Ann: Graphene Operations Update, page-4

So far FGR has received enquiries and some introductory sales from businesses involved in; • Automotive manufacturing • Aeronautics • Paint manufacturers • Polymer producers and masterbatch preparation companies
It is a compelling feature of FGR’s Graphene Cell that it is a very low capital cost modular unit. It does not require the prohibitive capital expenditure that a centralised processing plant would involve. It does not require off-take agreements to justify or to finance graphene production capacity. Rather, modules can be manufactured with a short lead-time in direct response to demand for graphene from customers. Where customers are needing bulk supplies of graphene it is likely that a Cell can be installed on their factory floor under the supervision of FGR personnel. This would provide the benefit of limiting transportation cost of a voluminous industry-ready graphene product whilst enabling just-in-time management of input materials into the manufacturing process. FGR expects that individual Cells may need to be tailor-made to suit customer requirement and to meet purpose specific functionality, but this will be a matter that can resolved through working closely with each customer. Responsiveness to customer needs will be an important marketing feature. Marketing Strategy Approaches have been made to FGR from a number of avenues that include trade shows, direct enquiries and third party referrals. While these have been both useful and promising, the Company recognises the need to appoint serious and experienced marketing agents to accelerate the process of market penetration rather then rely on organic growth supervised by the FGR staff. Discussion along these lines have commenced and the Company is optimistic that it will soon have news on this front, in recognition of the need to establish a strong market presence as soon as possible. FGR’s Managing Director Craig McGuckin said “With first saleable production from the graphite mines being developed expected within a matter of weeks, shareholders should be aware that the delays have had little or no impact upon the far more significant graphene commercialisation program. The value-adding that is created by the conversion of graphite to graphene is expected to be very significant.”