Mr. Arno Brand reports

GRATOMIC PROVIDES UPDATE

Gratomic Inc. continues to advance its strategic initiatives with strong momentum across operations and market positioning. Over the past several months, management has focused on securing off-take agreements, advancing mine start-up planning, renewing mining licences, disposing of non-essential assets, bringing financial reporting up to date and strengthening corporate structuring.

On Aug. 23, Gratomic mobilized staff to site for the first time this year to commence preparations for upcoming developments. The on-site team is led by Raimund Rental (senior geologist and acting mine manager) and Helao Shivolo (Namibian partner, in-country representative and government liaison). Staff are accommodated in on-site housing constructed by the company in prior years.

Manie Silver (chief executive officer) and Arno Brand (chairman) have been tasked with plant maintenance, facility care and the assessment of critical components required to restart operations. Mining operations are set to resume with the extraction of 7,000 tonnes of material which will be added to the existing 3,000-tonne stockpile. This will bring the ROM pad to full capacity and provide sufficient feedstock to sustain processing requirements for the next 12 months.

Meanwhile, Mr. Rental and the geological team are finalizing exploration programs scheduled to commence in early 2026. Plans include 10,000 metres of drilling to follow up on mineralization identified in the 2022-2023 drilling campaigns. The program is expected to complete the necessary infill required for submission of data toward the preparation of a technical report for Aukam in accordance with the provisions of NI 43-101.

With sufficient material on hand, Gratomic will be well positioned to commence plant operations, targeting first-phase production of 7,600 tonnes of finished product. Final installation of critical components -- designed to elevate the quality of the material to 97 per cent Cg -- is scheduled to begin in late September.

The company also wishes to provide an update on its financial reporting. Gratomic has changed auditors from D&H Group LLP to McGovern Hurley LLP. All financial documentation has been submitted to the new auditors and they are working on the Dec. 31, 2024, annual audit. The company anticipates filing the outstanding financial statements in the near term.

Gratomic extends its sincere gratitude to its shareholders for their continued support, which has enabled the company to advance to this pivotal stage. "The company is now in better shape than it has been in several year," stated Mr. Brand, chairman.

Gratomic wishes to emphasize that no preliminary economic analysis, preliminary feasibility study or feasibility study has been completed to support any level of production. In fact, no mineral resources let alone mineral reserves demonstrating economic viability and technical feasibility have been delineated on the Aukam property.

The company is working toward completing a feasibility study (FS) on the Aukam property. The study, its recommendations and their subsequent implementation, will provide conclusions and recommendations at a FS level of comfort about scaling up the existing processing plant at Aukam to a commercial-scale processing facility capable of producing the desired concentrate grades and production rates.

Gratomic wishes to emphasize that the supply of graphite is conditional on Gratomic being able to bring the Aukam project into a production phase and for any graphite being produced to meet certain technical and mineralization requirements.

Risk factors

No mineral resources, let alone mineral reserves demonstrating economic viability and technical feasibility, have been delineated on the Aukam property. The company is not in a position to demonstrate or disclose any capital and/or operating costs that may be associated with the processing plant until a FS is completed.

The company advises that it has not based its production decision on even the existence of mineral resources let alone on a preliminary feasibility study or FS of mineral reserves, demonstrating economic and technical viability and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit.

Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will begin as anticipated or at all or that anticipated production costs will be achieved.

Failure to commence production would have a material adverse impact on the company's ability to generate revenue and cash flow to finance operations. Failure to achieve the anticipated production costs would have a material adverse impact on the company's cash flow and future profitability.

About Gratomic Inc.

Gratomic is a multinational company with projects in Namibia, Brazil and Canada. The company aims to become a graphite supplier and to secure a strong position in the electric-vehicle battery supply chain through the development of its flagship Aukam graphite mine. Large quantities of high-quality vein graphite have been shipped for testing and have confirmed its suitability as an anode material. The company will continue to update the public on the status of these tests and will share results as they become available.

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