1 Made in Alaska: Alaska Graphite -- America’s Newest Power Source POWERING AHEAD www.graphiteoneresources.com SPRING 2017 TSX-V:GPH | OTCQX:GPHOF
2 Forward-Looking Statements This presentation contains "forward-looking statements” which are made as of the date of this presentation and Graphite One Resources does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements include, but are not limited to, statements with regard to the actual ability to produce spherical graphite, ultimate further and final results of additional test-work, progress of TRU Group and the Company during 2016, the timing and successful completion of the PEA, industry projections regarding EVs and power storage devices, results of TRU’s study being accurate regarding characteristics of the Graphite Creek Mineralization, the timing, amount and success of future exploration and exploitation activities, and events or developments that the Company expects, the sustainability and environmental effects of spherical graphite. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or developments of the Company to be materially different from those in the forward-looking statements. Such factors include, among others, results of product development test work may not be indicative of the advancement of the project as anticipated, or at all, market prices, exploitation and exploration successes, continuity of mineralization, uncertainties related to the ability to obtain permits, licenses and title delays, changes in government policies regarding mining and natural resource exploitation, accidents, labour disputes and other risks of the mining industry; ability to get or delays in obtaining financing. www.graphiteoneresources.com TSX-V: GPH | OTCQX: GPHOF
3 About Graphite One Graphite One Resources (TSX-V:GPH | OTCQX:GPHOF) is advancing the Graphite Creek Deposit to become a premier supplier of technology- grade graphite to the booming lithium-ion battery , energy storage , and mobile technology manufacturing sectors . The Company’s naturally occurring STAX graphite offers a compelling advantage in the creation of technology-grade graphite. The Graphite Creek Deposit is strategically located in Alaska with direct ocean access to the high-tech American hub and Asian markets. In January 2017, the Company completed its Preliminary Economic Assessment ( PEA ) for its Graphite Creek deposit, valuating the Graphite Project at US$1.037B (pre-tax at 10% discount rate) NPV. www.graphiteoneresources.com TSX-V: GPH | OTCQX: GPHOF
4 T echnology-Grade Graphite Demand Set to Skyrocket ▶ Lithium-ion batteries require 8-10x more graphite than lithium More power, energy and lifetime than any other battery for the same ▶ mass and volume Natural graphite required to reduce costs and environmental footprint ▶ ▶ Global demand ready to skyrocket for high quality natural graphite Automakers – 1.26M electric cars sold in 2015 1 ▶ Alevo GridBanks – energy storage units, factory in Concord, NC ▶ Tesla Powerwall – the next generation of home power ▶ Dyson – building a $1 Billion gigafactory ▶ Electronics/technology – all things mobile powered by li-ion batteries ▶ USA is the world’s largest tech-driven graphite consumer – with ▶ zero production Current consumption of 60,000 Mtpa and growing ▶ Demand expected to increase 200% by 2020 and 300% by 2025 ▶ Estimated demand will require 3 new 50,000 Mtpa mines to come ▶ online www.graphiteoneresources.com TSX-V: GPH | OTCQX: GPHOF 1 Source : Global EV Outlook 2016 - International Energy Agency
5 “ Lithium is actually 2% of the cell mass. It sounds like it's big because it's called ‘ Lithium-Ion ,’ but really our batteries should be called ‘ Nickel-Graphite .’ ” – Tesla CEO Elon Musk at Code Conference 2016 - Tesla constructing world’s largest lithium-ion battery factory in Nevada with cell production expected to begin by 2017 WHAT THIS MEANS - There is 54kg of graphite in the battery anode of each Tesla Model S (85 kWh) USA will be the largest source of - Graphite, the battery anode, to be largest input raw material lithium-ion batteries in 5 years, strengthening Graphite One’s - By 2020, Gigafactory expected to dominate lithium-ion position to become the USA’s battery market making 500k batteries annually and potentially: premium graphite supplier . - Increasing demand for battery grade graphite by up to 170% (60Kt in 2014 to 102Kt in 2020) - Reducing cost of lithium-ion batteries by 60% ($250/kWh in 2014 to $100/kWh by 2020). Panasonic is Tesla’s sole battery supplier. Source: Benchmark Mineral Intelligence March 2015 Q1
6 Battery Surge Electric vehicle lithium-ion battery demand to surpass consumer applications in 2022 Source: Bloomberg New Energy Finance, Avicenne
7 U.S. Graphite Demand The U.S. is 100% import-dependent for graphite 1 Reliance The U.S. imported $45.2MM Natural Graphite in 2013 2 . There was not a single oz. produced in the United ▶ States. “ Right as foreign oil becomes less of a national concern, our foreign mineral dependence has taken its place as ▶ insidious thread to America’s security, growth and competitiveness .” – The American Mineral Security Act of 2015 The European Union has included Natural Graphite on its Critical Raw Materials (CRMs) list. These combine ▶ high economic importance with a high risk associated with their supply. 1 Source: US Geological Survey 2 United States Geological Survey Mineral Resources Program
8 Battery Graphite in China Demand for battery anode material at an all time high 1 90,000 Impurities 80,000 Preventing fringe producers from entering the market. ▶ 70,000 Drags down capacity utilization rates and makes China’s BTR ▶ 60,000 New Energy Materials the dominant player. 50,000 Demand 40,000 China produced 110,000 battery-powered vehicles from ▶ 30,000 January-August 2015 alone. 20,000 The country is the number one producer of Electric Vehicles ▶ 10,000 (EVs) as of January 2016 with 233% YOY growth . 2 0 2015 output Real capacity THE SOLUTION GPH STAX has the potential for exceptional processing , higher yields and higher performance . With a large resource and consistent quality , Graphite One is a major competitor. The company is committed to responsible and sustainable practices. www.graphiteoneresources.com TSX-V: GPH | OTCQX: GPHOF 1 Source: Benchmark Minerals | October 16, 2015 2 Source: hybridcars.com | January 18, 2016
9 Feeding the Energy Storage Beast Energy storage revenue is forecasted to exceed $16.5 Billion by 2023 1 MAJOR PRODUCTS DRIVING UNPRECEDENTED DEMAND – 200% GROWTH IN DEMAND IN NEXT 4 YEARS Lithium-Ion Batteries 10-30x more graphite than lithium by weight ▶ required to produce these batteries. Market is expected to grow 200% in next 4 ▶ years . Stationary/Energy Storage Batteries ▶ Operate continuously to accumulate energy from sources with unpredictable energy flows, releasing it during peak demands . ▶ Homes & businesses storing solar and wind power generation. Mobile T echnology Evolving technology requires battery power for ▶ most modern devices; consumers demand long- lasting battery life. Global E-Bike sales to reach $24.3B by 2025 due ▶ to falling Lithium prices. 1 Source: Navigant Research
10 10 Electric Vehicles Timeline Chevrolet (2010) Atieva (2018) T esla Motors (2008) The Roadster was the first The plug-in hybrid Volt The Silicon Valley start-up plans production automobile to represents the evolution of to produce an electric car by use lithium-ion battery cells. GM technologies. 2018. Mitsubishi (2009) Smart, Volvo, & Ford (2011) The Future The i-MiEV launched in By 2022 EV’s will cost the Japan for fleet customers. same as their internal- combustion counterparts. 1 1 Source: Bloomberg
Graphite One has defined 11 America’s largest high quality graphite deposit 6 Graphite One’s inferred resource easily surpasses other American projects in size. 5 Potential: 40-year Mine Additional Life based on drill results for only 4 20% of the total deposit. Indicated & Inferred (in Million Tonnes) 3 5.71 2 3.55 2.14 1 1.43 0.74 0 Northern Graphite Zenyatta Ventures Focus Graphite Alabama Graphite Graphite One (Ontario) (Ontario) (Quebec) (Alabama) (Alaska)
12 Graphite Creek Mineralization SW NI 43-101 Cut - Off Tonnage Graphite In Situ Cg PEA February 2, 2017 Indicated Resource 6% 10.3 Mt 7.2% Cg 0.74 Mt Inferred Resource 6% 71.2 Mt 7.0% Cg 4.97 Mt
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