CYL Ceylon Graphite Corp

Ceylon Graphite Corp. ("Ceylon") (TSX-V: CYL) (OTC: CYLYF) (FSE: CCY) is pleased to announce it has entered into a distribution agreement dated August 1, 2023, with Advanced Performance Materials LLC (“APM”), a materials and chemical technology specialist company.

“Ceylon’s graphite has performance characteristics that exceed those of other graphite suppliers”, said Jay Mondal, APM’s Chief Technology Officer. “This is tremendously beneficial to our customers ranging from battery manufacturers to defence industry applications. In addition, Ceylon’s graphite has a very low environmental footprint given its very high natural purity, which is increasingly important to many of our customers. We are excited to supply Ceylon’s graphite to the U.S. market and collaborate on a range of value-added products.”

APM expects the range of products using Ceylon graphite to include energy storage, nuclear energy, lubricant, coating, flame retardant and engineered products and materials. The companies have already begun to exchange customer specifications and quotations.

The distribution agreement provides APM with preferred pricing and guaranteed supply if certain volume thresholds are maintained. The distribution agreement is not exclusive and does not restrict Ceylon from any other sales or agreements related to its graphite.

“We are pleased to be working with APM in pursuing many potential customer relationships”, said Sasha Jacob, Ceylon CEO. “As the Ceylon graphite material and its performance becomes more widely known, we are seeing a consistent growth in interest from customers in a wide range of sectors seeking to take advantage of the benefits of our high-carbon, low-environmental footprint natural vein graphite”.

About Advanced Performance Materials LLC

Advanced Performance Materials LLC (also known as APM) is a Florida based materials tech company, headquartered in Miami. Since 2012, APM actively commercializes sustainable performance materials into various market segments such as energy storage, automotive, aerospace, oil and gas, composite materials and construction projects, amongst other applications. APM produces and supplies value added advanced materials to OEM manufacturers and application developers that enhances performance to the next level and helps businesses to become competitive in this fast-changing marketplace. Since its inception, the company has been actively operating in the US, Canada and Western European markets. Additional information regarding APM’s operation and activities can be found on its website.

About Ceylon Graphite Corp.

Ceylon is a public company listed on the TSX Venture Exchange, that is in the business of mining for graphite, and developing and commercializing innovative graphene and graphite applications and products. Graphite mined in Sri Lanka is known to be some of the highest grade in the world and has been confirmed to be suitable to be easily upgradable for a range of applications including the high-growth electric vehicle and battery storage markets as well as construction, healthcare and paints and coatings sectors. The Government of Sri Lanka has granted the Ceylon’s wholly owned subsidiary Sarcon Development (Pvt) Ltd. an IML Category A license for its K1 mine and 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.

Further information regarding Ceylon is available at www.ceylongraphite.com

Sasha Jacob, Chief Executive Officer and Rita Thiel, Chair of the Board of Directors

info@ceylongraphite.com

Corporate Communications

+1(604) 924-8695

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

FORWARD LOOKING STATEMENTS:

This news release contains forward-looking information as such term is defined in applicable securities laws, which relate to future events or future performance and reflect management's current expectations and assumptions. The forward-looking information includes statements about the potential value of products produced with Ceylon graphite, distribution of Ceylon’s graphite to a variety of jurisdictions, applications for future graphite applications, Ceylon’s role as a potential market leader, expectations related to development of Ceylon’s properties, strategic partnerships, potential customers and sales, plans for Ceylon’s subsidiaries and Ceylon’s mining operations. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to Ceylon, including the assumption that, there are no material adverse changes effecting development and production at the M1 mine or on other properties, testing related to the performance of Ceylon’s vein graphite material are accurate, there will be no material adverse change in graphite and metal prices, there will be continued demand for graphite powered batteries, all necessary consents, licenses, permits and approvals will be obtained, including various Local Government Licenses. Investors are cautioned that these forward-looking statements are neither promises nor guarantees and are subject to risks and uncertainties that may cause future results to differ materially from those expected. Risk factors that could cause actual results to differ materially from the results expressed or implied by the forward-looking information include, among other things, the results of Ceylon’s graphite testing being inaccurate or incomplete, the market for graphite related technologies not developing as expected, failure to obtain or maintain patents and proprietary technology, loss or failure to acquire available high quality graphite, any failures to obtain or delays in obtaining required regulatory licenses, permits, approvals and consents, an inability to access financing as needed, a general economic downturn, a volatile stock price, labour strikes, political unrest, changes in the mining regulatory regime governing Ceylon, a failure to comply with environmental regulations and a weakening of market and industry reliance on high quality graphite. Ceylon cautions the reader that the above list of risk factors is not exhaustive.