Mr. Anthony Huston reports

GRAPHITE ONE OUTLINES PATH TO PRODUCTION FOR OHIO MANUFACTURING PLANT FOLLOWING AIR PERMIT

Graphite One Inc. has set out the next steps for its planned phase 1 synthetic graphite active anode material plant in Conneaut, Ohio. Graphite One's strategy is to build U.S. anode material manufacturing in Ohio while it advances Graphite Creek, the company's natural graphite resource in Alaska. Because phase 1 does not depend on ore from Alaska, it gives Graphite One a potential path to revenue before mine production begins.

"Our objective is to lead in building America's synthetic and natural graphite supply chain, starting with manufacturing in Ohio," said Anthony Huston, president and chief executive officer. "Ohio lets us pursue customer sales, generating company revenue, before mine production begins. With the Ohio Environmental Protection Agency air permit in hand, our job is disciplined execution -- complete the engineering, advance remaining permits and financing, and prepare to meet customer requirements for quality, cost and reliable supply."

Phase 1 is designed as a blending and coating plant (phase 1 plant) that would process purchased synthetic graphite and other materials into AAM for lithium-ion batteries used in electric vehicles and energy storage. Planned capacity is 10,000 tonnes per year at an estimated initial capital cost of $80-million (U.S.), which will be updated after final engineering. The company is targeting a phase 1 final investment decision by April, 2027, and first sales in fourth quarter 2028.

The company is advancing this plan following its previously announced air permit for the phase 1 plant. While the air permit clears the main environmental hurdle for the Conneaut plant, other state and local approvals are required. Next steps are to complete final engineering, obtain the remaining state and local permits, and secure project financing.

Graphite One's complete domestic supply chain

Graphite One's strategy combines a planned synthetic graphite manufacturing business with the parallel development of Graphite Creek, which a U.S. Geological Survey study found "is the largest known flake graphite resource in the USA and is among the largest in the world" here. The company completed its Graphite Creek feasibility study in April, 2025. Ohio manufacturing and the Alaska resource are distinct parts of a broader domestic graphite supply chain plan aligned with U.S. priorities for supply security, American manufacturing and energy storage.

Prospective buyers are U.S. battery and energy storage customers. Graphite One has previously announced that it has provided samples for testing and qualification, and has concluded non-binding supply agreements with Lucid Motors.

In December, 2025, Export-Import Bank of the United States issued an amended letter of interest for $1.4-billion (U.S.) to support phased expansion of the Ohio AAM facility, in 25,000-tonne increments to 100,000 tonnes per year. The LoI is non-binding, and is subject to application, due diligence, credit approval and other EXIM requirements. Together with EXIM's LoI of $670-million for the Graphite Creek project, EXIM's LoIs total $2.07-billion.

The anticipated timelines remain subject to engineering, remaining permits, financing, construction and successful customer qualification.

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 is integrated with a domestic graphite resource. The project is proposed as a vertically integrated enterprise to mine and process natural graphite and to manufacture synthetic and natural graphite anode active materials primarily for the lithium-ion-electric vehicle battery and energy storage markets.

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