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EXIM will loan 70% of the total capital cost to production
G1 continues discussions with various Departments of the U.S. Government for coordinated participation to complete project financing
G1 management is in discussions with the top 5 investment banks in North America to finance the remaining 30% of capital costs
Graphite One Inc. (TSXV: GPH) (OTCQX: GPHOF) ("Graphite One," "G1", or the "Company") announced today that it has received amended, non-binding Letters of Interest ("LoI") from the Export-Import Bank of the United States ("EXIM") for potential debt financing. The previously issued EXIM LoI to finance the Company's Graphite Creek Project north of Nome, Alaska (the "Project"), is upsized from $570 million to $670 million, while the EXIM LoI for G1's advanced graphite materials manufacturing plant planned for northeastern Ohio, is upsized from $325 million to $1.4 billion with a repayment tenor of 15 years under EXIM's Make More in America Initiative. The upsizing of the Ohio facility LoI will support a phased increase in production capacity in 25,000 metric ton increments to an annual production rate of 100,000 metric tons of anode active material. EXIM's combined LoIs for Graphite One's 100% U.S.-based supply chain solution now total $2.07 billion.
The increases were made after a meeting between Chairman Jovanovic and G1 CEO Anthony Huston at EXIM headquarters in Washington, D.C. The LoIs are executed through EXIM's "Make More in America" and "China and Transformational Exports Program" (CTEP) initiatives.
"Graphite One is building America's graphite supply chain from the ground up—from the largest natural graphite deposit in the country in Alaska, to processing facilities in Ohio," said Chairman Jovanovic. "This is exactly the kind of project President Trump's agenda demands: securing critical minerals, revitalizing American manufacturing capacity, and helping support the jobs of the future across our great country."
"All of us at G1 are so appreciative of the support we are receiving from EXIM under the leadership of Chairman Jovanovic," said Anthony Huston. "There is no reason the U.S. should be dependent on foreign-sourced graphite when we have a generational resource in Graphite Creek anchoring a 100% U.S.-based advanced graphite materials supply chain."
The EXIM meeting took place on the final day of Mr. Huston's Washington meetings at the White House as well as with multiple federal departments and senior U.S. Government officials formulating Critical Mineral policy.
G1 expects to submit a formal application to EXIM under both LOIs in 2026. Upon receipt, EXIM will conduct all requisite due diligence necessary to determine if a final commitment may be issued for this transaction. Any final commitment is subject to EXIM's eligibility, credit, and approval requirements and satisfaction of terms and conditions. All final commitments must comply with EXIM policies as well as program, legal and eligibility requirements.
Given China's dominance over global graphite production, the EXIM Letters of Interest indicate 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.
Graphite One's Domestic Supply Chain Strategy
With the United States currently 100% import-dependent for natural 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 supply chain strategy involves transporting material to the lower 48 via the Port of Nome to an anticipated advanced graphite material and battery anode material manufacturing plant to be located in Warren, Ohio, subject to project financing. The plan also includes a potential 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 circular economy strategy.
About Graphite One Inc.
Graphite One INC. continues to develop its Graphite One Project (the "Project"), with the goal of becoming 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 and process natural graphite and to manufacture artificial and natural graphite anode active materials primarily for the lithium‐ion electric vehicle battery and energy storage markets.
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 X @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.
Investors should be aware that the LoI is non-binding and conditional and does not represent a financing commitment. A funding commitment is conditional upon completing the application, due diligence and the underwriting process and receiving all required Project approvals.
All statements in this release, other than statements of historical facts and forward-looking information within the meaning of applicable securities laws. Any statements that are contained in this press release that are not statements of historical facts may be deemed to be forward looking statements. Generally, forward-looking statements can be identified by the use of forward‐looking 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" and similar expressions which are intended to identify forward-looking information or statements. Forward-Looking Information includes, but is not limited to, disclosure regarding possible events, next steps and courses of action including the Company's plans to submit a financing application to EXIM; the prospects and timing of successfully securing financing from EXIM on acceptable terms, or at all. 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 http://www.sedarplus.ca.
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SOURCE Graphite One Inc.
