Gratomic Signs Indicative Term Sheet With Technology Metals Market, TM2

February 8, 2022 Press Release

Toronto, ON. February 8, 2022, Gratomic Inc. (“Gratomic”, “GRAT,” or the “Company”) (TSXV:GRAT) (OTCQX:CBULF) (FSE:CB82) announces that it has signed an indicative term sheet with Millenium Metals LTD (“TM2”) to supply graphite over 60 consecutive months, to begin upon commencement of commercial production at its Aukam Graphite Project in Namibia. The companies forged a strategic partnership with the intention of being the first to industrialize graphite as a commodity (as mentioned in the press release dated June 30, 2021).

TM2 is the world’s first spot market where direct investment in technology metals is possible. It is quickly becoming the one-stop-shop for electric vehicle (EV) battery manufacturers and OEMs. The metals and minerals available on the TM2 platform are essential to EV batteries, aerospace, semiconductors, and many additional high-tech industries. Millenium Metal’s innovative approach to commodities has created a global community within the electric vehicle space. Learn more about TM2 here.

The Parties have agreed to enter an a long form agreement within 6 months where Gratomic will commit to supplying 30% of its total production of its SG16 uncoated and 15% of its SG16 coated graphite material year over year for 60 consecutive months from the date that the Company’s Aukam Graphite Plant officially enters commercial production. Commercial production is defined as an output of greater than 51% of total production, which is estimated for Q3 of 2022.

The first 3-month commitment will be at a fixed price of $2,700 USD per ton for graphite grade SG16 uncoated, and $8,000 USD per ton for graphite grade SG16 coated. After the first 3 months of delivery, products shall be purchased from Gratomic at prevailing market rates and according to Fastmarkets graphite price for graphite and subject to final weight and assays.

A provisional payment of 90% in advance will be made quarterly to Gratomic for the upcoming 3-month delivery period based on planned production and prices on the date of payment. Final payment will be made when final weight, assays and prices are known, according to 3-month quotational period and no later than 90 days after delivery LESS 2.5% total invoice value as commission.

The processing plant at the Company’s Aukam Graphite Project was built to accommodate an initial 20,000 tonnes per annum of output and was engineered in a modular design to accommodate rapid expansion over time. The over-engineering of the front and back end of the plant, allows the Company to quickly increase capacity up to 45,000 tonnes per year, to accommodate the market increase in demand. Some aspects of the plant have already been adapted to reflect the impending expansion efforts. Product output is intended to be supplemented through the development of Gratomic’s Capim Grosso graphite project in the Bahia State of Brazil.

Armando Farhate, COO & Head of Graphite Marketing and Sales, says: “When we started our partnership with TM2, we already knew that we were heading for great achievements together, and this agreement is the materialization of the first of many to come”.

“Gratomic, like TM2, is founded on forward-thinking and this transaction is a prime example of how we strive to create opportunities rather than settling for the status quo. Gratomic will continue to establish itself as a multinational graphite supplier and aims to stake out a solid position in the electric vehicle battery sector,” stated Arno Brand President & CEO.

Gratomic emphasizes that no Preliminary Economic Analysis (“PEA”), Preliminary Feasibility Study or Feasibility Study has been completed to support any level of production. No mineral resources, or mineral reserves demonstrating economic viability and technical feasibility, have been delineated on the Aukam property.

Gratomic wishes to emphasize that the supply of graphite to trade on the TM2 metals exchange referred to in this Press Release is conditional on Gratomic being able to bring the Aukam project into a production phase, and for any graphite being produced to meet certain technical and mineralization requirements. Gratomic continues to move its business towards production and as part of its business plan, expects to obtain a National Instrument 43-101 Standards of Disclosure for Mineral Projects technical report to help it ascertain the economics of the Aukam project.

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.

The Company advises that it has not based its production decision on even the existence of mineral resources let alone on a feasibility study of mineral reserves, demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals 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.

Steve Gray, P. Geo., technical advisor to the Company and a “Qualified Person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects has reviewed and approved the scientific and technical information in this Press Release.

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 (Electric Vehicle) 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 (Atomic Layer Deposition) coating, this cooperation with Forge Nano is a key element to support Gratomic’s strategies towards the value-added phases of production of graphite for anode applications, namely micronization, spheronization and coating, making Gratomic graphite a preferred choice for use in lithium-ion batteries.

For more information:

Visit the website at www.gratomic.ca or contact: Arno Brand at abrand@gratomic.ca or (416) 561- 4095 Subscribe at gratomic.ca/contact/ to be added to our email list. For Marketing and Media information, please email: info@gratomic.ca “Neither 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.”

Forward Looking Statements:

This news release contains forward-looking statements, which 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 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)