Ceylon Graphite – 2023 in Review

12th December 2023

Ceylon had an eventful and productive 2023 with many advancements even as we dealt with further delays preventing our commencement of full production.

The Not-So-Highlights

  1. Early in 2023, when applying for our explosives permit, we were informed that the mining licensing authority and process for renewal was being changed by the government. This has delayed the receipt of the production license renewal and explosives permit. We continue to diligently work towards the receipt of the license renewal and explosives permit as soon as possible and are encouraged by our ongoing working relationship with Governmental authorities in Sri Lanka. The changes made by the Government of Sri Lanka should lead to a better, more predictable and stable process for future license renewals and new licenses as we grow.

The Highlights

  1. We hired a new CEO – Founder & major shareholder, Sasha Jacob, to get us moving in the right direction and to implement new strategic initiatives.
  2. Since the Chinese government decision to restrict graphite exports, the number of potential clients approaching Ceylon has increased significantly.  The Company is confident that all production will be sold quickly.
  3. The sales plan is to sell direct ship 95%+C material initially, then to implement beneficiation at site allowing us to produce 99%C material which is in high demand and commands a significant premium.
  4. We have had discussions with various entities interested to provide non-dilutive working capital to the company as we seek to scale production upon receiving our license renewals.
  5. Our new mine manager has developed a comprehensive plan to ramp up production quickly and to construct our upgrader. He has previously scaled graphite production successfully in Sri Lanka on other projects and previously built an upgrading facility in Sri Lanka.
  6. Lastly, the company intends to pursue anode material production which will increase margins further. Significant work has been done to evaluate locations and secure funding for anode material production.
  7. It remains true that the grade, cost, performance and environmental footprint of Ceylon material provides a competitive advantage.

We are grateful to our investors and shareholders for their patience as we’ve worked through both historical issues within the company as well as changes in how we are regulated that were beyond our control.  We look forward to being able to announce positive resolutions to these challenges and significant production progress early in the New Year.

Join Sasha Jacob, CEO of Ceylon Graphite for a LIVE virtual event to learn more about Ceylon’s 2023 progress, 2024 outlook, Sasha’s January site visit, and to ask questions during the interactive Q&A session.

Date and time: Wednesday, January 17th at 12 pm ET / 9 am PT

Click here to register for this event.

Forward‐Looking Statements

This presentation contains or refers to certain forward‐looking information often be identified by forward-looking words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “may”, “potential” and “will” or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. All information other than information regarding historical fact, which addresses activities, events or developments that Ceylon Graphite Corp. (the “Company”) believes, expects or anticipates will or may occur in the future, is forward looking information. Forward‐looking information does not constitute historical fact but reflects the current expectations of the Company regarding future results or events based on information that is currently available. By their nature, forward‐looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward‐looking information will not occur or that may cause actual results to differ materially from those anticipated in such forward-looking statements. Such forward‐looking information in this presentation speaks only to the date hereof. Please refer to those risks set out in the public documents of the Company filed on https://www.sedarplus.ca. The Company undertakes no obligation to update or revise any forward‐looking information, except as required by law. No stock exchange, regulation services provider, securities commission or other regulatory authority has approved or disapproved the information contained in this shareholder letter or accepts responsibility for the adequacy or accuracy of the content of this newsletter.