Graphite One Advances its United States Graphite Supply Chain Solution with Completion of a Bankable Feasibility Study Feasibility Study Results Pre-Tax: US$6.4B NPV (8%) 30% IRR 7.3 Year Payback on Integrated Project With Defense Production Act Title III Funding, the Feasibility Study was completed
Graphite One Advances its United States
Graphite Supply Chain Solution with
Completion of a Bankable Feasibility Study
Feasibility Study Results Pre-Tax:
US$6.4B
NPV (8%) 30% IRR
7.3 Year Payback on Integrated Project
With Defense Production Act Title III Funding, the Feasibility Study was completed 15 months
ahead of schedule
Graphite One Enters Permitting Phase as Presidential Critical Mineral Executive Order calls
for "Immediate Measures to Increase American Mineral Production" and "Unleashing Alaska's
Extraordinary Resource Potential"
VANCOUVER, BC
,
April 23, 2025
/CNW/ - Graphite One Inc. (TSXV: GPH) (OTCQX: GPHOF)
("
Graphite One
", "
G1
", or the "
Company
"), is pleased to announce the results and the filing of its
National Instrument 43-101 –
Standards of Disclosure for Mineral Projects
("
NI 43-101
") technical
report relating to the Feasibility Study (the "
FS
") for the Company's U.S. Based Anode Active
Material Supply Chain Project.
In this news release, all dollar amounts are in
United States
dollars ("
$
") and all units of mass are in
metric tonnes ("
t
").
The Company's U.S. supply chain is planned to produce graphite concentrate from the Graphite
Creek deposit North of
Nome, Alaska
and Anode Active Material ("
AAM
") at a facility proposed
to be constructed in
Ohio
(the "
STP
"), subject to financing (collectively, the "
Project
").
With support from the Department of Defense's Defense Production Act ("
DPA
") Title III
funding, the annual graphite concentrate capacity of the Graphite Creek Mine in the FS was
increased from that in the 2022 Pre-Feasibility Study ("
PFS
") – from 53,000 tpy to 175,000 tpy
while maintaining a 20-year mine life.
Proven and Probable Reserve tripled (317%) from the reserve disclosed in the PFS.
Measured plus Indicated Resource tripled (322%) from the resource disclosed in the PFS.
Resource estimates are based on drilling just 12% of the graphite mineralized zone.
The FS envisions: the first 48,000 tpy of commercial AAM production by 2028, startup of the
Graphite Creek Mine in 2030 and 169,000 tpy of AAM production by 2031.
The phased development strategy reduces upfront capital and aligns spending with Project
milestones.
Estimated pre-tax internal rate of return ("
IRR
") of 30%, with a pre-tax net present value
("
NPV
") of
$6.4 billion
using an 8% discount rate, and a payback period of 7.3 years.
Estimated post-tax IRR of 27%, with an estimated post-tax NPV of
$5.0 billion
, using an 8%
discount rate, and a payback period of 7.5 years.
"Our Feasibility Study represents a major milestone for G1 on our path to production and validates
the efforts we've made with the Department of Defense's DPA Title III support to complete our FS
15 months ahead of schedule, while tripling the size of our Graphite Creek resource," said
Anthony
Huston
, CEO of Graphite One. "With President Trump's Critical Mineral and Alaska Executive
Orders, Graphite One is positioned to be at the leading edge of a domestic Critical Mineral
renaissance that will power transformational applications from energy and transportation to AI
infrastructure and national defense."
The FS was prepared by Barr Engineering Co. with assistance from various independent technical
consultants. The effective date of the FS is
March 25, 2025
, and a NI 43-101 technical report
relating to the FS will be filed on the Company's SEDAR+ profile at
www.sedarplus.ca
and on the
Company's website.
The Project is planned as an integrated business operation to produce lithium-ion battery anode
materials and other graphite products for the U.S domestic market on a commercial scale using
primarily natural graphite from
Alaska
. The Project combines the operation of the STP, an advanced
graphite manufacturing facility to be located in
Ohio
, with the supply of natural flake graphite from
the Company's proposed Graphite Creek Mine in
Alaska
(the "
Mine
"). The resources associated
with the Company's Alaska State mining claims were cited by the U.S. Geological Survey in
January
2022
as America's largest natural graphite deposit[1], and in 2023, "as among the largest in the
world." This statement is prior to the increased resource amount verified by G1 in the FS.
Reduced Capital Risk Development Strategy
The Project is planned to be implemented with a capital risk reduction strategy that develops the
Ohio STP in seven 25,000 tpy modules while the Mine completes permitting and construction. This
modular approach allows for capital expenditures to be deployed progressively, in line with each
phase of development, significantly reducing the upfront capital to
$607 million
, including
$121 million
of contingency for the first 25,000 tpy module. Each subsequent module is estimated to cost
$552
million
, including contingency. As a result, the Company expects to achieve 50,000 tpy of
commercial natural graphite production by 2028 and 175,000 tpy by 2031, one year after the Mine is
expected to begin production, subject to various conditions. Manufacturing would begin with
purchased natural graphite until the Mine's graphite production is available.
"We will now enter the permitting process with a production rate triple what we projected just over
two years ago. Our proven and probable reserve and contained graphite tripled from the reserve
and contained graphite disclosed in the PFS. And all of this is based on FS level resource drilling
results from just 12% of the 15.3 km (9.5 mile) long graphite mineralized zone as defined by
geophysics and wide spaced drilling (see Figure 1)," Mr. Huston noted.
____________________________
1
https://www.usgs.gov/data/graphite-deposits-united-states
Summary of FS Economics
Tables 1 and 2 present a summary of the estimated FS economic results.
Table
1
: Summary of Estimated FS Economic Results
Economic Parameters
Project
STP
Mine
Pre-tax
NPV (8%)
$6,397 M
IRR
30 %
Payback
7.3 Years
Post-tax
NPV (8%)
$5,030 M
IRR
27 %
Payback
7.5 Years
Average Annual Production (t/year)
256,510
175,000
Initial and Sustaining Capital Costs
1
$4,167 M
$3,136 M
$1,031 M
Capital Contingency Costs
$878 M
$784 M
$94 M
Total Capital Costs
$5,045 M
$3,920 M
$1,125 M
1. Non-IFRS Financial Measure as defined below
Table 2: Summary of Estimated Operating Costs
Operating Costs – Mine
$/t Concentrate
LOM $ M
Total Mined Graphite Concentrate
$610.0
$2,149
Total Transportation to Ohio
$372.4
$1,311
Total Mine and Transportation Costs
$982.4
$3,460
Operating Costs – STP
$/t Production
LOM $ M
Secondary Treatment Plant
$2,119
$11,804
Purchased Graphite Concentrate
$64
$355
Mined Graphite Concentrate & Transportation
$621
$3,460
Total Operating Costs - STP
$2,804
$15,619
The Project's post-tax IRR includes the estimated effects of Advanced Manufacturing Tax Credits
provided under U.S. Internal Revenue Code Section 45X for qualifying anode active material and
critical mineral production.
Based on the FS's updated graphite reserve estimate, the Mine's life for the purposes of the FS
would be 20 years. The FS assumes the STP's operational life is 22 years based on its startup with
purchased graphite and continued operation with graphite from the Mine.
The STP would produce a targeted average of 256,500 tpy of graphite/carbon products. About
169,000 tpy would be AAM, 25,000 tpy purified graphite products, and 31,000 tpy of unpurified
graphite and carbon products. The non-AAM products would serve industrial and defense industry
based sectors.
The AAM products are:
CPN: Coated, spherical natural graphite;
BAN: Blended natural and artificial graphites;
SPN: Secondary particle natural graphite; and
SPC: Secondary particle composite.
Based on the FS assumptions, the average price of all products over the STP's life is estimated at
$7,843
per tonne. Product forecasts and prices have been developed based on numerous graphite
market reports commissioned by or purchased by the Company, combined with the Company's
internal information. The long-term market forecast is based on Benchmark Mineral Intelligence's
various Q4 2024 price forecasts.
The estimated capital costs with their respective contingencies are summarized in Table 1.
Secondary Treatment Plant
The STP is designed to produce lithium-ion battery AAM on a commercial scale for the U.S.
domestic market using natural graphite from
Alaska
as soon as it is available. At full capacity, it
requires about 89.3 hectares (220 acres) of land, consists of 88 buildings, and would target to
produce 256,500 tonnes of manufactured graphite and carbon products annually. The products are
grouped into battery AAMs, specialty purified graphite products, traditional unpurified graphite
products, carbon raiser, and coke reject. The products are manufactured from natural graphite
concentrate, artificial graphite, artificial graphite precursors, coke, and pitch. Key components of the
manufacturing process are the purification of natural graphite and graphitization of artificial graphite
precursors in high temperature, electrically heated furnaces. The STP's planned location is in
Ohio
to
access both its relatively lower power rates, its skilled workforce, and location relative to potential
customers.
Permitting, final design, and construction of the first 50,000 tpy of STP natural graphite capacity is
expected to take three years. Modular build out of the total 175,000 tpy facility is expected to take
about four more years depending on funding and customer demand.
The STP, at full capacity (Table 3), is designed to produce 169,000 tpy of AAM for the electric
vehicle and energy storage battery markets; 25,000 tpy of purified, sized material for the speciality
graphite market; and 31,000 tpy of unpurified and carbon products for the traditional graphite
market. Total annual production is anticipated to be 256,500 tonnes based on the expected annual
production capacity.
No.
Category
Name
Description
Purity (%Cg)
Ph 1 (tpy)
Ph 2
(tpy)
Ph 3 (tpy)
Ph4 (tpy)
$/t
1
1
Anode Material
CPN
Coated, spherical NG
99.95
11,325
22,651
33,976
39,639
$8,424
2
BAN
Blended AG and NG
99.95
21,572
43,144
64,716
75,502
$11,563
3
SPN
Secondary Particle NG
99.95
3,474
6,949
10,423
12,160
$10,971
4
SPC
Secondary Particle Composite
99.95
12,024
24,048
36,073
42,085
$10,971
5
Purified
3299
+32 Mesh Purified
99+
110
221
331
386
$4,569
6
599
+50 Mesh Purified
99+
994
1,989
2,983
3,480
$3,884
7
899
+80 Mesh Purified
99+
1,104
2,209
3,313
3,866
$3,066
8
199
+100 Mesh Purified
99+
1,842
3,683
5,525
6,446
$2,547
9
Battery Conductor
-320 Mesh Purified
99.9
1,308
2,617
3,925
4,580
$5,357
10
Synthetic Diamond Precursor
-320 Mesh Purified
99.99
1,794
3,587
5,381
6,278
$5,974
11
Unpurified
3295
+32 Mesh
95+
180
360
540
630
$1,683
12
595
+50 Mesh
95+
1,620
3,240
4,860
5,670
$1,683
13
895
+80 Mesh
95+
1,799
3,598
5,397
6,297
$1,564
14
195
+100 Mesh
95+
3,000
6,001
9,001
10,502
$1,256
15
Carbon Raisers Lubricants
Carbon Raisers Lubricants
95+
8,842
17,685
26,527
30,948
$2,122
16
Coke Reject
Coke Reject
95+
2,298
4,596
6,894
8,043
$610
Total
73,289
146,577
219,866
256,510
$7,843
Table 3: STP Targeted Products and Estimated Prices
1.
Artificial graphite AAM prices include equivalent of 48.7% tariff. Natural graphite AAM prices include equivalent of 20% tariff.
Graphite Creek Mine
The Mine would produce an average of 175,000 tpy of graphite concentrate for the projected 20-
year mine life. The deposit would be mined with conventional open pit mining methods including
drilling, blasting, loading, and hauling. The strip ratio in the FS plan is 3.2:1 with an ore variable cut-
off grade of 2-3% graphitic carbon and an average head grade of 5.2% graphitic carbon. The pit
would be mined in five phases over a period of 20 years. One year of pre-stripping would occur
prior to the start-up of the process facility. Ore will be hauled to a process facility to be built
adjacent to the pit. Run of mine waste would be comingled with dewatered process tails and placed
in waste dumps
.
The process facility would process an average of 10,000 tpd for 365 days per year. The flowsheet
design is based on metallurgical test work conducted at SGS Canada Inc.'s facilities at
Lakefield
,
Ontario. The flowsheet consists of a jaw crusher that feeds a semiautogenous grinding circuit.
After grinding, the ore is subjected to a series of seven flotation and three regrind steps. The
flotation/regrind steps are designed to recover the graphite at its largest possible flake size while still
maintaining a concentrate with a graphitic carbon grade of greater than 95%. The graphite
concentrate would be filtered and dried on site. The dried concentrate would be shipped by barge
from
Nome, Alaska
to the STP in
Ohio
during the annual shipping season. The tails from the
flotation circuit would be dewatered, comingled with the waste rock, and placed in a lined waste
storage facility. Any drainage from the lined waste storage facility would be treated through a water
treatment plant prior to discharge.
Risk Assessment and Mitigation
The risks and uncertainties identified for the Project are generally described in the Company's 2024
Annual Management's Discussion and Analysis statements filed on
April 11, 2025
on the Company's
SEDAR+ profile at
www.sedarplus.ca
. These cover the Project's financial, mining, processing,
operating, market, and regulatory risks, all of which are common with similar projects.
Section 25.5 of the FS identifies Project risks specific to the Mine and STP during the construction
and operational phases and outlines possible mitigation actions.
Mineral Resources and Reserves
The Graphite Creek property (the "
Property
") is located on the
Seward Peninsula
,
Alaska
about 37
miles (60 km) north of Nome. G1's deposit is entirely on State land. The Property comprises 23,680
acres (9,600 hectares) of
State of Alaska
mining claims. The claim block consists of 176 claims, of
which 163 are wholly owned by Graphite One (
Alaska
) Inc. and 13 are leased to Graphite One
(
Alaska
) Inc. The graphite mineral zone is exposed on the surface and strikes East/Northeast along
the North Face of the Kigluaik Mountains. The FS Pit and Mineral Reserve footprint represents just
1.2 miles (1.9 km) of the 9.5 miles (15.3 km) long electromagnetic anomaly (Figure 1).
Figure 1: FS Pit Versus PFS Pit Superimposed on Electromagnetic Survey Anomaly (CNW
Group/Graphite One Inc.)
Through 2022, 2023 and 2024, 90 holes have been drilled in the resource area for a total of 13,482
meters of drilling. The resource database consists of 22,806 assays. The resource remains open
down dip, and along strike to the East and West.
The Mineral Resource estimate for Graphite Creek was updated with data through the 2024 drilling
program. The methodology used was the same as that described in the PFS. A lower cut-off grade
of 2% was used for the 2022 and 2024 resource. The FS Mineral Resource estimate for Graphite
Creek is presented in Table 4 and is as of
March 25, 2025
.
Table 4: 2024 Feasibility Study Mineral Resource Estimate 2.0% Cg Cutoff Grade
2
Tonnage
(M tonnes)
%Cg
Cg
(M Tonnes)
Measured
5.1
5.3 %
0.272
Indicated
99.6
4.5 %
4.523
Measured + Indicated
104.7
4.6 %
4.796
Inferred
268.1
4.3 %
11.568
The 2023-2024 drilling program focused on converting Inferred Resources into Measured and
Indicated, to allow annual graphite production to be increased in the FS. A comparison of the PFS
and FS mineral resources can be seen in Table 5.
Table 5: Mineral Resource Comparison – 2024 FS vs 2023 PFS
3
Mineral Resource Classification
PFS
FS
Difference
Tonnage
M
Tonnes
%Cg
Cg
M Tonnes
Tonnage M Tonnes
%Cg
Cg
M Tonnes
Tonnage
M Tonnes
%Cg
Cg
M Tonnes
Measured
4.67
5.8 %
0.27
5.1
5.3 %
0.27
0.43
-0.5 %
-
Indicated
27.87
5.2 %
1.44
99.6
4.5 %
4.52
71.73
-0.7 %
3.09
M + I*
32.5
5.3 %
1.71
104.7
4.6 %
4.80
72.1
-0.7 %
3.09
Inferred
254.67
5.1 %
13.00
268.1
4.3 %
11.57
13.43
-0.8 %
(1.44)
* Measured + Indicated
_______________________________
2
Footnotes:
a)
Mineral Resource Statement is effective, March 25, 2025
b)
Mineral Resources are inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves have not demonstrated economic viability. There is no certainty that any
part of a Mineral Resource will ever be converted into Reserves.
c)
Inferred Mineral Resources represent material that is considered too speculative to be included in economic evaluations. Additional trenching and/or drilling will be required to
convert Inferred Mineral Resources to Indicated or Measured Mineral Resources. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a
higher resource category.
The 2024 Mineral Reserve estimate consists of 71.
219 Mt
of Proven and Probable material at an
average diluted grade of 5.22% graphite, yielding 3.7 Mt of contained graphite. A variable cut
-
off
grade between 2%-3% was used in calculating the proven/probable reserve. Table 6 shows the FS
Mineral Reserve estimate for Graphite Creek as of
March 25, 2025
.
Table 6: Graphite Creek Feasibility Study Mineral Reserve Estimate
3
Mineral Reserve Classification
Feasibility Study
Tonnage
%Cg
Cg
(M tonnes)
(M Tonnes)
Proven
4.1
5.8 %
0.238
Probable
67.1
5.2 %
3.48
Proven and Probable
71.2
5.2 %
3.717
The FS Mineral Reserve estimate and contained graphite are 71.22 Mt and 3.7 Mt, respectively, an
increase of 48.72 Mt and 2.46 Mt over the reserve and contained graphite disclosed in the PFS. A
comparison of the PFS versus FS Mineral Reserve estimate can be seen in Table 7.
Table 7: Mineral Reserve Comparison – 2024 FS vs 2022 PFS
Mineral Resource Classification
PFS
FS
Difference
Tonnage
M Tonnes
%Cg
Cg
M Tonnes
Tonnage
M Tonnes
%Cg
Cg
M Tonnes
Tonnage
M Tonnes
%Cg
Cg
M Tonnes
Proven
3.81
6.0 %
0.23
4.10
5.8 %
0.238
0.29
-0.2 %
0.01
Probable
18.70
5.5 %
1.03
67.12
5.2 %
3.48
48.42
-0.3 %
2.45
P + P*
22.50
5.6 %
1.26
71.22
5.2 %
3.72
48.72
-0.4 %
2.46
*Proven + Probable
_______________________________
3
Mineral Reserve Footnotes:
a)
Mineral Reserves follow CIM definitions and are effective as of March 25, 2025.
b)
The Mineral Reserves are inclusive of mining dilution and ore loss.
c)
Mineral Reserves are estimated using a raised variable cut-off of 2.0% Cg – 3.0% Cg which is required to maximize secondary treatment production. The economic value is
calculated based on a net average Graphite Price of US$1,200/t (including transport & treatment charges), 3.5% - 8.0% royalty, and a mill recovery of 90%.
d)
The final pit design contains an additional 17.4 Mt of Measured and Indicated resources between the raised cut-off grade (3.0% Cg) and the economic cut-off grade (2.0% Cg)
at an average grade of 2.4% Cg. These resources have been treated as waste in the final mine production schedule.
e)
The final pit design contains an additional 40.4 Mt of Inferred resources above the economic cut-off grade (2.0% Cg) at an average grade of 3.9% Cg. Inferred Mineral
Resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and
there is no certainty that any part of the Inferred Resources could be converted into Mineral Reserves.
f)
Tonnages are rounded to the nearest 1,000 t, graphite grades are rounded to two decimal places. Tonnage measurements are in metric units.
g)
Totals may not add due to rounding.
Qualified Persons and NI 43-101 Technical Report
The FS for the Project is incorporated in a NI 43-101 technical report that is available under the
Company's SEDAR+ profile at
www.sedarplus.ca
and the Company's website. The affiliation and
areas of responsibility for each of the independent Qualified Persons (as defined under NI 43-101)
are as follows ("
QPs
"):
Qualified Person
Company
Responsibility
Jason Todd, QP
Barr Engineering
Primary QP
Chotipong Somrit, QP
Barr Engineering
OP Mining
Jed Greenwood, PE
Barr Engineering
OP Geotech
Jason Todd, QP
Barr Engineering
Economic Model
Robert Retherford, P.Geo.
Alaska Earth Science
Geology and Resource Estimate
Daniel R. Palo, P.Eng., PE
Barr Engineering
Primary Processing (AK)
Scott Phillips, PE
Barr Engineering
Water Treatment
Scott Phillips, PE
Barr Engineering
Water and Water Management
Arlene Dixon, PE
Hatch Engineering
STP Infrastructure
Jon Godwin, P. Eng.
Hatch Engineering
STP
The QPs for this news release are
Robert Retherford
, P.Geo. and
Jason Todd
, QP. Mr. Retherford
has reviewed this news release and verified that it accurately represents the geology and resource
estimate that is stated. Mr. Todd reviewed the overall content.
Data Verification
During the course of their work, the QPs have validated the data that each used in the formulation of
the resource estimate and FS findings. This includes such items as: site inspections, core sampling
and assays, laboratory test work, core logs, environmental and community factors, metallurgical test
work, taxation and royalties, and surveys. Both existing and new data that was collected through the
course of the study were validated and used by the various QPs to inform their work. Details
regarding the data used and quality assurance and quality control procedures that were employed
by each QP in the preparation of the resource estimate and FS will be included in the FS as well as
further definition on the precise roles, qualifications, and responsibilities of each QP.
Non-IFRS Financial Measures
The Company has included certain non-IFRS financial measures in this news release, such as Initial
Capital Costs and Sustaining Capital Costs, which are not defined under IFRS and do not have a
standardized meaning prescribed by IFRS. As a result, these measures may not be comparable to
similar measures reported by other companies. Each of these measures used are intended to
provide additional information to the user and should not be considered in isolation or as a substitute
for measures prepared in accordance with IFRS.
Certain Non-IFRS financial measures used in this news release are defined below.
Initial Capital Costs:
Initial capital costs include the upfront capital investment required for mine
construction and related infrastructure capital costs in
Alaska
and the construction of the STP in
Ohio State
.
Sustaining Capital Costs:
Sustaining capital is the ongoing capital investment to sustain and
maintain mining, processing and graphite production infrastructure including but not limited to
mining, production of graphite products, on-site development, and closure costs.
Total Capital Costs:
Total Capital Costs are the sum of Initial Capital Costs and Sustaining
Capital Costs.
About Graphite One Inc.
GRAPHITE ONE INC. (GPH: TSX
V; GPHOF: OTCQX) continues to develop its Graphite One
Project (the "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, process and manufacture high grade anode materials
primarily for the lithium
ion electric vehicle battery market.
On Behalf of the Board of Directors
"Anthony Huston" (signed)
For more information on Graphite One Inc., please visit the Company's website,
www.GraphiteOneInc.com
On X @GraphiteOne
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Note Regarding Forward-Looking Statements
This news release includes certain "forward-looking information" and "forward-looking statements"
(collectively, "forward-looking statements") within the meaning of applicable Canadian securities
legislation. Generally, forward
looking information can be identified by the use of forward
looking
terminology such as "proposes", "expects", or "is expected", "scheduled", "estimates", "projects",
"intends", "assumes", "believes", "indicates" or variations of such words and phrases that state that
certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be
achieved".
Forward-looking statements in this news release relate to future events or future performance and
reflect current estimates, predictions, expectations or beliefs regarding future events and include, but
are not limited to, statements with respect to: (i) the estimated amount and grade of Mineral
Resources and Mineral Reserves at the Mine; (ii) the results of the FS and the FS representing a
viable development option for the Project; (iii) construction of the Mine and STP and related actions;
(iv) the merits of the Project and the potential for the Project to become when in production one of
America's largest natural graphite operations and anode material producers;(v) estimates of the
capital costs of constructing facilities and bringing a mine and graphite manufacturing plant into
production, of sustaining capital and the duration of financing payback periods; (vi) the estimated
amount of future production, both produced and recovered by the Mine and produced and sold at the
STP; (vii) the availability and future purchase of electricity, graphite feedstock, precursors and
reagents; (viii) life of Mine and life of STP estimates and estimates of operating costs and total
costs, net cash flow, net present value and economic returns from an operating mine and graphite
manufacturing plant constructed for the Project; (ix) investigation of opportunities to improve the
economics of the Mine and STP and the success of any such opportunities; and * the completion of
additional optimization studies on the Project in advance of, or in connection with, a FS.
All forward-looking statements are based on the Company's current beliefs as well as various
assumptions made by them and information currently available to them. The most significant
assumptions are set forth above, but generally these assumptions include: (i) the presence of and
continuity of minerals at the Mine at estimated grades; (ii) the geotechnical, hydrological,
hydrogeological, and metallurgical characteristics conforming to sampled results; (iii) the capacities
and durability of various pieces of machinery and equipment; (iv) the availability of electricity, STP
feedstock, personnel, machinery and equipment at estimated prices and within the estimated
delivery times; (v) currency exchange rates; (vi) the graphite and anode materials sales prices, US
tariffs, and exchange rates assumed; (vii) appropriate discount rates applied to the cash flows in the
economic analysis; (viii) tax rates and royalty rates applicable to the Project; (ix) the availability of
acceptable financing under assumed structure and costs; * the anticipated performance of mined
graphite in concentrating processes and STP feedstock in the graphite product manufacturing
processes; (xi) reasonable contingency requirements; (xii) success in realizing proposed operations;
(xiii) receipt of permits and other regulatory approvals on acceptable terms; and (xiv) the fulfillment
of environmental assessment commitments and arrangements with local communities.
Although the Company's management considers these assumptions to be reasonable based on
information currently available to it, they may prove to be incorrect. Many forward-looking
statements are made assuming the correctness of other forward-looking statements, such as
statements of net present value and internal rates of return, which are based on most of the other
forward-looking statements and assumptions herein. The cost information is also prepared using
current values, but the time for incurring the costs will be in the future and it is assumed costs will
remain stable over the relevant period.
Factors that could cause actual results to differ materially from those in forward-looking statements
include market prices, exploitation and exploration successes, continuity of mineralization,
uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to
third party opposition, changes in government policies regarding mining and natural resource
exploration and exploitation, and continued availability of capital and financing, and general
economic, market or business conditions.
Readers are cautioned not to place undue reliance on this forward-looking information, which is given
as of the date it is expressed in this news release, and the Company undertakes no obligation to
update publicly or revise any forward-looking information, except as required by applicable securities
laws. For more information on the Company, investors should review the Company's continuous
disclosure filings that are available at
www.sedarplus.ca
.