Mr. Anthony Huston reports

GRAPHITE ONE DELIVERS SYNTHETIC GRAPHITE MATERIAL KEY TO ACCELERATING ITS PATH TO ANODE MATERIAL PRODUCTION

Graphite One Inc. has delivered synthetic graphite anode material samples for analysis by United States-based global end-users. Three of the active anode material samples delivered are each designed to meet different lithium-ion battery requirements: high energy capacity above 360 mAh/g (milliampere-hours per gram); fast charging above 4 C; and cycle life above 6,000 cycles, respectively. Graphite One's updated plan is to first construct a synthetic anode material production facility to produce a range of synthetic anode materials. A natural graphite anode material production line would later be added, in time to receive natural graphite from Graphite One's Graphite Creek deposit near Nome, Alaska, once it is permitted and operating. Ultimately, Graphite One intends to produce both synthetic and natural graphite anode materials for lithium-ion battery applications in North America.

The synthetic graphite samples were prepared for Graphite One by Sunrise (Guizhou) New Energy Material Co. Ltd. The company and Sunrise are currently negotiating a technical licence agreement (TLA) to share expertise and technology for the design, construction and operation of Graphite One's proposed U.S.-based graphite material manufacturing facility. The TLA is intended to comply with the requirements of the U.S. Inflation Reduction Act (IRA) so that the use of the licensed technology itself to make Graphite One's anode materials would not affect its customers' eligibility to qualify for IRA tax credits. Sunrise had previously prepared natural graphite anode materials for Graphite One using Graphite Creek graphite concentrate.

"With the U.S. currently not producing any natural and synthetic anode materials, Graphite One has formulated a fast-track path-to-production strategy, jump-starting our battery anode material production," said Anthony Huston, Graphite One's president and chief executive officer. "In contrast to the typical resource development track, our strategic plan is to make Graphite One a synthetic anode material producer while Graphite Creek moves through permitting and into production. Ultimately, Graphite Creek's natural graphite would supply our anode material facility alongside our synthetic production, to deliver a full range of natural and synthetic anode materials to EV [electric vehicle] customers, 100 per cent manufactured in the United States."

Mr. Huston continued: "Subject to financing and permitting requirements, we're planning an early-stage commercial facility to produce a finishing and coating line for synthetic graphite by late 2025, with phase 1 production of 25,000 tonnes of synthetic anode material by mid-2026 and rapid production growth from then on, as market demand requires. Management currently anticipates construction and commissioning costs estimated at $350-million (U.S.), subject to any unforeseen delays or varied market conditions. This is planned to be a direct path to revenue, even as we continue to develop our Graphite Creek natural graphite deposit."

As the U.S. Geological Survey has reported, "The Graphite Creek graphite deposit ... is the largest known flake graphite resource in the USA, and is among the largest in the world."

The delivery of synthetic graphite anode material follows the completion of Graphite One's 2023 drilling program, conducted with the support of a $37.5-million (U.S.) Department of Defense technology investment agreement grant under Title III of the U.S. Defense Production Act (DPA), which is funded through the Inflation Reduction Act. The grant reimburses Graphite One on a dollar-for-dollar basis for qualified expenditures up to $37.5-million (U.S.). As a result of the DPA grant and a strategic investment from Bering Straits Native Corp., Graphite One completed a total of 28,669 feet of drilling -- four times the drilling conducted in 2022 -- with 52 out of 52 resource holes intersecting visual graphite mineralization.

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 -- synthetic and natural -- 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 the contiguous United States. The plan includes a recycling facility to reclaim graphite and the other battery materials, to be co-located at the manufacturing plant 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.