INVESTOR PRESENTATION

NOVEMBER 2017

Other Directors

Bryan Dobson – Chairman

• Bryan has over 33 years’ experience in the chemical industry with ICI plc and Croda International

plc

Karl Coleman – Chief Scientific Officer

• Karl invented AGM’s proprietary production process and established the Company in 2010

Sean Christie – NED

• Sean was Group Finance Director of Croda International plc

Mike Townend – NED

• Mike is Chief Investment Officer of IP Group

MANAGEMENT 2

Highly experienced team with track record of value creation in

specialty materials

Jon Mabbitt – Chief Executive Officer

• 30 years’ senior management experience in manufacturing and engineering

• MD of Umeco Composite Structural Materials

• MD of Advanced Composite Group

• BEng in Chemical Engineering

Gareth Jones – Chief Financial Officer

• Chartered Accountant with 27 years’ experience in finance

• Divisional Finance Director at Gardner Denver

• Finance Director of Vireol plc

• BEng in Mining Engineering

SOLELY FOCUSED ON GRAPHENE

OVERVIEW

To establish AGM as a leading global graphene enhanced

material supply company.

• Customer momentum building; initial production orders commenced in October 2016

• Operational scale up of manufacturing based on our unique bottom up manufacturing process

• Creation of significant levels of protected intellectual property and technical know-how in the formatting and

dispersion of graphene

• Strong progress achieved – refining processes / developing scale-up / data generation / commercialising

Progressing through commercial scale-up

Building customer momentum

3

“”

WHY GRAPHENE? 4

“GRAPHENE HAS THE POTENTIAL TO BE THE MOST DISRUPTIVE MATERIAL

OF THE 21ST CENTURY”

Significant challenges to produce, disperse and format for customers

Graphene

Mechanical

100X stronger than steel

Stiffer than diamond

Electrical

60% greater conductivity than copper

Thermal

5X conductivity of Aluminum

Lubricating

Very low surface shear

Impermeable

Vacuum tight to helium gas

Transparent

Circa. 98% optical

transmission

RECENT PROGRESS

• Completion of £9m placing and £0.77m open offer before costs

• Expanded Commercial Pipeline – over 100 active projects

• Focus is now on commercialisation of these

• First production orders received from early adopters

• Repeat orders- Century Composites and SHD Composites

• Final approval underway at Airbus for product qualification on satellites

• IP further secured with patents granted in Japan, Europe, USA and South Korea

• Launch of Structural InkTM – a novel, patented application technique for precision delivery of graphene

• Engineering breakthrough with proven modular scale up and new production line for A-GNP35

5

OPPORTUNITY PIPELINE MATURITY

Agreement on

scope of

sampling and

engagement

Initial testing

and

interpretation of

results

Repeat testing

for consistency

and review of

results

Final product

trials

formulation and

specification

Final

commercial

engagement

Short

approval3 13 10 5 2

Medium

qualification

time

6 29 9 2 1

Long

approval

process

2 5 2 1 0 0

Technology

scouting or

timeframe

unclear

currently

11 7

6

INCREASING MATURITY

IP and Know-how• Patent protection

• Range of graphene

• Formatting knowledge

• Structural Ink™

WHY AGM? 7

Commercial• Extensive databases

• Focus on core markets

• Key partner collaborations

• First production orders

Operational• Bottom up process

• Successful scale up

• Modular capacity expansion

• Consistency of product

Not all graphene is the same

CONTINUED EXPANSION, SIGNIFICANT IP PROGRESS 8

Significant expertise in dispersion is highly valued

by customers and critical to performance

Manufacturing capability

• Programme for increased capacity with a modular production scale-up to better match capacity to demand

• Alternative methods and conditions of manufacture facilitates transfer of material enhancements to end applications in our target markets

• Ongoing investment in complementary and IP protected production techniques to enhance product range

• Significant know-how, understanding and ability built up. Skilled team significantly strengthened

• Patents granted in Japan, USA , South Korea and Europe; patents filed in other geographies

Dispersions/formatting

• Investment in in-house formulation and application expertise

• Portfolio of dispersions formatted for different product markets

• Performance data generated to accelerate customer sampling

ROUTES TO MARKET• Coatings material formulators

• Additives manufacturers

MARKET SIZE• Anti-corrosion coatings £8.1Bn of which primers is £1.3Bn (2013)

MARKET ENHANCEMENTS• Barrier properties – corrosion prevention

• Electrostatic discharge

• Toughening of surfaces

• Reduced surface friction

TARGET MARKET - COATINGS 9

“The detailed understanding that AGM bring of how to get the

most out of their material is impressive” - JBL

COLLABORATION CASE STUDY

COATINGS

• AGM has been collaborating in a 15-month assessment project, funded by Innovate UK, to examine the use of graphene in advanced coatings specifically targeted at increased corrosion protection in primer layers

• Resultant formulations deliver performance improvements without significantly changing material manufacturing and are currently undergoing long-term development testing. This data is being disseminated via conferences, exhibitions and technical journals

• AGM continues working closely with a number of leading, global manufacturers of Marine coatings to establish the role of graphene in zinc-free, chromate-free high performance barrier protection, in response to environmental pressures and regulatory-led restrictions coming into force

10

Superstructure and topside -

high performance cosmetics

Decks - hard wearing and

chemical resistance

Cargo holds - abrasion

resistance

Ballast tanks - corrosion

resistance

Cargo tanks -

chemical resistance

Underwater hull -

fouling control

ROUTES TO MARKET• Formatted materials – pre-impregnated composites

• Infusion systems – bulk resin suppliers

• Adhesive producers

• Fibre interfaces – carbon/glass suppliers

• Elastometrics – seals

• End-users – specifiers and designers

MARKET ENHANCEMENTS• Increased toughness

• Increased stiffness

• Increased strength

• Electrostatic dissipation

• Thermal management

• Reduced weight

TARGET MARKET - COMPOSITES 11

STRUCTURAL

INK TM

MARKET SIZE• Estimated market total €70Bn

• Materials portion €7Bn

WHAT IS IT?• Highly targeted delivery of graphene onto composites

• Combination of two technologies: printing and dispersing graphene

• Accurately applied by printing = greater precision/performance enhancement where you need it

?

WHY NOW?• Patent application filed

• Technical know-how-proven within National Aerospace Technology Programme

• Key partnerships established

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HOW?• Plan to locate a dedicated facility at Advanced Materials Research Centre in

Sheffield

• Partnerships with key stakeholders

• Customer engagements established

?

STRUCTURAL INK™ 12

A step change in formatting expertise

COLLABORATION CASE STUDY

COMPOSITES

• Delivery of graphene suitably dispersed into resin for intermediate composite material providers, such that the

graphene dispersion can be used directly in existing processes without any material change to production process

• Verified composite material properties at independent test houses

• Engaged with potential end-users to spell out benefits. Century Composites first adopter

• Resultant collaborations to promote pre-impregnated graphene composites into sports goods, automotive and

aerospace markets

13

“We believe our customer base will find numerous applications

for this product in the near term.” SHD

WHAT OUR CUSTOMERS THINK

AGM – PREFERRED GRAPHENE PARTNER TO SHD COMPOSITES

Why is AGM our preferred graphene partner?

• AGM have in-house production of graphene

• Ability to support with volume production

• First class technical support

• Team has vast experience of the composites industry, trusted team members

Source: Nick Smith, Technical Director of SHD Composites

14

?

SUMMARY 15

AGM is confident of being a leading graphene manufacturer

Business is gaining significant momentum

• Numerous engagements with many blue chip customer collaborations and strengthened commercial pipeline within core markets

• Initial revenues now achieved with additional repeat orders

• Continued investment in IP for both production and formatting

• Capital equipment investment and scale up providing enhanced manufacturing capability

• Investment in management team enabling greater technical and geographical reach

Next steps

• Increased momentum towards financial sustainability

• Investment will enable the business to remain at the forefront of this emerging industry

16

APPENDICES

SHAREHOLDER STRUCTURE 17

Significant shareholders % %

Directors 4.3%

IP Group 19.1

Herald Investment Management 12.9

Insight 11.8

Ruffer 9.2

Eden Tree Investment 7.6

City Financial 5.1

Baillie Gifford 4.8

Hargreaves Lansdown, Stockbrokers 3.1

Durham University 2.5

77.7%

Other 18.0%

INCOME STATEMENT SUMMARY

• Revenues were derived from first

production orders to supply Century

Composites along with the supply of

evaluation material

• Other income relates to grants

received primarily for the development

of graphene applications

• Lower operating costs arising mainly

from lower exceptional costs relating to

placing and open offer in 2016

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2017 2016

£'000 £'000

Revenue 97 75

Other income 168 177

265 252

Cost of sales (385) (397)

Gross loss (120) (145)

Operating expenses (4,190) (4,429)

EBITDA (4,059) (4,155)

Exceptional costs - (250)

Depreciation (251) (169)

Operating loss (4,310) (4,574)

Net finance income 33 55

Loss before tax (4,277) (4,519)

Tax on loss 1,234 175

Loss for the period (3,043) (4,344)

Diluted EPS (pence) (13.8) (22.0)

Adjusted diluted EPS (pence) (13.8) (20.8)

CASH FLOW SUMMARY

• Net cash of £5.6m on deposit with

maturity of less than one year

• Increase in depreciation resulting

from additional capital investment in

production capabilities

• Ongoing capital expenditure

programme investment for

development of production

processes and related assets

• Net working capital requirement

increase due to reduction in trade

creditors and accruals

19

2017 2016

£'000 £'000

Operating loss (4,310) (4,574)

Depreciation 251 169

IFRS 2 Share based payments 192 235

Net working capital movement (95) (14)

Cash used in operations (3,962) (4,184)

Interest received 52 44

Tax received 1,234 189

Capital expenditure (725) (1,087)

Free cash flow (3,401) (5,038)

Proceeds from issue of shares 407 8,031

Opening cash at bank 7,702 4,709

Cash at bank 4,708 7,702

UNIQUE, PROPRIETARY BOTTOM-UP PROCESSES

AGM PRODUCTION PROCESSES

Feedstock Production Processing

Liquid Reactor unit

Washing

& drying

Multiple

dispersion

techniques

Solid Reactor unit

• Readily available

• Low cost

• Recyclable

• Scalable

• Continuous

• Scalable • Value-added products

• Ease of handling

Scalable, high-purity, easy to handle, controllable properties

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ALTERNATIVE PRODUCTION TECHNIQUES

DESCRIPTION ADVANTAGES DISADVANTAGES

Top-down Reduced graphene oxide

• Oxidation of graphite

• Sonication / heat to separate layers

• Reduction to graphene nanoplatelets

• Established process • Graphite supply chain –

concentrated in China

• Batch process

• Residual graphite

• Incomplete reduction

Liquid phase exfoliation

• Graphite in solvent

• Sonication to separate layers

• Graphene nanoplatelets

• Can be low temperature • Graphite supply chain –

concentrated in China

• Batch process

• Residual graphite

• Toxic solvents

Bottom-up Chemical vapour deposition

• Deposition of graphene films onto

metal substrates

• Film removed from metal substrate

• Produces films rather than

nanoplatelets

• Different end markets to AGM

• Able to produce large

films with roll-to-roll

approach

• High purity with good

electrical properties

• Expensive due to need

to recover/remove metal

substrate

• High operating

temperature

• Low volume of material

21

INDUSTRY VALIDATION OF MATERIAL PERFORMANCE 22

May 2015 Initial findings of friction and wear reduction from BfB Oil Research, Belgium

May 2015 Positive preliminary findings on graphene reinforced polyurethane coatings, undertaken by PRA

(formerly known as the Paint Research Association) indicating scratch resistance

June 2016 PRA testing demonstrated six-fold improvement in barrier and anti-corrosion properties

October 2016 Full database on the performance of Puraglobe products containing AGM graphene by German

accredited test house, Optimol

October 2016 Composites materials database generated at CTE