Gratomic Inc. provided the following operational update for its 100% owned Aukam graphite mine and processing plant in Namibia. Since commencing the Commercial Commissioning phase at the end of June 2023, Gratomic has processed 80 tonnes of material through the processing plant at a grade of 94% Cg concentrate which is being stored on-site in the storage silos. The material has been processed and treated prior to the arrival of two pieces of equipment, "the stirred medium mill and the polishing mill" which act as the refining circuit for the Aukam Graphite plant and upgrades the material to a grade of 97-99% Cg concentrate.

Initial product is to be sold to a European Carbon trader initially until the product can be successfully included into the anode market. Gratomic wishes to emphasize that no Preliminary Economic Analysis, Preliminary Feasibility Study or Feasibility Study has been completed to support any level of production. In fact, no mineral resources let alone mineral reserves demonstrating economic viability and technical feasibility, have been delineated on the Aukam property.

The Company is working towards completing a Feasibility Study (FS) on the Aukam Processing plant. The study, its recommendations, and their subsequent implementation, will provide conclusions and recommendation at a FS level of comfort relating to the scale up of the existing processing plant to a commercial scale processing facility capable of producing the desired concentrate grades and production rates. Gratomic wishes to emphasizes that the supply of graphite is conditional on Gratomic being able to bring the Aukam project into a production phase, and for any graphite being produced to meet certain technical and mineralization requirements.

Risk Factors: No mineral resources, let alone mineral reserves demonstrating economic feasibility and technical feasibility, have been defined on the Aukam Property. The Company is not in a position to demonstrate or disclose any capital and/or operating costs that may be associated with the processing plant until the FS (Feasibility Study) is completed. The Company advises that it has not based its production decision on even the existence of mineral resources let alone on a Preliminary Feasibility Study and FS of mineral reserves, demonstrating economic and technical feasibility, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit.

Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will begin as anticipated or at all or that anticipated production costs will be achieved. Failure to commence production would have a material adverse impact on the Company's ability to generate revenue and cash flow to fund operations.

Failure to achieve the anticipated production costs would have a material adverse impact On the Company's cash flow and future profitability.