Graphano Energy Drills First Hole at LAB Graphite Project

VANCOUVER, Feb. 4, 2022 - Graphano Energy Ltd. (TSXV: GEL) (OTCQB: GELEF) (FSE: 97G0) (the "Company" or "Graphano Energy") is pleased to announce that Phase 1 drilling activity has commenced at its 100% owned Lac Aux Boulea

ux Graphite Property ("LAB", the "LAB Property" or the "Property") in Quebec (see Figure 1). Drilling contractor Forage Hébert Inc. of Amos, Quebec, has been awarded the contract for the drill program.

The Company plans to complete approximately 20 holes totaling 2,800 meters NQ size core drilling on the Property. The program will focus on Zones 1 and 4 where 2021 surface trenching and sampling programs identified significant grades and widths of graphite mineralization (see Graphano mews release dated January 13, 2022), including:

• Channel sample results from Zone 1 include 7.9% Cg over 9.5 meters including 13.9% over 4.5 meters; and
  
  
• Channel sample results from Zone 4 include 18.0% Cg over 4.0 meters and 5.8% Cg over 8.0 meters which includes 14.8% over 3.0 meters.

The intent of the drill program is to evaluate the characteristics and magnitude of mineralization in these two zones. The program will be the Company's initial step in building a current Canadian Institute of Mining Metallurgy and Petroleum (CIM) / National Instrument 43-101 compliant mineral resource on the Property.

Zones 1 and 4 are just two of the eight prospective targets which have been defined on the Property to date through the Company's surface trenching and sampling programs completed in 2021, as well as a compilation of historical drilling and other exploration data. The most relevant historical data is from Orrwell Energy Corp.'s 1980s program consisting of 79 diamond drill holes totalling 19,550 feet (5,958 metres) and resource estimation work. This historical drilling is located on the southern portion of the Property outside the eight target zones recently defined (see Figure 2). The resource estimation resulted in an historical resource of 1,320,847 tons at 9% Cg, or 1,452,932 tons at 8% Cg (Source: Douglas Parent 1982, MRNF report GM46736, also see Graphano's technical report available under the Company's profile on SEDAR (www.sedar.com)). Note: The above historical resources were calculated by block models using different cut-off grades, and a specific gravity of 2.76. A Qualified Person has not done sufficient work to classify the historical estimate as current mineral resources. The Company is not treating the historical estimate as a current mineral resource or reserve.

Luisa Moreno, Chief Executive Officer, commented: "We are pleased that the drilling program is now under way and we will be spending the next four to six weeks performing exploratory drilling in two of the eight new target areas. An important asset of LAB is its metallurgy. The Property contains a high proportion of large and jumbo flakes from which a high purity concentrate was proven to be produced across all flakes by a simple flotation process. We also have the historical resource site that will be investigated as we prepare to build a resource."

Qualified Person

The technical content disclosed in this press release was reviewed and approved by Mr. Martin Ethier, Géo (#1520), who is a Member of the Order of Geologists of Québec and a "Qualified Person" under National Instrument 43-101, and Afzaal Pirzada, who is a member of the Association of Professional Engineers and Geoscientists of British Columbia with license No. 28657.

About Graphano Energy

Graphano Energy Ltd. is an exploration and development company that is focused on evaluating, acquiring and developing energy metals resources from exploration to production.

Graphite is one of the most in-demand technology minerals that is required for a green and sustainable world. Our Lac Aux Bouleaux property in Quebec, Canada, has historically been an active area for natural graphite. With the demand for graphite growing in some of the most prominent and cutting-edge industries, such as lithium batteries in electric cars and other energy storage technologies, we are developing our project to meet the demands of the future.

ON BEHALF OF THE BOARD OF DIRECTORS

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.

Cautionary Note Regarding Forward-Looking Statements:
This news release contains certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable securities legislation. All statements, other than statements of historical fact, included herein, without limitation, relating to future operations - exploration, drilling and other activities of Graphano Energy - are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or" should" occur or be achieved. Forward-looking statements in this news release relate to, among other things, the Company's exploration plans and the impact thereof. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by Graphano Energy, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements and the parties have made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation, the ability to complete proposed exploration work given the global COVID-19 pandemic, the results of exploration, continued availability of capital, and changes in general economic, market and business conditions. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these items. Graphano Energy does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by applicable securities laws.

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SOURCE Graphano Energy Ltd.