Company Announcements

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.

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

Table 2: Summary of Estimated Operating Costs

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.

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).

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 Grade²

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 PFS³

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 Estimate³

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

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"):

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.

Cautionary Note to United States Investors

This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource and reserve estimates included in this news release have been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy, and Petroleum 2014 Definition Standards on Mineral Resources and Mineral Reserves. NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly from the requirements of the SEC, and mineral resource and reserve information contained herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term "resource" does not equate to the term "reserves". Under U.S. standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. The SEC's disclosure standards normally do not permit the inclusion of information concerning "measured mineral resources", "indicated mineral resources" or "inferred mineral resources" or other descriptions of the amount of mineralization in mineral deposits that do not constitute "reserves" by U.S. standards in documents filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. U.S. investors should also understand that "inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. Under Canadian rules, estimated "inferred mineral resources" may not form the basis of feasibility or other economic studies. Investors are cautioned not to assume that all or any part of an "inferred mineral resource" exists, is economically or legally mineable, or will ever be upgraded to a higher resource category. Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute "reserves" by SEC standards as in-place tonnage and grade without reference to unit measures. The requirements of NI 43-101 for identification of "reserves" are also not the same as those of the SEC, and reserves reported by the Company in compliance with NI 43-101 may not qualify as "reserves" under SEC standards. Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made public by companies that report in accordance with U.S. standards.

SOURCE Graphite One Inc.