Graphite One Signs US$ 4.8 million Loan Agreement, to Fund Completion of Pre‐Feasibility Study
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Graphite One Signs US$ 4.8 million Loan Agreement, to Fund
Completion of Pre‐Feasibility Study
September 9, 2019 – Vancouver, Bri tish Columbia – Graphite One Inc. (GPH: TSX‐V; GPHOF: OTCQB)
(“Graphite One” or the “Company”) announces that it has entered into a US$4.8 million unsecured loan
agreement (the “Loan”) with Taiga Mining Company, Inc. (“Taiga”), a controlling shareholder of the
Company. Funded immediately will be US$2.5 million. The Loan is repayable in two years, with the
Company having the option to extend the Loan for an additional 12 months with 30 days notice.
“In our current challenging capital markets, a commitment of US $4.8 million ‐ which is expected to fund
us through completion of our Graphite Creek Pre‐Feasibility Stu dy ‐ is a strong vote of confidence,” said
Anthony Huston, CEO of Graphite One. “It reflects the critical need for new domestic U.S. graphite supply
in all its forms, as recognized by the fact the U.S. Government includes graphite on its Critical Minerals
List.” According to the US Geological Survey, the United State s is presently 100% import‐dependent for
graphite, with China the world’s leading producer. According to the World Bank, global graphite demand
– driven by applications in the Electric Vehicle battery sector and energy storage systems – is projected to
rise by 383% between now and 20501.
The proceeds of the Loan are expected to provide the Company wi th the necessary funding to complete
work on its Pre‐Feasibility Study (PFS) for the Graphite Creek P r o j e c t , a n d f o r g e n e r a l w o r k i n g c a p i t a l
purposes. The expected completion of the PFS is second quarter 2020.
“The PFS is a major milestone for Graphite One,” said Stan Foo, COO of Graphite One (Alaska) Inc. “With
funding in place, we can maintain our momentum through the fina l quarter of 2019 and stay on track for
our 2020 target.”
Interest on the Loan will accrue on the outstanding balance of the Loan at the rate of twelve percent (12%)
per annum, compounded annually, and is payable upon the earlier of full repayment and maturity. As
long as the Loan remains outstanding and until 90 days following the date when the Loan is repaid in full,
Taiga will have the right, but not the obligation, to participa te in any financing arrangement of Graphite
One in order to maintain at least a 25% interest in the Company.
T a i g a , a p r i v a t e A l a s k a n c o m p a n y , i s c u r r e n t l y a “ c o n t r o l p e r s on ” o f G r a p h i t e O n e i n a c c o r d a n c e w i t h
Policy 4.1 of the TSX Venture Exchange Corporate Finance Manual. Taiga and its associates and affiliates
hold 13,831,420 Common Shares, or 34.06% of the outstanding common shares of the Company.
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
1 https://www.worldbank.org/en/news/infographic/2019/02/26/climate‐smart‐mining
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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”, “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 information in this release includes, but is not limited to, statements regarding the stage
and progress of development of the Graphite Creek Project including the ability to actually produce
spherical graphite, ultimate further and final results of addit ional test‐work, estimated capital and
sustaining costs and the availability of equipment, labour and resources required, the anticipated
applications of graphite in high‐tech, clean tech, energy storage and national security applications and all
other anticipated applications, international demand and ability to transport and enter into such markets,
are all forward‐looking statements. Although the Company belie ves the expectations expressed in such
forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may diffe r materially from those in the forward‐
looking statements. Factors that c ou l d c au s e ac t ua l re su l ts t o differ materially from those in forward‐
looking statements include: (i) volatile stock price, (ii) the results of the product development test work
may not be indicative of the advancement of the project as anti cipated, or at all, (iii) market prices, (iv)
exploitation and exploration successes, (v) continuity of miner alization, (vi) uncertainties related to the
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ability to obtain necessary permits, licenses and title and delays due to third party opposition, (vii) changes
in government policies regarding mining and natural resource ex ploration and exploitation, (viii)
competition faced in securing experienced personnel, access to adequate infrastructure to support mining,
processing, development and exploration activities and continued availability of capital and financing, and
(ix) 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 press 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 inf ormation on the Company, investors should
review the Company's continuous disclosure filings that are available at www.sedar.com.