Graphite Corp. Letter to Shareholders

Letter to Shareholders

VALLEY COTTAGE, Nov 5, 2015 - Graphite Corp. (OTCQB: GRPH) (the "Company" or "Graphite Corp."), a company in the nanotechnology and energy storage sector as a commercializer of promising, disruptive nanotechnologies, has released a letter to shareholders discussing the Company's results since it switched its business model from graphite mining to nanotechnology commercialization in August 2014.


Results since the Company switched its business model to nanotechnology commercialization

We commenced execution of our current business model in August 2014 when we licensed our first high-quality graphene flake synthesis technology from Ben Gurion University. Following on from that we licensed our second technology from Rice University in December 2014. Our second technology is a graphene-based electrode that provides super-performance in batteries and capacitors. As the graphene flake market is emerging slowly, we decided to focus our efforts on commercializing our graphene electrode technology.


em>First Six Months of 2015

Realizing that nanotechnology, battery and advanced materials manufacturing and scale-up expertise is critical to the success of our graphene electrode business plan, we started 2015 by recruiting a team of experts with such expertise. In this connection, we secured the services of three groups of experts: (i) Jaim Nulman (formerly of Applied Materials) with advanced materials manufacturing and scale-up expertise, (ii) Vladimir Mancevski and Paul McClure (both of whom are currently with Xidex Corporation) with nanotechnology and graphene growth expertise and (iii) certain post-doc researchers at Rice University with battery expertise. In parallel to this, we prepared a detailed business and production plan to commercialize our graphene electrode technology within 18 months from funding. This plan will allow us to optimize the production parameters to achieve the highest-performance electrode material on the market today with consistent quality and at a competitive price to what is being used today.

Most importantly, as the first half of 2015 closed, we managed to produce a full-cell battery prototype incorporating our graphene electrode technology that has been cycled over 300 times and has consistently achieved performance that matches the results obtained by Rice University in its lab. This performance is superior to any lithium ion battery or capacitor on the market today. The task going forward is to secure the necessary funding to replicate the success we had with our first prototype and scale-up production so that we are producing commercial volumes of graphite electrodes with consistent quality/performance and at a competitive price.


July 1 - to-date in 2015

Having finalized an achievable business plan and built the necessary team to execute on such business plan in the first half of 2015, once the second half of 2015 began, we turned our attention to fund-raising, branding and telling our story to the world. In this connection, we have achieved the following results:

• Signed a non-exclusive term sheet with a group of Chinese investors to finance the commercialization of our graphene electrode. The Chinese group finished testing the graphene electrodes on October 27, 2015 and has indicated it wishes to proceed. We expect negotiations to commence in the upcoming weeks. The Chinese group is interested in obtaining the rights to manufacture and distribute our graphene electrode technology in China.


• Signed a non-exclusive term sheet with an investor/arranger pursuant to which our investor/arranger has already made the first tranche of its investment and is in advanced negotiations with various strategic co-investors.


• Have received other offers of financing, which are being evaluated for feasibility.


• Have retained an inbound marketing/investor relations expert to help us brand our products and technology and tell our story to the world.


• Have entered into a $2,000,000 equity line of credit agreement with Premier Ventures ("Premier") pursuant to which, over a 36-month period, we will have the right to sell up to $2,000,000 in shares of our common stock to Premier subject to the fulfillment of certain conditions.


• Have commenced discussions with owners of other technologies for eventual addition to our portfolio of technologies.

Future

We will continue to focus primarily on the commercialization of our graphene electrode technology, fundraising and expanding our portfolio of technologies. Now that we have successfully produced a first prototype battery using our graphene electrode technology and have assembled a world-class team to scale-up production, we are ready to start pending receipt of adequate financing. We anticipate that we will be able to start earning revenues within 12-18 months of receipt of capital. Our first marketing attempts will likely be in the battery chargers, e-bicycles, wearables, e-forklifts, drones, back-up energy storage and other items that do not have specific form factors. With data from the performance of our technology in these industries, we will be in a much stronger position to penetrate the electric vehicle, smart phone and other markets.


About Graphite Corp.

Graphite Corp. is a company in the advance materials and energy storage sectors. Graphite Corp. licenses promising nanotechnologies and commercializes them by replicating the production process in a commercial lab and then scaling-up production to commercial volumes with consistent quality and competitive prices. The Company aspires to become a key player in the global nanotechnology and energy storage markets. For further information please visit the Company's website www.grphcorp.com


Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and as that term is defined in the Private Litigation Reform Act of 1995, which are subject to risks and uncertainties and may change at any time. These statements are only predictions and involve known and unknown risks, uncertainties and other factors including, without limitation, (i) uncertainties regarding our ability to obtain adequate financing on a timely basis, including financing for our graphene electrode technology and/or other specific projects, (ii) the financial and operating performance of our technologies after commercialization efforts have been commenced, (iii) uncertainties regarding the market for and value of our technologies, (iv) political and governmental risks associated with the countries in which we operate, (v) unanticipated delays associated with commercialization, including, but not limited to, retaining qualified staff and experts, securing suitable premises, cost overruns, (vi) the development stage of our business and (vii) our lack of operating history. As such, there is no assurance that the initiatives described in the press release will be successfully implemented or meet expectations.

The Company assumes no obligation to update the information in this release.



Contact

Graphite Corp.
Mark Radom, chief executive officer
646 934 6920
mark@grphcorp.com