Graphite One Reports Graphite Added to the U.S. National Defense Stockpile List

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With CDN $21M in Recent Funding, Graphite One Continues to Advance the Largest Known Natural Graphite Deposit in the United States

October 7, 2021 – Vancouver, British Columbia –Graphite One Inc. (GPH: TSXV; GPHOF: OTCQX) (“Graphite One” or the “Company”) announces that graphite was added to the new U.S. National Defense Stockpile (NDS) Acquisitions List, one of four new materials added for 2022.

"The inclusion of graphite on the National Defense Stockpile list is another sign of graphite’s growing importance," said Anthony Huston, CEO of Graphite One. “Coupled with the importance of graphite to three of the four key supply chains recognized by the June 2021 White House report, it is clear the U.S. Government sees graphite as essential to both national security and the technology economy.”

The NDS, established by the U.S. Congress in 1939, is a raw materials-based stockpile meant to decrease or prevent “dependence upon foreign and single points of supply for strategic and critical materials needed in times of national emergency”.

The last publicly released National Defense Stockpile Requirements Report included “natural flake graphite” on its watch list of “shortfall materials” based on modeling against specific conflict scenarios indicating a projected graphite shortfall of more than 82,000 metric tons. The U.S. has been 100% import-dependent for graphite since 1990 with the vast majority of supply being reliant on graphite production from China.

The United States Government’s Interim National Security Guidance issued March 4, 2021 states as one of the U.S.’s National Security Priorities that the United States:
“…[W]ill invest in critical stockpiles and ensure that supply chains for pharmaceuticals, medical equipment, and other critical materials required during a crisis are not overly reliant on overseas networks prone to disruption.”

The White House supply chain report of June 2021 identified three technology sectors -- advanced semiconductors, "high-capacity batteries, including Electric Vehicle (EV) batteries", and pharmaceuticals -- as well as "critical minerals and other… strategic materials" as a fourth supply chain, essential to technology manufacturing and the Defense Industrial Base. In addition to being a U.S. Government-listed Critical Mineral, graphite is an essential material for both the renewable and EV Battery sectors, and for advanced semiconductor manufacturing.

Graphite is also one of only four USG-listed Critical Minerals (2018) essential to all six industrial sectors screened by the USGS, for which the U.S. is both 100% import-dependent, while China is the world’s leading producer.

The U.S. Government Executive Branch action parallels rising interest in the U.S. Congress on critical minerals including graphite. The bipartisan infrastructure package (“BIF”), which has passed the Senate and is waiting for a vote in the House of Representatives, has a number of items of interest to Graphite One, including provisions for various pilots, demonstration and research projects related to the supply of critical minerals.

In particular, the legislation calls for a new program to be created at the Department of Energy (DOE) to ensure that the United States has a viable battery materials processing industry to supply the North American battery supply chain, including enhancing the domestic processing capacity of minerals necessary for battery materials and advanced batteries. If passed by the House, projects to mine and develop critical minerals in Alaska, such as graphite used in lithium-ion batteries, will be eligible for federal loan guarantees to help secure funding, while $6B would be available for battery processing and manufacturing, including grants for processing facilities, which would help firms looking to produce and refine battery materials such as graphite and rare earth elements in Alaska.

For further information on the pending infrastructure bill and the possible benefits to Alaska, click here.

Graphite One has completed over CDN $21 million in financing this year and continues to advance its 100% owned Graphite Creek deposit. Graphite One's deposit in western Alaska remains the largest known source of natural graphite in the United States. According to the World Bank, global graphite demand for clean energy applications alone - primarily electric vehicle batteries and energy storage systems -- is expected to rise by 494% between now and 2050.

Graphite One is developing a complete U.S. based supply chain solution from mine to advanced graphite materials, including anode material for lithium-ion battery applications including EV batteries, as well as advanced graphite for potential uses ranging from foam fire suppressant to graphite sealants for 5G network elements and synthetic diamond for semiconductor substrates.

About Graphite One Inc.
GRAPHITE ONE INC. (GPH: TSX‐V; GPHOF: OTCQB) continues to develop 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 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 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 Inc., please visit the Company’s website, www.GraphiteOneInc.com or contact:

Anthony Huston
CEO, President & Director
Tel: (604) 889-4251
Email: AHuston@GraphiteOneInc.com

Investor Relations Contact
Tel: (604) 684-6730
GPH@kincommunications.com

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 that address actual use of proceeds including the timing and completion of the anticipated Pre-Feasibility Study, receipt of regulatory approvals, implementation of a more established shipment program, exploration drilling, exploitation activities, future production, establishment of a processing plant, and events or developments that the Company expects, are 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 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.sedar.com.

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