AGORACOM Small-cap Investor Relations Blog

• First of two monthly graphite purchase orders to the value of US$ 6 Million as part of an aggregate US$25,000,000 deal spanning over 39 months payable in Toda Notes (“TDN”)
• The deal between TODAQ and Gratomic Inc. is powered by the TDN digital asset
• Graphite to sit in TDN reserve backstop to underpin the true value of the digital asset

Gratomic Inc. (“Gratomic” or the “Company”) (TSX-V:GRAT)(FRANKFURT:CB81) a vertically integrated graphite to graphenes, advanced materials development company announces it has received its first two purchase orders for a total of USD 6 Million following a previously announced supply agreement on October 17, 2019 (https://gratomic.ca/gratomic-signs-deal-to-supply-graphite-to-todaq/) for an aggregate of USD $25,000,000 of graphite in an all-digital-asset deal from TODAQ STAR Program Phase 1 Corp, a subsidiary of TODAQ Holdings. The purchase orders are each for 600 tonnes of graphite valued at USD $6,000,000 solely payable in TDN at a price of USD$0.10 per TDN for an aggregate of TDN 60,000,000 that is to be delivered within 90 days.

Subsequent to the success of the initial delivery, TODAQ will place one additional order of 600 tonnes of graphite with 30 day intervals bringing the total to 1800 tonnes of graphite for USD $9,000,000 in consideration for the issuance of an aggregate of 90 million TDN. Thereafter, TODAQ will place orders on a monthly basis with the value of USD $484,848.49 based on both the purchase price for graphite and the exchange between USD and TDN applicable at the time over a period of 39 months.

The agreement marks the first steps towards a significant journey for Sovereignty Tech pioneer TODAQ, with a strategic intention towards both building its TDN rewards program and allowing cryptographic ownership of commodities so that all business, people and markets can transact quickly with security and long-term stability. Furthermore, the graphite will sit in the TDN reserve backstop as part of a diverse set of commodities to underpin the true value of deployed TDN with physical substance and utility.

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 satisfying the terms of the Todaq Supply Agreement.

Gratomic wishes to emphasize that Supply Agreement 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 Aukam. Presently the Company uses its existing pilot processing facility to produce certain amounts of graphite concentrate from accumulated surface graphite.

Risk Factors

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.

The Supply Agreement provides that if Gratomic is unable to deliver graphite in accordance with the orders from Todaq, Todaq has the right to refuse to take any subsequent attempt to fulfil the order, terminate the agreement immediately, obtain substitute product from another supplier and recover from the Company any costs and expenses incurred in obtaining such substitute product or suing for damages under the contract.

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. has reviewed, prepared and approved the scientific and technical information in this press release and is Gratomic Inc’s “Qualified Person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

About TODAQ

TODAQ serves businesses, financial institutions and governments, offering a true digital asset ownership management platform for secure and efficient settlement. Leveraging the TODA protocol, each asset maintains an immutable, sovereign record of ownership. TODAQ aims to enhance the right of ownership over digital assets through the use of cryptographic and legal techniques to replace intermediaries. In 2019, TODAQ officially launched the TODA Note (TDN) as a fungible digital payment and loyalty asset. To learn more about TODAQ and TDN, please visit https://todaq.net and https://tdn.network, questions should be directed to [email protected].

About Gratomic Inc.

Gratomic is an advanced materials company focused on mine to market commercialization of graphite products most notably high value graphene based components for a range of mass market products. Gratomic is collaborating with a leading European manufacturer of graphenes to use Aukam graphite to manufacture graphene products for commercialization on an industrial scale. 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, Co-CEO, +1 416-561-4095

E-mail inquiries: [email protected]

• The global tire market acknowledges that employing graphenes within tire treads, walls and the inner linings can make tires lighter, provide better grip and reduce rolling resistance to an extent that is not possible with existing tire compounds
• Key to the ability for Gratomic to establish the first mass-market Mine to Graphene to Tire, is the production of large quantities of graphenes nano surface modified to enhance tire performance
• Gratomic is developing and commercializing its Graphene Processing capacity in Wales through its partnership with Perpetuus carbon technologies and prepared an additional 2 tonnes of Graphite concentrate for converting into high quality Graphenes targeted for the use and development of several high value Graphene applications.

Tire Outperformance Categories:

 Rolling resistance

 Braking/grip on wet and ice roads

 Abrasion resistance

Tires, enhanced with surface engineered graphenes, produced a greater than 30% increase in wear resistance over the competing Brand Tires, equating to an additional +30% mileage before the tire was needed to be replaced.

Furthermore, the results of testing carried out by industry experts employing industry standard dynamic mechanical analysis (DMA) showed a significant improvement in rolling resistance, which indicated a greater than 30% improvement in fuel economy (increased MPG).

Results showed a greater than a 40% improvement in both wet and ice braking.

About Gratomic Inc.

Gratomic is an advanced material company focused on mine to market commercialization of graphite products, most notably high-value graphene-based components for a range of mass market products.

Gratomic Hub on Agoracom

FULL DISCLOSURE: Gratomic is an advertising client of AGORA Internet Relations Corp.

TORONTO, Oct. 29, 2019 /PRNewswire/ — Gratomic Inc. (“Gratomic” or the “Company”) (GRAT:TSXV) (CB81:FRA; WKN:A143MR) a vertically integrated graphite to graphenes, advanced materials development company announces the receipt of positive results from extensive testing of its graphene enhanced tires, versus globally recognized, premium brand tires. The Company believes these results represent a breakthrough in tire technology that warrants deployment into the global tire market.

Outperformance Categories: Rolling resistance, Braking/grip on wet and ice roads, and Abrasion resistance

THE TESTING PROGRAM

The 18 month development program included a 6-month terrain test in which graphenes enhanced tires (“Gratomic Tires”) and premium tires from a globally recognized ‘household name’ brand (“Brand Tires”) were fitted to high mileage, commercial light vehicles, which primarily travelled on A and B roads within the UK. Performance of the tires was data logged throughout the entire test period.

THE RESULTS

The results of the road test concluded the Gratomic Tires, enhanced with surface engineered graphenes, produced a greater than 30% increase in wear resistance over the competing Brand Tires, equating to an additional +30% mileage before the tire was needed to be replaced.

Furthermore, the results of testing carried out by industry experts employing industry standard dynamic mechanical analysis (DMA) showed a significant improvement in rolling resistance, which indicated a greater than 30% improvement in fuel economy (increased MPG).

Finally, the results showed a greater than a 40% improvement in both wet and ice braking.

“The initial 6-month competitive terrain testing program has demonstrated the economic benefits and advantages of including Gratomic’s graphite surface modified graphene fillers within tire elastomers,” said Ian Walters, COO Director of Perpetuus Carbon Technology (“Perpetuus”). Mr. Walters went on to say, “The Gratomic tires provided significantly improved performance when compared not only to mass market tires but also premium brand tires. I can confirm that Perpetuus scientists supervised all independent third-party industry expert performance analysis and also the data logged road testing exercise.”

MARKET IMPLICATIONS

“We see these results as a breakthrough in tire technology and safety. We look forward to deploying nano-engineered graphenes enhanced passenger and light commercial tires into the global tire market,” said Gratomic Chairman and Co-CEO, Sheldon Inwentash.

Mr. Ricketts, proprietor of the test vehicles stated, “We have a fleet of vans delivering parts, 6 days a week, in all weathers and on all types of roads. The data collected during the exercise surpassed our expectations and has shown that Gratomic tires outlasted the premier brand tires. Potentially, we could make a 40% saving on our annual tire budget, and that’s a lot of money.” Mr. Rickard is the proprietor of a fleet of light commercial vehicles who collaborated in the vehicle performance testing.

Further to the Company’s press release of January 16, 2019, Perpetuus and Gratomic have a collaboration agreement pursuant to which Gratomic provides graphite from its Aukam project for processing by Perpetuus at its dedicated facility, using its patented plasma process, to produce Hybrid Graphenes (less than 10 layers) to be included in elastomers for tire construction for the development of Graphene Ultra Fuel Efficient Tires (GUET).

About Gratomic Inc.

Gratomic is an advanced materials company focused on mine to market commercialization of graphite products most notably high value graphene based components for a range of mass market products. We have a JV collaborating with Perpetuus Carbon Technology, a leading European manufacturer of graphenes, to use Aukam graphite to manufacture graphene products for commercialization on an industrial scale. The Company is listed on the TSX Venture Exchange under the symbol GRAT.

• 178 tonnes of product processed through the existing pilot plant
• Systematically increased the grade to commercially desirable 95% – 97% Cg (Carbon in Graphite)
• Able to upgrade this material to over 99% Cg through air classification
• 350 tonnes of graphitic material stockpiled at the processing site ready for beneficiation

TORONTO, Oct. 24, 2019 /CNW/ – Gratomic Inc. (“Gratomic” or the “Company”) (TSX-V: GRAT) (CB81–FRANKFURT; WKN:A143MR) a vertically integrated graphite to graphenes, advanced materials development company is pleased to provide further updates from its Aukam Graphite Project in Namibia.

The Company is pleased to report that is has completed the crushing and grinding circuit which has a 50 metric tonnes per hour capacity. The Company also completed the installation and setup of the Processing Plant’s Rougher, Cleaner and Scavenger flotation columns.  The cumulative capacity of the columns combined with the Rougher Mixing Tank and slurry line is initially 2.8 tonnes per hour.

To date the Company has put 178 tonnes of product through the existing pilot plant systematically increasing the grade to commercially desirable 95% – 97% Cg (Carbon in Graphite). It has further indicated that it is able to upgrade this material through air classification to over 99% Cg.

Operationally, the Company has decided to put on hold an updated drying circuit pending financing of the Company. The drying circuit will be shipped to Namibia after the final payment of CAD $75,000 is made and will arrive within 39 days of the payment. The Company has decided to delay this upgrade in the short term in order to preserve available capital and will utilize the existing drying circuit which can manage the material drying requirements in the interim.

The Company has entered into an agreement with VIVO Shell in July of 2019 (the “Agreement”) to invest N$ 700,000 into the construction of a bulk 50,000 litre fuel storage facility that will be erected at the Aukam Fuel depot located within 1.2 km from the mine site. The Company is also in discussions with Namibia’s largest mining contractor “LEWCOR” and is reviewing plans to initiate mining and earth moving operations.

In preparation of product sales, a total of 350 tonnes of graphitic material has been stockpiled at the processing site ready for beneficiation. During the first two months of the LEWCOR contract, the stockpile will be further increased to 5,000 tonnes from available surface mine dumps which contain approximately 23,000 tonnes of graphitic material.

Management will be curtailing ongoing mining costs by temporarily reducing non-critical staff until the completion of a financing. The Company sees this as a positive means to decrease monthly capital requirements by approximately 75%.  All staff has been paid up to date with salaries being supported primarily through capital injection by the company’s two CEOs.  The non-critical mine staff that are not directly affiliated with mine construction will be rehired upon the completion of a financing to resume mining and processing activities.

Risk Factors

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.

Qualified Persons

Steve Gray, P. Geo. has reviewed, prepared and approved the scientific and technical information in this press release and is Gratomic Inc’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 most notably high value graphene-based components for a range of mass market products. The Company has a JV collaborating with Perpetuus Carbon Technology, a leading European manufacturer of graphenes, to use Aukam graphite to manufacture graphene products for commercialization on an industrial scale. The Company is listed on the TSX Venture Exchange under the symbol GRAT.