Graphite One Resources Inc.
TSX VENTURE : GPH
OTCQX : GPHOF

Graphite One Resources Inc.

September 30, 2014 16:15 ET

Graphite One Closes Second Tranche of Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 30, 2014) - Graphite One Resources Inc. (TSX VENTURE:GPH)(OTCQX:GPHOF) ("Graphite One" or the "Company") is pleased to announce it has completed and closed on a second tranche of its previously announced non-brokered private placement with an additional $2.95 MM. Together with the first tranche that closed on August 27, 2014, the Company has raised a total of $4,977,191.05.

Pursuant to this closing, the Company has issued a total of 22,686,925 units (the "Units") at a price of C$0.13 per Unit. Each Unit consists of one common share and one non-transferable common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional common share of the Company at a purchase price of $0.20 per share during the first two years from the date of issuance and at a price of $0.25 per share during years three and four from the date of issuance.

No new insiders were created, nor any change of control occurred, as a result of the offering. The Company has paid finders' fees to date in the aggregate amount of $166,166 and issued 1,278,200 non-transferrable share purchase warrants, each such warrant entitling the holder to acquire one additional common share of the Company at the same price as the Warrants described above.

The Company expects to close on a third tranche by the middle of October of up to an additional 5,165,385 units for total gross proceeds of $671,500. NHP Asset Management AG based in Zurich Switzerland, serving and advising high net-worth clients and companies globally, will be subscribing for $600,000 as part of this third tranche.

The net proceeds of this offering will be used for exploration and development of the Company's Graphite Creek project and for general working capital purposes.

Closing is subject to receipt of final applicable regulatory approvals including approval of the TSX Venture Exchange. All securities issued in connection with the private placement will be subject to a restricted period that expires four months following the date of issuance.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Graphite One

Graphite One Resources Inc. is exploring with the intent to develop the Graphite Creek Project, USA's only advanced staged large-scale, large flake graphite deposit. Graphite Creek reports a NI 43-101 inferred resource of 284.71 million tonnes at 4.5% graphite (including 37.68 million tonnes at 9.2% graphite and 8.63 million tonnes at 12.8% graphite). For more information please see www.graphiteoneresources.com.

ON BEHALF OF THE BOARD OF DIRECTORS

Anthony Huston

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This release includes certain statements that may be deemed to be forward-looking statements. All statements in this release, other than statements of historical facts that address timing of closing the offering, final amount raised under the offering, receipt of regulatory approvals, exploration drilling, exploitation activities and events or developments that the Company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes in government policies regarding mining and natural resource exploration and exploitation, and continued availability of capital and financing, and general economic, market or business conditions. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this press release, and the Company undertakes no obligation to update publicly or revise any forward-looking information, except as required by applicable securities laws. For more information on the Company, investors should review the Company's continuous disclosure filings that are available at www.sedar.com.

The mineral resource estimates reported in this press release were prepared in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"), as required by Canadian securities regulatory authorities. For United States reporting purposes, the United States Securities and Exchange Commission ("SEC") applies different standards in the classification of mineralization. In particular, while the terms "measured," "indicated" and "inferred" mineral resources are required pursuant to NI 43-101, the SEC does not recognize such terms. Canadian standards differ significantly from the requirements of the SEC. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories constitute or will ever be converted into reserves. In addition, "inferred" mineral resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities laws, issuers must not make any disclosure of results of an economic analysis that includes inferred mineral resources, except in rare cases.

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