Agreement with Swansea University

Haydale Graphene Industries plc ("Haydale" or the "Company") Agreement with Swansea University and Swansea Innovations Limited Haydale Graphene Industries plc (AIM:HAYD), the Company focused on enablingtechnology for the commercialisation of graphene, whose functionalisationprocess has been verified by the National Physical Laboratory, is pleased toannounce it has entered into a 5 year exclusive pipeline agreement with SwanseaUniversity and Swansea Innovations Limited (together "Swansea") (the"Agreement"). Under the terms of the Agreement, Swansea will carry out a seriesof internally funded research projects to produce prototype applications usinga range of Haydale materials. These materials can be the functionalised HaydaleGraphene Nano Platelets ("GNPs"), and the Haydale conductive and insulatinginks formulated by its collaboration partner the Welsh Centre for Printing andCoating ("WCPC"). Highlights * 5 year exclusive pipeline agreement with Swansea. * Haydale has rights over any intellectual property ("IP") arising out of or generated in the course of the performance of projects in exchange for an issue of share warrants in Haydale. * The projects will conduct research into the use of Haydale GNPs or other nano materials supplied by Haydale, for the development and manufacture of finished products, ink formulations and other dispersion, for use in printing and coating applications. * Swansea will be entitled to a royalty income of 2% from any direct sales made by Haydale of the product. If the product is licensed Haydale will keep 90% of the monies and Swansea 10%. * First product is a prototype pressure sensor for which the patent application has been filed and assigned to Haydale. The first such product is an intelligent Piezoresistive Device, more commonlyknown as a pressure sensor. The patent application for this novel sensor hasbeen filed and assigned to Haydale. Using a specially adapted version of theHaydale conductive ink, WCPC staff have developed a novel thin film flexiblepressure sensor. The range of applications for this invention are believed bythe directors of Haydale to be significant especially as it can be shaped andis thinner than a normal credit card. The novel multiple sensor points can belarge area thereby adding substantial additional functionality for a diverserange of market opportunities from security flooring, leak detection inindustrial gas and water pipes, to assessment of gait in injured sports people. Pursuant to the Agreement, all new discoveries with IP rights arising out of orgenerated in the course of the performance of projects will be offered toHaydale in exchange for an issue of warrants in Haydale. Accordingly, inrespect of the Piezoresistive Device, Haydale will grant 30,000 initialwarrants on 25 February 2015 to Swansea Innovations Limited and the inventorsof said IP, split 35:65 respectively. Future warrants will be determined on acase by case basis depending on assessed economic values at that time. Theobjective of Haydale will then be to commercialise the product. The exerciseprice of the initial warrants will be the closing Haydale share price on 25February 2015 plus £1, whilst any subsequent warrants granted will beexercisable at the prevailing closing Haydale share price, plus £1. Thewarrants have a life of 5 years and can be exercised from the fourthanniversary of grant. In addition, Swansea will be entitled to a royalty of 2% from any direct salesmade by Haydale of the product. If the product is licensed, such income will besplit 90:10 between Haydale and Swansea respectively. The projects will conduct research into the use of Haydale HDPlas® GNPs andother carbon materials supplied by Haydale, for the development and manufactureof finished products ink formulations and other dispersion, for use in printingand coating applications. Ray Gibbs, CEO at Haydale, commented: "Whilst we have a collaboration agreement with the WCPC and any IP derived fromthat belongs to Haydale, there are many other opportunities that derive fromideas and experiments by Swansea University staff. These are generally fundedinternally by Swansea initially and we now have agreement to consider thosethat arise from use of specific materials. We are extremely pleased to havereached this long term exclusive agreement. Adding this to our existingcollaboration with the WCPC ensures that we are at the forefront of researchand production of graphene enhanced inks with a multitude of applications forthe printing and coating markets. This, coupled with the options for Haydale toacquire all new IP rights places us in a strong position in the marketplace." Dr Gerry Ronan, Head of IP Commercialisation for Swansea University stated: "We are delighted to enter into this pipeline agreement with Haydale. It is aparticularly innovative deal structure where the University and the staffinventors receive both a royalty on sales but also equity in Haydale. Thisaligns everyone's interests and ensures a best outcome for all." Prof Tim Claypole of the Welsh Centre for Printing and Coating said: "Haydale came to Swansea University as it recognised our position as a worldleader in research in printing science. Our `challenge led' approach to worldclass research delivered this solution and has led to what we all hope to be along term strategic relationship. It is exciting to see this now being used todrive the Welsh economy and raise our position as a region of excellence forprintable electronics and the practical application of graphene in commercialproducts." For further information please contact: Haydale Graphene Industries plc 01269 842 946John Knowles, ChairmanRay Gibbs, Chief Executive Officer Cairn Financial Advisers LLP (Nomad) 0207 148 7900Tony Rawlinson Cantor Fitzgerald Europe (Broker) 020 7894 7000David ForemanDavid Banks Hermes Financial PRTrevor Phillips 07889 153 628Chris Steele 07979 604 687 About Haydale Haydale has developed a patent-pending proprietary scalable plasma process tofunctionalise graphene and other nanomaterials. This enabling technology canprovide Haydale with a rapid and highly cost-efficient method of supplyingtailored solutions to enhance applications for both raw material suppliers andproduct manufacturers. Functionalisation is carried out through a low-pressure plasma process thattreats both mined, organic fine powder and other synthetically producednanomaterial powders, producing high-quality few layered graphenes and graphenenanoplatelets. The process can functionalise with a range of chemical groups,with the level of functionalisation tailored to the customer's needs. Gooddispersion improves the properties and performance of the host material andensures the final product performs as specified. The Haydale plasma process does not use wet chemistry, nor does it damage thematerial being processed; rather, it can clean up any impurities inherent inthe raw material. The technology is a low energy user and most importantlyenvironmentally friendly. The Haydale method is an enabling technology,allowing the Company to work with a raw material producer who seeks to addvalue to the base product and tailor the outputs to meet the targetapplications of the end user. Haydale, based in South Wales and housed in a purpose-built facility forprocessing and handling nanomaterials, is facilitating the application ofgraphenes and other nanomaterials in fields such as inks, sensors, energystorage, photovoltaics, composites, paints and coatings. www.haydale.com About The Welsh Centre for Printing and Coating: The WCPC, founded in 1995, is a world leader in research and development ofprinting and coating processes, with extensive expertise in screen,flexographic, lithographic, rotogravure, digital and pad printing. The WCPCfacility is based in Swansea Wales and operates out of Swansea University. Thespecialist laboratories are fully equipped for sample analysis and materialcharacterisation. In addition there are printing services provided by a fourstation roll to roll flexographic press and a two station sheet fedlithographic press, enabling WCPC to produce and manufacture both packagingproducts and research prototypes on site. The multi-disciplinary staff is made up of PhD and post-doctoral candidates inindustrial and academic fields, working alongside support staff. WCPC pridesitself on its willingness to invest in new technology and its commitment toremaining at the forefront of the printing and coating industry. Working out ofSwansea University it offers research projects which utilise the expertise ofacademic and industrial knowledge to develop industrial solutions and testprototypes for end user products.

www.wcpcswansea.com