Ceylon Graphite’s Silicon Enhanced Vein Graphite Anode Material Significantly Increases Specific Discharging Capacity in Half Cell Lithium-Ion Battery Tests

• Ceylon Graphite conducted initial half cell testing for silicon enhanced vein graphite at WMG Battery Catapult, University of Warwick.
• Impressive 13% increase in discharging capacity was achieved for Ceylon's natural vein graphite enhanced with core shell silicon additive compared to its baseline Ceylon Vein graphite material and commercial synthetic graphite.
• Acceptable first cycle capacity loss of 12%.
• The impressive performance is due to in-house developed dual core-shell additive technology and proprietary silicon enhancement capabilities; we also believe that the inherent properties of vein graphite such as high crystallinity & purity also play a key role.
• Ceylon's "mine to battery" strategy will maximize the value of our high-grade Sri Lankan vein graphite by vertically integrating into an anode graphite producer for the rapidly growing global lithium-ion battery market.
  

VANCOUVER, British Columbia, Feb. 01, 2022 -- Ceylon Graphite Corp. ("Ceylon Graphite") (TSX-V: CYL) (OTC: CYLYF) (FSE: CCY) is pleased to announce that it has achieved a significant breakthrough in the performance of its silicon enhanced vein graphite anode material for the lithium-ion ("Li-ion") battery market. In tests at a leading global, independent facility, Warwick University, performance of Ceylon's vein graphite anode material was further improved by its core-shell silicon additive. This is the first time in battery research history that commercial spherodized, silicon enhanced vein graphite materials were tested in a lithium-ion battery in a half cell.

Results came in at 446 mAh/g for specific discharge capacity (SDC) for silicon enhanced vein graphite materials, which is 13% higher than what is achieved for vein graphite on its own (393 mAh/g, another impressive result) under the same testing conditions. The synthetic comparison data is from earlier test work performed at WMG (summarized in chart below).

A Media Snippet accompanying this announcement is available by clicking on the image or link below:

A Media Snippet accompanying this announcement is available by clicking on the image or link below:

Ceylon CEO Don Baxter stated, "We had very good results from our initial coin cell battery tests as well as our full cell test, but I am excited to see the performance improvement of vein graphite with silicon enhancements. These results are a highly significant development for Ceylon, and we believe we can further improve these numbers as we continue perfecting the technology. The unique characteristics of our Sri Lankan vein graphite combined with our proprietary processing technologies produces a Li-ion battery with significantly higher power and energy as tested by WMG. In addition, we believe that the energy consumption of the end-to-end process of producing battery grade anode material from vein graphite is the lowest, relative to synthetic and flake graphite, because vein graphite from Sri Lanka does not require primary processing, due to the high in situ grade above 90%Cg."

Ceylon also announces it has granted an aggregate of 4 million stock options to its directors, and Officers. Each option is exercisable at 20 cents per common share at any time until January 26, 2027.

QUALIFIED PERSON

Donald K. D. Baxter, P.Eng. CEO of Ceylon Graphite Corp., is a Qualified Person as defined by National Instrument 43-101 ("N.I. 43-101") guidelines and has reviewed and approved the content of this news release.

About Ceylon Graphite Corp.

Ceylon Graphite is a public company listed on the TSX Venture Exchange, that is in the business of mining for graphite, and developing and commercializing innovative graphene and graphite applications and products. Graphite mined in Sri Lanka is known to be some of the highest grade in the world and has been confirmed to be suitable to be easily upgradable for a range of applications including the high-growth electric vehicle and battery storage markets as well as construction, healthcare and paints and coatings sectors. The Government of Sri Lanka has granted the Company's wholly owned subsidiary Sarcon Development (Pvt) Ltd. an IML Category A license for its K1 mine and exploration rights in a land package of over 120km?. These exploration grids (each one square kilometer in area) cover areas of historic graphite production from the early twentieth century and represent a majority of the known graphite occurrences in Sri Lanka.

Further information regarding the Company is available at www.ceylongraphite.com

Don Baxter, Chief Executive Officer

info@ceylongraphite.com

Corporate Communications

+1(604) 765 8657

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in 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 information as such term is defined in applicable securities laws, which relate to future events or future performance and reflect management's current expectations and assumptions. The forward-looking information includes statements about Ceylon Graphite's grids, Ceylon Graphite's plans to undertake additional drilling and to develop a mine plan, and to commence establishing mining operations. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to Ceylon Graphite, including the assumption that, there will be no material adverse change in metal prices, all necessary consents, licenses, permits and approvals will be obtained, including various Local Government Licenses and the market. 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. Risk factors that could cause actual results to differ materially from the results expressed or implied by the forward-looking information include, among other things, an inability to reach a final acquisition agreement, inaccurate results from the drilling exercises, a failure to obtain or delays in obtaining the required regulatory licenses, permits, approvals and consents, an inability to access financing as needed, a general economic downturn, a volatile stock price, labour strikes, political unrest, changes in the mining regulatory regime governing Ceylon Graphite, a failure to comply with environmental regulations and a weakening of market and industry reliance on high quality graphite. Ceylon Graphite cautions the reader that the above list of risk factors is not exhaustive.