December 13th , 2019, Vancouver – Ceylon Graphite Corp. (“Ceylon Graphite” or the “Company”) (TSX-V: CYL) (OTC: CYLYF) (FSE: CCY) today announced that its wholly owned subsidiary Sarcon Development (Pvt) Ltd (“Sarcon”) has started commercial production at its K1 Graphite Mining Project at Karasnagla, Sri Lanka (the “K1 Project”).
“We are finally in commercial production mode and look forward to selling our first container of Sri Lankan vein graphite- today we have brought 2 tons of raw graphite to the surface” said Bharat Parashar, Chief Executive Officer. “These 3 years have been a learning process and whilst this is just the first step to creating a globally recognized graphite mining company, we are now much better prepared to develop our next sites and at a faster pace. I would also like to place on record our thanks to the GSMB for all its support”.
The Company is presently in discussions with several end users and processors of natural graphite regarding sales contracts. Sri Lankan graphite is known to be amongst the purest in the world.
Pictured below is Chief Executive Bharat Parashar with Dr Nalaka Godahewa, Founder Member of Viyathmaga of Sri Lanka, Dr C.H.E.R Sriwardane, Director General, Geological Survey and Mines Bureau of Sri Lanka and Mr Sasha Jacob, CYL shareholder with the first production of raw vein graphite from the K1 mine.
Forward-Looking Information
This press release contains forward-looking information based on current expectations. Statements about the acquisition or disposition of securities of the Company by the Acquiror, among other things, are all forward-looking information. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding looking wording such as “may”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or similar variations. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. 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, estimates, forecasts, projections and other forward looking statements will not occur. These assumptions, risks and uncertainties include, among other things, the state of the economy in general and capital markets in particular, and other factors, many of which are beyond the control of the Company. Risk factors that could cause actual results or outcomes to differ materially from the results expressed or implied by forward-looking information include, among other things: changes in laws, general economic and business conditions; and changes in the regulatory regime. The final exchange bulletin will not be issued if the Exchange determines that the Company has not met the conditions set out in the Exchange’s conditional approval letter. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information or for a copy of the early warning report filed with the relevant Canadian Securities regulators in conjunction with this news release please contact Optimal Energy B.V., Attention: Jody Lenihan at 949.677.2299.
Also pictured below is Mine Manager Sunil Jayasuriya with Sarcon miners..
The Company is presently in discussions with several end users and processors of natural graphite regarding sales contracts. Sri Lankan graphite is known to be amongst the purest in the world.
Pictured below is Chief Executive Bharat Parashar with Dr Nalaka Godahewa, Founder Member of Viyathmaga of Sri Lanka, Dr C.H.E.R Sriwardane, Director General, Geological Survey and Mines Bureau of Sri Lanka and Mr Sasha Jacob, CYL shareholder with the first production of raw vein graphite from the K1 mine.
The Company also announces that Sarcon’s drilling and exploration program will increase in its momentum as the Company looks to increase its footprint to at at least 5 mine sites over 2020.
Cautionary Note
In accodace with National Instrument 43-101 – Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators, Ceylon Graphite advises that it has not based its production decision on a feasibility study of mineral reserves demonstrating economic and technical viability of the K1 Project, and that the mineral resource estimate for the K1 Project is comprised predominately of an inferred mineral resource. As a result there is increased uncertainty and there are multiple technical and economic risks of failure which are associated with this production decision.
These risks, among others, include areas that are analyzed in more detail in a feasibility study, such as applying economic analysis to resources and reserves, more detailed metallurgy and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts.
Qualified Person
Robert Marvin, P. Geo (ONT) is a Qualified Person under National Instrument 43-101 and has reviewed and approved the geological information provided in this news release.
About Ceylon Graphite Corp.
Ceylon Graphite Corp, is a public company listed on the TSX Venture Exchange (CYL:TSX-V), that is in the business of exploration and development of graphite mines in Sri Lanka. The Geological Survey and Mines Bureau (“GSMB”) of the Government of Sri Lanka has granted the company’s wholly owned subsidiary Sarcon Development (Pvt) Ltd. and Industrial Mining License Category A for its K1 Project at Karasnagla, Sri Lanka. An Industrial Mining License Category A is the highest category license in Sri Lanka and grants exclusive rights to mine, process and trade in graphite mined within the area specified in the license. It also allows for underground multiborehole blasting, commercial production, use of all mining machinery and equipment and export of graphite.Graphite mined in Sri Lanka is known to be some of the purest in the world, and currently accounts for less than 1% of the world graphite production.
These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedar.com).
Further information regarding the Company is available at www.ceylongraphite.com
Bharat Parashar, Chairman & Chief Executive Officer
Corporate Communications
(604) 559-8051
