A GRAPHENE TECHNOLOGY COMPANY

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Sophia McGee
5 years ago
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1 I N V E S T O R S A GRAPHENE TECHNOLOGY COMPANY Performance Through Carbon Chemistry Q1 2018

2 PAGE 2 D I S C L A I M E R Forward-Looking Statements. This presentation contains express or implied forward-looking statements, which are based on current expectations of management. These statements relate to, among other things, our expectations regarding management s plans, objectives, and strategies. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, any projections of financial information; any statements about historical results that may suggest trends for our business and results of operations; any statements of the plans, strategies and objectives of management for future operations, including the timing, funding and construction of planned manufacturing facilities; any statements of expectation or belief regarding future events, potential markets or applications, the sizes of addressable markets, expected technology developments, strategic partnerships and collaborations, or enforceability of our intellectual property rights; any statements about the projected or expected economic or other benefits of our products compared to petroleum-derived equivalents, future sales and any statements of assumptions underlying any of the foregoing. Forward-looking statements are subject to a number of risks, assumptions and uncertainties, many of which involve factors or circumstances that are beyond our control. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the events and circumstances reflected in the forward-looking statements will be achieved or occur and the timing of events and circumstances and actual results could differ materially from those projected in the forward-looking statements. Accordingly, you should not place undue reliance on these forward-looking statements. All such statements speak only as of the date made, and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Trademarks. Our trademarks may not be copied, imitated or used, in whole or in part, without our prior written permission. trademarks or logos, company names or logos displayed in this presentation are the property of their owners. Other trademarks, registered

3 PAGE 3 HIGHLIGHTS NanoXplore Is a Graphene Technology Company Largest Canadian producer of graphene and a global graphene market leader Low cost manufacturing of graphene- projected cost of $3.6/kg (1) and projected selling price of $10/kg. Focused on graphene as an additive to plastic resins tonnes/year graphene-plastic mixing and compounding line Fabricates and sells millions of plastic parts and assemblies per year Solid growth trajectory with 4X revenue growth year over year since 2012 Significant market opportunity with potential graphene and graphene related products market of $2.6B in 2025, growing by 46% CAGR(2) Near-term rapid growth opportunity through downstream acquisitions 25 tonnes/year current graphene production capacity 6 patents on graphene production and applications in composites and energy storage. $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 Actual Yearly Revenue ($M) June June June June June (1) Assuming 10,000 tonnes/year production rate (2) Graphene: Technologies, Applications and Markets Research and Markets Values converted to CAD.

4 PAGE 4 STRONG CORPORATE AND INSTITUTIONAL OWNERSHIP - Management Ownership of more than 20% - Corporate ownership of more than 30% - Strong institutional ownership

5 PAGE 5 GRAPHENE AND ITS APPLICATIONS Graphene Is a New Two Dimensional Carbon Nanomaterial Discovered at Manchester University in 2004, Nobel Prize 2010 GRAPHITE Better electrical conductivity than copper Hundreds of times stronger than steel Very high thermal conductivity Excellent impermeability Printed Electronics 4% Water treatment 4% Electronics (other) 2% Lubricants 6% GRAPHENE Improves single or multiple properties Improves shielding effectiveness and cooling efficiency Enhances battery capacity and charging time Superb gas barrier and anticorrosive performance Reduces processing time, increases production throughput Major challenge for graphene industry is large volume production at low cost Photovoltaics 6% TCF (non-ito) incl. Flexible electronics 6% Coatings and paints 9% Energy storage 15% 2024 Bulk Graphene Market (2017 BULK GRAPHENE PRICING REPORT by Fullerex Ltd) Composites 48%

6 PAGE 6 STRONG IP PORTFOLIO 2 granted patents on processes to produce graphene and functionalized graphene powder. 3 provisional patents on mixing and applications derived from graphene in plastic for automotive, electronic, and packaging applications. 1 provisional patent on graphene-based formulations for graphene-silicon anodes and graphene-sulphur cathodes in Li-ion and Li-sulphur batteries. Patent Status Filing Date Country ELECTRO-MAGNETO-CHEMICAL SYNTHESIS OF FEW OR MULTI-LAYERS MAGNETIC GRAPHENE, AND GRAPHENE OXIDE AND USES THEREOF Pending Dec. 19, 2013 Canada LARGE SCALE PRODUCTION OF PARTIALLY OXIDIZED GRAPHENE Issued March 7, 2017 Dec. 9, 2014 USA LARGE SCALE PRODUCTION OF THINNED GRAPHITE, GRAPHENE, AND GRAPHITE-GRAPHENE COMPOSITES Issued Oct. 18, 2016 Dec. 22, 2015 USA METHOD OF COMPOUNDING GRAPHENE WITH NON-CONDUCTIVE PARTICLES AND APPLICATIONS THEREOF METHOD OF EXFOLIATING AND DISPERSING HIGH CONCENTRATION GRAPHENE NANOPLATELETS (GNP) INTO POLYMERIC MATRICES USING SUPERCRITICAL FLUID (SCF) Pending Jan. 4, 2016 USA Pending May 31, 2017 USA GRAPHENE-BASED CATHODES FOR LITHIUM-SULFUR BATTERIES Pending Oct. 17, 2017 USA

7 PAGE 7 10,000 TONNE PER YEAR PRODUCTION NanoXplore plans to construct a 10,000mT/year graphene production facility. Proceeds from the latest financing were partially allocated to the design and engineering work of the facility. Item Preliminary Economic Assessment (internal; NanoXplore) Budget Direct CAPEX Indirect CAPEX Contingency Total Average operating cost $55.7M $3.3M $6M $65M $3.6/kg Existing Production Facility Average selling price Project life $8/kg 25 years Internal rate of return (IRR) 42% (pre-tax) Payback period 2.9 years (pre-tax) Net present value 8% discount $327M (pre-tax) Existing production facility: - Engineered and designed in house - Ability to duplicate the same size production line to increase capacity. Permits received from: MDDELCC, Ville de Montreal, Ville Saint-Laurent

PAGE 8 TOTAL CAPEX Item Direct CAPEX Indirect

construction ~13M 1) Main grinding mills

8 PAGE 8 TOTAL CAPEX Item Direct CAPEX Indirect CAPEX Contingency Total Budget $55.7M $3.3M $6M $65M Estimated from PEA, completed July 2017 Major components 1) Plant and construction ~13M 1) Main grinding mills ~$25M (long lead time) 2) Other equipment ~20M Photo of mills

PAGE 9 AVERAGE OPERATING COST Existing 10,000 T/yr Direct material $ 44,263 $21,779,223 Direct labour $120,000 $1,125,600 Indirect costs $268,617 $13,095,327 Total cost per year $432,879 $36,000,150

9 PAGE 9 AVERAGE OPERATING COST Existing 10,000 T/yr Direct material $ 44,263 $21,779,223 Direct labour $120,000 $1,125,600 Indirect costs $268,617 $13,095,327 Total cost per year $432,879 $36,000,150 Cost per kg GN $22.25 $3.60 Estimated from PEA, completed July 2017 Major components of cost reduction Waste Waste treatment OPEX will be significantly reduced by ~$3M CAPEX investment in wastewater facilities Labour Required labor only increases by 5x for the 10,000 T/yr production over existing production due to automation. Existing Production Facility Ville Saint-Laurent, Montreal, QC Existing Production Labour 48.5% 4.1% Waste Disposal 23% 0.6% Percent of graphene production cost 10,000 T/yr Production

10 PAGE 10 TOTAL ADDRESSABLE MARKET Total potential addressable market for graphene: 12M tonnes/year 1% graphene penetration: 120K tonnes/year NanoXplore s plan: 10K tonnes/year production facility Projected selling price $10/kg Material Average Price/tonne Current Market size (tonnes) Current market size (CAD) Potential graphene penetration (%) Carbon Black $7,500 12M 17.5B 70% (CAD 12.25B) Value added graphite products* $8, ,000 (rapidly growing) 7.5B +70% (CAD 5.25B) Carbon fiber $15,000 80, B 50% (CAD 1.44B) Boron Nitride $125,000 8, M 30% (CAD 187M) *spherical, expandable, expanded, micronized Material Commodity Thermoplastics Existing Fillers and Additives Addressable Industrial Materials Market Annual Production (tonnes) Price (CAD/tonne) Weight of 5% avg. loading (tonnes) 200,000,000 2,500 10,000, Base Oil 35,000,000 1,875 1,750, Rubber 27,000,000 1,875 1,350, PA 5,000,000 7, , Epoxy 2,500,000 6, , Battery Anode 397,000 12,500 19, CFRP Composites 125,000 6,250 6, High Performance Polymers 20, , Maximum graphene price for entry (CAD/Kg) Based upon Fullerex graphene market report and in-house study

11 Consumption (Kilo tonnes) PAGE 11 PRICE DRIVEN MARKET GROWTH At NanoXplore, we believe graphene s market growth is heavily dependent on graphene selling price Projected worldwide graphene consumption vs graphene price (NanoXplore in-house study) 0 $7.50 $10 $25 $62.50 Graphene Price (CAD/kg) 260 tonnes 2016 annual consumed volume of graphene was 200 tonnes Projected Graphene Price (Fullerex Graphene Market Report, values converted to CAD)

PAGE 12 GRAPHENE PRICING: MARKET EXAMPLES Cost reduction is the key for commercial success Case 1: Graphene price of $31.25/kg would make it competitive as a tire additive on a cost neutral basis vs.

15 Unit price (CAD/kg) $1.88 $31.25 Total cost as tire reinforcement $4.68 $4.

12 PAGE 12 GRAPHENE PRICING: MARKET EXAMPLES Cost reduction is the key for commercial success Case 1: Graphene price of $31.25/kg would make it competitive as a tire additive on a cost neutral basis vs. carbon black Pricing simulation for tire reinforcement (carbon black 1 vs. graphene) Tire weight: 10 kg Carbon black Graphene % of tire weight Total weight needed (kg) Unit price (CAD/kg) $1.88 $31.25 Total cost as tire reinforcement $4.68 $4.68 Source: METI, Goldman Sachs Global Research (1) Carbon black is a powder produced by incomplete combustion of petroleum products. Demand for industrial grade carbon fiber vs price Case 2: Global demand for carbon fiber took off as a result of lower prices. US$/kg Source: Toray Industries, Nikkei Shimbun, Goldman Sachs Global Investment Research

Performance PAGE 13 CARBON BLACK REPLACEMENT GrapheneBlack TM is disruptive to Carbon Black

environmentally friendly alternative - No dependency on oil price and avoids oil market

Major Carbon Black Producers Global Carbon Black Market: - 2015: 8Mt/yr - $14B in revenue -

13 Performance PAGE 13 CARBON BLACK REPLACEMENT GrapheneBlack TM is disruptive to Carbon Black market: - Superior performance with cost reduction - Significant processability advantage - An environmentally friendly alternative - No dependency on oil price and avoids oil market volatility - Significant cost reduction due to shipping smaller volumes $/kg of final product Major Carbon Black Producers Global Carbon Black Market: : 8Mt/yr - $14B in revenue : forecast of $17.25B (1,2) (1) MarketsandMarkets, 2015 Carbon Black market report (2) All numbers in CAD

14 PAGE 14 GLOBAL AUTOMOTIVE TRENDS NanoXplore-Martinrea partnership is a game changer in vehicle light-weighting applications

15 PAGE 15 VEHICLE MATERIALS Carbon materials such as carbon fiber are being used in vehicles. Graphene is the youngest and best-performing member of the family BMW 7 Series weight was reduced by 130kg using carbon fibre and other advanced materials Magna International has had several light-weighting successes using carbon fibre, including: Hood for the Cadillac CTS/ATS-V series (weight reduced by 20%); Carbon composite subframe with Ford (reduces weight by 34%; lowers parts count by 87%)

16 T H A N K Y O U S o r o u s h N a z a r p o u r, P h. D. P r e s i d e n t a n d C E O G r o u p N a n o X p l o r e 2 5 M o n t p e l l i e r B l v d, M o n t r e a l, Q C, H 4 N 2 G 3, C A N A D A Te l : + 1 ( ) C e l l : + 1 ( ) n a z a r p o u n a n o x p l o r e. c a w w w. n a n o x p l o r e. c a

A GRAPHENE TECHNOLOGY COMPANY

N O V 2 0 1 7 I N V E S T O R R E P O R T A GRAPHENE TECHNOLOGY COMPANY Performance Through Carbon Chemistry PAGE 2 D I S C L A I M E R Forward-Looking Statements. This presentation contains express or