Mr. Anthony Huston reports

GRAPHITE ONE CONFIRMS THE PRESENCE OF RARE EARTH ELEMENTS AT ITS GRAPHITE CREEK DEPOSIT

Graphite One Inc. has identified the presence of rare earth elements in its Graphite Creek deposit, north of Nome, Alaska. Geochemical analyses completed by Activation Laboratories Ltd. found rare earths in drill core samples of garnet-bearing ore rock within the anticipated pit outlined in G1's feasibility study, completed in February, 2025. Already recognized by the U.S. Geological Survey as the largest known natural graphite deposit in the United States, G1 has a feasibility study resource estimate that tripled previous projections. The FS pit and its anticipated 20-year mine life comprise just 12 per cent of the 15.3-kilometre (9.5-mile)-long graphite- and garnet-bearing mineralized zone.

"The presence of two Defense Production Act Title III materials -- graphite and REEs -- in a single deposit further underscores Graphite Creek's position as a truly generational deposit," said Anthony Huston, president of Graphite One. "Given the robust economics of our planned complete graphite materials supply chain, the presence of rare earths at Graphite Creek suggests that recovery as a byproduct to our graphite production will maximize the value."

Rare earth elements are vital to 21st century technology, with neodymium, praseodymium, dysprosium, terbium and samarium forming essential building blocks of powerful permanent magnets used in wind turbines, electric vehicles and advanced defence systems such as precision-guided munitions and radar. REEs further enable high performance fibre optics, lasers, catalysts and phosphors in displays and lighting. Their distinct magnetic, optical and catalytic properties make them indispensable across military applications and commercial electronics, renewable energy, and telecommunications -- underscoring their strategic importance to U.S. industry and national security.

China, the world's largest producer of the full range of REEs, imposed export limits on the magnet REEs in February, 2024, and tightened graphite exports in December, 2024, highlighting the importance of the development of G1's Graphite Creek mine. A recent UBS Evidence Lab report indicates that dependence on China for a select group of critical minerals is most severe for graphite and REE.

Testwork on 21 representative samples from quartz-biotite-garnet-sillimanite schist units throughout the FS pit indicates elevated levels of the heavy rare earths and the presence of the five principle REE magnet elements -- neodymium, praseodymium, as well as heavy rare earth elements dysprosium and terbium -- in addition to samarium, which is used in samarium cobalt permanent magnets. Aside from the lanthanide HREEs, the Graphite Creek garnet-bearing ore rock contains scandium and elevated yttrium.

"Garnets are known for their ability to uptake heavy rare earths and yttrium into their mineral structure," said Dr. Kirsten Fristad, G1 chief geologist.

Building on the initial bulk rock analyses, additional testwork is being completed at the University of Alaska Fairbanks advanced instrumentation laboratory and Activation Laboratories to quantify the REE inventory within the host mineralogy. G1 is in discussions with a Department of Energy National Lab to develop extraction methods and separation pathways for the individual REEs in the Graphite Creek ore.

The Graphite Creek feasibility study was completed more than 12 months ahead of schedule with the support from the Department of War (then Department of Defence) through a $37.5-million Defence Production Act Title III grant. In September, 2025, G1 received a non-binding letter of interest from EXIM Bank for $570-million in financing for the Graphite Creek mine, the second EXIM letter of interest G1 has received, after a $325-million letter for the development of the company's Ohio advanced graphite material facility. G1 is in continuing discussions with senior officials at all relevant federal departments and agencies on the company's complete supply chain strategy for advanced graphite products.

"We will now be adding updates on our rare earth byproduct potential," said Mr. Huston.

Graphite One's domestic supply chain strategy

With the United States currently 100 per cent import dependent for natural graphite, Graphite One is developing a complete United States-based, advanced graphite supply chain solution anchored by the Graphite Creek deposit, recognized by the U.S. Geological Survey as the largest graphite deposit in the U.S. and among the largest in the world. The Graphite One project supply chain strategy involves transporting material to the lower 48 through the Port of Nome to an advanced graphite material and battery anode material manufacturing plant located in Warren, Ohio. The plan also includes a recycling facility to reclaim graphite and the other battery materials, to be co-located at the Ohio site, the third link in Graphite One's circular economy strategy.

Qualified person

Rob Retherford, PGeo, with Alaska Earth Sciences Inc., provided oversight to the 2022-2024 drilling, sampling and quality assurance/quality control programs. Mr. Retherford is an independent qualified person as defined under National Instrument 43-101, and has reviewed and approved the technical content of this release.

About Graphite One Inc.

Graphite One continues to develop its Graphite One project with the goal of becoming an American producer of high-grade anode materials that are integrated with a domestic graphite resource. The project is proposed as a vertically integrated enterprise to mine and process natural graphite and to manufacture artificial and natural graphite anode active materials primarily for the lithium-ion electric vehicle battery and energy storage markets.

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