Mr. Anthony Huston reports

GRAPHITE ONE WELCOMES STRATEGIC INVESTMENT FROM BERING STRAITS NATIVE CORPORATION ("BSNC"); CREATES REGIONAL & COMMUNITY DEVELOPMENT PROGRAM

Graphite One Inc. has arranged a strategic investment from Bering Straits Native Corp. (BSNC) for up to $10.4-million (U.S.).

"This is not just an investment in Graphite One; it is a long-term investment in our region. We at BSNC have watched for years as Graphite One has worked to advance the Graphite Creek project and become a friendly neighbour in the region," said Dan Graham, BSNC interim president and chief executive officer. "Graphite One has told us of its intent to develop an environmentally responsible project and provide an exciting economic opportunity for the region that hopefully will play a crucial role in the nation's transition to a clean energy future. This is at the heart of our board's unanimous support of the project."

"After careful review and many long discussions, we believe Graphite One shares our values of land stewardship and providing benefits to the region. Our investment in Graphite One is about providing opportunities for BSNC shareholders and being pro-active about the future of our region," said BSNC chair Cindy Massie.

Formed in 1972, BSNC is the regional Alaska native corporation (ANC) for the Bering Strait region, which includes the Seward peninsula in western Alaska and the coastal lands surrounding Norton Sound. The Graphite Creek project is located on state and private land in the BSNC region.

"We are grateful for and humbled by BSNC's support. Working collaboratively, we can make Graphite Creek a project to be modelled after in Alaska and nationwide," said Anthony Huston, president and CEO of Graphite One. "BSNC is a dynamic development force in Alaska, with an unwavering commitment to community and heritage." Mr. Huston continued, "All of us at G1 look forward to partnering with BSNC on ways to make our project a model not just for Alaska -- but for a nation that is navigating the transition to a new energy future."

The Graphite One-BSNC agreement follows multiple community meetings with local residents and Graphite One officials during 2023. To co-ordinate regional and community development, Graphite One and BSNC will establish an advisory board to ensure direct communications of the company's activities and development details as well as utilize the local expertise of BSNC.

The BSNC investment and community development program follows the July 17, 2023, award to Graphite One's wholly owned subsidiary, Graphite One (Alaska) Inc., of a Department of Defense (DoD) technology investment agreement grant of $37.5-million under Title III of the Defense Production Act (DPA).

Private placement

The initial investment of $2-million (U.S.) is by way of a non-brokered private placement for 2,802,690 units at a price of 97 cents per unit. Each unit consists of one common share and one common share purchase warrant exercisable at $1.21 per share expiring 12 months from the closing of the private placement. The company has received conditional approval for this private placement from the TSX Venture Exchange. All securities issued in connection with this private placement will have a restricted period that expires four months and one day following the date of issuance.

The company granted BSNC an option to invest a further $6-million (U.S.) in common shares of the company at any time within 12 months closing of the private placement. If and when the option and warrants are exercised, BSNC would have invested a total of $10.4-million (U.S.) in Graphite One, based on the current exchange rate.

Net proceeds from the investment will be used to support the feasibility study, community investment and general corporate purposes.

DPA Title III $37.5-million grant to Graphite One

The funding objective of the DoD-Graphite One (Alaska) technology investment agreement is to perform an accelerated feasibility study to modernize and expand domestic production capacity and supply for graphite battery anodes necessary for electronic vehicles and alternative energy batteries, as an essential national defence technology item.

The DPA funding allows Graphite One to accelerate its feasibility study covering its Graphite Creek project 60 kilometres (35 miles) north of Nome, Alaska. Graphite Creek was recently confirmed by the U.S. Geological Survey to be the country's largest known graphite resource, and among the largest in the world.

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 continues to develop its Graphite One project to become an American producer of high-grade anode materials that is 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 about 60 kilometres 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.