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Graphite One Announces Grant of Stock Options

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On May 17, 2024, Graphite One announced the grant of 900,000 incentive stock options to two directors and officers. Each option allows for the purchase of one common share at $0.85, with a five-year expiration and a three-year vesting period. These options replace previously expired options with an exercise price of $0.30. The replacements aim to mitigate the financial impact of a cashless exercise on both the optionees and the company.

Graphite One is also focused on developing an advanced U.S.-based graphite supply chain, anchored by the Graphite Creek deposit, the largest in the U.S. The company plans to establish a synthetic graphite material and battery anode manufacturing plant in Ohio, along with a recycling facility to support a circular economy strategy.

Positive
  • Grant of 900,000 new stock options at $0.85 may incentivize directors and officers to align with shareholder interests.
  • The replacement of expired options reduces the immediate cash impact on both the optionees and the company.
  • Development of a U.S.-based advanced graphite supply chain addresses the 100% import dependency of the U.S. for natural and synthetic graphite.
  • Graphite Creek deposit recognized as the largest graphite deposit in the U.S., providing a strong resource base.
  • Plans for a synthetic graphite and battery anode material manufacturing plant in Ohio could position the company strategically in the battery industry.
  • Inclusion of a recycling facility in the Ohio plant supports sustainability and a circular economy strategy.
Negative
  • Stock options granted at $0.85 are significantly higher than the expired options at $0.30, which may reduce the immediate attractiveness of exercising these options.
  • Three-year vesting period means potential benefits from the stock options are deferred, delaying possible gains for directors and officers.
  • The company’s reliance on the Graphite Creek project introduces a concentration risk if the project faces delays or issues.
  • Significant capital expenditure required for the development of the Ohio manufacturing and recycling facilities may strain financial resources.

VANCOUVER, BC, May 17, 2024 /PRNewswire/ - (TSX-V: GPH) (OTCQX: GPHOF) (the "Company"), announces that it has granted an aggregate of 900,000 incentive stock options (the "Options") to two individuals, who are both directors and officers of the Company (the "Optionees").  Each Option is exercisable into one common share in the capital of the Company (a "Common Share") at an exercise price of $0.85 per Common Share and which expire five years following the date of grant.  The Options are subject to a three-year vesting period with 300,000 options vesting on the first, second and third anniversary from the grant date.

These Options were issued to replace 900,000 incentive stock options, exercisable at $0.30 per Common Share which expired on May 16, 2024 (the "Expired Options"). The Optionees agreed to forego the exercise of the Expired Options due to the cash impact to both the Optionees and the Company of a cashless exercise of the Expired Options.

Graphite One's Supply Chain Strategy

With the United States currently 100 percent import dependent for natural and synthetic graphite, 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 synthetic graphite material and battery anode material manufacturing plant located in Warren, Ohio. The plan also includes a recycling facility to reclaim graphite and the other battery materials, to be co-located at the Ohio site, the third link in Graphite One's non-linear circular economy strategy.

About Graphite One Inc.

GRAPHITE ONE INC. continues to develop its Graphite One Project (the "Project") to become an American producer of high-grade anode materials that is integrated with a 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 active 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 located in northeastern Ohio.  The Company intends to make a production decision on the Project upon the completion of a Feasibility Study.

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.

On Twitter @GraphiteOne

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.

All statements in this release, other than statements of historical facts, are forward-looking statements.  Generally, forwardlooking information can be identified by the use of forwardlooking terminology such as "proposes", "expects", "is expected", "scheduled", "estimates", "projects", "plans", "is planning", "intends", "assumes", "believes", "indicates", "to be" 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". 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.sedarplus.ca.

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SOURCE Graphite One Inc.

FAQ

What are the details of Graphite One's new stock options grant?

Graphite One granted 900,000 stock options to two directors and officers with an exercise price of $0.85, a five-year expiration, and a three-year vesting period.

What happened to the expired Graphite One stock options?

The expired options, exercisable at $0.30 per share, were replaced with new options at $0.85 to reduce financial impact on both the optionees and the company.

Why is Graphite One developing a U.S.-based graphite supply chain?

Graphite One aims to reduce U.S. dependency on imported graphite by developing a domestic supply chain anchored by the Graphite Creek deposit.

Where will Graphite One's synthetic graphite plant be located?

Graphite One plans to establish the synthetic graphite and battery anode material manufacturing plant in Warren, Ohio.

What is the significance of the Graphite Creek deposit?

The Graphite Creek deposit is the largest graphite deposit in the U.S. and is among the largest in the world, providing a strong resource base for Graphite One.

How does Graphite One's recycling facility fit into its strategy?

The recycling facility will reclaim graphite and other battery materials, supporting Graphite One's circular economy strategy and sustainability goals.

GRAPHITE ONE INC

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