Gratomic Signs Commercial Partnership and Sales Agreement for Up to 7,260 Tonnes per Annum

TORONTO, ON / ACCESSWIRE / June 15, 2023 / Gratomic Inc. ("Gratomic", "GRAT," or the "Company") (TSXV:GRAT)(OTCQX:CBULF)(FSE:CB82) announces that it has entered into a Commercial Partnership and Sales Agreement with TM2 Verticals. Gratomic will sell concentrate to the partnership for the joint supply of value-added applications. The initial focus will be on Alkaline Batteries.

On June 12, 2023, Gratomic executed a purchase order to supply TM2 with 1 tonne of graphite concentrate from its Aukam Vein Graphite mine in Namibia. The concentrate is being sent to South Africa for further upgrading and then onwards to midstream processors in the United States and Europe, where it will be converted into a Purified Flake Graphite (PFG) equivalent to include in Alkaline Batteries. The pilot processing of this material is being funded by an end user that chooses to stay anonymous during this period. Once the supply chain and the PFG has been qualified, the end user will enter into a direct purchase agreement with the Commercial Partnership.

One of the terms of this arrangement is that Gratomic will sell its graphite to the commercial partnership for a 50:50 split of the profit after toll processing between TM2 and Gratomic. In case the grade of the concentrate exceeds 95%, which is the grade quoted by the Benchmark Mineral Intelligence index price, a "Special Premium" will be applied to the Concentrate Price. In such a case, the final price for the Concentrate will be adjusted and increased by the Special Premium to the "Final Concentrate Price". The target rate will be a 6.5% increase for a 96% grade, a 19.5% increase for a 97% grade, and a 32% increase for a 98% grade, until such time as there is a quotable index for a grade above 95%.

This particular arrangement appears to be the first of its kind in the graphite industry for an up-and-coming producer and shows the power of vertical integration and the benefit of early partnerships with the right people. TM2 and Gratomic have been working together during the past two years and both agree it is a mutually beneficial arrangement.

"We foresee that over the next 36 months, every major OEM on the planet will be backwards integrating to the mine- securing long term supply and a reliable supply chain. TM2 realised this several years ago and became one of the first movers in the battery metals space to start building globally integrated and connected markets. Gratomic has been a key visionary in the Graphite vertical and this partnership is a powerful step towards building market liquidity, transparent pricing and interconnectivity from source to consumer", says Petur Georgesson, CEO of TM2.

The successful completion of the pilot program will present one of the first cases of Vein Graphite being commercially adopted for Alkaline Batteries. Historically, Vein Graphite has played a vital role in world markets as the purist and highest grade naturally occurring graphite. In modern times, through contracts such as this one, it is once again poised to offer end users a much more attractive alternative to synthetic and flake, making it stand out amongst other graphite types.

The contract establishes a target lead time of 120 days starting on May 24, 2023, to secure binding agreements with end users. The contract is valid for five years, and establishes annual quantities for delivery starting at 4,200 tonnes per year and reaching 7,260 tonnes per year.

Arno Brand, President and CEO of Gratomic, stated, "It is gratifying for the Company and TM2 Verticals to be working in such an innovative partnership. Not only does it offer mutual benefits but opens the door for new applications of Aukam Vein Graphite."

Gratomic wishes to emphasize that no Preliminary Economic Analysis, Preliminary Feasibility Study, or Feasibility Study has been completed to support any level of production. In fact, no mineral resources, let alone mineral reserves demonstrating economic viability and technical feasibility, have been delineated on the Aukam property.

The Company is working towards completing a Feasibility Study (FS) on the Aukam Processing Plant. The study, its recommendations, and their subsequent implementation, will provide conclusions and recommendation at a FS level of comfort about scaling-up the existing processing plant to a commercial facility that can produce the desired concentrate grades and production rates.

Gratomic wishes to emphasize that the supply of graphite is conditional on bringing the Aukam Project to production phase, and for any graphite produced meeting certain technical and mineralization requirements.

Risk Factors

No mineral resources, let alone mineral reserves demonstrating economic viability and technical feasibility, have been delineated on the Aukam property. The Company is not in a position to demonstrate or disclose any capital and/or operating costs that may be associated with the processing plant until the Feasibility Study is completed.

The Company advises that it has not based its production decision on even the existence of mineral resources, let alone on a Preliminary Feasibility Study or Feasibility Study of mineral reserves, demonstrating economic and technical viability. As a result, there may be an increased uncertainty about achieving any particular level of mineral recovery or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit.

Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will begin as anticipated or at all, or that anticipated production costs will be achieved.

Failure to commence production would have a material adverse impact on the Company's ability to generate revenue and cash flow to fund operations. Failure to achieve the anticipated production costs would have a material adverse impact on the Company's cash flow and future profitability.

About Gratomic

Gratomic is a multinational company with projects in Namibia, Brazil, and Canada. The Company is focused on becoming a leading global graphite supplier and aims to secure a strong position in the EV battery supply chain. With the continued development of its flagship Aukam project and further exploration on the Company's Capim Grosso property, Gratomic sets itself apart by seeking out unique top-quality assets around the world. True to its roots, the Company will continue to explore graphite opportunities displaying potential for development.

Large quantities of high-quality vein graphite have been shipped for testing to confirm its viability as an anode material. Gratomic is confident that the test results will provide a unique competitive advantage in its desired target markets. The Company will continue to update the public on the status of these tests and will provide results as soon as they become available.

The Company has formed a collaboration agreement with Forge Nano. With its patented ALD coating, this cooperation is a key element to support Gratomic's strategies towards the value-added phases of producing graphite for anode applications, namely micronization, spheronization, and coating, making Gratomic graphite a preferred choice for use in lithium-ion batteries.

About TM2 Verticals

TM2 Verticals Limited is the physical supply chain arm of Technology Metals Market (TM2), a UK based investment holding focused on the critical metals transition. TM2 has created a global network of supply extending from the mines (upstream) through the smelters, processors and convertors (midstream) and into the global distribution networks of global brands alongside the development of its institutional exchange. TM2 manages a portfolio of more than a dozen verticals covering key battery metals such as lithium, graphite, manganese, zinc and nickel.

Visit the website: www.tm2.com

For more information

Visit the website: www.gratomic.ca

Contact: Arno Brand at abrand@gratomic.ca or (416) 561- 4095

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Forward Looking Statements:

This news release contains forward-looking statements that relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward-looking statements are neither promises nor guarantees and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof, and except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedar.com).

SOURCE: Gratomic Inc.