First Graphene Limited announced the execution of a supply agreement with Footwear Industries Pty Ltd. for the exclusive supply of PureGRAPH®10 for a twenty-four month term. In August 2019, FGR announced that it was able to successfully incorporate PureGRAPH® into a thermoplastic polyurethane (TPU). Previously, the ability to successfully disperse graphene into a TPU masterbatch had been a major limitation for the graphene industry. Extensive research by FGR has resulted in a manufacturing method which has overcome this. While existing TPU's already possess high abrasion resistance and tensile strength, the incorporation of PureGRAPH® has improved mechanical properties while providing additional benefits in thermal heat transfer and chemical resistance whilst also reducing permeability. Steel Blue will look to release future work boots with graphene components, including a TPU sole. This will potentially provide new design solutions and improvements in manufacturing processes and the comfort of the boot. As announced on 15 November 2019, tests on prototype boots were conducted at Viclab Pty Ltd, one of Australia's leading NATA accredited and independent mechanical testing services. The prototype boots complied with the following test procedures: Impact resistance, Upper to outsole bond, Interlayer bond strength, Slip resistance on ceramic tile floor with NaLS and on steel floor with glycerine, Sole crack resistance, Tear strength, Abrasion (TPU), Tensile, Hydrolysis, Fuel oil resistance and Chemical exposure (NaOH). By including PureGRAPH® additives into the sole, improvements in key properties such as tear strength and abrasion resistance have been measured. Steel Blue have continued to test different applications and processes, with ongoing measuring of outcomes by Viclab Pty Ltd. Upon successful testing, Steel Blue will look to incorporate PureGRAPH into existing and future models of boots, including the mid-sole and Metguard. Other Key Terms of Supply Agreement; Pursuant to the Supply Agreement, Steel Blue will exclusively source graphene and any other graphite or graphene products from FGR. FGR's supply of its graphene products to Steel Blue will initially be exclusive for application in the production of safety footwear for sale in Australia and New Zealand. Following the initial term, exclusivity will only be available to Steel Blue if Steel Blue has achieved (and continues to maintain) a minimum order quantity. The initial minimum order quantity to be achieved in the second year of the Supply Agreement is two (2) tonnes of PureGRAPH®. Based on the currently agreed ordering schedule, product supply to Steel Blue in year one is anticipated to progress to an annualised basis of one (1) tonne as adoption commences across the Steel Blue footwear range and product lines. Each party has the right to early termination if there is a material breach of the obligations of the other party. Additionally, Steel Blue has the option to extend the initial 24-month term for an additional 48 months.