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May 16, 2019 —  Graphite One Inc. (GPH: TSX-V; GPHOF: OTCQB) (“Graphite One” or the “Company”) announced today it has has completed the second tranche of a non-brokered private placement offering, raising gross proceeds from both tranches of the financing to CA$2 million, and also the awarding of options.

CLOSES SECOND TRANCHE OF PRIVATE PLACEMENT

The Company has completed the second and final tranche of the private placement previously announced on April 1, 2019 and April 22, 2019 (the “Offering”), raising gross proceeds from both tranches of the financing to CA$2 million.  The net proceeds of the Offering will be used for exploration and development of the Company’s Graphite Creek Project and for general working capital purposes.

The Company has issued 435,033 Units (the “Units”) in this second tranche, at a price of CA$0.30 per Unit for a total of CA$130,510.  Each Unit consists of one common share (a “Common Share”) and one transferable common share purchase warrant (a “Warrant”).  Each Warrant entitles the holder to purchase one full Common Share at a purchase price of CA$0.30 per Common Share and will expire one year from the date of issuance.  A total of 5,336 Broker warrants and $1,600 was paid in finder’s fees.

The net proceeds of the Offering will be used for exploration and development of the Company’s Graphite Creek Project and for general working capital purposes.

The Offering is subject to receipt of final applicable regulatory approvals including approval of the TSX Venture Exchange.  All securities issued in connection with the Offering will be subject to a restricted period that expires four months and a day following the date of issuance.

GRANT OF OPTIONS

The Company also announces that the board of directors of the Company has approved an incentive stock option grant to directors, officers and consultants of the Company for the purchase of 1,800,000 shares of Graphite One in accordance with the Company’s shareholder approved stock option plan.  The options are exercisable at a price of $0.30 per share, all vesting immediately and expiring on May 15, 2024.

Upon the granting of the options described above, Graphite One will have 4,015,000 options outstanding, which represents approximately 9.9% of the 40,609,143 common shares of the Company currently outstanding.  Graphite One’s stock option plan limits the issuance of options to no more than 10% of the outstanding common shares.

ABOUT GRAPHITE ONE

GRAPHITE ONE INC. continues to develop its Graphite Creek 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
1-604-684-6730
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, 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.