02-09-2016: Graphene Cell Commences Production

2 September 2016

First Graphite Limited ACN 007 870 760

ABN 50 007 870 760

Registered Office

Suite 3

9 Hampden Road

Nedlands WA 6009

Tel [phone]

Fax [phone]

Directors Warwick Grigor Craig McGuckin Peter R. Youd Chris Banasik

Company Secretary

Peter R. Youd

Email: [e-mail]

Website: www.firstgraphite.com.au

ASX Symbol

FGR, FGROA, FGROB

Graphene Cell Commences Production

Company designed 250 litre commercial cell commences production of graphene

First Graphite (ASX: FGR) is pleased to report on the initial commissioning of its 250 litre commercial production graphene cell at Nagrom.

Highlights

• Full-size production cell commissioned and undergoing optimisation

• First results demonstrate high quality graphene being produced

• High conversion rate and large platelet sizes

• Further research work continuing at the University of Adelaide

Graphene production cell

The 250 litre production cell built by the Company was assembled and initial commissioning undertaken during the week commencing 15 August.

The cell is installed at Nagrom the Mineral Processor and operated by an FGR consultant and Nagrom under strict confidentiality guidelines. As an integral part of this testing the Company has embarked on a period of optimisation following on from initial test work undertaken at the University of Adelaide prior to finalising the process for commercial application.

The 250 litre production unit will give it a significant commercial advantage over any alternative method of producing bulk graphene. Rather than relying on a central processing facility from which produced graphene supplies would be transported, thus incurring significant transport costs, the technology may enable the location of production units in the facilities of the consuming industry for "just- in-time" production and delivery of graphene, tailored to meet the specific requirements of each customer. Each unit may produce up to 5 tonnes p.a. at very low capital cost.

The commissioning of this production unit has the potential to change the dynamic for industry access to bulk quantities of low cost graphene. The Company will be able to supply graphene for research and development for large- scale applications, thereby accelerating market development.

Having established the ability to produce graphene at very low cost, First Graphite is continuing its work at the University of Adelaide to identify commercial applications of graphene, thereby opening up new markets.

Figure 1: Installed graphene cell

Figure 2: Production graphene cell running at Nagrom the Mineral processor

Initial test results are demonstrating the achievement of up to 83% graphene conversion and large platelet sizes of between 45µm and 78µm.

While these initial results are very encouraging there is further characterisation to be completed as the Company continues to commission the cell. The attention now turns to the characterisation and purification of the produced product.

Figure 3:SEM images of initial graphene produced

12

10

1808B

1808O1

8

Volume (%)

1808O2

1808U2

6

1808U1

4

2

0

1 10

Particle size (µm) 100 1000 Unsorted Product Sizing

Average Particle size (µm)	% Graphene
1808_B	78	22
1808_O1	65	58
1808_O2	59	53
1808_U1	45	75
1808_U2	55	83