News (HAYD)

The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

Haydale Graphene Industries plc

('Haydale' or the 'Company')

Issue of Shares

Haydale (AIM:HAYD), the global nanomaterials group, announces that it has received approximately £0.47 million, this being the final tranche of the aggregate strategic investment of £3.6 million pursuant to the Subscription Agreement with Everpower announced on 3 February 2017. Accordingly, application has been made for 275,482 ordinary shares of 2 pence each in the Company ('Ordinary Shares') ('Final Tranche Shares') to be admitted to trading on AIM, with admission expected to occur on or around 2 May 2017 ('Admission').

Ray Gibbs, CEO of Haydale, said: "We are delighted that the Subscription Agreement has now completed and we can now commence negotiations on the exclusive binding collaboration agreement with Everpower to manufacture, supply and market existing Haydale products and develop nanomaterials and new graphene products for the Chinese market."

As stated when the Subscription Agreement was announced, it was the intention of Everpower and the Company that Everpower would maintain a holding of 9.9 per cent. in the issued share capital of the Company. The issue of the Final Tranche Shares to Everpower would increase Everpower's interest in the Company to more than 10.0 per cent. Accordingly, Everpower has today informed the Company that it has sold 150,559 Ordinary Shares to a non-related third party such that, following Admission, Everpower's beneficial interest in Haydale will be 1,958,451 Ordinary Shares, representing approximately 9.9 per cent. of the Company.

Unless otherwise stated, defined terms are set out in the Subscription Agreement announcement issued on 3 February 2017 and the Issue of Shares announcement issued on 31 March 2017.

The 275,482 new Ordinary Shares will be credited as fully paid and will rank pari passu with the Company's existing Ordinary Shares. Following Admission, the total number of voting rights in the Company will be 19,584,713 Ordinary Shares and shareholders may use this figure as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

- Ends -

For further information:

Media enquiries:

Notes to Editors

Haydale is a global technologies and materials group that facilitates the integration of nanomaterials into the next generation of commercial technologies and industrial materials. With expertise in graphene, silicon carbide and other nanomaterials, Haydale is able to deliver improvements in electrical, thermal and mechanical properties, as well as toughness. Haydale has granted patents for its technologies in Europe, USA and China and operates from four facilities in the UK, USA and the Far East.

For more information please visit:

www.haydale.com

Twitter: @haydalegraphene