Mr. Anthony Huston reports

GRAPHITE ONE CLOSES THE BUYBACK OF NET SMELTER PRODUCTION ROYALTY

Graphite One Inc. has reached a definitive agreement to buy back the 1-per-cent net smelter production royalty (NSR) from Ronald C. Sheardown, which was retained by Mr. Sheardown following the June 11, 2015, sale of mining claims to the company. The buyback cancels Mr. Sheardown's NSR which was attached to 133 Alaska state claims owned or leased by Graphite One.

In consideration for the repurchase and cancellation of the Sheardown NSR, the company will issue to Mr. Sheardown 456,500 common shares of the company at a price of $1.48 per share. The common shares issued will be subject to resale restrictions.

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.

We seek Safe Harbor.