2024 Annual Report

Last financial year was one of continual progress on a number of fronts. We have continued to reduce our operating costs through prudent financial strategies, reduction of overheads and more efficient staff management.

Our methods of producing the various grades of graphene have been refined even further as our skill base constantly improved. Installation of additional operating equipment has given us greater flexibility, better quality and an expanded range of PureGRAPH® products.

Importantly, the cost of producing our graphene products continues to come down, increasing interest from stakeholders and global markets as demand for cost- efficient, sustainable, and high-performing materials continues to grow.

The cement industry continues to offer great progress. Our various field trials have delivered good results and the additional tests currently underway will only further reinforce the seemingly endless potential for this unique material.

Securing a supply agreement for adding PureGRAPH® products to concrete remains our ultimate goal for achieving economies of scale and transformative sales. Meanwhile, we've made good progress across multiple product lines, reaching a larger and more diverse customer base.

There are approximately a dozen promising new customers that are preparing to take initial deliveries within the next six months, moving beyond sample testing. Notably, many of these potential customers have proactively approached us.

Our reputation for capability and commercial value is gaining recognition. As these customers begin purchasing and using our graphene, it naturally paves the way for expanding the use of graphene across their product lines.

The benefits of this will be two-fold, delivering broader awareness of the notoriety of our product and a financial pipeline which will accelerate the Company towards profitability.

As we work towards this goal, I extend my gratitude to our shareholders for your continued support. Developing groundbreaking products is both challenging and rewarding, and your backing is essential in realising our vision of providing high-performance graphene solutions to industries globally.

I would like to express my gratitude to the entire First Graphene team for its ongoing dedication to advancing our vision, especially under the leadership of our MD and CEO, Mike Bell, whose tireless efforts have driven value for the Company.

Mike's deep understanding of the graphene sector across all its facets, combined with his strong commercial acumen, has paved the way for future growth, with the ultimate aim of delivering shareholders the return on investment we all seek.

I look forward to the prospectivity of the next financial year for First Graphene, as we edge closer to achieving our vision.

As we reflect on the 2024 financial year and revisit the goals we set, it is clear we have maintained our trajectory towards becoming a world-leading supplier of graphitic technology and materials.

This time last year, we were awaiting the results of world- leading graphene enhanced cement trials, in anticipation of confirming what we knew would be a revolutionary achievement for the cement and concrete industry as

it endeavours to achieve a 25% reduction of carbon emissions by 2030.

The initial trial results exceeded expectations, showing a 10% improvement in compressive strength and a

15% reduction in carbon emissions during the cement manufacturing process. This marks a major achievement for First Graphene in this critical industry segment.

These results, alongside our numerous other successes with PureGRAPH® across various applications, solidify First Graphene's role as a leading supplier of advanced, future-ready materials that are set to elevate industries worldwide.

First Graphene has maintained a strong focus on unlocking commercialisation opportunities for the Company, supported by a step change in real-world applications of research and development results and growth of our distribution network.

This momentum has unlocked access to previously untapped markets, but our work is far from slowing down. The cornerstone of First Graphene's commercialisation strategy lies in widening the doors to markets that have yet to experience the full potential of our premium PureGRAPH® products.

By continuously driving innovation and demonstrating the advantages of our solutions, we aim to introduce PureGRAPH® to industries that will benefit most from its cutting-edge capabilities, further expanding our global reach.

In the cement and concrete industry, First Graphene has continued to collaborate successfully with the UK's largest cement producer Breedon Group, under the Joint Development and Commercialisation Agreement signed earlier in the past financial year.

Building on the success of our initial graphene-enhanced cement trials, we entered into a second trial in our partnership with Breedon Group. This involved testing the performance of a graphene-enhanced concrete slab in a real-world environment, that provided critical insights into how our innovative material performs under real- world conditions.

The slab was placed at a major highway project in the UK and exposed to challenging conditions including heavy vehicle traffic and weather. After 200 days in operation, the concrete was found to have no defects, damage, or deterioration, maintaining its strength and integrity.

This secondary success has led to a third phase of testing to be planned, investigating the potential of our new, dedicated cement and concrete product, PureGRAPH- CEM®. This large-scale trial will leverage more than three tonnes of PureGRAPH-CEM® to further validate the benefits of using this optimised formulation to improve strength and durability of concrete during the production process.

The ongoing achievements we have made with Breedon has led to further opportunities to trial graphene- enhanced cement, including with Morgan Sindall Infrastructure, which has shown interest in testing the market-changing product at a National Highway project in the UK.

We are moving towards our vision of creating greener cities by supplying the graphene needed to reduce emissions and improve cement strength.

Alongside our collaboration with Breedon in the United Kingdom, we also launched trials of the impact of

• We are moving towards our vision of creating greener cities by supplying the graphene needed to reduce emissions and improve strength of cement."

PureGRAPH® on cement integrity with various companies in Europe, South Africa, Thailand, New Zealand, and Australia.

For First Graphene, it is vital to continue working with like-minded cement producers, who are striving towards delivering a more sustainable product, to support our journey towards broader commercialisation across global cement and concrete markets.

While the cement and concrete segment has been a strong focus for the Company, we will also be assisting with other sustainable solutions for other industries during the next financial year.

First Graphene joined a nine-member consortium in June 2024 to develop graphene-enhanced hydrogen storage tanks for transportation of this potential future energy source.

The A$3.7 million project is significant for the Company and will see our PureGRAPH® products leveraged to increase strength and reduce hydrogen permeability of the tanks.

This past financial year marks another bold step in our journey within the hydrogen sector, with major strides toward commercialising our groundbreaking Kainos Technology.

This innovation not only produces high-quality, battery- grade graphite and pristine graphene but also generates green hydrogen as a valuable byproduct.

The technology has already caught the attention of key players in the industry, such as Abu Dhabi-based EMDAD Group. In October 2023, they signed a Memorandum of Understanding with First Graphene to develop a small- scale cavitation reactor, designed to convert petroleum feedstock from oil producers into these crucial materials.

Further boosting our efforts, a research project in collaboration with Swansea University in the UK will assess the full commercial potential of Kainos Technology as an alternative source of essential raw minerals needed across industries worldwide.

Significant progress has also been made across multiple other segments, with extensive trials reinforcing PureGRAPH®'s potential to elevate performance in

a wide range of materials. From structural beams in housing and protective clothing to mining conveyor rollers, electrostatic discharge flooring, 3D printing, and lubricants - PureGRAPH® is proving its value.

This rapid uptake aligns seamlessly with our commercialisation growth strategy. While the full impact may not be reflected yet, we are confident that the growing adoption of PureGRAPH® across various markets will translate into future revenue.

Moreover, ongoing research continues to highlight the potential of our products to offer high-performance, cost- effective solutions in emerging markets. As industries further recognise graphene's transformative abilities to enhance materials, First Graphene is poised to lead in delivering the next generation of graphene-enhanced products for global industries.

Fiscal improvements

As with any product-driven business, growing our bottom line remains a top priority. This year, we've refined how we report revenue, now separating research and development revenue and partner programs from sales revenue.

While this adjustment has resulted in a surface-level reduction in revenue compared to last year, the change offers greater clarity in our financial reporting, setting the stage for a clearer picture of our growth as revenue scales in the coming years.

Fuelling this future growth is a robust pipeline of more than a dozen commercial opportunities set for FY2025, as new applications and products powered by PureGRAPH® hit the market. These opportunities will position First Graphene in a range of sectors, including sports apparel, fire-retardant construction materials, and PET packaging.

At the same time, we've maintained a strong focus on responsible financial management. Our emphasis on controlling cash outflows, paired with advancements in our manufacturing processes, has significantly reduced production costs while boosting efficiency.

Key improvements at our Henderson manufacturing facility in Western Australia, including the integration of new equipment, have not only enhanced production but also strengthened the quality of our PureGRAPH® products. Additionally, the relocation of our UK-based team has helped streamline costs and transition our research from development to commercialisation.

In step with our commercialisation strategy, we secured new distribution agreements in FY2024, broadening our global reach. Two new partnerships with Bisley & Company and Keyser & Mackay have solidified First Graphene's presence across key markets in the US, Europe, Australia, and New Zealand.

A vital pillar of our progress has been the unwavering support of our shareholders. The strong participation in our Share Purchase Plan in December 2023 has empowered us to continue delivering high-quality products while pursuing new market opportunities, ultimately driving more value for our investors.

Collectively, these efforts are fine-tuning our financial strategy - optimising expenditures and enhancing revenue to deliver long-term value to the Company's balance sheet.

The adoption of cutting-edge solutions like PureGRAPH® takes time, as industries adapt to the unique potential graphene brings to various applications. However, recent market forecasts predict steady growth, with the global graphene market expected to reach US$2.7 billion by 20301. Driving this expansion will be a consistent supply of high-quality,high-performance graphene products - exactly what we specialise in delivering.

As new applications move into production during the 2025 financial year, we anticipate a two-fold benefit of positive cashflows and additional entries into new global markets. This will mark an exciting period of growth for the Company, as we expand into emerging industries hungry for innovative materials.

Our extensive research and development efforts are also set to commercially materialise, with promising results on the horizon and new collaboration opportunities emerging. By refining our focus and turning theory into practice, we're poised to leverage these developments to drive increased purchase orders throughout FY2025 and beyond.

Michael Bell

Managing Director and CEO

As demand for sustainable solutions continues to rise, First Graphene is in a prime position to thrive. We've already established a reputation for delivering high- quality, commercially scaled products with results recognised globally that showcase our success.

Looking ahead, I am excited to continue advancing the Company's ventures and broadening First Graphene's footprint across global markets in the coming year.