EXIM Letter of Interest is non-binding and indicates potential financing could provide 15 year repayment tenor under EXIM’s Make More In America initiative and may be eligible for special consideration under the China and Transformational Exports Program.

Potential funding supports G1’s complete U.S.-based graphite supply chain strategy, with benefits to the national economy and national defense.

EXIM’s funding commitment is conditional upon completing the application, due diligence and underwriting process and receiving all required approvals.

Graphite One Inc. (TSX-V: GPH) (OTCQX: GPHOF) planning a complete domestic U.S. supply chain for advanced graphite materials, announced today that it received a non-binding Letter of Interest from the Export-Import Bank of the United States for potential debt financing of up to $325 million through EXIM’s “Make More in America” and “China and Transformational Exports Program” (CTEP) initiatives.

The Letter of Interest states: “We are pleased to extend this Letter of Interest in support of the proposed capital funding plan by Graphite One (Alaska) Inc. for the AAM Manufacturing Facility. Based on the preliminary information submitted regarding expected U.S. exports and U.S. jobs supported by this project, EXIM may be able to consider potential financing of up to $325 million of the project’s costs with a repayment tenor of 15 years under EXIM’s Make More in America initiative.”

“Today’s announcement confirms Graphite One’s focus on developing a 100% U.S.-based advanced graphite materials supply chain,” said Anthony Huston, President and CEO of Graphite One. “EXIM’s potential financing, following on G1’s two Department of Defense grants under the Defense Production Act and from the Defense Logistics Agency, underscores the urgent need to bring U.S. graphite supply into production, and end the nation’s 100% foreign dependency.”

Given China’s dominance over global graphite production, the EXIM Letter of Interest indicated the transaction may also be eligible for special consideration under Section 402 of EXIM’s 2019 reauthorization (P.L. 116-94), which directs EXIM to take steps to mitigate the competitive impact of export support provided by the People’s Republic of China and other covered countries for opportunities such as this one under EXIM’s CTEP initiative.

G1 expects to submit a formal application to EXIM in 2025. Upon receipt of an application for financing, EXIM will conduct all requisite due diligence necessary to determine if a Final Commitment may be issued for this transaction. Any Final Commitment will be dependent on meeting EXIM’s underwriting criteria, authorization process, finalization and satisfaction of terms and conditions. All Final Commitments must comply with EXIM policies as well as program, legal and eligibility requirements.

The Company intends to make a production decision on the Graphite One Project upon completion of its Feasibility Study, expected in Q1 2025. The Feasibility Study’s release has been delayed from December 2024 to allow time for the review and analysis of additional geotechnical data resulting from the extension of the summer drilling program.

Graphite One’s Supply Chain Strategy

With the United States almost 100 per cent import dependent for anode materials, Graphite One is developing a complete U.S.-based, advanced graphite supply chain solution anchored by the Graphite Creek deposit, recognized by the US Geological Survey as the largest graphite deposit in the U.S. “and among the largest in the world.” The Graphite One Project plan includes an advanced graphite material and battery anode manufacturing plant located in Warren, Ohio. The plan also includes a recycling facility to reclaim graphite and other battery materials, to be co-located at the Ohio site, the third link in Graphite One’s circular economy strategy. The building of these facilities remains subject to financing.

About Graphite One Inc.

GRAPHITE ONE INC. continues to develop its Graphite One Project to become an American producer of high-grade anode materials on a commercial scale integrated with a U.S. domestic graphite resource. The Project is proposed as a vertically integrated enterprise to mine, process and manufacture anode active materials primarily for the lithium‐ion electric vehicle battery market. As set forth in the Company’s 2022 Pre-Feasibility Study, graphite mineralization mined from the Company’s Graphite Creek Property, situated on the Seward Peninsula about 60 kilometers north of Nome, Alaska, would be processed into concentrate at an adjacent processing plant. Natural and artificial graphite anode materials and other value‐added graphite products would be manufactured from the concentrate and other materials at the Company’s proposed advanced graphite materials manufacturing facility expected to be located in Warren, Ohio