Graphano Intersects 6.61% Graphite Over 4 Metres at the LAB Graphite Project

Vancouver, BC, May 19, 2022, Graphano Energy Ltd. (“Graphano Energy” or the “Company”) (TSXV: GEL, OTCQB: GELEF, FSE: 97G0) is pleased to announce results of its Phase 1 drill program on Zone 4 on its 100% owned Lac Aux Bouleaux Graphite Property (the “LAB Property” or the “Property”) in Quebec. A total of 12 drill holes were completed on Zone 4 (see Figure 1). Highlights are provided below.

Highlights (see Tables 1 and 2 for details):

Eastern Zone 4 Target

• Drill Hole LB22-09 intersected 4.50 % graphitic carbon (Cg) over 7.0 metres at 4.0 metre (m) drilled depth including 6.61% Cg over 4.0 m;
• Drill Hole LB22-10 intersected 4.13% Cg over 3.0 m at 10 m drilled depth, including 8.85% Cg over 1.0 m;
• Drill Hole LB22-13 intersected 7.2% Cg over 2.3 m at 28.2 m drilled depth;
• Drill Hole LB22-14 intersected 4.69% Cg over 2.0 m at 26.0 m
• Drill Hole LB22-15 intersected two zones as follows:
  • Top zone of 8.78% Cg over 0.8 m at 13.9 m; and
  • Lower zone of 8.83% Cg over 2.6 m at 37.65 m.
• Drill Hole LB22-01 intersected 2.46% Cg over 3.0 m at 11 m drilled depth, including 4.97% Cg over 1.0 m

Western Zone 4 Target

• Drill Hole LB22-02 intersected 3.91% Cg over 1.0 m at 42 m drilled depth.

(Note: All intersections reported are based on drilled width and have not been converted to true width).

Zone 4 on the Property is one of the seven target areas identified as a result of 2015 airborne high-resolution heliborne magnetic (MAG) and time-domain electromagnetic (TDEM) survey completed on the LAB Property (see Figure 2). These targets were further explored through ground geophysical surveying, trenching and sampling. The majority of drill holes completed on the Eastern Zone 4 target intersected a near surface, flat lying mineralized horizon ranging from 2.0 metres to 7.0 metres in thickness (core length) over a 75 m width and 200 m length, thus far, and remains open to the east and north as indicated by the airborne EM survey. Due to complex structural folding on the Western Zone 4 target, the geophysical conductive trend and corresponding high grade surface showings discovered during prospecting were harder to ascertain. The Company intends to carry out detailed geological mapping in the summer to better understand the area’s structure and stratigraphic correlations while completing further exploration work targeting the other six target areas on the Property. The graphite mineralization observed during drilling is hosted within a sequence of paragneiss and recrystallized limestone units.

Luisa Moreno, Chief Executive Officer of the Company, stated: “We are pleased to find graphite mineralization of significant grade and extent in Zone 4, which seems to be near surface and extending North and towards the East. We are optimistic that we will continue to observe increasingly thicker mineralization zones near the surface. The western part of Zone 4 does seem to exhibit complex structural geological folding and it will require more groundwork. In the coming days we will be releasing the results from Zone 1, as well as details about exploration work in the additional five zones, and around the historical resource. We are focused on defining new graphite resources at Lac Aux Bouleaux, with the aim of demonstrating a sufficient resource to bring additional and critical graphite production to the district and support the upcoming graphite demand for the EV market.”

All drill core samples were bagged and tagged using best practices and were delivered to Activation Laboratories (“ACTLABS”), Ancaster, Ontario, for sample preparation and analyses using laboratories’ Code 4F-C Graphitic, analyzing C-Graphite (infrared) in which samples are subjected to a multistage furnace treatment to remove all forms of carbon with the exception of graphitic carbon; and C-Total (infrared). ACTLABS is an independent commercial, accredited ISO Certified Laboratory. The core samples also include field duplicates and blanks for quality control and quality assurance (QA/QC) purposes.

Figure 1: Zone 4 Drill Hole Map

Qualified Person

The technical content disclosed in this press release was reviewed and approved by Mr. Martin Ethier, Géo (#1520) who is a Member of the Order of Geologists of Québec and a “Qualified Person” under National Instrument 43-101, and Afzaal Pirzada, who is a member of the Association of Professional Engineers and Geoscientists of British Columbia with license No. 28657 (OGQ License Number 01917).

About Graphano Energy

Graphano Energy Ltd. is an exploration and development company that is focused on evaluating, acquiring and developing energy metals resources from exploration to production.

Graphite is one of the most in-demand technology minerals that is required for a green and sustainable world. The Company’s Lac Aux Bouleaux property, situated adjacent to Canada’s only producing graphite mine, in Quebec, Canada, has historically been an active area for natural graphite. With the demand for graphite growing in some of the most prominent and cutting-edge industries, such as lithium batteries in electric cars and other energy storage technologies, the Company is developing its project to meet the demands of the future.

On Behalf of the Board of Directors

Luisa Moreno
Chief Executive Officer and Director
E: info@graphano.com

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.

Cautionary Note Regarding Forward-Looking Statements:

This news release contains certain „forward-looking information“ and „forward-looking statements“ (collectively „forward-looking statements“) within the meaning of applicable securities legislation. All statements, other than statements of historical fact, included herein, without limitation, relating to future operations – exploration, drilling and other activities of Graphano Energy – are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as „expects“, „anticipates“, „believes“, „intends“, „estimates“, „potential“, „possible“, and similar expressions, or statements that events, conditions, or results „will“, „may“, „could“, or“ should“ occur or be achieved. Forward-looking statements in this news release relate to, among other things, the Company’s exploration plans and the impact thereof. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by Graphano Energy, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements and the parties have made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation, the ability to complete proposed exploration work given the global COVID-19 pandemic, the results of exploration, continued availability of capital, and changes in general economic, market and business conditions. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these items. Graphano Energy does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by applicable securities laws. We seek safe harbour.