British Columbia Debt/Convertible Financing TSX Venture Graphite Sri Lanka OTC FSE

Ceylon Graphite announces $2M private placement

News Release

CEYLON GRAPHITE ANNOUNCES CDN$2,000,000 NON-BROKERED FINANCING

April 16, 2018 – Vancouver, BC – Ceylon Graphite Corp. (“Ceylon Graphite or the “Company”) (TSX-V: CYL) (OTC: CYLYF) (FSE: CCY) is pleased to announce that it intends to complete a non-brokered private placement offering (“Offering”) of units (“Units”), at a purchase price of CDN$1.00 per Unit for aggregate gross proceeds of CDN$2,000,000. Each Unit will be comprised of CDN$1.00 in principal amount of convertible debentures (“Convertible Debenture”) and two common share purchase warrants (each warrant a “Warrant”). Each Convertible Debenture shall be unsecured, bear interest at the rate of 6% per annum, calculated and payable three years from the date of closing (“Maturity”). The principal amount of the Convertible Debentures will be convertible at the holder’s option into fully-paid common shares in the capital of the Company at any time prior to Maturity, at a conversion price of CDN$0.25 per share, provided however, such conversion shall occur in minimum tranches of CDN$50,000. Each Warrant shall entitle the holder to purchase one common share in the capital of the Company at a price of CDN$0.25 per share for a period of three years from the date of closing, subject to acceleration in the event that the volume weighted average trading price of the Company’s common shares on the TSXV (or such other exchange or quotation system) is greater than or equal to CDN$0.50 for a period of twenty consecutive days.

All of the securities issued in connection with the proposed Offering are subject to a hold period of four months and one day.

Jacob Securities Holdings Inc., a company controlled by Sasha Jacob, and current control person of the Company, has agreed to subscribe to up to CDN$1,000,000 worth of Units in the Offering.

Ceylon Graphite will use the net proceeds of the Offering to continue its current exploration program and for working capital purposes. The Offering is subject to certain conditions including normal regulatory approvals, including the approval of the TSX Venture Exchange. The Closing Date of the Offering is anticipated to occur on or about April 30, 2018.

About Ceylon Graphite Corp.

Ceylon Graphite Corp is a public company listed on the TSX Venture Exchange (CYL:TSX-V), that is in the business of exploring for and development of graphite mines in Sri Lanka. The Government of Sri Lanka has granted the company exploration rights in a land package of over 120km². These exploration grids (each one square kilometer in area) cover areas of historic graphite production from the early twentieth century and represent a majority of the known graphite occurrences in Sri Lanka. Graphite mined in Sri Lanka is known to be some of the purest in the world, and currently accounts for less than 1% of the world graphite production.

Further information regarding the Company is available at www.ceylongraphite.com
Bharat Parashar, Chairman and & Chief Executive Officer
Chairman & Chief Executive Officer
info@ceylongraphite.com
Corporate Communications
(604) 559-8051

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