Graphite One Increases Tonnage, Grade and Contained Graphite of Measured and Indicated, and Inferred Resources IN Updated Miner Al Resource Estimate Measured and Indicated Resources: 10.95 MT Grading 7.8% CG at 5% CG Cut‐off Grade
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GRAPHITE ONE INCREASES TONNAGE, GRADE AND CONTAINED GRAPHITE OF
MEASURED AND INDICATED, AND INFERRED RESOURCES IN UPDATED MINER AL
RESOURCE ESTIMATE
MEASURED and INDICATED RESOURCES: 10.95 Mt Grading 7.8% Cg at 5% Cg Cut‐Off Grade
14% Increase in Contained Graphite Over 2017 PEA
INFERRED RESOURCES: 91.89 Mt Grading 8.0% Cg at 5% Cg Cut‐Off Grade
March 26, 2019 – Vancouver, British Columbia – Graphite One Inc. (GPH: TSX‐V; GPHOF: OTCQB)
(“Graphite One” or the “Company”) is pleased to announce the completion of an updated mineral
resource estimate for its Graphite Creek Project of 1.69 millio n tonnes (“Mt”) Measured, grading 8.0%
graphitic carbon (“Cg”); 9.26 Mt Indicated, grading 7.7% Cg; and, 91.89 Mt Inferred, with 8.0% Cg, all using
a 5% Cg cut‐off grade. The results from the drill program completed during the 2018 field program moved
from Indicated to Measured Resource status a portion of the pre viously released resource estimate set
forth in the NI 43‐101 Preliminary Economic Analysis on the Gra phite One Project dated June 30, 2017
and filed July 12, 2017 (“PEA”).
“This increase in resources demonstrates the potential for a robust, high‐grade US Graphite project,” said
Anthony Huston, Graphite One President and CEO. “Having these results in hand as we commence our
Pre‐Feasibility work will help us refine our mine design and kn owledge of recovery, size distribution and
the unique qualities of our graphite mineralization as highlighted in the PEA.”
The U.S. Government has placed graphite on its Critical Mineral s List of materials critical to “the national
economy and national security of the United States”.1 There is currently no U.S. graphite production.
1Page J5; Schulz, K.J., DeYoung, J.H., Jr., Seal, R.R., II, and Bradley, D.C., eds., 2017, Critical mineral resources of the
United States—Economic and environmental geology and prospects for future supply: U.S. Geological Survey
Professional Paper 1802, 797 p., https://pubs.er.usgs.gov/publication/pp1802 .
Table 1: Resource Estimate Comparison: March 2019 Update to PEA
MINERAL RESOURCE
CLASSIFICATION Resource Report
TONNAGE
(MILLION
TONNES)
GRAPHITE
GRADE (% Cg)
CONTAINED
GRAPHITE
(TONNES)
March 2019 Results 91.89 8.0% 7,342,883
Change from PEA 29% 14% 48%
March 2019 Results 9.26 7.7% 715,363
Change from PEA ‐10% 7% ‐4%
March 2019 Results 1.69 8.0% 135,171
Change from PEA n/a n/a n/a
March 2019 Results 10.95 7.8% 850,534
Change from PEA 6% 8% 14%
Note: Cut‐off Grades for March 2019 Update at 5%; PEA at 6%
Inferred
Indicated
Measured
Measured + Indicated
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“Graphite Creek continues to show potential to be a significant domestic source of critical materials for
electric vehicle batteries, power storage and various other cri tical and strategic end uses,” Mr. Huston
added. “With the rapid rise in graphite demand associated with renewable energy applications, and the
proliferation of EV battery and energy storage manufacturing, we b e l i e v e G r a p h i t e O n e c o u l d b e a n
important part of this new energy supply chain.”
T h e G r a p h i t e C r e e k P r o j e c t i s a l a r g e ‐ f l a k e g r a p h i t e d e p o s i t l oc a t e d i n t h e K i g l u a i k M o u n t a i n s o n t h e
Seward Peninsula approximately 60 km north of the City of Nome, Alaska.
Highlights of the Updated Mineral Resource Estimate (5% Cut‐off Grade):
The following are the highlights of the updated resource estimate as compared to the estimate reported in the
PEA.
Infill drilling results from 2018 and a more detailed block mod el have elevated a portion of the
resource to Measured Resources, totalling 1.69 Mt at 8.0% Cg and 0.14 Mt of contained graphite.
Total Measured and Indicated Resources are 10.95 Mt at 7.8% Cg w i t h 0 . 8 5 M t o f c o n t a i n e d
g r a p h i t e . T h i s r e p r e s e n t s a 6 % i n c r e a s e i n t o n n a g e , a n 8 % i m p rovement in grade and a 14%
increase in contained graphite when compared to the PEA’s Indicated Resource results.
I n f e r r e d R e s o u r c e s t o t a l l e d 9 1 . 8 9 M t a t 8 . 0 % C g w i t h 7 . 3 M t o f contained graphite. This
represents an increase in tonnage, grade and contained graphite when compared to the PEA’s
Inferred Resources and supports the potential of a long‐term mine life described by the PEA.
High‐grade graphite mineralization is present at the surface an d has been extended to depths of
over 200 m by drilling.
The deposit remains open along strike in both the east and west directions, as well as down dip.
The updated resource estimate provides direction for continued drilling which is expected to form
the basis for a pre‐feasibility study, the next phase for the Project.
Updated Mineral Resource Estimate for the Graphite Creek Project
The updated mineral resource estimate for the Graphite Creek Project is summarized in Table 2 and
compared to the previous mineral resource estimate reported in the PEA.
The PEA presented a cut‐off grade of 6.0% Cg “as it would produce mill feed grading 7% percent Cg. This
has been determined to be the minimum grade required to support economically viable graphite
production in western Alaska.” 2 With this guidance, a cut‐off grade of 5.0% Cg for the update d resource
estimate was selected as it resulted in Cg grades in excess of 7% in all resource categories. The selected
cut‐off grades in each case are highlighted in Table 2.
2 Page 14‐7; NI 43‐101 Preliminary Economic Analysis on the Graphite One Project; dated June 30, 2017 and filed
July 12, 2017; Prepared by TRU Group
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Resource Estimate Details
The Measured and Indicated Resource is constrained within a dri lled area of approximately 730 m along
the northeast striking trend of the graphitic schist, 185 m acr oss the strike to the southeast and 200m
below surface. Resource estimation utilized 56 drill holes (totaling 8,387.54m) that were drilled by
Graphite One in 2012, 2013, 2014, and 2018. The 2018 drill program drilled 801m, successfully tightening
up the vertical and lateral drill spacing along 200 m of strike length within the core of the Graphite Creek
deposit to bring part of the Indicated Resources to Measure Res ources. The deposit remains open along
strike to both the east and west, and down dip.
The graphite deposits occur with in distinct geological layers t hat comprise high‐grade massive to semi‐
massive segregated, and disseminated, large‐flake graphite in sillimanite‐garnet‐biotite‐quartz schist and
Table 2: Comparison of Estimated Resources ‐ March 2019 Resource Update to PEA Dated June 30, 2017
MINERAL
RESOURCE
CLASSIFICATION
CUT‐OFF
GRADE
(% Cg)
TONNAGE
(MILLION
TONNES)
GRAPHITE
GRADE
(% Cg)
CONTAINED
GRAPHITE
(TONNES)
CUT‐OFF
GRADE
(% Cg)
TONNAGE
(MILLION
TONNES)
GRAPHITE
GRADE
(% Cg)
CONTAINED
GRAPHITE
(TONNES)
MINERAL
RESOURCE
CLASSIFICATION
Graphite Creek Resource Estimate Update: March 2019 PEA June 30, 2017
4.0 125.48 7.1% 8,850,296 4.0 121.62 6.2% 7,591,000
5.0 91.89 8.0% 7,342,883 5.0 105.81 6.5% 6,881,000
6.0 65.94 9.0% 5,922,778 6.0 71.24 7.0% 4,969,000
7.0 44.01 10.2% 4,504,835 7.0 22.24 8.2% 1,823,000
8.0 29.77 11.6% 3,440,831 8.0 8.79 9.3% 817,000
INFERRED
INFERRED
4.0 12.57 6.9% 864,110 4.0 17.34 6.4% 1,111,000
5.0 9.26 7.7% 715,363 5.0 15.10 6.7% 1,009,000
6.0 6.45 8.7% 561,470 6.0 10.32 7.2% 744,000
7.0 4.32 9.8% 423,790 7.0 4.46 8.2% 367,000
8.0 2.80 11.1% 309,862 8.0 2.07 9.1% 189,000
INDICATED
INDICATED
4.0 2.19 7.2% 157,634 4.0 0.00 0.0% 0
5.0 1.69 8.0% 135,171 5.0 0.00 0.0% 0
6.0 1.22 9.0% 109,456 6.0 0.00 0.0% 0
7.0 0.84 10.1% 84,904 7.0 0.00 0.0% 0
8.0 0.57 11.3% 64,825 8.0 0.00 0.0% 0
MEASURED
MEASURED
4.0 14.76 6.9% 1,021,744 4.0 17.34 6.4% 1,111,000
5.0 10.95 7.8% 850,534 5.0 15.10 6.7% 1,009,000
6.0 7.67 8.8% 670,926 6.0 10.32 7.2% 744,000
7.0 5.16 9.9% 508,694 7.0 4.46 8.2% 367,000
8.0 3.37 11.1% 374,687 8.0 2.07 9.1% 189,000
Notes to the Mineral Resource Estimate:
1. Mineral resources are not mineral reserves and do not ha ve de m onst rat e d e conom ic viabilit y. T he re is no guarant e e t hat all or
any part of the indicated or inferred mineral resource will be converted i nto a mi nera l res erve. The col l ecti ve work to da te from the
Graphite Creek Property indicates that while the project is in early stages of exploration/resource work that indications of t he size
and grade of the graphite give suggestions that they are of hig h enough concentration to be of economic interest.
2. Values in the tables have been rounded. Totals may not t ally due to rounding.
MEASURED +
INDICATED
MEASURED +
INDICATED
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biotite‐quartz schist (±garnet) host rocks. The highest in‐sit u graphite tonnage occurs in surface/near‐
surface mineralized lodes comprised of sillimanite‐garnet‐biotite‐quartz schist.
Of the 7,893 assays in the Graphite One database, 3,429 assays were situated within the updated
mineralized lodes. Upon completion of the compositing process (at two metre intervals), a total of 1,700
composites were used in the estimation process. Grade was estimated into 2 m (X dimension) x 2 m (Y) x
2 m (Z) blocks, rotated roughly parallel to the strike of mineralization. Small block sizes were used to more
accurately follow the shape of mineralization lodes and be more similar to future mining
methods. Variography was used to help aid the search ellipsoid ranges used in the estimation. After a
first pass box search of 1 m x 1 m x 1 m, a multi‐pass approach was used with increasing search ellipsoid
ranges. Incremental search ellipsoid range was from 45 m x 22 m x 8 m to 1,500 m x 500 m x 500 m with
the orientation tailored to each lode. Estimation was completed using the inverse distance squared
interpolation process. Density values were composited at 2‐mete r intervals for a total of 3,777 density
values. Density was estimated for each individual block throug hout the block model regardless of
mineralized lode using similar search ranges as graphite.
The mineral resource estimate was prepared by Chris Valorose, M.Sc., MAusIMM of Valorose Consulting,
Inc.
Mr. William Ellis, P. Geo, with Alaska Earth Sciences, Inc. provided oversite to the 2018 drilling and
sampling program. Mr. Ellis is a “Qualified Person” under NI 4 3‐101 and has reviewed and approved the
technical content of this news release.
A technical report describing the 2018 drill program and Graphi te Creek resource updated estimate will
be filed on the Company’s website and on SEDAR within 45 days.
About Graphite One’s QA/QC Program
Graphite One maintains a rigorous quality assurance/quality con trol (“QA/QC”) program with respect to
the preparation, shipping, analysis and checking of all samples and data from the properties. Quality
control for drill programs at the Company's project covers the complete chain of custody of samples,
including verification of drill hole locations (collar surveys and down‐hole directional surveys), core
handling procedures (logging, sampling, sample shipping) and analytical‐related work, including duplicate
sampling, "check analyses" at other laboratories and the insert ion of standard and blank materials. The
QA/QC program also includes data verification procedures.
Sample preparation and primary analysis for the Graphite Creek project is done by Activation Laboratories
Ltd (“Act Labs”). Act Labs uses standard quality assurance and control policies in all aspects of laboratory
operations. All samples are assayed for Cg. The technique use d for determining Cg is by LECO whereby
the pulp is either digested with hydrochloric and perchloric ac ids or subjected to a multistage furnace
treatment to remove all forms of carbon with the exception of Cg.
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As part of the comprehensive QA/QC program, one standard or blank was inserted into the assay stream
for every 10 core samples submitted. Blanks were inserted dire ctly after highly mineralized samples to
test for contamination during the preparation. Three separate commercially available graphite standard
materials were utilized in 2018. These standards are an additional check on the internal standards utilized
by Act Labs.
About Graphite One Inc.
G R A P H I T E O N E I N C . ( G P H : T S X ‐ V ; G P H O F : O T C Q B ) c o n t i n u e s t o d e v e lo p i t s G r a p h i t e O n e P r o j e c t ( t h e
“Project”), whereby the Company could potentially become an Ame rican producer of high grade Coated
Spherical Graphite (“CSG”) that is integrated with a domestic g raphite resource. The Project is proposed
as a vertically integrated enterprise to mine, process and manu facture high grade CSG primarily for the
lithium‐ion electric vehicle batt ery market. As set forth in t he Company’s Preliminary Economic
Assessment, potential graphite mineralization mined from the Company’s Graphite Creek Property, is
expected to be processed into concentrate at a graphite processing plant. The proposed processing plant
would be located on the Graphite Creek Property situated on the Seward Peninsula about 60 kilometers
north of Nome, Alaska. CSG and other value‐added graphite products, would likely be manufactured from
the concentrate at the Company’s proposed graphite product manufacturing facility, the location of which
is the subject of further study and analysis. The Company inte nds to make a production decision on the
Project once a feasibility study is completed.
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 or contact:
Anthony Huston
CEO, President & Director
Tel: (604) 697‐2862
Email: [email protected]
Investor Relations Contact
1‐604‐684‐6730
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.
This release includes certain statements that may be deemed to be forward‐looking statements. All
statements in this release, other than statements of historical facts, are forward‐looking statements.
Generally, forward‐looking information can be identified by the use of forward‐looking terminology such
as “proposes”, “expects”, or “is expected”, “scheduled”, “estim ates”, “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”.
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This release includes certain statements that may be deemed to be forward‐looking statements. All
statements in this release, other than statements of historical facts that address timing of receipt of
regulatory approvals, exploration drilling, exploitation activities and events or developments that the
Company expects, are forward‐looking statements. Forward‐looking information in this press release
i n c l u d e s s t a t e m e n t s a b o u t i n f e r r e d r e s o u r c e e s t i m a t e s f o r t h e Graphite Creek Project, the potential
existence and size of mineralization within the Graphite Creek Project; estimated timing and amount of
f u t u r e e x p e n d i t u r e s , r e c o m m e n d a t i o n s f o r f u t u r e w o r k o n t h e G r aphite Creek Project, geological
interpretations and statements about Graphite One’s strategy, f uture operations and prospects.
Information concerning inferred mineral resource estimates also may be deemed to be forward‐looking
information in that it reflects a prediction of the mineralizat ion that would be encountered if a mineral
deposit were developed and mined. Although the Company believe s the expectations expressed in such
forward‐looking statements are b ased on reasonable assumptions, such statements are not guarantees
of future performance and actual results or developments may differ materially from those in the forward‐
looking statements.
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 an d 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 forwa rd‐looking information, which is given as
of the date that is expressed in this news release, and the Com pany undertakes no obligation to update
publicly or revise any forward‐looking information, except as r equired by applicable securities laws. For
more information on the Company, investors should review the Co mpany's continuous disclosure filings
that are available at www.sedar.com.
The mineral resource estimates reported in this press release were prepared in accordance with National
Instrument 43‐101 Standards of Disclosure for Mineral Projects (“NI 43‐101”), as required by Canadian
securities regulatory authorities. For United States reporting purposes, the United States Securities and
Exchange Commission (“SEC”) app lies different standards in the classification of mineralization. In
particular, while the terms “measured,” “indicated” and “inferr ed” mineral resources are required
pursuant to NI 43‐101, the SEC does not recognize such terms. Canadian standards differ significantly
f r o m t h e r e q u i r e m e n t s o f t h e S E C . I n v e s t o r s a r e c a u t i o n e d n o t t o a s s u m e t h a t a n y p a r t o r a l l o f t h e
mineral deposits in these categories constitute or will ever be converted into reserves. In addition,
“ i n f e r r e d ” m i n e r a l r e s o u r c e s h a v e a g r e a t a m o u n t o f u n c e r t a i n t y a s t o t h e i r e x i s t e n c e a n d g r e a t
uncertainty as to their economic and legal feasibility. It cann ot b e assu m e d t h at al l or any p ar t of an
inferred mineral resource will ever be upgraded to a higher category.
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United States investors are advised that current mineral resour ces are not current reserves and do not
have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the
estimate and in keeping with “best practise principles”.