Graphite One Resources Inc. announced an increase of the existing inferred resource by 68% to 284.71 Million Tonnes of 4.5% Graphitic Carbon, and by 41% to 37.68Mt of 9.2% Cg at cut-offs of 2% Cg and 7% Cg, respectively. The resource is comprised from drilling along 4.8 km of continuous near surface high-grade graphite mineralization. The Graphite Creek Deposit is only 18 miles from a seasonal road and approximately 24 miles from a newly proposed deep-sea port west of Teller (Port Clarence), which could be accessible by either land or water.

Highlights: This new and expanded inferred resource is comprised of 2012 and 2013 drilling by Graphite One and represents a 68% increase of the estimated in situ graphite from the previous 2012 maiden resource; High-grade graphite mineralization is at surface and extends from surface to depths of over 200m; The 2013 drilling program further confirmed excellent continuity of near surface, high grade graphite within a simple and accessible geological setting and doubled the strike length of current mineralization at the Graphite Creek Deposit to 4.8 km's; The resource area (4.8km) only represents drilling along 27% of an 18km long electro-magnetic conductor; and The Deposit remains open along strike to both the east and west, and down dip. Every hole continues to be mineralized from top to bottom. The mineral resource estimate was prepared by Steve Nicholls, BASc, MAIG and Roy Eccles, M.Sc., P.Geol.

of APEX Geoscience Ltd., both of whom are independent Qualified Persons under National Instrument 43-101, using the most current Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves, Definitions and Guidelines. The Expanded Graphite Creek Inferred Resource are constrained within a drilled area of approximately 4.8km along the northeast striking trend of the graphitic schist, 230m across the strike to the southeast and 320m below surface. Geological interpretation and estimation utilized 28 drillholes (totaling 5,272m) that were drilled by Graphite One in 2012 and 2013.

Spacing between drillholes generally varied from 50 to 500 m, with an average of 190 m between drillhole sections. Based on the drillhole spacings, a parent block size of 20m x 20m x 20m with sub-blocking down to 5m x 5m x 5m was applied. The deposit remains open along strike to both the east and west, and down dip.

The graphite deposits occur within distinct geological layers that comprise high-grade massive to semi-massive segregated, and disseminated, large-flake graphite in sillimanite-garnet-biotite-quartz schist and biotite-quartz schist (+/-garnet) host rocks. Accordingly, the geological model and estimation is guided by eight distinct mineralized lodes, or statistically derived groupings of elevated graphite mineralization, that are shown to extend laterally for various distances along the strike of the deposit. Of these lodes, the higher in situ graphite tonnage occurs in surface/near-surface mineralized lodes comprised of sillimanite-garnet-biotite-quartz schist.

The Graphite Creek assay file comprised 4,930 analyses of variable length from all the sampled lithologies. The mineral resources were estimated using analytical data from 28 surface drill holes for which samples were assayed for Cg using the LECO analytical method (composite to 2m) at Activation Laboratories Inc., Ancaster, ON, Canada ("Actlabs"). Based on drill core lithologies and the assay file, a total of eight different mineralized wireframes, or lodes, were interpreted in the three-dimensional geological model.

Of the 4,930 assays in the Graphite One database, 2,599 assays were situated within the mineralized lodes. Upon the completion of the compositing process (at 2m intervals), a total of 1,271 composites were used in the estimation process. Density values (n=4,928) were estimated for each individual block throughout the block model.

Variography was limited because most drill sections had a single drillhole, and subsequently, grade estimation of graphite percentage was performed using inverse-distance squared methodology. Graphite One conducted laboratory quality assurance/quality control ("QA/QC") tests, where 99 duplicate samples from the 2013 drill program were analyzed at two separate, independent laboratories (Actlabs and Acme Analytical Laboratories Inc.). The results yielded good correlation of graphitic carbon between data from the two laboratories with the majority of samples plotting near the 1:1 line, and provides confidence in the graphite concentration data used in the Expanded Graphite Creek Inferred Resource.