Graphite One Enters into Agreement for the Purchase of Net Smelter Production Royalty

14 June 2023

Graphite One Inc., planning a complete domestic U.S. supply chain for advanced graphite materials, announced that it has entered into an agreement (the "NSR Purchase Agreement") with Ronald C. Sheardown ("Sheardown") to acquire a 1% net smelter production royalty interest against certain claims that are held by the Company (the "NSR") which make up a part of the Company's Graphite Creek Project in Alaska.

Under the terms of the NSR Purchase Agreement, the Company will issue to Sheardown 456,500 common shares of the Company at a price of $1.10 (CA$1.48) per share for total consideration of US$500,000, subject to TSX Venture Exchange approval. The common shares issued will be subject to resale restrictions. The NSR is applied to future production from 133 Alaska state claims owned or leased by Graphite One.

"This purchase of a 1% NSR brings our total purchases to 3% NSR," said Anthony Huston, founder and CEO of Graphite One. " We anticipate the purchase of the NSR will have a positive impact on our Internal Rate of Return and Net Present Value, which will be reflected in the financial projections in our Feasibility Study."

Two NSRs on the Graphite Creek Property remain outstanding: a 5.0% and a 2.5% NSR applicable to certain Alaska state claims, of which 2% of each NSR can be purchased for a total of US$4 million, leaving a 3.0% and 0.5% NSR on their respective claims.

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 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 Washington State integrated with the development of the Graphite Creek Property. The plan includes a recycling facility to reclaim graphite and the other battery materials, to be co-located at the Washington State site, the third link in Graphite One's circular economy strategy.