Issue of share options to Directors

9 July 2015

Applied Graphene Materials plc

("Applied Graphene Materials", "the Group" or "the Company")

Issue of share options to Directors

Applied Graphene Materials announces that share options over ordinary shares of 2 pence each, in the Company, were yesterday granted to the following Directors, under the terms of the Company's Save As You Earn Share Plan:

The option exercise price was set on 16 June 2015, being the date of invitation to join the Save As You Earn Share Plan. No performance conditions attach to these options which may be exercised in the six months period from August 2018 to January 2019. Nil consideration is payable in respect of the grant of options.

The options granted to Oliver Lightowlers and Jon Mabbitt replace 5,294 options granted to each respectively in 2014 under the terms of the Save As You Earn Share Plan (notification of the cancellation thereof was received by the Company on 6 July 2015).

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

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 was admitted to AIM in November 2013, raising £11 million, and is based at the Wilton Site on Teesside.

The Group has developed a proprietary bottom-up process which is capable of producing high purity graphene nanoplatelets using a continuous process. The manufacturing 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. Applied Graphene Materials owns the intellectual property and know-how behind this process.

Applied Graphene Materials works in partnership with its customers using its knowledge and expertise to provide bespoke graphene dispersions and formats to deliver enhancements and benefits for a wide range of applications.