Mr. Don Baxter reports

APPLIED GRAPHITE TECHNOLOGIES ACQUIRES THE QUEENS MINE

Applied Graphite Technologies Corp. has purchased the past-producing Queens mine in Sri Lanka. The property is centrally located between Applied Graphite's Dodangaslanda graphite properties. The combined properties will be called the Queens mine complex.

The Queens mine was reported to be extracting high-grade graphite veins at a rate of 20 tonnes per month. The former operator had intentions to ramp up production to 3,000 tonnes per year. Adits which provided access to the underground workings expose at least six graphite veins over a total width of 25 metres, with veins varying in thickness up to 0.4 metre.

The former operator had done extensive laboratory testing on its run-of-mine tonnes which consisted of high-grade graphite plus 95 curium. Vein graphite direct from the mine will sell for $2,000 per tonne. The ROM vein graphite, when upgraded to battery-quality graphite, sells for between $8,000 and $12,000 per tonne. The demand for battery ready graphite will reach five million tonnes per annum by 2030, according to Benchmark Mineral Intelligence.

Applied Graphite plans on making the QMC a priority to recommence bulk shipping of the high-grade vein graphite material once it has completed its mine permitting and development on the prospect.

"We are extremely pleased to have acquired the QMC, thanks to our strategic in-country relationships," comments Don Baxter, president and chief executive officer. "From my experience with multiple OEMs regarding battery ready graphite, they want to see the ability to produce large tonnages for their battery requirements. The QMC will enable us to plan near-term operations to illustrate potential from our properties to satisfy OEM requirements."

Options granted

Applied Graphite has granted 800,000 stock options at an exercise price of 15 cents, with a five-year term expiring March 23, 2029, to consultants, directors and officers of the company.

About Applied Graphite Technologies Corp.

Applied Graphite Technologies is developing the Queens mine complex in Sri Lanka. The QMC is on private land in the heart of the vein graphite district, with historical workings and vein graphite outcrops. Vein graphite is naturally high grade (plus 95 per cent carbon content in the ground) and does not require primary processing. Testing of vein graphite in lithium-ion battery anodes has shown very high capacities, performing better than synthetic graphite. Natural vein graphite has a far superior environmental, social and governance footprint than synthetic and is cheaper without compromising performance.

The technical information in this news release has been prepared by Don Baxter, PEng, a qualified person as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects.

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