Company Announcements

CEO: "Graphite One welcomes the Pentagon's pragmatic recommendations for targeted tax credits, co-investment mechanisms, and the establishment of a framework for licensing established non-core manufacturing technologies to rebuild domestic battery equipment manufacturing"

VANCOUVER, BC , June 4, 2026 /CNW/ - Graphite One Inc. (TSXV: GPH; OTCQX: GPHOF) ("Graphite One" or the "Company") today welcomed the release of a new Pentagon report recommending the creation of targeted production and investment tax credits, a co-investment fund, and the establishment of a framework for licensing established non-core manufacturing technologies from allied nations' suppliers for equipment used to manufacture advanced batteries.

The report, developed with the interagency Federal Consortium for Advanced Batteries as reported by POLITICO (click here), represents a significant policy signal supporting the build-out of domestic capabilities in a sector currently dominated by Asian suppliers (92% market share). It warns that reliance on foreign-produced battery-making equipment -- including mixing machines, coating and drying systems, electrode stacking machines, and testing devices -- creates critical vulnerabilities for U.S. military vehicles, drones, grid storage, and AI data center applications. The study estimates these efforts could create 5,000 new American jobs and access a global market projected to reach US$48 billion by 2032.

"Graphite One welcomes the Pentagon's pragmatic recommendations for targeted tax credits, co-investment mechanisms, and establishing a framework for licensing established non-core manufacturing technologies to rebuild domestic battery equipment manufacturing," said Anthony Huston, President and CEO of Graphite One. "The report correctly identifies that secure anode active materials ("AAM") are the indispensable foundation of any resilient U.S. battery supply chain -- exactly the role Graphite One is fulfilling by developing America's largest graphite deposit in Alaska alongside large-scale AAM production in Ohio. Policies that reward total cost of ownership, create demand signals for U.S.-made equipment, and enable smart partnerships with allies will accelerate the onshoring of critical processing capacity, create thousands of American jobs, and end our dangerous 100% reliance on foreign adversaries for graphite."

-- Anthony Huston, President and CEO, Graphite One Inc.

The Pentagon report notes that it is currently "impossible to assemble a complete battery production line domestically without using some level of foreign-produced equipment" and recommends conditioning federal grants and loans for battery production on requirements that facilities use a percentage of U.S.-manufactured equipment, creating a "guaranteed demand signal" for domestic suppliers. It also encourages licensing agreements and joint ventures with allied suppliers for established technologies, with government support to vet partners and protect U.S. interests.

These recommendations align closely with Graphite One's ongoing development of its Ohio AAM facility, where specialized high-temperature graphitization, purification, and processing equipment will be required. The Company has already secured a site in Ohio and is advancing offtake discussions, power agreements, and equipment procurement planning alongside its Graphite Creek mine development, which is a FAST-41 covered project. Graphite One has received strong bipartisan U.S. Government support, including EXIM Bank non-binding Letters of Interest exceeding US$2 billion, prior Department of Defense Title III and Defense Logistics Agency funding totaling US$42 million, and inclusion on the FAST-41 permitting dashboard. "The Trump administration's extension of tariff exemptions for imported battery-making equipment until at least November 2026 recognizes the current reality while the domestic industry scales," Huston added. "Graphite One is committed to prioritizing secure, high-quality supply chains and will actively explore domestic and allied equipment solutions as they become available, consistent with the total-cost-of-ownership and supply security principles the Pentagon report champions."

Graphite One remains focused on delivering a complete, adversary-free U.S. graphite-to-anode supply chain that supports electric vehicle, energy storage, AI data centres, and defense applications while creating high-value jobs in Alaska and Ohio.

Graphite One's Domestic Supply Chain Strategy

The United States is currently 100% import-dependent for natural graphite, Graphite One is developing a fully integrated U.S.-based supply chain anchored by the Graphite Creek deposit – recognized by the U.S. Geological Survey as the largest graphite deposit in the U.S. and among the largest globally.  The strategy includes:

• Mining at Graphite Creek (Alaska)
• Transport via the Port of Nome
• Processing into advanced graphite and anode materials in Ohio
• Potential co-located recycling facility to recover graphite and other battery materials

This integrated approach positions Graphite One to become a cornerstone supplier in a domestic, circular battery materials economy.

About Graphite One Inc.

GRAPHITE ONE INC. 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 and process natural graphite and to manufacture artificial and natural graphite active anode materials primarily for the lithium‐ion electric vehicle battery and energy storage markets.

On Behalf of the Board of Directors

"Anthony Huston" (signed)

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.

All statements in this release, other than statements of historical facts, including successfully obtaining production and investment tax credits, licensing of non-core manufacturing technologies, tariff exemptions for imported battery-making equipment, the anticipated timing and construction of the Ohio facility, the anticipated non-binding commitment from EXIM Bank becoming a binding commitment; and performance, and events or developments that the Company intends, expects, plans, or proposes are forward-looking statements. Generally, forward ‐ looking information can be identified by the use of forward ‐ looking terminology such as "proposes", "expects", "is expected", "scheduled", "estimates", "projects", "plans", "is planning", "intends", "assumes", "believes", "indicates", "to be" 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". The Company cautions that there is no certainty that the Company will receive project financing, that it will have the required equipment available to it and on a timely basis, or that it will receive all permits and regulatory approvals to progress the construction of the Ohio facility. 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 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 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.sedarplus.ca .

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SOURCE Graphite One Inc.