Ceylon Graphite Provides Default Status Report

Vancouver, Sept. 10, 2024 (GLOBE NEWSWIRE) -- Ceylon Graphite Corp. ("Ceylon" or the “Company”) (TSX-V: CYL) (OTC: CYLYF) (FSE: CCY) is providing this default status report in accordance with National Policy 12-203 – Management Cease Trade Orders ("NP 12-203"). On July 30, 2024, the Company announced that it was not in a position to file its audited financial statements, CEO and CFO certifications, and management discussion and analysis (the “Annual Filings”) for the year ended March 31, 2024 on or before July 29, 2024.

On July 30, 2024, the British Columbia Securities Commission (“BCSC”), as principal regulator, granted the Company a management cease trade order ("MCTO"), pursuant to which the Company was required to completed the Annual Filings by September 27, 2024.

Since the granting of the MCTO, the Company has come to believe that there is a possibility it may not be able to complete the Annual Filings before the current filing deadline under the MCTO of September 27, 2024, due to an unforeseen and exceptional combination of events laid out below. For this reason, the Company has requested an extension of the MCTO deadline to October 11, 2024 from the BCSC.

The Company has been further delayed in completing Annual Filings because of two events which have occurred since the granting of the MCTO and which were outside of the Company’s control. First, as disclosed in the press release of the Company announcing the MCTO, dated July 30, 2024, the Company was and is undertaking an auditor transition, from Manning Elliott LLP (the “Former Auditors”) to MNP LLP (the “New Auditors”). Although the New Auditors have begun work on the required audit, the auditor transition has been delayed as the Company, the New Auditors and the Former Auditors negotiate the terms of the same. Additionally, shortly after the MCTO was granted, the Company’s Chief Financial Officer was temporarily incapacitated by serious health concerns, compounding the delays the Company has experienced in effecting the auditor transition.

The Company continues to working diligently with both the Former Auditors and the New Auditors to facilitate the auditor transition and expects to be in a position to file the Annual Filings on or before October 11, 2024.

Pursuant to NP 12-203, the Company must file bi-weekly default status reports in the form of further news releases during the period of the MCTO. The Company reports that since its news release of July 30, 2024, there have been no changes regarding the information contained in that news release that would reasonably be expected to be material to an investor and which have not been disclosed herein. Other than as described herein, the Company confirms that there have been no failures by it in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines under NP 12-203 and that there has not been, nor is there anticipated to be, any specified default subsequent to the default announced in the Company's news release of July 30, 2024. Lastly, the Company also confirms that there is no other material information concerning the affairs of the Company that has not been generally disclosed as of the date of this press release.