Mr. Don Baxter reports

APPLIED GRAPHITE ANNOUNCES $1,000,000 CONVERTIBLE NOTE OFFERING

Applied Graphite Technologies Corp. will undertake a non-brokered private placement offering of up to 20 million convertible notes, convertible into up to 20 million common shares at a price of five cents per share for gross proceeds of up to $1-million.

Pursuant to the offering, the convertible notes will bear interest at the rate of 10 per cent, compounded annually and accrued quarterly, and payable only in common shares of Applied Graphite on conversion. The convertible notes will mature two years from the date of issuance, subject to the sole election of Applied Graphite converting the convertible notes into common shares earlier at any time with 15 days written notice to the holders of convertible notes.

Existing insiders of Applied Graphite intend to purchase a portion of the offering. Participation by insiders of Applied Graphite in the offering constitutes a related-party transaction as defined under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The issuance of securities is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 on the basis that the fair market value of the insider participation in the offering, as determined in accordance with MI 61-101, shall not exceed 25 per cent of the company's market capitalization.

The offering is scheduled to close on or about July 11, 2025, and is subject to the company receiving all necessary regulatory approvals, including the approval of the TSX Venture Exchange to list the common shares issuable upon conversion of the convertible notes and accrued interest payable in common shares thereon. Finders' fees of 6 per cent in cash may be payable on a portion of the offering. All securities to be issued pursuant to the offering will be subject to a four-month hold period under applicable securities laws in Canada.

The net proceeds of the offering will be used by Applied Graphite for general working capital purposes.

About Applied Graphite Technologies Corp.

Applied Graphite Technologies is developing the Queens mine complex in Sri Lanka. The QMC is on private land in the heart of the vein graphite district, with historical workings and vein graphite outcrops. Vein graphite is naturally high grade (greater-than-95-per-cent-carbon content in the ground) and does not require primary processing. Testing of vein graphite in lithium-ion-battery anodes has shown very high capacities, performing better than synthetic graphite. Natural vein graphite has a far superior environmental, social and governance footprint than synthetic and is cheaper without compromising performance.

The technical information in this news release has been prepared by Don Baxter, PEng, a qualified person as defined in National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

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