Graphite One Receives Indication for Up to $325MM Financing from EXIM

Graphite One, planning a complete domestic U.S. supply chain for graphite materials, received a non-binding letter of interest from the Export-Import Bank of the United States (EXIM) for potential debt financing of up to $325 million through EXIM’s “Make More in America” and “China and Transformational Exports Program” (CTEP) initiatives._x000D_
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The letter of interest states: “We are pleased to extend this letter of interest in support of the proposed capital funding plan by Graphite One (Alaska) Inc. for the AAM Manufacturing Facility. Based on the preliminary information submitted regarding expected U.S. exports and U.S. jobs supported by this project, EXIM may be able to consider potential financing of up to $325 million of the project’s costs with a repayment tenor of 15 years under EXIM’s Make More in America initiative.”_x000D_
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“Today’s announcement confirms Graphite One’s focus on developing a 100% U.S.-based advanced graphite materials supply chain,” Anthony Huston, president and CEO of Graphite One, said. “EXIM’s potential financing, following on G1’s two Department of Defense grants under the Defense Production Act and from the Defense Logistics Agency, underscores the urgent need to bring U.S. graphite supply into production, and end the nation’s 100% foreign dependency.”_x000D_
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The EXIM letter of interest indicated the transaction may also be eligible for special consideration under Section 402 of EXIM’s 2019 reauthorization (P.L. 116-94), which directs EXIM to take steps to mitigate the competitive impact of export support provided by the People’s Republic of China and other covered countries for opportunities such as this one under EXIM’s CTEP initiative._x000D_
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G1 expects to submit a formal application to EXIM in 2025. Upon receipt of an application for financing, EXIM will conduct all requisite due diligence necessary to determine if a Final Commitment may be issued for this transaction. Any final commitment will be dependent on meeting EXIM’s underwriting criteria, authorization process, finalization and satisfaction of terms and conditions. All final commitments must comply with EXIM policies as well as program, legal and eligibility requirements._x000D_
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The company intends to make a production decision on the Graphite One Project upon completion of its Feasibility Study, expected in Q1/25. The Feasibility Study’s release has been delayed from December 2024 to allow time for the review and analysis of additional geotechnical data resulting from the extension of the summer drilling program.