October 30, 2023) – Graphene Manufacturing Group Limited (TSXV: GMG) (“GMG” or the “Company”) is pleased to provide a business update on the commercialisation progress of THERMAL-XR® powered by GMG Graphene.

GMG has now received forward orders of over AU$400k for THERMAL-XR® from various distributors and customers worldwide. Most of the value of these orders is conditional on the in-country approval for the THERMAL-XR® to be imported from Australia and sold into that country for the product’s initial launch.

The Company also continues to progress negotiations with a wide range of distributor and direct industrial end-use customers for a range of applications and hopes to make further announcements soon.

Preparations for the early 2024 product launch in the USA by Nu-Calgon are advanced with marketing, sales and customer engagement activities well progressed supported by continuing demonstrations of successful energy savings results. A recent demonstration project in Texas achieved an estimated 36% energy savings result, as per Figure 1. The air conditioner serviced was a 30-ton Aaon packaged rooftop air-conditioning system, as per Figure 2.

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Figure 1.0 Energy Consumption Reduction from Thermal-XR® Service

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Figure 2.0 Air Conditioning Equipment for Texas Demonstration Project

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THERMAL-XR® is progressing through the USA Environmental Protection Agency’s (EPA) approval process to import and sell in the USA. All the required documentation has been submitted, and the EPA has assigned a case number as part of the thorough evaluation of the product’s safety and environmental impact. The Company believes the potential approval will be received in Q4’23.

To support distributors, and advance the adoption and ease of explanation for THERMAL-XR® GMG has developed an online virtual tour of the THERMAL-XR® Demonstration Centre on its website:
www.graphenemg.com/graphene-products/thermal-xr/virtual-tour/

GMG has also successfully passed Stage One (Gap Analysis) of the ISO 9001 accreditation process and is on track to complete the final stages and receive full accreditation for ISO9001, for Quality Management, in H1 2024. GMG sees ISO 9001 accreditation as an important table stake to become a commercial manufacturing operation for our energy saving and energy storage products while also providing a structured basis for continuous improvement for our company’s operations and customer satisfaction.

GMG’s Managing Director and CEO, Craig Nicol, commented: “The progress GMG is making is exciting. End customers and distributors are now starting to generate notable revenue for the Company, and our THERMAL-XR® product is now starting to be recognised as being an energy-savings solution for Heating, Ventilation, Air-Conditioning, Cooling and Refrigeration (HVAC-R) equipment as well as a range of industrial applications. We continue to build capabilities to support these expected increased sales by upgrading our production facilities including our quality management systems.”

GMG’s 4 critical business objectives remain to:

  1. Produce Graphene and improve/scale the production process
  2. Build Revenue from Energy Savings Products
  3. Develop Next-Generation Battery
  4. Develop Supply Chain, Partners & Project Execution Capability

About THERMAL-XR® powered by GMG Graphene:

THERMAL-XR® COATING SYSTEM is a unique method of improving the conductivity of corroded heat exchange surfaces and improving and maintaining the performance of new units at peak levels. The process coats and protects heat exchange surfaces while improving and rebuilding the lost corroded thermal conductivity and increasing the heat transfer rate by leveraging the physics of GMG Graphene, resulting in an efficiency improvement and a potential power reduction.

THERMAL-XR RESTORE® is powered by GMG GraphenePATENT PENDING

About GMG www.graphenemg.com

GMG is a clean-technology company which seeks to offer energy saving and energy storage solutions, enabled by graphene, including that manufactured in-house via a proprietary production process.

GMG has developed a proprietary production process to decompose natural gas (i.e. methane) into its elements, carbon (as graphene), hydrogen and some residual hydrocarbon gases. This process produces high quality, low cost, scalable, ‘tuneable’ and low/no contaminant graphene suitable for use in clean-technology and other applications. The Company’s present focus is to de-risk and develop commercial scale-up capabilities, and secure market applications.

In the energy savings segment, GMG has focused on graphene enhanced heating, ventilation and air conditioning (“HVAC-R”) coating (or energy-saving paint), lubricants and fluids. In the energy storage segment, GMG and the University of Queensland are working collaboratively with financial support from the Australian Government to progress R&D and commercialization of graphene aluminium-ion batteries (“G+AI Batteries”).

For further information please contact:

  • Craig Nicol, Chief Executive Officer & Managing Director of the Company at craig.nicol@graphenemg.com, +61 415 445 223
  • Leo Karabelas at Focus Communications Investor Relations, leo@fcir.ca, +1 647 689 6041

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this news release.

Cautionary Note Regarding Forward-Looking Statements

This news release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends”, “expects” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or will “potentially” or “likely” occur. This information and these statements, referred to herein as “forward‐looking statements”, are not historical facts, are made as of the date of this news release and include without limitation, statements regarding the progression of end-user engagement in the United States, the official NuCalgon launch and the timing thereof, the impact of case studies on establishing the North American user experience with THERMAL-XR®, the advancement of GMG’s ISO 9001 accreditation and the timing and benefits therefrom, the progression of THERMAL-XR® through the Environmental Protection Agency’s approval process, and the recognition of THERMAL-XR® as an energy savings alternative for HVAC-R equipment.

Such forward-looking statements are based on a number of assumptions of management, including, without limitation, assumptions relating to the timing and benefits of the expected official NuCalgon launch, the impact of case studies on establishing the North American user experience with THERMAL-XR®, that positive energy savings results will drive user engagement in the United States, that GMG will obtain its ISO 9001 accreditation on the expected timeline and derive the expected benefits therefrom, that THERMAL-XR® will progress through the Environmental Protection Agency’s approval process on the expected timeline, and that recognition of THERMAL-XR® as an energy savings alternative in the HVAC-R market is increasing. Additionally, forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of GMG to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: that the expected official NuCalgon launch will not occur in early 2024 or at all, that the Company’s case study will not help establish a North American user experience with THERMAL-XR®, that THERMAL-XR®’s energy saving results will not drive user engagement as currently expected by management, that GMG will not obtain its ISO 9001 accreditation in H1 2024 or at all, that THERMAL-XR® will not be approved by the Environmental Protection Agency by Q4 2023 or at all, that THERMAL-XR® will not be seen as an energy savings alternative in the HVAC-R market, risks relating to the extent and duration of the conflict in Eastern Europe and its impact on global markets, the volatility of global capital markets, political instability, the failure of the Company to obtain regulatory approvals, attract and retain skilled personnel, unexpected development and production challenges, unanticipated costs and the risk factors set out under the heading “Risk Factors” in the Company’s annual information form dated October 18, 2022 available for review on the Company’s profile at www.sedarplus.ca.

Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.

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