G1 CEO: "We are executing a disciplined strategy to become a critical North American supplier of advanced battery materials"

Advancing a Vertically Integrated North American Supply Chain for EV and Energy Storage Battery Materials

VANCOUVER, BC, May 19, 2026 /PRNewswire/ - Graphite One Inc. (TSXV: GPH) (OTCQX: GPHOF) ("Graphite One", "G1" or the "Company") today announced a significant milestone in its U.S. growth strategy, securing a site for its Active Anode Materials ("AAM") facility in Ohio while continuing to advance toward development plans and customer qualification.

Ohio Site Secured for Active Anode Materials Facility

Graphite One has secured a site in Conneaut, Ashtabula County, Ohio, through a license of occupation agreement with Bessemer and Lake Erie Railroad Company, a subsidiary of Canadian National Railway ("CN").

The site provides several strategic advantages, including:

• Direct access to Lake Erie and the Great Lakes shipping corridor
• Multi-line rail connectivity through CN
• Existing power infrastructure, including an on-site substation
• Capacity for future expansion and scaling

"This site provides the infrastructure, logistics access, and scalability required to support long-term growth," said Mike Schaffner, COO. "It positions the Company to efficiently move material and expand production capacity as market demand develops."

The agreement allows the Company to complete due diligence activities on the site and, subject to Graphite One's satisfactory review, proceed with formalizing a lease agreement.

Given this new opportunity and the challenges associated with establishing the necessary power infrastructure at the Warren, Ohio site within the Company's proposed construction timeline, the Company has decided to terminate the current lease on the Warren property to focus its efforts on the Conneaut location.

Defined Path Toward Commercial Production

Graphite One is advancing development plans for an Ohio finishing and blending facility, which is one of the three processing facilities that together comprise the AAM facility with the targeted milestone:

• Construction completion targeted for Q4 2027
• Initial production capacity of 10,000 tonnes per year ("Phase One Production")

Phase One Production is expected to include:

• 4,000 tonnes of energy storage material
• 3,000 tonnes of fast-charging material
• 3,000 tonnes of high-energy-density material

These materials are intended for use in lithium-ion battery applications supporting electric vehicles, grid-scale energy storage, and emerging data center infrastructure demand.

"We now have a defined path from site control through development to production and customer engagement," said Anthony Huston, CEO. "Our objective is to establish a vertically integrated, U.S.-based supply chain capable of supporting long-term North American battery demand."

Phase Two Expansion Planning Underway

In parallel with Phase One Production, the Company is evaluating a second-phase expansion that would target:

• Construction completion in Q3 2028
• Graphitization capacity of 25,000 tonnes per year

The expansion would further position Graphite One as a potential domestic supplier of active anode materials at a time when North American supply chains continue to seek localized sources of critical battery inputs.

Customer Qualification and Offtake Discussions Progressing

Graphite One has delivered commercial-grade anode material samples, including quantities of up to 20 kilograms, to:

• Three major electric vehicle manufacturers
• Three leading battery companies

All counterparties are currently conducting specification testing.

In parallel, the Company has entered into discussions regarding potential binding offtake agreements with select participants involved in the sample evaluation process.

"We are encouraged by the level of engagement taking place with prospective customers," added Mr. Huston. "The ongoing evaluation process and commercial discussions represent important steps toward establishing long-term customer relationships."

Positioned Within a Strategic North American Supply Chain

Graphite One's development strategy links its Graphite Creek resource in Alaska — identified by the U.S. Geological Survey as the largest graphite deposit in the United States and among the largest globally — with downstream processing capabilities in Ohio.

The Company believes this vertically integrated model aligns with growing North American efforts to localize critical mineral and battery material supply chains.

"As governments and industry continue prioritizing domestic supply chain development, we believe Graphite One is well positioned to participate in this structural market shift," said Mr. Huston.

Construction and development activities for the Ohio facility remain subject to financing, permitting, power agreements, equipment procurement, regulatory approvals, and other customary development conditions.

Grant of Long-Term Incentive Awards

The board of directors of the Company has approved the annual grant of 968,016 restricted share units ("RSUs") and 525,000 stock options ("Options") to employees, directors, and consultants pursuant to the terms of the Company's Omnibus Plan.

Each RSU will convert into one common share of the Company on the following vesting dates:

• 50% of RSUs vest on May 18, 2027
• 25% of RSUs vest on June 30, 2027
• 25% of RSUs vest on September 30, 2027

The Options have an exercise price of $1.13 per share, being the closing price of the Company's shares on the TSX Venture Exchange ("TSX-V") on May 15, 2026. The Options vest one-third (1/3) on the first, second, and third anniversary of the grant date and will expire on May 19, 2031.

A copy of the Omnibus Plan will be included in the management information circular of the Company dated May 15, 2026, which will be available on the Company's website or on the Company's profile on SEDAR+ at www.sedarplus.ca.

Equity awards to the officers for calendar year 2026 are expected to be issued in July 2026 as it is subject to obtaining all requisite approvals, which will be sought at the upcoming 2026 Annual General and Special Meeting of Shareholders on June 26, 2026.

Following the above-noted grant of RSU and Options, the Company has 208,967,736 common shares issued and outstanding and 4,398,006 RSUs, 4,873,272 performance share units, and 10,705,738 stock options issued under the Company's Omnibus Plan.

Graphite One's Domestic Supply Chain Strategy

The United States is currently 100% import-dependent for natural graphite, Graphite One is developing a fully integrated U.S.-based supply chain anchored by the Graphite Creek deposit – recognized by the U.S. Geological Survey as the largest graphite deposit in the U.S. and among the largest globally. The strategy includes:

• Mining at Graphite Creek (Alaska)
• Transport via the Port of Nome
• Processing into advanced graphite and anode materials in Ohio
• Potential co-located recycling facility to recover graphite and other battery materials

This integrated approach positions Graphite One to become a cornerstone supplier in a domestic, circular battery materials economy.

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 active anode 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 or contact:

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.

All statements in this release, other than statements of historical facts, including those related to the satisfactory completion of due diligence and entering into a formal lease agreement on the Conneaut property, the anticipated results from anode material sample testing, the anticipated timing and construction of the Ohio facility, the anticipated timing and completion of Phase One Production and Phase Two Production expansion; the successful outcome of any discussions to date regarding potential offtake arrangements;, and events or developments that the Company intends, expects, plans, or proposes are forward-looking statements. Generally, forward‐looking information 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". The Company cautions that there is no certainty that the Company will receive project financing, that it will have the required equipment available to it and on a timely basis, or that it will receive all permits and regulatory approvals to progress the construction of the Ohio facility. 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.