Supply agreement with Tantec A/S

Haydale Graphene Industries plc                        

                         ("Haydale" or the "Company")                          

                       Supply Agreement with TANTEC A/S                        

Haydale Graphene Industries plc (AIM:HAYD), the Company focused on enabling
technology for the commercialisation of graphene, is pleased to announce it has
entered into an exclusive development and supply agreement with Tantec A/S
(Tantec), a leading manufacturer of standard and customised plasma reactors.

This rolling two year contract will enable Haydale, in collaboration with
Tantec, to continue to develop the functionalisation process to meet customer
specific needs, both in terms of quantity of materials and the level of
functionalisation.

The first bespoke Tantec built reactor arrived in June and has been
successfully commissioned leading to Haydale having the confidence to order new
units. As announced in Haydale's preliminary results on 30 September, Haydale
is due to receive two new reactors from Tantec in December 2014 to increase
capacity and operational flexibility. The Tantec machines are significantly
more advanced than the previous units providing greater control and precision
with a consequent positive impact on performance. An added feature is the
ability to monitor and control the reactor remotely which is essential as
Haydale seeks to install the reactors into customers' production facilities.

Haydale has recently been testing the functionalisation of resins for use in
composite materials and has seen significant improvements in material
properties including toughness, and an increase in excess of 200% in the
ultimate tensile strength when using just 2% loading of Haydale functionalised
graphene nano platelets ("GNPs"). This corroborates previously reported third
party studies (J.APPL.POLYM.SCI 2014, DOI: 10.1002/APP.40802) when using HDPlas
® materials. To achieve such improvements with a relatively small amount of
functionalised GNPs demonstrates that low levels of properly functionalised
GNPs can make a significant difference to large volumes of material.

Haydale's collaboration with Tantec will facilitate Haydale providing properly
functionalised graphene consistently and the ability to scale up volumes to
accommodate future demand.

Ray Gibbs, CEO at Haydale, commented:

"Having already commissioned our first Tantec reactor and established a track
record of performance to date, we are confident in its engineering and build
quality. As a result we have agreed an exclusive supply agreement and ordered
two new units. These machines not only provide us with required capacity
increase but importantly provide a flexible operating capability to rapidly
meet customer requirements. We also have a continual program of reactor
developments to enhance the features and benefits of the machines which is
expected to generate additional intellectual property to add to our existing
"family" of patents.

The market reaction to the third party verification of our process and the
results we have obtained with customers have led to enquiries for the use under
license of a reactor. We have therefore ordered a larger unit to provide us
with further capacity and also act as our "licensing" demonstrator."

Kim Saabye, European Sales Director and partner in Tantec, added:

"Tantec is looking forward working to developing its relationship with Haydale
and we are pleased to have reached this agreement with a company that has the
know-how to use our reactors to functionalise materials to meet the specific
needs of their customers."

- 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                                                                  
                                                                               
Cantor Fitzgerald Europe (Broker)                020 7894 7000                 
                                                                               
David Foreman                                                                  
                                                                               
Paul Jewell                                                                    
                                                                               
Hermes Financial PR                                                            
                                                                               
Trevor Phillips                                  07889 153 628                 
                                                                               
Chris Steele                                     07979 604 687                 
                                                                               

About Haydale

Haydale has developed a patent-pending proprietary scalable plasma process to
functionalise graphene and other nanomaterials. This enabling technology can
provide Haydale with a rapid and highly cost-efficient method of supplying
tailored solutions to enhance applications for both raw material suppliers and
product manufacturers.

Functionalisation is carried out through a low-pressure plasma process that
treats both mined, organic fine powder and other synthetically produced
nanomaterial powders, producing high-quality few layered graphenes and graphene
nanoplatelets. The process can functionalise with a range of chemical groups,
with the level of functionalisation tailored to the customer's needs. Good
dispersion improves the properties and performance of the host material and
ensures the final product performs as specified.

The Haydale plasma process does not use wet chemistry, nor does it damage the
material being processed; rather, it can clean up any impurities inherent in
the raw material. The technology is a low energy user and most importantly
environmentally friendly. The Haydale method is an enabling technology,
allowing the Company to work with a raw material producer who seeks to add
value to the base product and also tailor the outputs to meet the target
applications of the end user.

The Haydale view is that the market currently does not require tonnes of
functionalised graphene but rather the confidence in the materials performance
and the consistent replication of that performance.

Demand will grow with increasing evidence in the performance improvements
generated when using graphene. Commercialisation and hence increased demand
requires the correct functionalisation of the right graphenes to improve its
dispersion leading to enhanced material properties.

Haydale, based in South Wales and housed in a purpose-built facility for
processing and handling nanomaterials, is facilitating the application of
graphenes and other nanomaterials in fields such as inks, sensors, energy
storage, photovoltaics, composites, paints and coatings.

www.haydale.com

About Tantec

The Tantec Group is a privately held company founded in 1974 and is located in
Lunderskov, Denmark. It is a leading manufacturer of standard and customised
Plasma and Corona systems for surface treatment of plastics and metals to
enhance adhesion properties with more than 40 years of experience in delivering
and manufacturing quality, high-end surface treatment products for any
industry.