Gratomic Inc. provided its fifth progress update on the bench-mining program at its Aukam Graphite Project in Namibia. The benching process typically involves successively cutting berms alongside the mountain edge in order to steadily expose underground material, at the same time ensuring the stability of the mountain structure. This process allows for the collection of graphite in stages as the platforms are constructed on the Aukam mountain.

As the benching advances, wider benches are scheduled to improve liberation of graphite at Aukam. This will aid unnecessary mineral loses during the bench-mining operations. Approximately 1,000 tonnes of graphite have been transferred from the mountain to the ROM (Run of Mine) pad in preparation for processing.

Another 1,600 tonnes of mineral have been extracted bringing the cumulative total to 2,600 tonnes. The ROM stockpile has been separated by estimated grade, ensuring constant feed into the plant, securing more consistent recoveries and improved tailings management. Bench-mining is progressing as planned.

The safety of the benching operation is a major priority, with no incidents having been recorded during the process. Operator training is also a high priority to ensure the health and safety of machine operators, due to the benching process in the mountain area. Gratomic wishes to emphasize that no Preliminary Economic Analysis, Preliminary Feasibility Study or Feasibility Study has been completed to support any level of production.

In fact, no mineral resources let alone mineral reserves demonstrating economic viability and technical feasibility, have been delineated on the Aukam property. The Company is working towards completing a Feasibility Study (FS) on the Aukam Processing plant. The study, its recommendations, and their subsequent implementation, will provide conclusions and recommendation at a FS level of comfort relating to the scale up of the existing processing plant to a commercial scale processing facility capable of producing the desired concentrate grades and production rates.

Risk Factors: 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 the processing plant until the FS (Feasibility Study) is completed. The Company advises that it has not based its production decision on even the existence of mineral resources let alone on a Preliminary Feasibility Study or FS 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.