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

Ceylon Graphite closes $2M private placement led by Sasha Jacob

News Release

Ceylon Graphite Completes $2million Non-Brokered Private Placement led by Strategic Investment from Mr. Sasha Jacob

May 23rd, 2018 Vancouver BC – Ceylon Graphite Corp. (“Ceylon Graphite”) (TSX-V: CYL) (OTC: CYLYF) (FSE: CCY) is pleased to announce it has completed a non-brokered private placement offering of units, at a purchase price of CDN$1.00 per Unit for aggregate gross proceeds of CDN$2,000,000 led by a strategic investment from Mr. Sasha Jacob. Each Unit will be comprised of CDN$1.00 in principal amount of convertible debentures and two common share purchase warrants. 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 in three years, at a conversion price of CDN$0.25 per share. This is a premium of 25% to the current share price of CDN$0.20.

Closing of the Offering is subject to a number of conditions, including receipt of any necessary corporate and regulatory approvals including by the TSX Venture Exchange.

Mr. Sasha Jacob is one of Canada’s rising investor entrepreneurs who has a track record of spotting emerging sectors and game changing businesses to invest in early and nurture to maturity. He has done this successfully in the Renewable Energy and Cannabis sectors, where he was the first financier in Canada. In these sectors he has managed financial transactions valued at almost $10 billion. His ability to identify the Cannabis sector opportunity early resulted in returns to investors of over 10x and $1 billion in 24 months. Mr. Jacob has now trained his sights on the tremendous opportunity in Graphite and battery production for electric vehicles and energy storage.

Ceylon Graphite also announces that it has received assay results of laboratory testing of the latest graphite samples taken from its K1 mine site areas in Sri Lanka. These results indicate carbon content of 94.66 % (w/w). The laboratory testing was done by Geological Survey and Mines Bureau of the Government of Sri Lanka.

Bharat Parashar, Chief Executive Officer, said, “This has been a great week for us with the closing of the financing and with Mr. Jacob’s lead role. One is always fortunate when a major shareholder demonstrates their commitment to and faith in the company by increasing their exposure. We are also excited by the improvement in the quality of graphite found at our K1 site. We are currently at a depth of over 200 feet and expect the quality of the graphite mineralization to continue to improve as we go lower.”

In connection with the Offering, the Company paid certain arm’s length persons, finder’s fees in the aggregate amount of $67,500.”

Qualified Person

Robert Marvin, P. Geo (ONT) is a Qualified Person under National Instrument 43-101, and has reviewed and approved the geological information provided in this news release.

About Ceylon Graphite Corp.

Ceylon Graphite is a public company listed on the TSX Venture Exchange that is in the business of exploring for and development of graphite in Sri Lanka. The Government of Sri Lanka has granted the company exploration rights in a land package of over 100km². These exploration grids (each a square kilometre 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. Sri Lankan graphite is known to be some of the purest in the world, and currently accounts for less than 1% of the world graphite production.

“Neither 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.”

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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