Graphite One Inc. announced that it has received the active anode material samples produced from Graphite One'sAlaska graphite by Sunrise (Guizhou) New Energy Material Co. Ltd. The sample material and the sample specification data have been provided to the U.S. Department of Energy'sPacific Northwest National Laboratory ("PNNL") for additional testing and sample material has been sent to a leading Electric Vehicle (EV) manufacturer for evaluation. The Company previously announced its agreement with Sunrise to produce the samples1 and, with PNNL, to independently test the Graphite One anode material.2 Sunrise produced two different active anode material samples from Graphite One'sAl Alaska graphite concentrate: coated spherical natural graphite secondary particle natural graphite A fast-charging artificial graphite anode material sample was also produced for North American EV battery companies.

The natural graphite was purified using the advanced fluorine-free purification process as proposed by Graphite One in its Graphite One Project Preliminary Feasibility Study dated October 13, 2022 (the "PFS"). All three samples were produced in Sunrise's commercial scale anode material manufacturing plant. The specific capacity of the first natural graphite sample was 366.4 mAh/g and the second sample was 364.9 mAh/g - both exceeding 98% OR within 2% of graphite's theoretical maximum of 372 mAh/g. The ratio of graphite concentrate input to spherical graphite output was optimized in the spheroidization process, achieving utilization rates greater than the 75% targets assumed in the PFS.

Portions of all three samples have been sent to a leading EV manufacturer, while the sample specification data has been sent to other end-users. With the United States currently 100% import dependent for natural graphite, Graphite One is planning to develop a complete U.S.-based, advanced graphite supply chain solution anchored by the Graphite Creek resource. The Graphite One project plan includes an advanced graphite material and battery anode manufacturing plant expected to be sited in Washington State integrated with the development of the Graphite Creek Property.

The plan includes a recycling facility to reclaim graphite and the other battery materials, to be co-located at the Washington State site, the third link in Graphite One's circular economy strategy.