Ceylon Graphite Achieves Breakthrough Results with Silicon Enhanced Anode Graphite in Full Cell Lithium-Ion Batteries

• Ceylon Graphite's unique natural vein graphite material enhanced with nano silicon additives has substantially outperformed industry standard synthetic graphite by more than 10%, We note CYL's discharge capacity of 171 mAh/g, as compared to the industry standard of 153 mAh/g
  
• We believe that the impressive performance of our vein graphite material is due to the following:
  • High crystallinity of vein graphite;
  • High purity and further purification technology; and,
  • CYL proprietary nano silicon graphene encapsulation coating and spherodizing technology.
• Ceylon Graphite continues to evaluate full cell performance at University College London in the UK.
• Ceylon has a mine-to-battery strategy that will maximize the value of our high-grade Sri Lankan vein graphite by transforming it into anode graphite for the rapidly growing lithium-ion battery market.
  

VANCOUVER, British Columbia, March 21, 2022 -- Ceylon Graphite Corp. ("Ceylon") (TSX-V: CYL) (OTC: CYLYF) (FSE: CCY) is pleased to announce it has achieved a significant breakthrough in the performance of its vein graphite anode material in full cells for the lithium-ion ("Li-ion") battery market. In tests at University College London (UCL), a leading global, independent facility, Ceylon's vein graphite anode material far exceeded comparable anodes made with industry standard commercial synthetic graphite. This is the first time in battery research history that commercial spherodized vein graphite materials were tested in a lithium-ion battery in a full cell.

Remarkable results have been achieved for Silicon enhanced Ceylon Natural Vein Graphite anode materials as the company continues to make progress on developing its Graphite for Li-ion battery anode material. Initial results indicate an improved performance of silicon enhanced Ceylon vein graphite with specific discharge capacity (SDC) of 171 mAh/g, compared to 153 mAh/g for the current high end commercial synthetic graphite (summarized in Chart Below).

Testing continues to produce extended cycling performance data and, the cells exhibit expected trends in reversible charge/discharge trends. Meanwhile, Ceylon Graphite's technical team continues to optimize its in-house developed core-shell silicon additive technology to achieve stable charge/discharge performance.

"We had very good results from our initial half-cell silicon enhanced battery tests, but this exceeded my expectations for full cell silicon enhanced batteries," stated Ceylon CEO Don Baxter. "These results are a highly significant development for Ceylon. The unique characteristics of our Sri Lankan vein graphite combined with our proprietary processing technologies produces a Li-ion battery with significantly higher power and energy as evaluated by UCL. Based on the results, Ceylon's graphite will set a new industry standard."

Further, Ceylon's industry leading performance is combined with outstanding ESG achievements given the energy consumption of the end-to-end process of producing battery grade anode material from vein graphite is the lowest, relative to synthetic and flake graphite," added Baxter. It is a fact that vein graphite from Sri Lanka does not require primary processing, due to the high in situ grade above 90%Cg, giving us a huge environmental advantage over competitors."

QUALIFIED PERSON

Donald K. D. Baxter, P.Eng., CEO of Ceylon Graphite Corp., is a Qualified Person as defined by National Instrument 43-101 ("N.I. 43-101") guidelines, and has reviewed and approved the content of this news release.

About Ceylon Graphite Corp.

Ceylon Graphite is a public company listed on the TSX Venture Exchange, that is in the business of mining for graphite and developing and commercializing innovative graphene and graphite applications and products. Graphite mined in Sri Lanka is known to be some of the highest grade in the world and has been confirmed to be suitable to be easily upgradable for a range of applications including the high-growth electric vehicle and battery storage markets as well as construction, healthcare and paints and coatings sectors. The Government of Sri Lanka has granted the Company's wholly owned subsidiary Sarcon Development (Pvt) Ltd. an IML Category A license for its K1 mine and exploration rights in a land package of over 120km?. These exploration grids (each one square kilometer in area) cover areas of historic graphite production from the early twentieth century and represent a majority of the known graphite occurrences in Sri Lanka.

Further information regarding the Company is available at www.ceylongraphite.com

Don Baxter, Chief Executive Officer

info@ceylongraphite.com

Corporate Communications

+1(604) 765 8657

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

FORWARD LOOKING STATEMENTS:

This news release contains forward-looking information as such term is defined in applicable securities laws, which relate to future events or future performance and reflect management's current expectations and assumptions. The forward-looking information includes statements about Ceylon Graphite's grids, Ceylon Graphite's plans to undertake additional drilling and to develop a mine plan, and to commence establishing mining operations. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to Ceylon Graphite, including the assumption that, there will be no material adverse change in metal prices, all necessary consents, licenses, permits and approvals will be obtained, including various Local Government Licenses and the market. Investors are cautioned that these forward-looking statements are neither promises nor guarantees and are subject to risks and uncertainties that may cause future results to differ materially from those expected. Risk factors that could cause actual results to differ materially from the results expressed or implied by the forward-looking information include, among other things, an inability to reach a final acquisition agreement, inaccurate results from the drilling exercises, a failure to obtain or delays in obtaining the required regulatory licenses, permits, approvals and consents, an inability to access financing as needed, a general economic downturn, a volatile stock price, labour strikes, political unrest, changes in the mining regulatory regime governing Ceylon Graphite, a failure to comply with environmental regulations and a weakening of market and industry reliance on high quality graphite. Ceylon Graphite cautions the reader that the above list of risk factors is not exhaustive.