Mr. Jamie Deith reports

EAGLE GRAPHITE ANTICIPATES CEASE TRADE ORDER, ANNOUNCES BOARD RESIGNATIONS

Eagle Graphite Inc. has made an unsuccessful application to the Ontario Securities Commission to approve a temporary management cease trade order under National Policy 12-203 (Management Cease Trade Orders), which, if granted, would have prohibited trading in securities of the company by its chief executive officer and certain insiders of the company so long as the annual filings (as defined below) remain outstanding. The issuance of an MCTO would generally not affect the ability of others to trade in the company's securities.

The company made the application after determining that the company is unlikely to meet the Sept. 28, 2022, filing deadline for its audited annual financial statements, management's discussion and analysis, and the related chief executive officer and chief financial officer certification relating to the May 31, 2022, financial statements. The company anticipates that it will require no more than two additional months to complete the process and, in any event, will use its best efforts to complete the process as quickly as possible while upholding appropriate professional standards.

While the company remains confident in its ability to complete the annual filings, the OSC has rejected the MCTO application on the grounds that they are "not of the view that there is an active, liquid market for the issuer's securities." The company was informed of the OSC's decision on Sept. 27, 2022. As a consequence, the company anticipates the imposition by the OSC of a failure-to-file cease trade order (FFCTO) at some point after the filing deadline has elapsed.

Eagle Graphite announces the resignation of directors Steven Brunelle, Robert Matter and Brian Bapty, effective immediately. The company thanks each of them for their years of loyal service. Jamie Deith remains as CEO and the sole director.

Mr. Deith commented: "This is not the short-term outcome we were hoping for, and we are working to minimize the disruption for our shareholders. In the meantime, Eagle Graphite will continue pursuing our long-term objectives as a key player in the graphite market. The world, and North America in particular, is potentially facing a serious shortage of graphite production capacity in the next few years. Eagle is one of the few companies with some prospect of addressing the shortfall."

About Eagle Graphite Inc.

Eagle Graphite owns the Black Crystal graphite quarry, located 35 kilometres west of the city of Nelson in British Columbia, Canada, and 70 kilometres north of the state of Washington. Black Crystal is the only constructed graphite quarry with a production history in western North America. Eagle Graphite's shares are listed on the TSX Venture Exchange under the symbol EGA.

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