Mr. Don Baxter reports

APPLIED GRAPHITE ISSUES SHARES FOR DEBT

Applied Graphite Technologies Corp. has agreed to settle outstanding debt in the total amount of $38,458 owing to an arm's-length creditor, Manning Elliott LLP, by issuing 640,962 common shares in the capital of the company at a price of six cents per common share. The board of directors has determined it is in the best interest of the company to settle the outstanding debt by the issuance of the common shares in order to preserve the company's cash for continuing operations.

Closing of the shares-for-debt transaction is subject customary closing conditions, including the prior approval of the TSX Venture Exchange and compliance with the TSX-V Policy 4.3, Shares for Debt. The company intends to close the shares-for-debt transaction as soon as practicable following receipt of the approval from the TSX-V. The common shares to be issued pursuant to the shares-for-debt transaction will be subject to a hold period of four months and one day from the date of issuance.

About Applied Graphite Technologies Corp.

Applied Graphite Technologies is developing the Queens mine complex (QMC) 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 (greater-than-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 ESG (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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