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Image 3: One of the BIC dry rooms including electrode coating equipment

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By collaborating with BIC, GMG can take advantage of BIC's technological capabilities and manufacturing facilities and avoid the capital cost of building a pilot plant, that can cost more than AU$10 million dollars, to produce sample cells in advance of mass production. Under its service agreement with BIC, GMG will pay for services rendered and retain all intellectual property of the development work. The service agreement with BIC will enable GMG to optimize BIC's cell design and battery manufacturing equipment during its scale up of battery production, thereby delaying capital expenditures for manufacturing capacity until battery development is further derisked.

GMG is very pleased to work with BIC on this next phase in the development of GMG's next generation battery.

Electrochemistry Optimisation

The Company is currently optimising the G+AI Battery pouch cell electrochemistry - which is a standard battery development process step (please see Battery Technology Readiness Level section below).

The Company has developed significant knowledge regarding the electrochemistry of the pouch cells since achieving the targeted 1 Ah cell capacity in February 2024.

The challenges faced by the G+AI Battery during this phase of its maturation are very similar to other battery chemistries that have been developed into mass production - including Lithium-Ion batteries.

The performance of the pouch cells will be communicated upon successfully producing a repeatable and 3^rd party tested 1000 mAh+ battery pouch cell.

The Company is confident it can meet its overall timeline on the battery cell roadmap as seen in Figure 1 and as previously communicated.

Figure 1: Battery Cell Roadmap

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There are five steps in this optimisation process which the Company completes once per week in what it calls a "Sprint" as seen in Figure 2.

Figure 2: Optimisation Weekly Sprint Process

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1. Make Cell
   The major components of the G+AI Battery are seen below in Figure 3:
   Cathode: Graphene, binder and solvent (water or another solution) layered on a metal foil cathode substrate.
   Anode: Aluminium foil
   Electrolyte: Aluminium Chloride and ionic fluid (Urea or another solution)
   Separator: Separator

Figure 3: Graphene Aluminium Ion Battery Components

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These are assembled in a standard step by step process - which is documented in the Company's operation manual of procedures for the Battery Development Process.

There are many different variations that can be trialled in a cell design which can include, but are not limited to, the following as seen in Figure 4:

• Anode foil types and thicknesses

• Improving cycle life

• Cell assembly processes

• Processing of the graphene for the Cathode Slurry

• Coating of the Cathode Slurry

• Variations in the Electrolyte

• Charging and Discharging algorithms

• Optimise nominal voltage and capacity

• Types of Separators (different materials, suppliers and thicknesses)

• Optimising of the weight of the materials

Figure 4: Cell Optimisation Variables

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Typically, 5 of each battery design is made which ensures a statistical depth to the testing.

A total of 250 individual scientific experiments in pouch cells and near 1000 individual pouch cells were made from 2023 till the present date. The basic modelling of the battery is complete and the Company is now working on dynamic modelling of the battery to support multi variant optimization analysis.

1. Test Cell Performance
   Once the Cell Performance is measured (on the charging/discharging stacks) there are certain performance parameters that are observed which include, but are not limited to, the following:
   - Capacity (mAh)
   - Nominal Voltage (Volts)
   - Number of Charging and Discharging Cycles (number)
   - Physical expansion or contraction of the cell
   - Physical changes to the cell

This data is then recorded and linked to the cell design and assembly process used to make the cell.

1. Compare Cell Performance
   The objective of this step is to understand what design and cell assembly parameters, in an isolated test, have a repeatable causal change in cell performance.

Each Sprint usually focuses on a single variable in design or cell assembly - an example of a 3-week Sprint program is seen in Figure 5.

Figure 5: Sprint Program Example

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1. Review Optimisation Options
   Upon reviewing optimisation options for the next Sprint, there are many parameters to consider. Often one design parameter of the cell or assembly process will positively improve one cell performance outcome but have a negative impact on another. As the Company optimises various performance outcomes of the battery cell - some of which are shown in Figure 6 - the Company needs to consider the various potential trade-offs on other performance outcomes.

Figure 6: Battery Optimisation Process

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1. Propose Next Cell Design (repeat Step 1 again)
   Once the Company has selected the design of the Cell parameters, it needs to test for optimisation. This involves repeating step 1 until a final design or variable is chosen.

1000 mAh Battery Cell Capacity Reached

The Company previously announced on the 6^th of February 2024 it produced multiple battery pouch cells with over 1000 mAh (1 Ah) capacity, as seen in Figure 7. This was a major milestone achieved to demonstrate scalability from coin cells to pouch cells, and represented the next milestone in the battery's development, following the announcement of 500 mAh capacity in September 2023.

Figure 7: Typical G+AI Pouch Cell Prototype

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Following the successful cells made at the BIC and successful customer trials, GMG expects to pursue large scale commercial production, as seen in Figure 8.

Figure 8: Pouch Cell Scale Up Process

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Battery Technology Readiness Level

The battery technology readiness level ("BTRL") of the Graphene Aluminium-Ion technology remains at Level 4 (see Figure 9). GMG is currently optimizing electrochemical behaviour for pouch cells via ongoing laboratory experimentation. Through collaboration with the BIC it is anticipated that the battery technology readiness will progress to BTRL 7 and 8 since the equipment and process needed to make the Graphene Aluminium-Ion batteries is the same as those employed to make Lithium-Ion Batteries.

Figure 9: Battery Technology Readiness Level
Source: "The Battery Component Readiness Level (BC-RL) Framework: A technology-specific development framework", Matthew Greenwood et al

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Next Steps Toward Commercialisation & Market Applications

The Company continues to see a broad range of applications for a completed GMG Graphene Aluminium-Ion Battery - utilising its ultra-high power-density and nominal energy density characteristics. Along with Rio Tinto, a range of global companies have confidentially expressed their interest in working with GMG in the following vertical sectors:

Figure 10

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Next Generation Battery Performance

GMG's next generation Graphene Aluminium-Ion Battery performance data (as tested and calculated on coin cells), as compared to the most commonly available lithium-ion batteries, is shown below in Figure 11, with a list of its beneficial characteristics.

The performance of the pouch cells will be communicated upon successfully producing a repeatable and fully 3^rd party tested 1000 mAh+ battery pouch cell.

Pouch cell performance data could be significantly different and will be published once 1000 mAh+ capacity pouch cells are developed and tested.

Source:
*University of Queensland validated GMG testing data based on industry standard estimate methodology from coin cells using a reducing factor of 2.3.
#CATL 3.7V 65Ah NCM Lithium Battery Cell - LiFePO4 Battery (lifepo4-battery.com) on 29/09/22 7
$ CATL 3.2V 150Ah LiFePO4 Battery Cell - LiFePO4 Battery (lifepo4-battery.com) on 29/09/22

Figure 11: Graphene Aluminium-Ion Battery Comparative Performance Data (for coin cells)

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Important Milestones for the Battery's Development:

Important milestones for GMG's Graphene Aluminium-Ion Battery Development:

RSU Grants

The Company is also pleased to announce that following the annual remuneration review, its Board of Directors have approved the grant of an aggregate of 2,021,848 Restricted Share Units ("RSU's") to employees and directors of the Company pursuant to its Restricted Share and Performance Share Plan and the Stock Option Plan.

When vested, each RSU entitles the holder thereof to receive one Share upon exercise in accordance with the Plan . The holder at their own discretion, and separately to the Company, may action those shares accordingly for their personal use.

About GMG

GMG is an Australian based clean-technology company which develops, makes and sells energy saving and energy storage solutions, enabled by graphene manufactured via in house production process. GMG uses its own proprietary production process to decompose natural gas (i.e. methane) into its natural 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 initially focused on graphene enhanced heating, ventilation and air conditioning ("HVAC-R") coating (or energy-saving coating) which is now being marketed into other applications including electronic heat sinks, industrial process plants and data centres. Another product GMG has developed is the graphene lubricant additive focused on saving liquid fuels initially for diesel engines.

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"). GMG has also developed a graphene additive slurry that is aimed to improve the performance of lithium ion batteries.

GMG's 4 critical business objectives are:

1. Produce Graphene and improve/scale cell production processes

2. Build Revenue from Energy Savings Products

3. Develop Next-Generation Battery

4. Develop Supply Chain, Partners & Project Execution Capability

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

www.graphenemg.com

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 development of the Company's pouch cell battery, that the Company will obtain repeatable third party testing of a 1000 mAh+ battery pouch cell, the timing of gathering third party laboratory battery testing data, that the Company will review the investment decision to procure and install an automated pouch cell battery pilot plant in its Richlands Australia facility and the potential to pursue large scale commercial production if the pilot plant and customer trials are successful, the timing of customer testing for an 1000 mAh pouch cell, that the Company will optimize electrochemical behaviour for pouch cells via ongoing laboratory experimentation, the ability of a pilot plant to help progress the Graphene Aluminium-Ion technology along the BTRL, the Company's ability to meet its overall timeline on the battery cell roadmap, that the service agreement with the BIC will enable the Company to optimize its cell design and battery manufacturing equipment, and the potential applications for the G+AI Battery.

Such forward-looking statements are based on a number of assumptions of management, including, without limitation, assumptions that the Company will obtain repeatable third party testing of a 1000 mAh+ battery pouch cell, that the Company will review the investment decision to procure and install an automated pouch cell battery pilot plant in its Richlands Australia facility, that the Company may move to large scale commercial production if the pilot plant and customer trials are successful, that the Company will be able to optimize the electrochemical behaviour of the pouch cell through laboratory experimentation, that a pilot plant will assist in progressing its Graphene Aluminium-Ion technology along the BTRL, that the service agreement with the BIC will enable the Company to optimize its cell design and battery manufacturing equipment, and that the Company will be able to meet its overall timeline on the battery cell roadmap. 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 Company will not be able to obtain repeatable third party testing of a 1000 mAh+ battery pouch cell, that the Company will choose not to proceed with a pilot plant, that the Company will not proceed to customer testing and laboratory testing on the expected timeline or at all, that the Company will not pursue large scale commercial production even if the pilot plant and customer trials are successful, that the construction of a pilot plant will not help advance the Graphene Aluminium-Ion technology along the BTRL, that the Company will not be able to optimize the electrochemical behaviour of the pouch cell through laboratory experimentation or at all, that the Company will not be able to meet its overall timeline on the battery cell roadmap, that the service agreement with the BIC will not enable the Company to optimize its cell design and battery manufacturing equipment, 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 12, 2023 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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