OREANDA-NEWS. Graphite One Resources Inc. (TSX VENTURE: GPH)(OTCQX: GPHOF) ("Graphite One" or the "Company") announces that in order to preserve its cash to fund development of the Company's Graphite Creek Project, it has entered into agreements ("Settlement Agreements") to issue shares to settle outstanding debt of $66,000 with certain arm's length creditors. The Company intends to issue 733,334 common shares ("Debt Shares") of Graphite One to be issued at a deemed price of $0.09 (the "Transaction"). The Transaction is subject to TSX Venture Exchange approval.

The Debt Shares, if issued, will be issued in reliance on certain prospectus and registration exemptions available under applicable securities legislation and will be subject to a hold period of four months and one day in accordance with applicable securities legislation and TSXV requirements.

"We are pleased to settle this debt with shares to help the Company preserve cash resources for operations and proceed with technical evaluation of Graphite Creek graphite," stated Anthony Huston, President and Chief Executive Officer of Graphite One.