Issue of Equity

15 January 2014

Applied Graphene Materials plc

Issue of Equity

Applied Graphene Materials plc (the "Company" or the "Group"), the producer of specialty graphene materials, announces that it received notification from N+1 Singer of the exercise of 84,453 out of 337,809 Warrants as set out in the AIM admission document. Consequently, the Company has issued 84,453 new ordinary shares of 2 pence each ("Ordinary Shares") at the Placing Price of £1.55 per share.

Application has been made to the London Stock Exchange for these Ordinary Shares, which rank pari passu with the existing Ordinary Shares, to be admitted to trading on AIM as soon as is practicable.

In accordance with the FCA's Disclosure and Transparency Rules, following this allotment, the Company's issued share capital consists of 16,974,911 Ordinary Shares. The Company does not hold any Ordinary Shares in Treasury.

The figure of 16,974,911 Ordinary Shares should be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure and Transparency Rules.

Defined terms in this announcement have the same meaning as in the Company's AIM admission document dated 18 November 2013, which is available at the Company's website: www.appliedgraphenematerials.com.

Ends

For further information, please contact:

Applied Graphene Materials +44 (0) 1642 438 214

Jon Mabbitt, Chief Executive Officer

Oliver Lightowlers, Chief Financial Officer

N+1 Singer +44 (0) 207 496 3000

Shaun Dobson / Richard Lindley / Joe Stroud

Hudson Sandler +44 (0) 207 796 4133

Charlie Jack / Emily Dillon

Notes to Editors

Applied Graphene Materials was founded by Professor Karl Coleman in 2010 with its operations and processes based on technology that he initially developed at Durham University. The Group has developed a proprietary bottom-up process for the production of high purity graphene nanoplatelets and owns the intellectual property and know-how behind this process. Applied Graphene Materials' process is based on sustainable, readily available raw materials and therefore does not rely on the supply of graphite, unlike a number of other graphene production techniques. It is capable of producing high purity graphene using a continuous process. Applied Graphene Materials provides dispersion and product integration expertise to deliver solutions for a wide range of applications. The Group is based at the Wilton Site on Teesside.