Gratomic Signs Amended Letter of Intent to Acquire 100% Interest in Brazilian Graphite Exploration Project

TORONTO, ON / ACCESSWIRE / September 28, 2021 / Gratomic Inc. ("Gratomic", "GRAT" or the "Company") (TSXV:GRAT)(OTCQX:CBULF)(FRA:CB82) is pleased to announce that, further to its Press Release dated August 13, 2021, the Company has entered into an amended letter of intent with Zumbi Mineração Brazil ("Zumbi") and the shareholders of Zumbi (collectively the "Vendors") for the acquisition of 100% of the rights and interests in and to the "Capim Grosso Property" (the "Acquisition") comprising mineral claim 870.180/2012 (426.03 Ha) located in Capim Grosso, BA, Brazil (the "Target Property").

In consideration for a 100% interest in the Target Property, Gratomic will, upon closing of the Acquisition (the "Closing"): (i) make a one-time cash payment equal to CAD $ 200,000; (ii) issue 1,666,667 common shares ("Common Shares") in the capital of GRAT (the "Subject Shares"), subject to a standard four month and one day hold period from Closing; and (iii) issue a further 2,173,913 Common Shares (the "Restricted Shares") which will be subject to a twelve (12) month resale restriction from Closing. The Subject Shares and the Restricted Shares will be issued as directed by the Vendors.

The Vendors will also retain a 3% gross smelter return royalty (the "Royalty") in respect of all minerals processed from the Target Property, other than graphite, on the terms and conditions set forth in a gross smelter royalty agreement, which shall contain the usual covenants, agreements, terms and conditions for a royalty agreement (the "Royalty Agreement"). The Royalty will be reduced by any pre-existing net smelter royalties in respect of the Target Property.

Acquiring the Brazilian graphite project provides Gratomic the opportunity to diversify the Company's interests and develop the graphite deposit at the Capim Grosso project. This strategically positions the Company to better meet growing demand for high quality graphite and provides a significant competitive advantage by limiting risk through business development in several key mining friendly jurisdictions.

The Capim Grosso graphite project is located within the São Francisco Craton (SFC). The SFC is a tectonic domain surrounded by Neoproterozoic orogens. Its southern sector is composed by Archean crust, with age between 3.5 and 2.6 Ga, that is formed mostly by granite-gneisses and greenstone belts constituted by mafic-ultramafic, intermediate-felsic volcanic and volcanoclastic rocks with terrigenous sediments. Graphite at Capim Grosso is set within NW-SE striking ultramafic units.