Ceylon Graphite's M1 License Renewed, Clearing Path for Mining Restart

Ceylon Graphite Corp. (“Ceylon” or the “Company”) (TSX-V: CYL) (OTC: CYLYF) (FSE: CCY) is delighted to announce the successful renewal of its IML C license at the M1 mine. The renewal process encountered delays attributed to revisions in licensing protocols, criteria, and personnel. However, the Company foresees no further impediments in the licensing procedure and aims to promptly pursue the IML A license, enabling enhanced production capacity and sales opportunities.

Mining operations for graphite and material extraction through the mine shaft will resume promptly, accompanied by the on-site processing of high-grade graphite. Additionally, the construction of an incline tunnel is set to commence shortly, facilitating rail access through a 200-meter tunnel. This development is poised to substantially augment the daily capacity for material transportation.

"The site boasts abundant graphite veins," remarked Klaus Leiders, Head of Mining. "Our objective is to achieve a minimum monthly output of 200 tonnes from M1 once we've optimized operations and enhanced efficiency." The company plans to construct two exploration chambers underground to facilitate horizontal drilling and further refine production processes.

The graphite extracted from M1 consistently exceeds 90% carbon content, enabling direct sales without additional processing. The Company plans to construct a graphite processing facility at the M1 site to refine the graphite to a purity level of 99% or higher. Drawing from the experience of the in-country team, who have previously established such a plant in Sri Lanka, the Company anticipates a rise in revenue potential from the refined material exceeding 99%.

Sasha Jacob, CEO of Ceylon Graphite, expressed satisfaction in overcoming challenges to obtain the license renewal and resume mining operations. With a skilled team in graphite mining and management assembled and an increase in demand inquiries, the company anticipates revenue generation in the near term. Simultaneously, there is a commitment to expedite the progression of additional sites into production. This milestone signifies a new phase for the company, igniting enthusiasm for advancing development initiatives.

Ceylon Graphite, a publicly traded company listed on the TSX Venture Exchange (CYL:TSX-V), is engaged in graphite exploration and production in historically significant resource-rich regions of Sri Lanka. The company possesses a land package covering 121 km² of grids hosting historic vein graphite deposits. These distinctive vein (lump) deposits, known for their higher margins, currently constitute less than 1% of global graphite production. These exploration grids encompass the majority of known historical graphite resources in Sri Lanka, situated in areas with a rich production legacy dating back to the 1920s and 1930s.