FAST-41 Initiation Notice

Graphite One/Graphite Creek Project

1. Project Information

Title:  Graphite One/Graphite Creek Project

Sector Type:  Mining  - (Renewable Energy Production/ Energy Storage)

2. Project Location

37 Miles North of Nome, Alaska, USA

3. Project Coordinates:

Latitude: 65.038424°N

Longitude:  -165.540990°W

4. Project Sponsor Name and Contact Information

            Sponsor                                                                                 Alternate Contact

            Graphite One (Alaska) Inc.                                             Graphite One Inc.

            471 W 36th Ave Suite 100                                               #600 - 777 Hornby Street

            Anchorage, Alaska 99503                                               Vancouver, British Columbia V6Z 1S4

            USA                                                                                           Canada

            Mike Schaffner Sr. VP of Operations                         Anthony Huston, CEO, President & Director

            mschaffner@graphiteoneinc.com                             AHuston@graphiteoneinc.com

5. Project Purpose

Graphite One Inc. (the Company) is working to develop its Graphite Creek Project (the Project), to potentially become the dominant American producer of high grade Coated Spherical Graphite (CSG) and other value-added products produced from Graphite Creek, north of Nome, Alaska.

At present, the U.S. is 100% import-dependent for natural graphite, which appears on the Federal Government’s Critical Minerals List.  Graphite in its advanced CSG form is essential to electric vehicle batteries as well as energy storage systems.  The U.S. Department of Interior (DoI) found that graphite is one of 9 critical minerals that meets all six of the industrial/defense sector criticality indicators identified by the DoI.  The World Bank’s Climate-Smart Mining Initiative includes graphite among its clean-tech, green-tech materials, projecting global graphite demand to rise 383% between 2020 and 2050.  

According to the U.S. Geological Survey (USGS), “Graphite’s use in rechargeable batteries, as well as technologies under development (such as large-scale fuel-cell applications), could consume as much graphite as all other uses combined.” As a result, projects like Graphite One’s Graphite Creek will provide essential supply chain infrastructure for the United States’ renewable energy sector and energy storage systems, as well as advanced graphite materials for industrial and Defense Industrial Base applications.  

G1 recently completed a feasibility study on the Graphite Creek Deposit and is ready to advance the project through permitting.  G1 will submit a Clean Water Act Section 404 Permit (Section 404 Permit) to the USACE on July 15, 2025. The USACE permit application completeness review is expected to take 30 days from receipt of the application. Once the permit application is determined to be complete, the USACE would  publish a 15- or 30-day public notice for the complete application. Additionally, G1 plans on providing an Environmental Evaluation Document (EED) to the USACE on August 15, 2025. The EED will include the project description, an alternatives analysis, environmental baseline information related to physical, biological, and social resources, an analysis of project impacts on these resources, mitigation measures incorporated into the project design, and literature references. G1 would like to have the F-41 filed and accepted by the USACE with a schedule developed for permitting prior to the July 15 submission.    

6. Project Description

The Project is a proposed graphite open pit mine to extract graphite ore and produce a graphite concentrate for further processing and manufacturing of CSG, primarily for the electric vehicle lithium-ion battery and energy storage markets, as well as other high grade graphite products.  Graphite ore mined from the Company’s Graphite Creek Property (the “ Property”), situated on the Seward Peninsula about 37 miles north of Nome, Alaska, would be processed into concentrate at a mineral processing plant to be located adjacent to the mine.

The Graphite Creek Project is owned and operated by Graphite One (Alaska) Inc., the Company’s wholly owned subsidiary.  

1. 1. Project Location

The Property is on the Seward Peninsula, approximately 60 kilometers (km) (37 miles) north of Nome, Alaska (Figure 1). The Property comprises 9,583 hectares (ha) (23,680 acres (ac)) and consists of 176 active state of Alaska 65 ha (160 ac) (1/4 section) mining claims, with 28 of those claims overlying more senior claims within the claim block (Figure 2). The claims are on the Teller A2 and A1 quadrangles, and the deposit's plan projection is centered on Universal Transverse Mercator (UTM) coordinates 474,600 E and 7,212,200 N (NAD 83, Zone 3N). The corresponding geographic coordinates are longitude -165.540990°W, latitude 65.038424°N. The proposed mining footprint is well within the Property boundaries.

Figure 1:  Graphite Creek Project Location

Figure 2:  Graphite Creek Project Mining Claims

1. 2. Project Components

The major project components include:

• Open Pit Mine
• Processing Facilities
• Tailings and Waste Rock Facility
• Water Management Facilities
• Power Generation
• Access Road
• Nome Facilities
  1. 1. Mine

The selected mining method is open pit mining using conventional drill, blast, load, haul processes to deliver ore to crusher where the ore comminution and beneficiation processes will begin.  The mine is designed to deliver nominally 10,000 tonnes of ore daily.  With a life-of-mine strip ratio of 3.2:1, an additional 32,100 tonnes of waste will be handled daily.  Waste rock will be co-mingled with drystack tailings for disposal.

1. 1. 2. Processing Facilities

The processing plant will consist of crushing, grinding, and flotation processes.  A jaw crusher will reduce run-of-mine ore after which it will be conveyed to a covered stockpile.  The crushed ore will then be conveyed to a semi-autogenous grinding (SAG) mill.  Ground ore will pass through seven stages of flotation and three stages of regrinding whereby a 95% pure graphite concentrate will be produced.  The concentrate will be dewatered and dried before being placed in fully enclosed shipping containers for truck transport to Nome.

1. 1. 3. Tailings and Waste Rock Facility

Tailings from the flotation process will be thickened and filtered before being trucked to a drystack tailings storage facility.  The dried tailings will be comingled with waste rock and compacted in the facility.

The tailings and waste rock facility will be constructed on a liner with under drains that will transport any contact water to a collection sump where it will be sent to a collection pond.  Water from the collection pond will either be recycled back to the process or treated for discharge.

1. 1. 4. Water Management Facilities

Water management facilities will include diversion ditches, contact water ditches, stormwater settling structures, a Graphite Creek Diversion Structure, water management ponds, and a water treatment plant.

Diversion ditches will route surface runoff away from site facilities so that it remains unaffected by project activities.  The Graphite Creek Diversion is required in Year 5 of mine operations once the pit footprint encroaches this non-fish bearing stream.  A diversion structure will be constructed uphill from the pit to contain water in a pipeline that will then discharge the flow into Glacier Canyon Creek west of the pit footprint.  Glacier Canyon Creek is also non-fish bearing and is the natural ultimate discharge point of Graphite Creek.

Water management ponds will be used to store contact water and settle sediments prior to recycling or treatment.

The Water Treatment Plant (WTP) will treat all contact water to State of Alaska standards prior to discharging to Glacier Canyon Creek.  The WTP will utilize precipitation, flocculation, settling, filtration, and reverse osmosis processes prior to discharge.

1. 1. 5. Power Generation Facilities

Due to lack of other power sources in the region, diesel powered generators will be used to provide electrical power at site.  Two 7.5 MW generators will operate to supply the 12.5 MW of nominal electrical operating load.  A third 7.4 MW generator will be installed as a standby spare for a total 22.5 MW of generating power installed.

Fuel for power generation, concentrate drying, and mobile equipment will be trucked from a bulk fuel tank farm in Nome. 

Two weeks of fuel storage will be located at the project site in a double-walled, 850,000-gallon steel tank.  The fuel tank will be located within a containment structure adjacent to the power generation facility.

A fueling station and 4,000-gallon gasoline tank for light vehicles will be co-located in the containment.

1. 1. 6. Site Access Road

The proposed access to the Project is via a 17.3 mile (27.8 km) long access road starting at approximately Milepost (MP) 30 of the Nome-Taylor Highway (aka the Kougarok Road).  The route will cross the Nome River shortly after the Kougarok Road junction then cross Buffalo Creek, the Sinuk River, and Windy Creek before climbing through Mosquito Pass.  It will then descend along the east flank of the Cobblestone River.  A crossing over the Cobblestone River below the confluence of Oro Grande Creek will take the road west toward its terminus at the Project site.  See Figure 3.  The route is fully on State of Alaska owned lands.

Figure 3:  Proposed Access Road Route

In total, the access road will include six bridge crossings designed with 80-ton capacity.  Construction materials will be extracted from several gravel borrow, and rock quarries identified along the route.

Alternative routes accessing the project to the west and starting from Nome-Teller Road were also considered but rejected for several reasons including wetlands impacts, subsistence impacts, distance, and constructability.

1. 1. 7. Other Infrastructure Facilities

Other minor infrastructure facilities include:

• Drinking water well
• Potable water treatment plant
• Mine mobile equipment shop
• Site haul roads
• Construction camp facilities
• Waste water (sewage) treatment plant
• Offices
• Warehouses
• Emergency response equipment and facilities
• Metallurgical / assay lab
• Explosive storage facilities
• Concentrate container storage
• Emergency accommodations for employees when weather conditions prohibit safe travel
• Access road guard gate
  1. 8. Nome Operations

Project facilities located outside of the Graphite Creek Site and access road include:

• Improvements to the Nome-Taylor Highway,
• Bulk fuel storage
• Concentrate storage yard near the Port of Nome, and
• Employee housing
  1. 9. Nome Taylor Highway Improvements

The existing Nome-Taylor Highway (Kougarok Road) between Nome and the site access road junction consists of 30 miles of gravel road.  The first 13 miles between Nome and the Nome River Bridge is kept open year-round and is used by residents to access the small community at Dexter.  The remainder of the road north of the Nome River is not maintained in the winter months.  The Alaska Department of Transportation owns the right-of-way and has provided preliminary guidance on modifications to the road that will be required to support year-round operation by Graphite One.  Those modifications include widening, curve straightening, and capping.  No modifications to the Nome River Bridge, the only bridge on the route, are expected.

1. 1. 10. Bulk Fuel Storage

Due to sea ice formation on the Bering Sea and Norton Sound, year-round shipping of fuel, concentrates, and other bulk commodities is not possible.  In order to support operations through the winter from October to June, the project will require 8 million gallons of fuel to be stockpiled in Nome by October 1 each year.  Graphite One has assumed that it will utilize excess capacity in existing bulk storage owned by a local Native Corporation, but an additional 4 million gallons of diesel fuel storage will be required.  Graphite One intends to negotiate the construction and operation of that storage with local businesses who would also truck the fuel to Graphite Creek.  Two 14,000 gallon truck / trailer loads will be required daily.

1. 1. 11. Concentrate Storage

Because of the previously discussed winter icing conditions, concentrates will only ship during the ice-free season.  Graphite One will stage the 20’ shipping containers filled with graphite concentrate at a facility near the Port of Nome.   The containers will be stacked 3 to 4 high in rows until containers ships are able to access the port in the ice-free months.  Graphite One has assumed that the Port of Nome expansion project will have progressed sufficiently to allow self-loading container ships to load containers dockside.  The design basis ship for this portion of the project is assumed to have a 37 ft draft.  If the Port of Nome expansion does not proceed, Graphite One will examine options to lighter concentrate containers to a vessel anchored in deeper water.

It is assumed that the concentrate container storage area will be on land owned and already developed by the Bering Straits Native Corporation and that no further disturbance will be required.

1. 1. 12. Employee Housing

Graphite One has assumed that the project’s construction housing requirements will be fulfilled by a construction camp installed to support the Port of Nome expansion and that no new facilities will be required.  If the Port of Nome expansion is further delayed, a construction camp will be built on existing prepared land in Nome or at the mine site.

It is Graphite One’s intention to maximize a local work force in Nome through a combination of local hire and relocation.  Graphite One recognizes Nome’s housing shortage and intends to provide long-term housing by constructing a subdivision with single and multi-family housing and apartments for Nome based employees.  Graphite One will construct camp style accommodations for residents of outlying villages for their use while on rotation.  Location of these facilities requires planning with the City of Nome and private landowners, but it is expected that all construction will occur on previously placer mined ground.

1. 3. Environmental Resources

Graphite One has been conducting baseline environmental studies in the project area since 2014.  A detailed description of these studies is provided in the Graphite One Technical Report and Feasibility Study.

1. 1. 1. Wetlands and Waterbodies

Graphite One is preparing a Jurisdictional Determination Report (JDR) that includes digital wetland and waterbody mapping in GIS supported by field data collection. Wetland and waterbody mapping has been completed for a total of approximately 15,690 acres across two study areas: the Mine Study Area and the Mosquito Pass Study Area. The extents of the study areas are larger than the mine facilities and access road footprints to accommodate footprint changes as project design progresses. Field data collection occurred within these study areas during the 2019, 2021, 2023, and 2024 field seasons. The JDR will include a description of the methodology to determine the extent of jurisdictional wetlands and waterbodies within the Mine and Mosquito Pass study areas consistent with Graphite One’s interpretation of the Sackett v. EPA (598 U.S. 651, 2023) court decision as well as the recent memorandum from the EPA Administrator (dated March 12, 2025). However, future rulemaking by the EPA and USACE may alter the total area of jurisdictional wetlands and waterbodies within these study areas.

Preliminary results from the digital wetland and waterbody mapping show that the combined Mine and Mosquito Pass study areas are approximately 56 percent upland, 41 percent wetland, and 3 percent waterbodies (lakes, ponds, rivers, and streams).

1. 1. 2. Cultural and Historic Resources

Graphite One has conducted desktop studies and fieldwork to identify historic properties in the area. Archaeologists have conducted aerial reconnaissance, pedestrian surveys, and minimal subsurface testing surrounding the proposed mine area, potential access routes and material sites through Mosquito Pass, and areas subject to geotechnical drilling. Field efforts were conducted in 2023 and 2024 and are planned for summer 2025. A total of 28 known cultural resources have been identified within the study area ranging from prehistoric to historic in age. Of the 28, three properties have been determined eligible for listing on the National Register of Historic Places. The remaining 25 cultural resources are currently unevaluated. Identification of cultural resources is ongoing and will require input from the lead federal agency and consulting parties.

1. 1. 3. Water Quality

Graphite One has been conducting baseline water quality studies of streams in the project area since 2014. Ten monitoring sites in seven streams in the project area have been sampled for most of this period and will continue into the foreseeable future. Water quality sampling indicates that streams in the project area have elevated acidity (lower pH) and content of some metals, including Al, Cd, Fe, and Ni. Some streams, including Graphite Creek, have naturally occurring aluminum sulfate precipitate in their upper reaches and iron oxide/hydroxide precipitate in their mid-reaches. Streamflow measurements have been taken at five gauging stations: two on Glacier Canyon Creek, two on Graphite Creek, and one on the Cobblestone River.

Groundwater studies have been conducted since 2019. Groundwater in the deposit area has elevated acidity (low pH), Al, Fe, Ni, sulfate, and TDS. The concentration of these constituents rapidly decreases north of the mountain front.

1. 1. 4. Air Quality

Graphite One has been collecting baseline air quality data in preparation for permitting. The Alaska Department of Environmental Conservation (ADEC) requires a year of baseline meteorological data before applying for an air permit. A meteorological tower was installed in the project area in October of 2019. The instrument package on the tower will continue to measure several parameters necessary for modeling. The location of the tower and the instrument package were both approved by ADEC.

1. 1. 5. Aquatic Resources

Graphite One has been conducting studies on the fish and other aquatic resources of the project area since 2018. These studies have included aerial reconnaissance surveys of project area streams to identify streams with likely suitable fish habitats and to document those used by adult Pacific salmon. Studies have also included an aquatic baseline data collection program to establish baseline conditions of aquatic communities and water quality while quantifying the natural variability of both, and to evaluate the overall health and productivity of the drainage. The sampling program included establishing long-term biomonitoring sites and conducting aerial and ground-based fish surveys. The goal of the aquatic baseline study is to collect data to establish the aquatic resource baseline, support NEPA evaluation, federal permitting, and ADFG Fish Habitat Permit review and issuance.

1. 1. 6. Marine Environment

Graphite One has also been conducting water quality, fisheries, and current/bathymetric studies in the Imuruk Basin, a salt-water influenced marine basin which is the receiving water body of streams traversing the project area. The Imuruk Basin is a potential aquatic, wildlife, and subsistence resource and will be part of a NEPA analysis.

A single-beam hydrographic survey was conducted in 2023 to determine the bathymetry of the Imuruk Basin. In addition, three Acoustic Doppler Current profilers were installed on the basin floor to collect 3-D current profiles, 2-D wave data, salinity, and water temperature data. One Acoustic Doppler Velocity Meter was placed in the Tuksuk Channel to measure inflow and outflow from the basin. Water conditions were measured at 0.5 m depth intervals at 12 sites, and water quality samples were collected at two depths at two of the sites. Fish sampling and in-situ water quality monitoring have been conducted for seven-day periods since 2022, once after break-up in June of 2022, and then twice annually beginning in 2023, once in June and once in August each year.

1. 1. 7. Wildlife

Graphite One is in the process of evaluating the wildlife resources of the project area. Since 2022, annual raptor nest surveys have been conducted in the project area and have identified several nests, including those of golden eagles. Publicly available baseline information on the species of birds, terrestrial mammals, and marine mammals that may use the project area and adjacent migratory locations will be collected and analyzed for data gaps.

1. 1. 8. Threatened and Endangered Species

There are three species listed as ‘threatened’ under the Endangered Species Act (ESA) that are known to use coastal habitats in the vicinity of the project area: polar bear, Steller’s eider, and spectacled eider. Polar bear critical habitat technically includes Imuruk Basin, but their use of this inland estuary is expected to be very unlikely. Steller’s and spectacled eiders are known to use coastal habitats in Port Clarence during spring and fall migrations but do not breed on the Seward Peninsula. The lead permitting agency, USACE, will determine whether these species will be affected by the project and initiate Section 7 ESA consultation for these species, if necessary.

1. 1. 9. Other Studies

Graphite One is also collecting data and evaluating potential impacts on recreation and land use in the project area, and visual and noise impacts from the project.

7. Technical and Financial Ability

Since initiating exploration activities in 2010, the Company has demonstrated a sustained financial commitment to the development of the Project, with over $62 million invested to date. This investment reflects not only the commitment and capacity to advance the project through exploration, technical evaluations, and the recently completed feasibility study, but also the Company’s readiness to transition into the construction phase once key permits are secured.

In addition to the Company’s direct investment, the U.S. Department of Defense has recognized the strategic importance of the deposit and has invested $37 million to date, contributing to the accelerated completion of the feasibility study. Furthermore, the Defense Logistics Agency has provided $4.7 million in grant funding to support the development of a graphite-based fire suppressant solution, directly tied to the mineral deposits from the Project.

Bering Straits Native Corporation—one of the 12 Alaska Native regional corporations established under the Alaska Native Claims Settlement Act of 1971—has provided a $2 million direct investment in the project, recognizing the project’s potential economic benefits to the region and the Company’s environmentally responsible stewardship of the lands.

The Company is actively preparing for the Section 404 Clean Water Act permit application, and consistent with standard practice for mining companies, does not intend to pursue major project financing until project permits are received. This approach aligns with industry norms, as both equity investors and lending institutions typically require key permits to be in place before committing to project financing.

The Company is confident in the ability to secure the necessary funding for mine construction upon receipt of the 404 permit, supported by the strength of the feasibility study, the strategic importance of the Project, broad based political and community support and demonstrated federal support.  The Company will issue shares to raise capital and procure loans to secure the needed financing for the Project. 

1. 1. Graphite One Team

The Graphite One team has designed, permitted, constructed and operated mines throughout the U.S. and Canada and has significant cold weather mine development experience.  A list of resumes detailing this experience can be supplied upon request.  This experience has been utilized to develop the latest Feasibility Study.   

• Doug Smith, Executive Chair - Board of Directors: Over 40 years' senior executive, corporate board, international marketing and M&A experience in the international coal industry.  He was General Manager - Xstrata Coal Canada; President, CEO & Director - First Coal Corporation; President & Director - Andalex Resources Inc.; Chairman - Los Angeles Export Terminal.
• Anthony Huston, President, CEO & Director: Served as Managing Partner in both public and private companies. He has served as an advisor on financial and acquisition transactions in the resource and real estate industry.  He has successfully raised over $150 million in his career.
• Daniel McGroarty, G1Inc Advisory Board: Principal of Carmot Strategic Group, an issues management firm in Washington, D.C. He has served as Special Assistant at the White House and Presidential appointee at the Department of Defense and has testified before the U.S. Senate and House committees on energy and natural resources.
• Clark Penney, G1Inc Advisory Board: A partner in Cypress Wealth Services an Alaska and California-based wealth management firm with over $1 billion in assets. He is President of Penney Capital Inc., a consultancy that focuses on both public and private sectors.
• Gordon Jang, CFO: Over 27 years’ experience in senior management roles with mid-to-large mining companies.  He is well versed in capital markets, M&A, Sox compliance, external financial reporting and corporate restructuring, cost analysis and process improvements. He was Vice President of Finance and Accounting at Fortuna Silver Mines and held senior positions at Augusta Resources, Lundin Mining, and Pan American Silver.
• Zhengli (Andrew)Tan, Vice president of Advanced Graphite Materials: Over 20 years' experience with specific expertise in graphite purification and processing.  Relevant experience includes consulting to numerous natural graphite companies, general manager expanded graphite manufacturing facility; technical manager graphitic materials company, senior processing engineer graphite materials and related academic research.
• Mike Schaffner, Senior Vice President of Operations: 39 years of mining experience and Registered Member of the Society of Mining Engineers for 38 years.  Experience includes design and start-up of 4 major mining operations with project capital up to $500M.  General Manager of Newmont’s Carlin gold mine which entailed managing 1,200 people, $750M annual operating budget.  Mines were 3-time Sentinels of Safety award winners.  A proven track record of safely achieving cost targets and completing projects on time. 
• Ed Fogels, Environmental Lead: 38 years of experience in resource management, permitting, and environmental analysis.  His experience includes 10 years as Deputy Commissioner of the Alaska Department of Natural Resources, leading Alaska’s Large Mine Permitting program, and international mining regulatory consulting for foreign governments.
• Kevin Torpy, VP of Mining: 29 years of experience including developing two mines in Alaska and one in northern British Columbia.  He recently managed the exploration and site operations for another project in Alaska’s northwest Arctic.  He has experience with local workforce development and tribal relations in both Alaska and British Columbia.  He was a 2017 E.A. Scholz Award recipient for Excellence in Mine Development.
• Rebecca Donald, VP Finance (Alaska): Over 25 years’ experience in finance roles in both mining and oil and gas. A life-long Alaskan, she has held senior positions at Graphite One, Ambler Metals, and BP Exploration (Alaska), with responsibilities spanning financial reporting, M&A support, system implementations, and stakeholder engagement.
• Kirsten Fristed, Chief Geologist (Alaska): Holds a PhD in Geology and Geochemistry with over 8 years of experience working on Alaska and other northern mineral deposits. She has worked on projects in the Ambler Mining District, Johnson Tract, Red Dog, and Pend Oreille, with expertise in exploration geology, geochemical analysis, and mineral systems in Arctic and sub-Arctic environments.

8. Financing, Reviews, and Authorizations
   1. Federal Financing

The project received a DoD grant of $37.5m to accelerate the completion of the Feasibility Study and supporting environmental work.  The Feasibility Study was released in April 2025.  Graphite One will review additional federal financing as it becomes available, but this is not a requirement to proceed with the project. 

1. 2. Environmental Reviews

The Project will be subject to the National Environmental Policy Act (NEPA), with the US Army Corps of Engineers (USACE) expected to be the lead agency.  The lead agency will determine if an Environmental Assessment or an Environmental Impact Statement will be required. Due to the limited wetlands impacts, Graphite One expects the determination will recommend an Environmental Assessment.  Other federal agencies that may participate in the NEPA process are Environmental Protection Agency, NOAA Fisheries, and US Fish and Wildlife Service.        

1. 3. Federal Authorizations
      1. U.S. Army Corps of Engineers Clean Water Act Section 404 Permit

Construction of the mine facilities and access road would involve the discharge of fill material into wetlands and waterbodies that are considered jurisdictional under the Clean Water Act. Therefore, a USACE Section 404 Permit is required. The Section 404 Permit is likely the only major federal permit for the Project. Mine facilities requiring fill in wetlands and waterbodies include: the tailings and waste rock storage facility and containment berm, the primary site building pad that includes the ore processing facility and other mine facilities, water treatment ponds and storage areas, sediment basins, mine roadways, and stream diversion structures. The access road would require the construction of abutments for six, single-lane bridges as well as 9 stream and 32 drainage culverts, and 12 material sites.

Based on Graphite One’s interpretation of the Sackett v. EPA (598 U.S. 651, 2023) court decision as well as the recent memorandum from the EPA Administrator (dated March 12, 2025), construction of the mine and access road would result in the discharge of approximately 3 to 5 acres of fill in wetlands and waterbodies that are jurisdictional under the Clean Water Act and subject to Section 404 permit authorization. Project fill impacts do not include approximately 589 acres of impacts to non-jurisdictional wetlands and waterbodies. Future rulemaking by the EPA and USACE may alter the total area of jurisdictional wetlands and waterbodies impacted within the project footprint.

The USACE is responsible for determining the consistency of the proposed action with Clean Water Act, Section 404 guidelines. Under Section 404(c), the EPA has review authority over the USACE Section 404 Permit decisions. 

The USACE provides detailed methodology for the identification of wetlands and waterbodies under federal jurisdiction. Graphite One will submit a Jurisdictional Determination Report (JDR) with the Section 404 Permit application that displays and describes the wetland and waterbody types found in the project area. The JDR will also provide a preliminary determination of the extent of Clean Water Act jurisdiction within the project area. Due to the recent changes in the extent of Clean Water Act jurisdiction over wetlands and waterbodies, Graphite One assumes that a jurisdictional determination would be processed at USACE headquarters. The Alaska Department of Environmental Conservation (DEC) must certify that the USACE Section 404 Permit meets state water quality standards. DEC typically does not get involved in the wetlands mapping methodology.  

1. 1. 2. NOAA Fisheries Essential Fish Habitat Consultation

The National Oceanic and Atmospheric Administration Fisheries agency (NOAA Fisheries), under authority of the Magnuson-Stevens Act, may require USACE to incorporate conservation measures into the project design condition their permits to protect essential fish habitat.  The Act requires cooperation among NOAA Fisheries and other federal agencies to protect, conserve, and enhance "essential fish habitat". Congress defined essential fish habitat for federally managed fish species as "those waters and substrate necessary to fish for spawning, breeding, feeding, or growth to maturity." The USACE would consult with NOAA Fisheries as a part of a federal permit evaluation. Thus, NOAA-recommended conservation measures may be applied to the USACE Section 404 permit. 

1. 1. 3. Bald and Golden Eagle Protection Act; Migratory Bird Treaty Act; Endangered Species Act

The USFWS, under the authority of the federal Bald and Golden Eagle Protection Act, will require identification of eagle nests and territories. If these nests or territories are within proximity to construction or operation of the project, Graphite One may need to pursue a disturbance permit from USFWS. Under the authority of various migratory bird treaties, the USFWS may advise federal agencies to condition their permits to ensure that a project is consistent with Migratory Bird Treaty Act concerning project impacts to migratory birds. Finally, the lead permitting agency, USACE, will determine whether any ESA-listed species will be affected by the project and initiate Section 7 ESA consultation with USFWS or NMFS for these species, if necessary.

1. 1. 4. U.S. Army Corps; Alaska Historic Preservation Act

Ground-disturbing activities located on State of Alaska lands are subject to compliance with the Alaska Historic Preservation Act (AHPA; Alaska Statute 41.35), which governs historic, prehistoric, and archaeological resources on land owned or controlled by the State. The AHPA requires a review of State public construction projects to determine if historic, prehistoric, or archaeological sites may be adversely affected (AS 41.35.070).  The USACE will coordinate evaluation of cultural resources with the State Historic Preservation Office (SHPO).    

1. 1. 5. U.S. Army Corps of Engineers; National Historic Preservation Act

Section 106 of the National Historic Preservation Act (NHPA; 36 CFR 800.16(l)) requires federal agencies to consider the effects of undertakings on historic properties (36 CFR 800.16(l)(1)). Federal regulations encourage agencies to coordinate NEPA and Section 106 review processes, where possible (36 CFR 800.8). Since the project will require a permit from USACE, it is considered a federal undertaking subject to compliance with Section 106 of the NHPA and its implementing regulations (36 CFR 800), which requires federal agencies to consider the effects of their undertakings on historic properties. 

NHPA requires agencies to define an Area of Potential Effects (APE) for their undertakings. The APE refers to the geographic area or areas within which an undertaking may directly or indirectly cause alterations in the character or use of historic properties, if any such properties exist (36 CFR 800.16(d)). The APE is influenced, in part, by the scale and nature of an undertaking and may vary for distinct types of effects, such as physical, auditory, or visual, caused by the undertaking. The APE should encompass the potential direct, indirect, and cumulative effects on historic properties and all aspects of integrity, including their associated settings, as applicable.

The USACE will define the APE in consultation with SHPO and other potential consulting parties. Once the APE is formally established, identification of historic properties within the APE and assessment of effects on those historic properties may proceed. The USACE will be responsible for initiating the Section 106 process that will define the APE.

9. Project Assessment

The Project will benefit from FAST-41 oversight as it complies with multiple federal permitting protocols.  The Project meets the definition of a covered project under in 42 U.S.C.  §4370m(6)(A) of the FAST Act as it:

1. Requires authorization or environmental review by a Federal agency
2. Is subject to NEPA
3. Is likely to require a total investment of more than $200,000,000
4. The Project’s Feasibility Study dated March 25, 2025 (the “FS”) is an integrated project, covering both the mine and manufacturing plant in Ohio.  The capital cost estimate for the open pit mine, infrastructure and processing plant in Alaska totals $949,000,000.  
5. Does not qualify for abbreviated authorization or environmental review processes under any applicable law
6. The Project is responsive to FPISC’s mandate for mining as a covered sector.  As an added benefit, the mine will sell product to the Company’s manufacturing plant, increasing manufacturing in the Unites States, which is also part of the FPISC’s mandate. It is noted that graphite is an essential material for 5 other FPISC’s covered sectors:
   1. Renewable Energy

Graphite is an essential material in Lithium-Ion battery anodes.  (In fact, there is typically 6 times more graphite by volume in a lithium-ion battery than lithium.)  Li-ion batteries enable eMobility – Electric Vehicles, eBikes, drones, electric ships and autonomous vehicles.  Li-Ion batteries also power laptops, cell phones and all manner of consumer electronics.

Ultra-pure nuclear graphite is required for nuclear power production.  

1. 2. Electricity Transmission

Graphite is required in Energy Storage Systems, which move energy to and through the national energy grid.

In the electrical industry, graphite is used to produce electrodes, carbon brushes, carbon rods, carbon tubes, and positive electrodes.

1. 3. Water Resource Projects

Graphite is required to produce GRP, Glass Reinforced Plastic pipe, for use in water supply systems.

1. 4. Broadband

Graphite is required in broadband and 5G relay towers as the sacrificial anode, for EMI suppression and as an anti-corrosion coating.

1. 5. Pipelines

Oil and natural gas pipelines require high-pressure graphite gaskets.

10. Form Sbmitter Contact Information

            Mike Schaffner

            Sr. VP of Operations

            Graphite One (Alaska) Inc.

            (907) 952-2100

            mschaffner@graphiteoneinc.com