June 20, 2017
Vancouver, BC – Graphite One Resources Inc. (TSX-V:GPH / OTCQX:GPHOF) (“Graphite One” or the “Company”) is pleased to announce the results of its Preliminary Economic Assessment (“PEA”) for the development of its 100%‐owned Graphite One manufacturing project (the “Project”). The Project is conceived as a vertically integrated manufacturer of high grade Coated Spherical Graphite (“CSG”) with mining and processing facilities near Nome, Alaska and advanced material processing done at a dedicated graphite product manufacturing facility. Washington State is a potential site for the product manufacturing facility due to its established maritime links with Alaska, the availability of low‐cost power, developed industrial sites and proximity to markets. The PEA was prepared by the independent engineering firm, TRU Group Inc. of Toronto, Ontario, under Canadian Securities Administrators’ National Instrument 43‐101 – Standards of Disclosure for Mineral Projects (“NI 43‐101”).
The PEA projects a Net Present Value (“NPV”) for the Project of US$1.037 billion using a 10% discount rate, with an Internal Rate of Return (“IRR”) of 27%. Annual production of CSG and other graphite specialty materials is projected at 55,350 metric tonnes when full production is reached in Year 6. A minimum of 40 years of indicated and inferred resources grading 7% Cg (graphite) have been identified in the target exploitation zone to sustain full scale operations, notwithstanding additional potential resources immediately outside the target zone or the broader Graphite Creek property.
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About Graphite One
GRAPHITE ONE RESOURCES INC. (GPH: TSX‐V; GPHOF: OTCQX) continues to develop its Graphite One Project (the “Project”), whereby the Company could potentially become the dominant 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. Graphite mineralization mined from the Company’s Graphite Creek Property would be processed into concentrate at a graphite processing plant. The 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 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 Graphite Creek Property contains America’s largest known large flake graphite deposit. Resources identified to date include 10.32 million tonnes of indicated resources grading 7.2 percent graphitic carbon (“Cg”) and 71.24 million tonnes of inferred resources at 7.0 percent Cg identified, using a 6% Cg mining cut‐off grade. Work on the Graphite Creek Property is progressing through the evaluation phase with environmental baseline sampling programs and engineering studies in progress. Mineral processing testing, mine, infrastructure and processing plant design work, and a resource development drilling program are expected to be undertaken in the months ahead.
ON BEHALF OF THE BOARD OF DIRECTORS
“Anthony Huston” (signed)
For more information on Graphite One Resources Inc. please visit the Company’s website, www.GraphiteOneResources.com or contact:
CEO, President & Director
Tel: (604) 889-4251
Investor Relations Contact
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 are deemed to be forward‐looking statements. All statements in this release, other than statements that are clearly historical in nature, are forward‐looking statements. Generally, forward‐looking information can be identified by the use of forward‐looking terminology such as “proposes”, “expects”, or “is expected”, “scheduled”, “estimates”, “projects”, “intends”, “assumes”, “believes”, “indicates” or variations of such words and phrases that state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”.
Forward‐looking information in this release includes, but is not limited to, statements regarding resource estimates and potential mineralization, the interpretation and actual results of current exploration activities, changes in project parameters as plans continue to be refined, the actual ability to produce spherical graphite, ultimate further and final results of additional test‐work, estimated capital and sustaining costs and the availability of equipment, labour and resources required, the anticipated applications of graphite in high‐tech, clean tech, energy storage and national security applications and all other anticipated applications, international demand and ability to transport and enter into such markets, the results of the TRU Group’s study being accurate regarding the characteristics of the Graphite Creek mineralization, exploration drilling, exploitation activities and events or developments that the Company expects, the sustainability and ultimate environmental effects of spherical graphite, future joint ventures and partnerships, future prices of graphite, possible variations in grade or recovery rates, are all 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: (i) volatile stock price, (ii) the results of the product development test work may not be indicative of the advancement of the project as anticipated, or at all, (iii) market prices, (iv) exploitation and exploration successes, (v) continuity of mineralization, (vi) uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, (vii) changes in government policies regarding mining and natural resource exploration and exploitation, (viii) competition faced in securing experienced personnel, access to adequate infrastructure to support mining, processing, development and exploration activities and continued availability of capital and financing, and (ix) 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.
Estimates of mineralization and other technical information included or referenced in this press release have been prepared in accordance with NI 43‐101. The definitions of proven and probable reserves used in NI 43‐101 differ from the definitions in SEC Industry Guide 7. Under SEC Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves, the three‐year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority. As a result, the reserves reported by the Company in accordance with NI 43‐101 may not qualify as “reserves” under SEC standards. In addition, the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43‐101; however, these terms are not defined terms under SEC Industry Guide 7 and normally are not permitted to be used in reports and registration statements filed with the SEC. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. “inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or pre‐feasibility studies, except in rare cases. Additionally, disclosure of “contained ounces” in a resource is permitted disclosure under Canadian securities laws; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in place tonnage and grade without reference to unit measurements. Accordingly, information contained or referenced in this press release containing descriptions of the Company’s mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements of United States federal securities laws and the rules and regulations thereunder.