GMG Announces Commercialisation Progress of THERMAL-XR(R)

Brisbane, Queensland, Australia--(Newsfile Corp. - April 11, 2023) - Graphene Manufacturing Group Ltd. (TSXV: GMG) ("GMG" or the "Company") is pleased to announce the following business update of its ENERGY SAVINGS portfolio product - THERMAL-XR® (TXR) powered by GMG Graphene.

THERMAL-XR® is the Company's proprietary graphene enhanced heat transfer product that provides potential ENERGY SAVING benefits in a wide range of applications. Since the recent Australian Government approval for GMG to produce and sell Thermal-XR® at scale, the Company has driven sales activities and bolstered related production capacity. Important first sales at scale have recently been secured and the Company's efforts to widen potential market segments is finding positive reception providing strong encouragement for continued sales focus targeting near term notable revenues.

GMG sales of Thermal-XR® in the Heating, Venting and Air-Conditioning-Refrigeration (HVAC-R) market is growing in various countries in direct sales to HVAC-R Contractors, with efforts to identify and strike arrangements with local HVAC-R distributors ongoing.

The Company has identified a number of markets outside the HVAC-R segment, where it sees expanded opportunities for TXR applications. For example, there is growing interest in Thermal-XR® in the Data Centre and Energy Production markets.

The total available market size for Thermal-XR® is now estimated to be in excess of US$28.4 billion, which has the potential to grow as more heat exchangers are needed for cooling space and in other industrial and energy production applications.

HVAC-R Direct Sales
The Company has received a sales order for over AU$130,000 (including GST) for THERMAL-XR® sales and service for a large Australian eco-friendly resort for the coating of nearly 200 air conditioners. This is the largest single order for THERMAL-XR® which the Company believes shows increased market acceptance of the graphene-enhanced coating system. This is on the back of other local Australian projects converting into revenue. The Company has also run a direct business to business marketing campaign in Australia for the HVAC-R market with the goal of strengthening brand awareness.

The Company estimates the total potential value of THERMAL-XR® into the HVAC-R Market is over US$26 billion based on the potential energy saving available of the near 2000 Terra Watt hour (TWh) of energy consumed by air conditioners globally annually as detailed by the International Energy Agency (IEA). Per the IEA, the air-conditioning market is also expected to grow by 150% (over 2016 levels) by 2050.

International HVAC-R Distributor Development
GMG continues to progress and negotiate Distributor Agreements for the purchase and resale of THERMAL-XR® for the HVAC-R market in the major demand centres of North America and Asia Pacific. In particular, distributor discussions with a prominent nationwide American distributor are advanced with the aim to move to significant sales soon.

A major wholesale store chain in Thailand with approximately 200 stores has requested a number of sites be further demonstrated with Thermal-XR® by a potential distributor before subsequent roll out across the country.

Following the growing market success of TXR for HVAC purposes the Company is increasing efforts to demonstrate heat management benefits into other applications. Recent examples include data centres and energy producers.

Data Centre Direct Sales
Additional THERMAL-XR® sales and third-party service projects in Southeast Asia have also occurred - with applications in the data centre cooling sector represents a significant opportunity as according to the IEA it represents up to 1.3% of global electricity demand which the Company estimates could represent an addressable market of approximately US$2 Billion of potential Thermal-XR® sales globally. Accordingly, the Company has commenced first discussions regarding projects with a number of data centre operators.

Energy Producer Sector Development
The Company is also in discussions with various mining, energy and gas producers in Australia, North America and Asia about the potential for application of THERMAL-XR® to provide increased heat transfer and corrosion resistance for operations, including gas processing heat exchangers, notably liquefied natural gas (LNG) plants. GMG made an initial sale of THERMAL-XR® and coating by GMG for a micro-LNG plant in Australia in late 2022. GMG's confidence in the success of THERMAL-XR® to shift heat faster than would generally be expected is reinforced by the tests published by the Company in the December 2022, outlining the THERMAL-XR® heat transfer outcomes verified by University of Queensland.

Taking into account the LNG market opportunity alone, which the International Gas Union noted a total production of 372 million tonnes of LNG in 2022, the Company estimates the total addressable market to be approximately US$400 Million of potential Thermal-XR® sales.

GMG's Managing Director and CEO, Craig Nicol, commented: "We are very excited to see the reception we are seeing with THERMAL-XR® in various channels and applications, including HVAC-R direct for larger business customers, HVAC-R distributors in various countries, data centres and various energy producers. The opportunity for Thermal-XR ® in the HVAC-R, data centre and energy producer market is significant."

THERMAL-XR ® Coating Blending Project Update

To support the targeted success of TXR as a major business, the Company purchased the TXR blending in September 2022 and subsequently designed and purchased enhanced coating blending plant equipment. It is working towards commissioning the plant in the second quarter of 2023. This blending plant is expected to have the capacity to produce up to two thousand litres of THERMAL-XR RESTORE® coating per eight-hour shift, providing the ability to service growth well into the future. GMG has also procured new laboratory equipment for quality assurance requirements, and to carry-on research and development of extensions and enhancements to the THERMAL-XR® portfolio into an even wider range of applications.

GMG's Managing Director and CEO, Craig Nicol, commented: "We are pleased to be able to begin producing our coatings for HVAC-R and other heat transfer applications in-house, as a significant step to becoming a globally recognised brand leader in Energy Saving products."

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 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 Graphene. PATENT PENDING

About Thermal XR® Coating Blending Project

As announced in September 2022, GMG has completed the acquisition of the manufacturing intellectual property and brand rights of OzKem Pty Ltd.'s ("OzKem") THERMAL-XR® coating products. Since September, good progress has been made in establishing the in-house blending capability to manufacture THERMAL-XR®. The Project involves building a blending plant, including the required equipment to develop and manufacture THERMAL-XR® in-house. The Project is located adjacent to the graphene manufacturing expansion project and Company headquarters in Richlands, Brisbane, Queensland, Australia.

About GMG

GMG is a disruptive Australian-based clean-tech company listed on the TSXV (TSXV: GMG) that produces graphene and hydrogen by cracking methane (natural gas) instead of mining graphite. By using the company's proprietary process, GMG can produce high quality, scalable, 'tuneable' and no/low contaminant graphene - enabling demonstrated cost and environmental improvements in a number of world-scale planet-friendly/clean-tech applications. Using this low input cost source of graphene, the Company is developing value-added products that target the massive energy efficiency and energy storage markets. The Company is pursuing additional opportunities for GMG Graphene, including developing next-generation batteries, collaborating with world-leading universities in Australia, and investigating the opportunity to enhance the performance of lubricant oil and performance enhanced HVAC-R coating system.

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, the impact of THERMAL-XR® on heat transfer and its potential applications and expected performance, management's expectations of the effects of Thermal-XR®, the commercial maturation of THERMAL-XR®, the brand awareness and market acceptance of the THERMAL-XR® system, the support for distributors to buy and resale THERMAL-XR®, the growing HVAC-R markets, the expected focus on the data centre cooling, HVAC-R and energy producer sectors, the timing of the completion of the pilot blending plant and the expected benefits and capabilities thereof, and the future development of the THERMAL-XR® portfolio.

Such forward-looking statements are based on a number of assumptions of management, including, without limitation, assumptions regarding the ability of the Company to achieve the expected results of its THERMAL-XR®, that THERMAL-XR® will commercially mature as expected by management, that the company will expand the THERMAL-XR® portfolio, that there will be demand by distributors to buy and resell THERMAL-XR® in the HVAC-R market, that the market for THERMAL-XR® will grow and develop as expected, that the recent order for THERMAL-XR® sales and service to an Australian eco-friendly resort is representative of broader market acceptance, the Company will focus on the expected markets and sectors currently contemplated, and the pilot blending plant will be completed on the expected timeline and provide the benefits as management expects. Additionally, forward-looking information involve 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: the Company will not be able to use THERMAL-XR® as expected or the performance, safety profile and production and maintenance requirements of the THERMAL-XR® coating system will not be consistent with management's expectations, the impact of Thermal-XR® will not be consistent with management's expectations, the recent order of THERMAL-XR® sales and service is not indicative of broader market acceptance, the commercial maturation of THERMAL-XR® will not occur as expected, there will not be demand from distributors to buy and resell THERMAL-XR® in the HVAC-R market, that demand for THERMAL-XR® in the expected markets will not match managements expectations, that the Company will focus on different sectors and markets than currently contemplated, that the pilot blending will not be completed on the expected timeline, or not derive the benefits currently expected by management, the Company will not be able to research, develop and produce certain products, the Company will not be successful in engaging third parties and developing relationships to assist in the development, distribution and sale its products, public health crises such as the COVID-19 pandemic may adversely impact the Company's business and the ability of the Company to develop its products, 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 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.sedar.com.

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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