Mr. Mark Bentsen reports

GRAFTA NANOTECH CORP. ANNOUNCES GRANT OF STOCK OPTIONS

Grafta Nanotech Corp. has granted an aggregate of 2.9 million stock options to certain of its directors, officers, employees and consultants pursuant to the company's stock option plan. The options are each exercisable into one common share of the company at an exercise price of 22 cents per optioned share. The options are exercisable for five years from the date of grant and vest as to one-third immediately upon grant, one-third on the first anniversary of the date of grant and one-third on the second anniversary of the date of grant. The options shall be subject to the terms and conditions of the plan and the policies of the TSX Venture Exchange.

Of the options granted above, 2.25 million options were granted to directors and officers of the company.

The company relied on Section 5.5(b) of Multilateral Instrument 61-101 as the exemption from the formal valuation requirements of MI 61-101 in respect of the option grant to the directors and officers of the company, as the common shares of the company are not listed on a specified market (and the common shares are only listed on the TSX-V). The company relied on Section 5.7(a) of MI 61-101 as the exemption from the minority approval requirements of MI 61-101 in respect of the option grant to the directors and officers of the company as neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the option grant to the directors or officers of the company exceeded 25 per cent of the company's market capitalization.

About Grafta Nanotech Corp.

Grafta Nanotech is a Canadian clean technology company focused on advanced water treatment and environmental remediation.

We seek Safe Harbor.