Ceylon Graphite Provides Update On Filing Annual Financial Statements

10th September 2021

VANCOUVER, British Columbia, Sept. 10, 2021 (GLOBE NEWSWIRE) — Ceylon Graphite Corp. (“Ceylon” or the “Company”) (TSX-V: CYL) (OTC: CYLYF) (FSE: CCY) previously announced in news releases dated July 30, 2021, August 13, 2021 and August 27, 2021, the Company has been delayed in completing its filings of the annual financial statements, management’s discussion and analysis and related officer certifications for the financial year ended March 31, 2021 (the “Annual Filings”). COVID-19 related interruptions and restrictions in Sri Lanka has caused the delay in the Company’s filings. Sri Lanka continues to be in the midst of a nation-wide lockdown as a result of the COVID-19 pandemic. The Company has sought an extension for filings and was approved for a management cease trade order by the British Columbia Securities Commission as of July 30, 2021.

In accordance with National Policy 12-203 – Management Cease Trader Orders (“NP 12-203”), the status of the Annual Filings remains ongoing and the Company is working diligently with its auditors towards completing same on or before September 29, 2021. The Company confirms as of the date of this news release that there has been no material change in the information contained in the default announcement issued July 30, 2021, and there is no other material information concerning the affairs of the Company that has not been generally disclosed. Until the Annual Filings are completed, the Company will continue to provide bi-weekly default status reports in accordance with the provisions of the Alternative Information Guidelines set out in NP 12-203.

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 purest 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 120km². 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

[email protected]

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.