Gratomic Inc. provides laboratory assay results on its third trenching program at its Capim Grosso project in Brazil. This program aimed to unveil the extension of a second graphite deposit located south-east of the main deposit on the Company's Capim Grosso Project. The assays have been received from SGS Geosol in Brazil, which included 19 trench samples.

Gratomic did not insert its own internal certified reference material but relied on SGS for QA/QC procedures. The QA/QC procedures of SGS included two certified reference material (CRM) (OREAS 724 and 725) as well as two duplicate assays, all of which assayed within 98 % of the expected graphitic carbon value of the CRMand of the original sample value. The QP therefore accepts the values of the laboratory assays.

While the trenches were excavated as close to perpendicular on strike of local litholgies, the dip of each trench cannot be perpendicular on a lithological dip. SGS Geosol's graphitic carbon assay methods and equipment include the LECO carbon-sulphur analyzer and high temperature combustion infrared detection. During this procedure, the carbon in the sample is converted to carbon dioxide (CO2), which is then measured by infrared (IR) detectors.

Graphitic carbon assays from the trenches completed on the Capim Grosso project. Trenches were sampled according to visual grade estimation in three meter increments in horizontal continuous sections on the trench walls. Where visual grade was regarded as continuous, sampling was completed up to a maximum of 4 meter increments.

highlights intervals from holes CGD014, CGD015 and CGD016 on the Capim Grosso Project (1 % TGC cut-off grade and 3 % minimum TGC grade used). More detailed information of the assay results from the 2 holes is set out in Table 2 below. Gratomic did not insert its own internal certified reference material but relied on SGS for QA/QC procedures.

The QA/QC procedures of SGS included two CRMs (OREAS 724 and 725) as well as two duplicate assays, all of which assayed within 98 % of the expected graphitic carbon value of the CRM and of the original sample value. The QP therefore accepts the values of the laboratory assays. While the trenches were excavated as close to perpendicular on strike of local litholgies, the dip of each trench cannot be perpendicular on a lithological dip.