Mr. Anthony Huston reports

GRAPHITE ONE ENTERS INTO AGREEMENT FOR THE PURCHASE OF NET SMELTER PRODUCTION ROYALTY

Graphite One Inc. has entered into an agreement with Ronald C. Sheardown to acquire a 1-per-cent net smelter production royalty interest against certain claims that are held by the company (the NSR) which make up a part of the company's Graphite Creek project in Alaska.

Under the terms of the NSR purchase agreement, the company will issue to Mr. Sheardown 456,500 common shares of the company at a price of $1.10 (U.S.) ($1.48 (Canadian)) per share for total consideration of $500,000 (U.S.), subject to TSX Venture Exchange approval. The common shares issued will be subject to resale restrictions. The NSR is applied to future production from 133 Alaska state claims owned or leased by Graphite One.

"This purchase of a 1-per-cent NSR brings our total purchases to 3-per-cent NSR," said Anthony Huston, founder and chief executive officer of Graphite One. "We anticipate the purchase of the NSR will have a positive impact on our internal rate of return and net present value, which will be reflected in the financial projections in our feasibility study."

Two NSRs on the Graphite Creek property remain outstanding: a 5.0-per-cent and a 2.5-per-cent NSR applicable to certain Alaska state claims, of which 2 per cent of each NSR can be purchased for a total of $4-million (U.S.), leaving a 3.0-per-cent and 0.5-per-cent NSR on their respective claims.

Graphite One's supply chain strategy

With the United States currently 100 per cent import dependent for natural graphite, Graphite One is planning to develop a complete U.S.-based, advanced graphite supply chain solution anchored by the Graphite Creek resource. The Graphite One project plan includes an advanced graphite material and battery anode manufacturing plant expected to be sited in Washington State integrated with the development of the Graphite Creek property. The plan includes a recycling facility to reclaim graphite and the other battery materials, to be co-located at the Washington State site, the third link in Graphite One's circular economy strategy.

About Graphite One Inc.

Graphite One is developing its Graphite One project to become an American producer of high-grade anode materials on a commercial scale integrated with a domestic graphite resource. The project is proposed as a vertically integrated enterprise to mine, process and manufacture anode materials primarily for the lithium-ion electric vehicle battery market. As set forth in the company's 2022 prefeasibility study, graphite mineralization mined from the company's Graphite Creek property, situated on the Seward Peninsula approximately 35 miles north of Nome, Alaska, would be processed into concentrate at an adjacent processing plant. Natural and artificial graphite anode materials and other value-added graphite products would be manufactured from the concentrate and other materials at the company's proposed advanced graphite materials manufacturing facility expected to be located in Washington State. The company intends to make a production decision on the project upon the completion of a feasibility study.

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