First day of dealings on AIM

Haydale Graphene Industries plc                         

                         ("Haydale" or the "Company")                          

                         First day of dealings on AIM                          

Haydale Graphene Industries plc, the Company focused on enabling technology for
the commercialisation of graphene, is pleased to announce the admission today
of its ordinary shares to trading on the AIM Market of the London Stock
Exchange and the commencement of dealings in its ordinary shares under the
ticker HAYD.

The Company has raised £6,600,008 before expenses through a placing of
3,142,861 new ordinary shares at a placing price of 210p per share with a broad
variety of institutional and private client fund managers. On admission, the
Company has 11,247,823 ordinary shares in issue, giving the Company a market
capitalisation of £23,620,428.

The Company will be using the proceeds of the IPO to; expand and broaden the
engineering, production, technical and business development teams to support
product development; increase the capacity of graphenes and nanomaterials the
group is able to functionalise; increase sales and marketing functions; further
enhancement and new development of intellectual property and know-how with
external partners and for general working capital requirements.

Cairn Financial Advisers and Hume Capital are the Company's Nominated Adviser
and Broker respectively.

Overview of the Group

Haydale has developed a proprietary scalable plasma process to functionalise
graphenes and other nano materials. Functionalisation is an essential component
in the commercialisation of graphenes and graphene nano platelets. Haydale
plans to commercialise its functionalisation process by providing value added
solutions to both raw material producers and industrial corporations.

Graphene is a recently discovered material which, as a single carbon lattice
layer, has outstanding thermal, mechanical and electrical properties. Graphene
is stated to have potential applications in significant markets such as battery
and energy storage, electronic devices including bio-medical sensors,
conductive inks and films plus polymer composite fillers and resins. Graphene
is formed from carbon atoms and being inherently inert, is difficult to mix
with another material. Industry's challenge is to sympathetically functionalise
the graphene sheets and other nanomaterials without damaging them in order that
they interact with the target material to either enhance dispersion or bonding
or both, and to be able to do this on a commercial scale. Haydale believes it
has a solution to this problem.

Subsequent to acquiring Haydale Limited in May 2010 the Company continued to
develop a proprietary solution to this problem by taking both mined organic
fine powdered graphite and synthetically produced graphenes and treating with
the plasma process to surface functionalise the material. The process is
effective in enabling dispersion of nanomaterials and particularly performance
enhancing graphenes, providing a cost effective solution for the user. In
February 2014, the National Physical Laboratory ("NPL") witnessed and
positively reported on the process. The Company's proprietary inventions are
embodied in its manufacturing machines and the processes performed in them.

The Directors believe that its proprietary process provides Haydale with an
opportunity of becoming a key player in the development and commercialisation
of graphenes, specifically graphene nanoplatelets and other nanomaterials.

Ray Gibbs, Chief Executive Officerof Haydale, commented:

"At Haydale we believe the properties and potential of graphene will be
realised, and that whatever form the supply is,dispersing it properly to make a
real improvement is the key to the successful commercialisation of graphenes.

Our successful fundraising and IPO will contribute significantly to the
development and progression of our enabling, proprietary plasma technology,
which is capable of being tailored to produce a wide range of surface
modifications; substantially improving compatibility between the nanomaterials
and any matrix or binder material and so unlocking the potential that graphene
presents."

- Ends -

For further information please contact:

 

Haydale Graphene Industries plc                   01269 842 946                
                                                                               
John Knowles, Chairman                                                         
                                                                               
Ray Gibbs, Chief Executive Officer                                             
                                                                               
Cairn Financial Advisers LLP (Nomad)              0207 148 7900                
                                                                               
Tony Rawlinson                                                                 
                                                                               
Paul Trendell                                                                  
                                                                               
Hume Capital Securities (Broker)                 020 3693 1470                 
                                                                               
Guy Peters                                                                     
                                                                               
David Lawman                                                                   
                                                                               
Hermes Financial PR                                                            
                                                                               
Trevor Phillips                                  07889 153 628                 
                                                                               
Chris Steele                                     07979 604 687                 

Background information on graphene

A graphene sheet is approximately 1 atom thick. Put into perspective, 3 million
graphene sheets stacked together would be 1mm high. Graphene is the strongest,
thinnest, and one of the highest conducting materials known to science.
Graphene is tougher than diamond, yet light and elastic. It enables electrons
to flow rapidly as compared to silicon, is a transparent conductor, and
combines both electrical and optical capabilities. It enables development of
high speed consumer electronics, information processing solutions, biosensors,
super capacitors that could be used in place of batteries, mechanical parts and
composites for cars and aircraft. Dispersed into yarns and fibres it could
become an anti-static, fire retardant, fully recyclable carpet, or potentially
a Kevlar replacement.

The distinctive electronic, thermal and mechanical properties of graphene make
it a potentially disruptive technology across a raft of industries.

Current Trading

To date, revenues have included web based sales and research projects. In
addition, the Group has received and continues to receive research development
grants. The Group has taken advantage of commercial revenue opportunities as
they have arisen.

In the period under review, the Company has raised gross funding of
approximately £3.8 million, of which approximately £1.2 million was raised in
the 6 months ended 31 December 2013. In January 2014, the Company raised
approximately a further £0.6 million (gross) of pre - Admission equity finance.

                         Year ended   Year ended   Year ended   6 months ended 
                        30 June 2011 30 June 2012 30 June 2013 31 December 2013
                                                                               
                             £            £            £              £        
                                                                               
Revenue and other             18,438      133,171      145,742           58,104
income                                                                         
                                                                               
Operating loss             (656,797)    (642,029)  (1,056,337)        (580,116)
                                                                               
Loss for the year /        (582,380)    (608,532)    (992,380)        (568,239)
period                                                                         
                                                                               
Cash & Bank balances          16,828      149,313       54,464          758,322
                                                                               
Net Assets                   627,644    1,185,903      992,125        1,588,241

History

The Group was formed in April 2010 to acquire Haydale Limited, a research and
development business, which was established in 2003 specialising in the novel
use of plasma in the treatment of nanoparticles, in particular graphene and
CNT's. The Company is based in South Wales.

Milestones

    Date                                  Milestone                            
                                                                               
May 2010      Haydale's present CEO, Ray Gibbs, joins.                         
                                                                               
December 2010 Company filed priority date application for an enhanced plasma   
              process incorporating novel use of metal balls. The Group had    
              previously carried out extensive research work on carbon based   
              structures and especially CNTs. The result of the work was       
              Haydale's split plasma process, by which it is able to purify and
              surface engineer carbon based nanomaterials to meet the needs of 
              a wide range of end users.                                       
                                                                               
February 2011 Haydale offers CNTs and GNPs produced from the plasma treatment  
              of mined graphite powder, sampled and sold through a US based    
              website (www.cheaptubesinc.com). Haydale reviewed its sales      
              channels and the agreement was terminated by mutual consent in   
              May 2013.                                                        
                                                                               
November 2011 Initial scale-up proven by commissioning a new reactor (HD100).  
              Haydale launches its HDPlasTM brand.                             
                                                                               
April 2012    Moved into temporary facilities pending fit out of new purpose   
              built factory and laboratory.                                    
                                                                               
December 2012 Commenced research into conductive GNP based ink.                
                                                                               
January 2013  Web based sales facility constructed to address the R&D market.  
                                                                               
May 2013      Company's purpose built nanomaterial handling and production     
              facility in South Wales completed at a capital cost of £         
              0.5million.                                                      
                                                                               
June 2013     HDPlasâ„¢ graphene based ink officially launched at the Graphene   
              Commercialisation and Applications Exhibition in London on 25    
              June 2013.                                                       
                                                                               
              Received Welsh Economic Growth Fund grant of £114,480.           
                                                                               
November 2013 Haydale announces that it had signed a distribution agreement    
              with AMG Mining AG ("AMG Mining"). AMG Mining to act as exclusive
              distributor in Germany for Haydale's branded HDPlasTM GNPs. AMG  
              Mining is a major and long established international supplier of 
              graphite based products and is aiming to use Haydale's plasma    
              functionalisation technology to extend its product range and add 
              value to its raw materials.                                      
                                                                               
December 2013 Haydale lists its HDPlasâ„¢ range of materials for trade on INSCXâ„¢ 
              exchange. INSCXâ„¢ is the world marketplace for organisations      
              seeking nanomaterials, nanocommodities, objects and devices.     
              Merchant member Fullerex has been appointed by Haydale as its    
              agent, through which they will instruct trade on the market.     
                                                                               
January 2014  Haydale closes fundraising round with an additional £1.85million.
                                                                               
              ISO 9001 awarded.                                                
                                                                               
February 2014 Haydale agrees a non-exclusive distribution agreement with US    
              based Graphene Laboratories ("GL") to sell its GNPs. The products
              will be sold through the GL owned internet site known as         
              `Graphene Supermarket'.                                          
                                                                               
              Purchase order raised with specialist plasma manufacturer Tantec 
              A/S for the supply of a reactor for increased capacity and       
              continuing development. A memorandum of understanding was signed 
              with regard to future collaboration for global supply and        
              maintenance contract for reactors.                               
                                                                               
              Structured the Board of Directors to meet AIM requirements and   
              for the next phase of the Company's development.                 
                                                                               
              The National Physical Laboratory witnessed and positively        
              reported on Haydale the process.                                 
                                                                               
March to date Company converts to public limited company.                      
2014                                                                           
              New employees Dr. Martin Kemp and Dr. Chris Stirling recruited to
              boost the marketing and technical potential of Haydale. Marie    
              Davis joined to take over Project management and all aspects of  
              logistics and supply chain.                                      
                                                                               
              Company establishes a technical advisory panel.                  

Board of Directors

John Knowles, Chairman (aged 71) BSc Eng (Hons)

John Knowles has significant nanotechnology experience. He was until recently
chairman of NanoSight Limited (sold to Spectris plc) and currently is the
chairman of the Nanotechnology KTN Advisory Board. He is a member of UK
Government's Nanotechnology Strategy Forum. His 30 years' experience includes 2
years as MD of a Morgan Crucible subsidiary and chairman/director of several
successful technology companies- including Davin Group Ltd, Stratophase Ltd,
Michelson Diagnostics Ltd.

Tony Belisario, Deputy Chairman (aged 63) B Tech (Hons)

Tony Belisario is a chartered engineer who has spent most of his working life
in management in manufacturing businesses using diverse technologies operating
in global markets. In addition, Tony he also managed businesses backed by
private equity and has led an MBO. Currently, in addition to being part time
deputy chairman of HGI he serves on the Council of Brunel University.

Ray Gibbs, CEO (aged 59) FCA

Ray Gibbs is a Chartered Accountant, and former Deloitte audit and corporate
finance partner for 9 years. He has spent the last 18 years in industry as CFO
or commercial director of high technology and fast moving consumer goods
businesses both in the quoted and private arenas with sales ranging from £
500,000 to £500 million. He was a former CFO of Chemring Group Plc.

Dr. Chris Spacie, CTO (aged 56) C.Eng, M.I.M.M.M

Chris Spacie is a materials scientist and Chartered Engineer with over 30 years
of experience in commercial R&D, process innovation, plant design and
manufacturing. He was formerly technical director of Morganite Electrical
Carbon Ltd. a division of Morgan Crucible Plc and is a primary inventor in
fields such as fuel cell materials, composites and ballistics.

Matt Wood, Finance Director (aged 40) ACA BA (Hons)

Matt Wood is an experienced professional having worked as a financial and
non-executive director with a variety of companies with a background in AIM
listed small-cap corporate finance. He will work part time until the business
needs a full time finance director. He currently is part time finance director
for Sula Iron and Gold plc and is non-executive director for Avarae Global
Coins plc and Westminster Group plc.

Graham Eves, NED (aged 68) MA

Graham Eves joined GKN plc in 1967 where he spent 13 years operating across
multiple overseas jurisdictions including, for the last 5 years, setting up and
running a special operation for GKN plc's head office in Switzerland. He
returned to the UK in 1980 to work in venture capital and establish his own
international business consultancy. His main activities covered advising a
range of German, North American and Japanese automotive component/technology
suppliers and he co-founded and was chairman of an automotive technology
company, Mechadyne (now part of Kolbenschmidt Pierburg AG). He was also
chairman of PCB manufacturer, Lyncolec Limited, chairman of a special security
company and a director of 3PC Investment Trust. Graham is a Non-Executive
Director of AB Dynamics and was directly involved in the AIM flotations of AB
Dynamics plc, Antonov plc and Transense Technologies plc. He was on the AIM
advisory committee of the London Stock Exchange for 6 years and has a Master of
Arts degree in Modern and Medieval Languages from the University of Cambridge.

Roger Humm, NED (aged 55) MBA BSc (Hons) FCA

Roger Humm is a commercial and financial director with over 20 years in
industry with extensive understanding of technology businesses. Having held
positions as a finance director and company secretary in public & private
settings, he has accumulated knowledge of capital transactions covering
funding, acquisitions, divestments, in- and out-licensing and spin outs. He is
currently part time vice president of finance of AIM quoted Ixico plc.

Roger Smith, NED (aged 61) BSc Physics

Roger Smith is a senior vice president of Petrofac Plc where he manages a $50
million turnover division. He has spent 35 years in the oil and gas industry
and has set up and sold 2 successful engineering consulting companies.