©2016ImagineIntelligentMaterials

MarketUpdate

September22nd2016

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©2016ImagineIntelligentMaterials

•  TheImagineIMGraphenepilotplantcommencedopera>onsJune14th2016inGeelong.

•  Itwasdesignedtodeliverathreestepprocess–toexfoliategraphene,func>onaliseitandputitintoacommerciallyscalabledispersionthatwillsa>sfythefutureneedsoftheAustraliangeosynthe>csmarketplaceandenableImagineIMtoopenupcommercialac>vi>esinothermarketver>calsinAustraliaandInterna>onally

•  Theplantwillreachfullcapacityin>meforan>cipatedproductlaunchofGeofabricsbidim®usingimgneX3beforetheendofQ42016

HighVolumeCommercialisa>onOfGraphene

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©2016ImagineIntelligentMaterials

Imagine IM: Commercialisa1on Path To Date

• Weiden>fiedanopportunitythatrequireshighvolumesofgraphene• Wedevelopedadetailedunderstandingofthesupplychain• Weclosedanini>alcommercialagreementtodeliverthesolu>onandvalidatedourbusinessmodel

• Wedevelopedalaboratoryproofofconceptandmigrateditintoamanufacturableproductandprocess

• Webuiltapilotplantthatdeliversthecommercialendproductandhavenowsuccessfullycompletedfieldtrials(August11th)

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©2016ImagineIntelligentMaterials

ImagineIM-PlantInABox

Ourplantwasdesignedtofitintoa40’shippingcontainersothatitcanbedeployedtotheop>mumloca>onforsupply&integra>onintoamanufacturingproduc>onprocess.

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©2016ImagineIntelligentMaterials

3 Pillars Business Model

Func>onalisedGraphene

Licensing •  Licensee coatings /

compounding companies pay royalty on all sales

•  Only certified companies are able to be part of the supply chain.

•  All supply chain participants pay royalty to be certified

Manufacturing •  Graphene and

masterbatch manufacturing

•  Ensures we maintain trade secrets

•  Independent revenue stream

Certification

•  Different manufacturing processes & raw materials means different functionalities

•  Chemical characterization is essential to ensure quality and replicability at scale in manufacturing

•  Generates independent revenue stream

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©2016ImagineIntelligentMaterials

ImagineIM:WhatWeIntendToDoNext

• Weplantoengagegloballywithinourfirsttargetmarketver>cal-Geosynthe>cs

• Migrateourplabormtechnologyintonewhighvolumemarketver>cals

• Op>miseourmanufacturingprocesses• Developourcer>fica>onandQAcapabili>es•  Iden>fyandcloserela>onshipswithstrategicpartnersthatwillenablefasttrackingofsolu>onsforpoten>alcustomers/licensees

•  Thesewilltakeplaceoverthenext12months

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©2016ImagineIntelligentMaterials

Why Geosynthe1cs?

•  TotalGlobalGeosynthe>csmarketpredictedtobeworth$16Billionby2018accordingtoMarketsandMarkets.

•  Leakdetec>onsolu>onsrepresentsanentrypointintoahighvalueglobalmarketthatprovidesvalida>ontoothermarketver>cals

•  Conduc>vecoa>ngsareaplabormthathaveapplica>onsinothermarketver>cals

•  GeelongpilotplanthassufficientgrapheneoutputcapacitytomeetcurrentAustralianforecastdemandandenableini>alordersfromforeignmarketstobefulfilled.

•  ThefirstrevenuesfromsalesandlicensingofimgneX3masterbatcharean>cipatedtobegininQ12017

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©2016ImagineIntelligentMaterials

ExtendingGlobally• Wean>cipateclosinganMOUtodevelopaprototypeimgne®X3solu>onforthespecificpolymergeotex>lesusedbyaleadingUSgeotex>lecompanyandareindiscussionswithgeotex>lecompaniesinotherterritories

• Wean>cipateclosingatleastonenewinterna>onalcommercialagreementforourleakdetec>onproductduringQ42016

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©2016ImagineIntelligentMaterials

MovingIntoNewMarketVer>cals

• Wean>cipateclosinganMOUwithaEuropeancompanytodevelopaprototypeproductsolu>oninanewver>calthatwillleverageourabili>estodeliverconduc>vecoa>ngsusinggraphene

• Wean>cipateclosinganMOUwithaSEAsiancompanytoco-developnewmaterials

• Wecon>nuetobefocusedonlargescaleinfrastructureapplica>onsforgraphenewithafocusonindustrialtex>lesforcivilengineering,packaging,andotherlargescaleopportuni>es.

• WewillbeclosinganMOUtodevelopourCer>fica>onCapabili>eswithinthenext30days.

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©2016ImagineIntelligentMaterials

Long Term Goal: ‘Internet Of Things’ Products

•  Movingbeyondleakdetec>oningeotex>les

•  Goalisreal>memonitoringofstress,leaksetcindamsandinfastructureusinglargescalegraphenesensortechnology

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