Gratomic Aims to Become a Cleaner Source of Graphite for North American Consumers

TORONTO, September 3, 2020 - Gratomic Inc. ("GRAT" or the "Company") (TSXV:GRAT)(OTC PINK:CBULF)(FRANKFURT:CB81) (WKN:A143MR) aims to become a cleaner graphite source for North American consumers and is pleased to announce the Company's objective to process graphite in a clean and environmentally responsible manner.

As the battery manufacturing industry becomes increasingly competitive, many electric vehicle battery manufacturers are currently forced towards choosing lesser environmentally friendly graphite options. In many cases, the mining and processing methods used can be unsafe and some have the potential to cause major pollution in neighbouring cities and towns. Alternatively, many electric vehicle battery manufacturers are turning to synthetic graphite sources, often created in labs from petroleum and biogas by-products, among other carbon sources. These methods can also potentially produce undesirable emissions during the processing phase.

Arno Brand: President and CEO commented:

As the world is becoming more drawn towards Cleaner metals, Gratomic is taking on a leadership position by aiming to produce higher quality Cg with a lower carbon footprint. We have a clear objective as a company, to maximize engineering efforts and to minimize environmental impact. We intend to create a new commodity class that includes, as part of the product specifications, the environmental footprint imposed by producing that tonne of material in an effort to provide buyers with full disclosure on the product's impact.

In its design efforts, the Gratomic team has taken every possible step to minimize environmental impact and lower the carbon footprint of Gratomic graphite. The Company has designed new and innovative graphite processing procedures that will produce higher quality graphite while minimizing environmental impacts and lowering the carbon footprint created during the processing phase. Calculations conducted internally by our team of industry experts reveals that the production of one tonne of graphite at a percentage of approximately 98% Cg will create a very low carbon footprint of 0.8Kg of carbon emissions, or 16,000 kg per annum.

We believe accomplishing this objective is a positive environmental step forward and a true example of Gratomic's vision, innovation, and leadership in the graphite mining industry. Our graphite processing design also encompasses a unique water recycling and filtration system that is expected to recover up to 95% of the water used during the processing phase.

The graphite intended for processing at the Company's Aukam Graphite Project is in a naturally weathered state and contains little deleterious elements mitigating any lasting negative environmental impacts. This information has been verified through numerous analytical results from testing programs. Pilot testing has validated that the majority of the reject material contained minor amounts of clay silica and iron with smaller traces of calcium. The rejects material when analysed did not contain any sulfur or heavy metals which generally pose the greatest environmental threat.

The Company utilizes all resources so efficiently and effectively that waste is extremely limited. Gratomic is highly focused on recycling and has found a use for the residual material that resides in its tailing ponds. This slurry by-product to be extracted from the tailing ponds is intended to be recycled into bricks. It would be combined with concrete and compressed, and the residual graphite contained in the slurry, when incorporated into the bricks, should result in stronger, longer lasting product, particularly in hot climates.

Gratomic wishes to emphasize that no Preliminary Economic Analysis ("PEA"), 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 recently appointed Dr. Ian Flint to complete a preliminary economic assessment (PEA) on the Aukam Processing plant. The study, its recommendations, and their subsequent implementation, will provide conclusions and recommendation at a PEA level of comfort relating to the scale up of the existing processing plant to a commercial scale processing facility that will provide the desired concentrate grades and production rates. A preliminary economic assessment is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.

Gratomic wishes to emphasize that the supply of graphite pursuant to any off-take or supply agreement 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. and a Director of the Company has reviewed and approved the scientific and technical information in this press release and is the Company's "Qualified Person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

About Gratomic Inc.

Gratomic is an advanced materials company focused on mine to market commercialization of graphite products and components for a range of mass market products. The Company currently holds two off-take purchase agreements for graphite product sourced from the Aukam facility. One agreement is with TODAQ and the other is with Phu Sumika. The Company is listed on the TSX Venture Exchange under the symbol GRAT.

For more information: visit the website at www.gratomic.ca or contact:

Arno Brand at abrand@gratomic.ca or 416 561-4095

"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 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.