Mr. Arno Brand reports

GRATOMIC ANNOUNCES CLOSING OF FIRST TRANCHE OF $6 MILLION NON-BROKERED PRIVATE PLACEMENT

Gratomic Inc. has completed the first tranche of a non-brokered private placement offering of up to 20 million working capital units at a price of 30 cents per WC unit for gross proceeds of up to $6-million with the placement of 4,348,984 WC units for gross proceeds of $1,304,695.20.

Each WC unit consists of one common share and one common share purchase warrant. Each WC warrant entitles the holder to purchase one common share at a price of 45 cents per WC warrant share until the date that is two years after the closing of the offering.

A finder's fee of $25,983 was paid to an eligible intermediary and 86,610 broker warrants were issued. Each broker warrant issued in connection with the sale of WC units at the initial closing entitles the holder to purchase one common share of the company at a price of 45 cents until Feb. 1, 2025.

The securities issued at the initial closing of the offering are subject to a hold period expiring on June 2, 2023. Final closing of the remainder of the offering is expected in late February, 2023, or earlier.

Proceeds from the offering will be used for general working capital and for operating capital for the company's Aukam project.

Arno Brand, president and chief executive officer of Gratomic, stated: "It is with great pleasure that I participate in the given offering alongside our shareholders to expedite the completion of the Aukam processing facility. The placement is designed to compensate for minor cost overruns experienced during COVID and supply chain volatility that continues to trouble the world. With the successful completion of this offering, we foresee a smooth transition into production at the Aukam graphite project in Namibia."

Insiders of the company may subscribe for up to 25 per cent of the WC units in the offering. Two insiders subscribed for 1,126,700 WC units for proceeds of $338,010 on the first closing of the offering. The insider private placements are exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 by virtue of the exemptions contained in sections 5.5(a) and 5.7(1) (a) of MI 61-101 in that the fair market value of the consideration for the securities of the company issued to the insiders does not exceed 25 per cent of its market capitalization.

About Gratomic Inc.

Gratomic is a multinational company with projects in Namibia, Brazil and Canada. The company is committed to becoming a leading global graphite supplier and aims to establish a strong position in the electric car battery supply chain. With the continuing development of its flagship Aukam project and further exploration on the company's Capim Grosso graphite project, Gratomic is setting itself apart by seeking unique high-quality assets around the world. The company remains true to its roots and will continue to explore graphite deposits with development potential. The company ranked third among the top 10 performing TSX Venture 50 mining stocks of 2022.

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