Black Swan Graphene Announces Progress in Commercial Initiatives, Highlighting the Strategic Role of Graphene-Enhanced Masterbatch

Rhea-AI Summary

Black Swan Graphene (OTCQX: BSWGF) reported significant progress in its commercial initiatives for Graphene-Enhanced Masterbatch (GEM) technology. The company is expanding production capacity to 140 tonnes per annum, more than tripling current capacity at its UK facility.

The company is working with over 40 potential customers through its GEM strategy, partnering with masterbatch manufacturers for market penetration. Key applications include agricultural films, packaging solutions, and water bottles, with GEM delivering notable performance improvements: 20% weight reduction in TPU, 20% increased impact resistance in PP, and over 40% reduction in water vapor transmission in PLA.

Black Swan has secured a trademark for its GEM brand and is pursuing FDA approval for food contact applications. The company is positioned to leverage the growing agricultural films market, valued at $11.45 billion in 2023 with an expected CAGR of 8.8% from 2024-2030.

Positive

• Production capacity expansion to 140 tonnes annually, positioning among leading global graphene producers
• Working with over 40 potential customers or companies in joint projects
• Secured trademark for proprietary GEM brand
• Strong performance metrics: 20% weight reduction in TPU, 20% increased impact resistance in PP
• Strategic partnerships with multiple masterbatch manufacturers reducing operational complexity
• Leveraging existing infrastructure at Thomas Swan facility to minimize capital expenditure

Negative

• No assurance that current initiatives with potential customers will result in actual sales
• FDA approval for food contact applications still pending
• Key variables in commercial agreements still being formalized

Toronto, Ontario--(Newsfile Corp. - July 22, 2025) - Black Swan Graphene Inc. (TSXV: SWAN) (OTCQX: BSWGF) (FSE: R960) ("Black Swan" or the "Company") is pleased to provide an update on its ongoing commercial initiatives, underscoring the success of its strategic approach to providing Graphene-Enhanced Masterbatch™ or GEM™ ("GEM") to the polymer industry. This model, which involves working closely with distribution partners and masterbatch manufacturers, continues to demonstrate its value by supporting product adoption and maximizing market reach.

"We are incredibly excited to see our efforts and investments culminating in significant progress toward commercialization as our graphene gains traction in the industrial sector. As for many innovative products, the initial commercialization is paramount, as progress with prospective customers and production activities can provide supply security for eventual customers. As volumes expand, not only will the Company be able to compete more effectively in higher-volume applications, but lower production costs open doors to more price-sensitive markets. The path to commercialization success is now clearly within reach," stated Michael Edwards, Chief Operating Officer of Black Swan.

Since launching multiple GEM products in mid-2024 (see press releases dated April 30, July 9, and July 16, 2024), Black Swan is already working with over 40 customers or companies engaged in joint projects. The Company cautions that there are no assurances that all or substantially all the initiatives currently being progressed with potential customers will result in sales to such customers.

While protecting confidentiality, the Company presents below various details of its commercial progress across diverse markets. While some key variables are still being formalized, the Company aims to reach a point where it can sell most of its current annual production capacity. Black Swan is confident it can swiftly build on this momentum thereafter.

Expansion of Production Capacity at Consett, United Kingdom

Black Swan has ordered its next-generation production unit and is undertaking a significant expansion that will increase its production capacity to 140 tonnes per annum, more than tripling its current capacity. This scale-up will position the Company among the leading graphene producers globally (see press release dated June 3, 2025).

The additional production unit will be installed within the Company's existing operational facility located at Thomas Swan & Co. Ltd. ("Thomas Swan"), a United Kingdom-based global chemicals manufacturer with a century-long track record. Thomas Swan has been at the forefront of graphene innovation and remains a strategic shareholder of Black Swan. This site already comprises a well-established infrastructure, with power and other essential utilities required for expansion. By leveraging the existing site and utilities at the Thomas Swan facility, the Company will be able to minimize capital expenditure, reduce lead times for installation, and accelerate the path to increased commercial output.

GEM: A Game-Changing Strategy

The GEM strategy is a cornerstone of Black Swan's recent commercial advancements, and the Company has previously announced three key early non-exclusive partnerships with Hubron International Ltd, Broadway Colours Ltd. and Modern Dispersions Inc. (see press releases dated January 16, July 23, 2024, and May 14, 2025). Black Swan is particularly encouraged by feedback from masterbatch companies, which are independently supported by the Graphene Engineering Innovation Centre ("GEIC"), indicating that, after working with various graphene sources, Black Swan's product stands out as exceptionally well-suited for masterbatch applications. This is largely due to its excellent dispersion, where no special technique or dispersant are required, which enables our GEM partners to rapidly develop and deliver tailored solutions for customers.

Offering a library of standard GEMs, Black Swan gives any potential graphene customer access to the technology with a low-cost entry and a quick determination of product suitability. By focusing on producing high-quality graphene powder and partnering with masterbatch specialists, Black Swan avoids the complexities of directly managing end-user supply chains. Furthermore, by dealing with masterbatch specialists, instead of creating its own masterbatch, Black Swan can accelerate the market adoption since customers, often already customers of those firms for other polymer additives, can be confident that those GEMs have gone through a rigorous testing process and provide the advertised benefits with batch-to-batch consistency. This approach allows Black Swan to concentrate on innovation and product development while leveraging the distribution networks and expertise of its partners. Not only does this streamline logistics, but it enhances profitability by focusing on higher-margin graphene powder sales. As more partners adopt the GEM products into their portfolios, Black Swan is positioning itself as a leader in the graphene market, capitalizing on first-mover advantages in multiple industries. Black Swan is currently working through the GEM qualification process with other global masterbatch and compounding companies which provides a quick and robust graphene testing route.

GEM delivers remarkable performance benefits, including¹:

• Over 20% weight reduction with 1.0% loading in TPU (thermoplastic polyurethane);

• Over 20% increased impact resistance in PP (polypropylene) at 0.2% loading;

• More than 40% reduction in water vapor transmission in PLA (polylactic acid) with less than 1.0% loading; and

• 36% improvement in oxygen transfer rate in PET (polyethylene terephthalate) with 0.2% loading.

This strategy not only expands Black Swan's market penetration but also allows the Company to scale efficiently. By focusing on graphene powder production and allowing partners to handle downstream logistics and customer relationships, Black Swan aims to maximize its gross margins and reduce the logistical complexities that often come with direct customer management.

GEM Trademark

As a first mover in graphene-enhanced masterbatch solutions, Black Swan has secured a trademark for its proprietary GEM brand, setting a new industry standard that prospective customers can confidently trust and quickly test in applications. This trademark not only solidifies Black Swan's leading position but also allows customers in diverse industries to market their products as "Made with GEM" ensuring traceable quality and performance consistency in graphene-enhanced materials, and to build a user community of "Made with GEM™" customers, similar to the "Intel inside" model to share insights and updates from Black Swan on material developments. With GEM as a hallmark of innovation in graphene, Black Swan is primed to lead as demand for high-performance, scalable graphene solutions accelerates.

Agricultural Films - North American Agricultural Manufacturer

In the agricultural sector, Black Swan's GEM are being trialed by a major North American manufacturer of agricultural films. This project, facilitated by one of Black Swan's masterbatch partners, aims to enhance the strength, barrier properties, and sustainability of agricultural films used in crop protection.

The global agricultural films market was valued at USD $11.45 billion in 2023² and is expected to grow at a CAGR of 8.8% from 2024 to 2030. This growth is driven by rising agricultural output, increasing demand for modern farming practices, and a focus on sustainable agriculture. Agricultural films are used to protect crops in greenhouses and help plants withstand extreme weather conditions.

Agricultural films support various farming techniques by enhancing crop quality, regulating soil temperature, managing weed growth, and increasing crop yields. These films are also essential for storing silage, corn, and hay, fulfilling diverse cultivation needs. Known as effective solutions for soil protection, greenhouse productivity, and precision farming, these elastic films protect plants in both indoor and outdoor settings. Their durability and efficiency contribute significantly to increased production, and in areas with extreme climates or heavy rainfall, they help mitigate the effects of hail.

As the demand for food grows, the use of plastic films in agriculture has surged. These films play critical roles in low tunnels, irrigation, mulching, and silage, all of which improve crop yields and harvest quality. Consequently, agricultural films have become integral to modern farming practices.

Packaging Solutions - Global Packaging Innovator

Black Swan is closely collaborating with a number of prominent packaging companies to enhance the barrier properties of PET in multiple packaging and bottling applications. Those projects have progressed significantly with products undergoing advanced testing in both cases. By using GEM to improve barrier properties and reduce plastic usage, Black Swan is positioning itself in the sustainable packaging market. Black Swan is also seeking FDA approval for food contact and is currently in the application process with a leading partner. The success of these trials could lead to widespread adoption of graphene in high demand packaging solutions, reinforcing the strength of Black Swan's masterbatch strategy.

Bio-Based Packaging

Black Swan is also making strides in the bio-based packaging sector with global sustainability-focused manufacturers. These projects focus on incorporating graphene-enhanced polylactic acid ("PLA") into consumer packaging with enhanced barrier properties approaching 50%, specifically in the areas of aerosols, with our partner Farrag Packaging, and vehicle components, resulting in a 40% improvement in barrier properties.

Water Bottles and Water Dispensers

Black Swan is progressing with a Middle Eastern manufacturer of polycarbonate and PET water bottles. The company has entered the final testing phase with Black Swan's GEM for these products. The global plastic bottle market represents a significant growth opportunity for Black Swan as it continues to expand its footprint in the sustainable packaging sector.

About Black Swan Graphene Inc.

Black Swan is focused on the large-scale production and commercialization of patented high-performance and low-cost graphene products aimed at several industrial sectors, including concrete and polymers, which are expected to require large volumes of graphene. Black Swan's graphene processing technology was developed by Thomas Swan over the last decade. Thomas Swan is a United Kingdom-based global chemicals manufacturer, with a century-long track record and has been at the forefront of graphene innovation.

More information is available at: www.blackswangraphene.com.

For more information, please contact:

Paul Hardy, Vice President - Corporate Development
phardy@blackswangraphene.com
+1 (416) 844-7365

Black Swan Graphene Inc. on behalf of the Board of Directors

Simon Marcotte, CFA, President & Chief Executive Officer

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information

The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to the TSXV listing, risk related to the failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with the industry; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in development activities or the completion of feasibility studies; the uncertainty of profitability; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of feasibility studies, and the possibility that future results will not be consistent with the Company's expectations; risks related to commodity prices fluctuations; and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Furthermore, performance results of graphene products as additives can vary widely depending on type and the specificity of the target material, the specifics of the graphene product itself, including but not limited to, carbon purity, particle size, surface agent, dispersion behavior, and application and usage methods. Investors are cautioned against attributing undue certainty to forward-looking statements and initial test results. These forward-looking statements and test results are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances, except in accordance with applicable securities laws. Actual events or results could differ materially from the Company's expectations or projections.

---

¹ All figures are approximate.
² https://www.grandviewresearch.com/industry-analysis/agricultural-films-market

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/259576

FAQ

What is Black Swan Graphene's (BSWGF) new production capacity after expansion?

Black Swan is expanding its production capacity to 140 tonnes per annum at its Consett, United Kingdom facility, more than tripling its current capacity.

What performance improvements does Black Swan's GEM technology deliver?

GEM technology delivers over 20% weight reduction in TPU, 20% increased impact resistance in PP, 40% reduction in water vapor transmission in PLA, and 36% improvement in oxygen transfer rate in PET.

How many potential customers is Black Swan Graphene working with in 2025?

Black Swan is currently working with over 40 customers or companies engaged in joint projects, though there's no assurance all initiatives will result in sales.

What is the market size for agricultural films where Black Swan's GEM is being tested?

The global agricultural films market was valued at $11.45 billion in 2023 and is expected to grow at a CAGR of 8.8% from 2024 to 2030.

Who are Black Swan Graphene's key manufacturing partners?

Black Swan has announced non-exclusive partnerships with Hubron International Ltd, Broadway Colours Ltd, and Modern Dispersions Inc for masterbatch manufacturing.