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TSX-V: CYL

OTCQB: CYLYF

FSE: CCY

February 2021

Producer of the World’s Highest-Grade Graphite

Disclaimer

This presentation includes certain statements that may be deemed forward looking statements. All statements in this discussion, other than

statements of historical facts, which address future production, reserve potential, exploration activities and events or developments that the

Company expects, are forward looking statements. Such forward-looking statements include, without limitation: (i) estimates of future

graphite prices, supply, demand and/or production; (ii) estimates of future cash costs; (iii) estimates of future capital expenditures; (iv)

estimates regarding timing of future development, construction, production or closure activities; (v) statements regarding future exploration

results; (vi) statements regarding cost structure, project economics, or competitive position, and; (vii) statements comparing the Company’s

properties to other mines, projects or metals. Although the Company believes the expectations expressed in such forward-looking statements

are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may

differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward

looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general

economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance, that

the Company expressly disclaims any responsibility for revising or expanding the forward-looking statements to reflect actual results or

developments, and that actual results or developments may differ materially from those projected, in the forward- looking statements. The

projections contained in the presentation are speculative and have not demonstrated economic viability and are not (NI 43-101) complaint.

The geological information / technical information of this presentation has not been reviewed and approved by arms length qualified person

under NI 43-101 and therefore not to be relied upon. The information received is for personal use. Investing involves a great deal of risk,

including the loss of all or a portion of your investment, as well as emotional distress. Nothing contained herein should be construed as a

warranty of investment results or advice. All risks, losses and costs associated with investing, including loss of principal, are your

responsibility.

TSXV: CYL

Ceylon Graphite’s current mission is to be the low cost, low impact, global supplier of the highest quality graphite products 100 % trackable and transparent, to a rapidly growing energy storage market.

• Highest grade in situ graphite on the planet -90% +Cg

• Estimated total cost to production per mine US$ 2/2.5 mn

• 2/3 years construction and permitting time frame

• 121 mine sites

• Estimated mine life 50 years

• K 1 mine in commercial production -5000tons pa

• M1 mine will be in production 2nd half of2021

• Battery grade certified

• Lowest quartile production costs – US$220/ton

• Breakeven cash flows on smallproduction

• Energy storage supply chain looking forglobal

sourcing diversity

TSXV: CYL

Mantra: Production Production Production

• Graphite is a mineral with unique thermal, chemical,

and electrical properties.

• Derived from carbon, it is biocompatible.

• Has been designated a critical mineral by the United

States due to its supply chain vulnerability and its

importance to national security.

• All the products shown require some form of

refined/purified form of graphite.

Steel /

Refractory

What is Graphite? Lubricants Electric Cars

Batteries/Energy

Storage

Lightweight

Composites

Coatings/

Inks

Water

Treatment

Biomedical

Devices

Smart Materials &

IOT

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Graphite Demand

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

At present, EVs account for 200,000 tpa of graphite demand in a

market of between 700-800,000tpa. However, BMI forecasts the

EV figure will soar to nearly 3Mtpa in 2030 in a 4Mtpa market

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Carburisation Lubricants Graphite shapesRefractory and foundry Expandable Graphite Friction productsCarbon brushes Other uses Li-ion battery

Graphite deficit

2022: Deficitfrom existing

operations

2028: Deficit

with all potential

new resources

0

2500000

5000000

7500000

2021

2018

2027

Tonnes

10000000

2020

2037

2015

2035

2016

2039

2033

2017

2019

2022

2031

2023

2024

2029

2025

2026

2034

2028

2030

2032

2036

2038

2040

Total Demand

Possible additonal tonnes

© Benchmark Mineral Intelligence 2019

Probable additonal tonnes

Highly Probable additonal tonnes

Operational supply

Graphite is used in the production of the anode for the lithium ion cell

Anode Electrolyte Cathode

Lithium Ion Cell - Diagram

Separator

Electrolyte

ELON MUSK

“ Our Cells should be called Nickel-Graphite, because primarily the cathode is nickel and the anode side is

graphite with silicon oxide [there's] a little bit of lithium in there, but it's like the salt on the salad

TSXV: CYL

Lithium

25,000 tonnes

Nickel

19,000 tonnes

Cobalt

6,000 tonnes

Graphite anode

33,000 tonnes

How much raw material does a

30GWh battery mega factory consume?

How Much Graphite is there in an EV

Vehicle (all 2019 model year) MSRP (USA)

Battery Pack Cost (1) Graphite

(2)

US$ kWh US$@$100/ kWh

kg

Tesla Model S 79,990 100 10,000 71

Hyundai Kona Electric SEL 36,950 64 6,400 45

Kia Niro EV 38,500 64 6,400 45

Chevrolet Bolt EV LT 36,620 60 6,000 43

Nissan Leaf S Plus 36,550 62 6,200 44

Audi e-Tron 74,800 95 9,500 67

BMW i3 44,450 42 4,200 30

Volkswagen e-Golf 31,895 36 3,600 26

1. Actual pack costs are currently higher than numbers quoted – these are target costs – Bloomberg NEF quotes 2020 average as US$110/ kWh

2. Assumptions: operating voltage at 3.92V. “for optimum range” and 360 mAh/g average capacity.

Actually: excess anode active material used (up to 20%); some use of 4 to 8% SiOx

TSXV: CYL

Strong Management Team

Anuka SozaDirector – Sarcon Development ( Pvt) Ltd

Manages day to day business in Sri Lanka. A

serial entrepreneur and successful multisector

businessman.

Ranjit PremasiriConsultant Geologist

Sasha JacobFounder & Strategic Advisor

Chair of the Canadian arm of The Nature Conservancy, Ex Vice Chair of

WorldWildlife Fund Serial Entrepreneur,

Canada’sFirst banker in Renewables and

Cleantech – raised over $ 8 bn.status

Bharat ParasharChairman/Chief Executive

42 years Asia Experience. CEO EMP Daiwa

Asia, DHead AIG Asia Infrastructure Fund

1,Co Head Citigroup Asia, CEO American

Express India. Head of Chemical Bank

Investment banking in Asia.

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Dr. Mallika BohmTechnical Director

Dr. Siva BohmChief Scientific Executive

1. Avissawella

2. Rathnapura

3. Balangoda

4. Ambalangoda

5. Morawaka

6. Nuwaraeliya

7. Mathugama

8. Kegalle

9. Attanagalle

10. Malsiripura

4 grids

25 grids

2grids

8grids

2grids

2grids

24grids

22grids

29grids(K1)

5 grids(M1)Map of Sarcon properties

9. 8.

1.

2. 3. 6.7.

5.4.

1010

• Total land package: 121 km2

(121 grids at 1x1 km) with

Exploration Licenses issued

by the Geological Society and

Mines Bureau (“GSMB”).

• Highest purity of in situ

graphite globally – Cg 90% +

( average).

• Comprises most of the

geologically identified graphite

resources in Sri Lanka (excl.

mines currently in production).

• K1 site in production and M1

to follow shortly.

Largest Land Package in Sri Lanka

Map of Ceylon Graphite GridsTSXV: CYL

Ceylon Graphite Production Highlights

Ceylon Graphitewas

established on

Jan 2 2017

December 2019,K1

announces

Commercial

Production

Dorfner ANZAPLAN

and AETC verifythat

graphite expandable

and spheroidizable.

Quality of graphite

exceptional.

May 2021 M1 site to

start Commercial

Production

H1 and P1 sites

expected to comeon

stream late 2022

Mid 2023

Upgrading/

Processingplant

December2023

mines 5 and6

commence

production

December 2024.

Mine 10 comeson

stream. Natural

Graphite capacity

50,000 tons

• Highest Grade in situ graphite

• Estimated total cost to production per mine US$ 2/2.5 million.

• Estimated cost of production per ton US$ 220.

• Estimated production per mine 5,000 tons per annum.

• Estimated mine life 50 years

• Battery grade certified

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K1 – In Production

ShaftArea Shaft at depth

First Production First Production

Shaft at depth

Miners at depth

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M1 – Production By 3rd Quarter

Graphite inShaft New Shaft Graphite inShaft

Size of GraphiteVeins Veins Keep GettingBigger

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Will Be A Technology Company

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Hired Globally Acknowledged Value Creators for Ceylon Graphite –

Will create next-gen graphene-enhanced technology applications

Are recognized developers of IP for practical applications to advance developmentPursuers of better products for commercialization of new techniques for people and the environment

Focus• Few Layer Graphene• LiB Anode Silicon Graphene Composite Nanotechnology• Smarter Paints/Coatings/Corrosion Protection• Energy Storage applications – Stationary/fast charge• Graphene based Building Materials - High Strength and CO2 reduction• Flow Batteries• CFRC Composite Products for the Aerospace Industry

Ceylon Graphite Highest Grade – Lowest Cost

Ticker Market Capitalization CapExGrade Cg Resource

Cost per Ton Location

Syrah Resources Ltd ASX: SYR AU$ 431mn US$300mn 11.00% US$475 Mozambique

Nouveau Monde Mining TSX-v: NOU C$ 186.7mn US$230mn 4.00% US$532 Canada

Zen Graphene TSX-v: ZEN C$ 135.11mn US$411mn 3.90% US$2,046 Canada

Magnis Energy ASX:MNS AU$ 123.3.7mn US$269mn 5.40% US$502 Tanzania

Ecograf ASX: EGR AU$ 65.5mn US$77.5mn 8.30% US$500 Tanzania

Walkabout Resources ASX:WKT AU$ 54.13mn US$27.8mn 10.80% US$347 Tanzania

Mason Graphite TSX.v: LLG C$ 51.2mn C$258mn 28.00% US$484 Canada

Battery Minerals ASX:BAT AU$ 48.2mn US$39.5mn 8.10% US$361 Mozambique

Triton Minerals ASX:TON AU$ 45.5mn US$99.4mn 6.20% US$634 Mozambique

SRG Graphite TSX-v:SRG C$ 45mn US$105.1mn 5.60% US$502 Guinea

Nextsource Materials TSX: NEXT C$ 41.86mn C$18.4mn 6.10% US$353 Madagascar

Leading Edge Materials TSX.v: LEM C$ 39.54mn US$16.7mn 9.30% US$730 Sweden

Ceylon Graphite TSX-v: CYL C$ 41.7 mn C$6.75mn 90%+ (vein) US$220 Sri Lanka

Source: Chris Ecclestone Hallgarten & Co

TSXV: CYL

Current Graphite Prices

Source :Benchmark GraphiteAssessment

Graphite Current Price Source

FLAKE, 94-95% Cg, -100 MESH US$ 540/ton China/Africa*

FLAKE, 94-95% Cg,+100 MESH US$ 768/ton China/Africa*

FLAKE, 94-95% Cg, +50 MESH US$ 1410/ton China/Africa*

VEIN, 94-95% Cg

* Largest Producers

US$ 2000/ton Sri Lanka

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Cash Flows

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Production (tons) 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

K1 1,000 3,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000

M1 100 1,000 3,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000

Mine 3 500 2,500 4,000 5,000 5,000 5,000 5,000 5,000 5,000

Mine 4 500 2,500 4,000 5,000 5,000 5,000 5,000 5,000 5,000

Mine 5 500 2,500 4,000 5,000 5,000 5,000 5,000 5,000 5,000

Mine 6 500 2,500 4,000 5,000 5,000 5,000 5,000 5,000 5,000

Mine 7 500 2,500 4,000 5,000 5,000 5,000 5,000 5,000 5,000

Mine 8 500 2,500 4,000 5,000 5,000 5,000 5,000 5,000 5,000

Mine 9 500 2,500 4,000 5,000 5,000 5,000 5,000 5,000 5,000

Mine 10 500 2,500 4,000 5,000 5,000 5,000 5,000 5,000 5,000

Total Production 1,100 8,000 28,000 42,000 50,000 50,000 50,000 50,000 50,000 50,000

Net Revenue $1,742,400 $12,672,000 $44,352,000 $70,224,000 $88,000,000 $92,400,000 $96,800,000 $101,200,000 $105,600,000 $110,000,000

Gross Profit $1,373,900 $9,712,000 $32,928,000 $51,353,400 $63,288,500 $64,742,350 $65,476,585 $67,959,336 $69,310,270 $72,858,116

Margin % 69% 67% 65% 64% 63% 62% 60% 59% 58% 58%

EBITDA $413,900 $8,642,000 $31,748,000 $50,063,400 $61,888,500 $63,242,350 $63,976,585 $66,209,336 $67,310,270 $70,608,116

Margin % 21% 60% 63% 63% 62% 60% 58% 58% 56% 56%

Project cash flow $0 -$7,086,100 -$858,000 $27,248,000 $46,563,400 $60,888,500 $62,242,350 $62,976,585 $65,209,336 $66,310,270 $69,608,116

Debt issued (repaid) $7,000,000 -$1,400,000 -$1,400,000 -$1,400,000 -$1,400,000 -$1,400,000 $0 $0 $0 $0

Option & warrants exercised $8,375,396 $1,351,085

Net Cash $1,783,333 $9,572,629 $7,965,714 $33,253,714 $77,997,114 $137,205,614 $197,907,964 $260,884,549 $326,093,885 $392,404,155 $462,012,271

US$

Ceylon Graphite TSXV Performance

Market Capitalization : $ 39,447,919

Total Shares: 123,274,747

Warrants : 75,378,556

Options : 8,007,870

Insiders: 18,537,845 (15.16%)

Debt: 0

Convertible Debt - $ 1,185,000 @ C$ .25c

As of 2/25/2021.

TSXV: CYL

2020: A new decade will usher a new generation in energy storage

The PastGrowth in portable electronics continues to

grow but has quickly been overtaken by expansions in EVs

The PresentAdoption of passenger electric vehicles will bethe main driver of the industry over the comingdecade

The FutureESS applications have the potential to far

outstrip battery demand in EVs andrevolutionise the way energy is stored anddistributed

© Benchmark Mineral Intelligence 2020

TSXV: CYL

Ceylon Graphite is well positionedto grow Shareholder Value as demand for Graphite grows rapidly over the next few years

Product certified as battery grade

( spherical) marketable and expandable

Graphite is the “new oil” used in

Anodes for Batteries and Energy Storage.

Highest grade natural graphiteon the planet in situ is available at Ceylon Graphite Cg 90% +. K1 site in production and M1is anticipated to

follow shortly

Cheapest and quickest – Ceylon

Graphite builds a mine in 2 years and for US$ 2.5 mm.

Average cost of production US$ 220/ton.

Demand for natural graphite is

being driven by the energy storage and electric vehicle sectors.

Geographically well positionedfor the Eastern markets –China, Japan and Korea and Western markets Canada and USA.

TSXV: CYL

Contact

Bharat ParasharChairman and Chief Executive Officer

+1(202) 352-6022

bharat.parashar@ceylongraphite.com

Mailing Address

1100-1110 Melville Street

Vancouver, BC V6E 4A6

Canada

Corporate Communications

+1(202)352-6022

info@ceylongraphite.com

www.ceylongraphite.com @ceylongraphite @ceylongraphite

TSXV: CYL