Graphite One Resources Inc. Executes Graphite Creek Lease Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 28, 2015) - Graphite One Resources Inc. (TSX VENTURE:GPH)(OTCQX:GPHOF) is pleased to announce that its wholly owned subsidiary, Graphite One (Alaska) Inc. ("Graphite One" or the "Company"), an Alaska corporation, has executed a definitive long-term lease agreement (the "Lease") with Kougarok LLC for its 24 unpatented federal mining claims (the "Leased Claims"). These 24 claims, together with certain adjoining state mining claims already owned by the Company (the "Owned Claims"), collectively make up Graphite One's Graphite Creek Property (the "Property").

Kougarok LLC, a member-managed Alaska limited liability company, optioned the Leased Claims to the Company in 2012. Key provisions of the final Lease include the following:

• Term: an initial 20 year term, commencing effective as of January 1, 2014, with provisions to extend for two successive 20 year periods and, ultimately, for as long as production continues from the Property.
• Advance Royalty: US $30,000 paid upon execution of the Lease and US $30,000 payable on or before January 1 and every anniversary through January 2019, then increasing by US $10,000 each year thereafter until production commences. All advance royalties paid may be recouped from production royalties.
• Production Royalties: a percentage of the net smelter returns on production derived from lands, as follows: from lands in the 4 federal claims located in 1943 (the "Oldest 4 Federal Claims") - 5%; from lands within the other 20 federal claims (the "Other Federal Claims") - 2.5%; from lands within state claims staked by the Company within the area of interest - 5%; and from lands within state claims acquired by the Company within the area of interest- 2.5%. The Company has the option during the Lease term to reduce all production royalties by up to 2% by paying US $2 million for each 1% reduction.
• Conditional Relinquishment: the Company may elect to relinquish one or more of the Leased Claims and thereafter to rely on its state mining claims, under the terms set forth in the Lease.

The Company announced on March 3, 2014, that it had earned the right to enter into the Lease as a result of having satisfied its obligations under the Graphite Creek Option Agreement with Kougarok LLC. The Company estimates that over 90% of the 17.95 million tonnes of indicated resources (grading 6.3% graphitic carbon using a 3% Cg cut-off grade) announced on March 17, 2015, are situated within the Oldest 4 Federal Claims.