White House Report Highlights Need for U.S. Source of Critical Minerals Including Graphite Graphite One’s Alaska Project Could Help Relieve the U.S. Department of Defense’s Critical Minerals Deficit Graphite Creek Project is the largest known large-flake graphite deposit in the United States
2018 10 10 White House Critical Minerals Report (final).docx
White House Report Highlights Need for U.S. Source of Critical
Minerals Including Graphite
Graphite One’s Alaska Project Could Help Relieve the U.S. Department of Defense’s Critical
Minerals Deficit
Graphite Creek Project is the largest known large-flake graphite deposit in the United States
October 10, 2018 - Vancouver, British Columbia – Graphite One Resources Inc. (GPH: TSX-V; GPHOF:
OTCQB) (“Graphite One” or the “Company”) commented today on the release of a White House/U.S.
Department of Defense (“DoD”) report offering a comprehensive review of the U.S. Defense Industrial
Base, which identifies “almost 300 vulnerabilities, ranging from dependencies on foreign
manufacturers” to “reliance on a single source of critical equipment or material.”
“The White House Report makes a strong case for the strategic importance of minerals like graphite to
the U.S. defense industrial base, and for the broader advanced manufacturing sector,” said Anthony
Huston, CEO of Graphite One Resources, Inc. “With the U.S. 100% import-dependent for its natural
graphite supply, and demand projections showing sharply increased graphite needs, we see the
potential for our Graphite Creek project to be a key component in the materials supply chain essential to
the high-tech sector, renewable energy and national security/defense applications.”
Department of Defense Action Plan
The Report, “Assessing And Strengthening the Manufacturing and Defense Industrial Base and Supply
Chain Resiliency of the United States”, was completed pursuant to a Presidential Executive Order issued
July 21, 2017, The Report directs the U.S. Secretary of Defense to “provide the President with a set of
specific actions to address any identified risks and gaps” in the Defense Industrial Base supply chain.
To that end, the Report directs the Pentagon to take actions that include:
“Expanding direct investment in the lower tier of the industrial base through DoD’s Defense
Production Act Title III, Manufacturing Technology, and Industrial Base Analysis and Sustainment
programs to address critical bottlenecks, support fragile suppliers, and mitigate single points-of-
failure.
“Diversifying away from complete dependency on sources of supply in politically unstable
countries who may cut off U.S. access; diversification strategies may include reengineering,
expanded use of the National Defense Stockpile program, or qualification of new suppliers.”
With the U.S. currently 100% import-dependent for natural graphite and with China the world’s leading
graphite producer, timely and adequate graphite supply meets the “single point-of-failure” criteria as
outlined in the Report. “The Report’s recommendation of direct investment in companies developing
domestic sources of strategic and critical materials is a welcome sign, “ commented Mr. Huston, “given
that graphite is essential to so many battery applications and energy storage systems required by the
defense sector and commercial sectors alike.”
WWW.GRAPHITEONERESOURCES.COM GPH: TSX-V GPHOF: OTCQB
Graphite as Critical Material
According to the Report, “China represents a significant and growing risk to the supply of materials
deemed strategic and critical to U.S. national security,” including a “growing number of both widely
used and specialized metals, alloys and other materials….”
The last unclassified National Defense Stockpile Requirements Report – completed by the Department
of Defense for the U.S. House and Senate Armed Services Committees -- projects an 83,000 metric ton
shortfall for graphite in one of its main crisis scenarios.
According to the Pentagon, the new Defense Industrial Base Report (“Pentagon Report”) is a “whole-of-
government effort to assess risk, identify impacts, and propose recommendations in support of a
healthy manufacturing and defense industrial base – a critical aspect of economic and national security,”
which involved the White House, the Department of Defense, six other cabinet departments
(Commerce, Labor, Energy, Homeland Security, Interior, and Health and Human Services) as well as the
Office of Management and Budget and intelligence agencies.
The Pentagon Report comes as Graphite One winds up its 2018 field program, a key step in the
Company’s ongoing field work in support of the Company’s Graphite Creek deposit pre-feasibility study.
The 2018 field program completed continued discussions with the communities closest to the project;
approximately 800 metres of diamond core drilling to tighten drill spacing within the identified mineral
resource; collection of core samples to be used for additional metallurgical test work; assessment of
various alternative project access routes; and reconnaissance level fish and wildlife surveys. The
Graphite Creek deposit, near Nome, Alaska, is the U.S.’s largest known flake graphite deposit.
About Graphite One Resources Inc.
GRAPHITE ONE RESOURCES INC. (GPH: TSX-V; GPHOF: OTCQB) continues to progress development of its
Graphite One Project (the “Project”), whereby the Company could potentially become an American
producer of high grade Coated Spherical Graphite (“CSG”) that is integrated with a domestic graphite
resource. The Project is proposed as a vertically integrated enterprise to mine, process and manufacture
high grade CSG primarily for the lithium-ion electric vehicle battery market. As set forth in the Company’s
Preliminary Economic Assessment, potential graphite mineralization mined from the 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 intends 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 Resources Inc. please visit the Company’s
website, www.GraphiteOneResources.com or contact:
WWW.GRAPHITEONERESOURCES.COM GPH: TSX-V GPHOF: OTCQB
Anthony Huston
CEO, President & Director
Tel: (604) 697-2862
Email: [email protected]
Investor Relations Contact
1-604-684-6730
CAUTIONARY STATEMENT
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 are deemed to be forward-looking statements. All statements
in this release, other than statements that are clearly historical in nature, are forward-looking statements.
Generally, forward-looking information can be identified by the use of forward-looking terminology such
as “potential”, or “potentially”, “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 additional 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 believes 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 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: (i) the results of product development test work may not be indicative of the
advancement of the project as anticipated, or at all, (ii) market prices, (iii) exploitation and exploration
successes, (iv) continuity of mineralization, (v) uncertainties related to the ability to obtain necessary
permits, licenses and title and delays due to third party opposition, (vi) changes in government policies
regarding mining and natural resource exploration and exploitation, (vii) 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 (viii) 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 information on the Company, investors should review the Company's
continuous disclosure filings that are available at www.sedar.com.