Wayne; I had a bag of oxidized Remington shot that I could not bring myself to throw away. Initially I tried reloading with it but the dust made a mess of my reloader. Finally took 1/2 filled MEC bottles of it outside,shook it for awhile, and then poured it back and forth on a windy day to seperate the dust out. Made it much cleaner to reload but was a slow process. So much for gun show bargains.
It will work fine without graphite. Graphite is used on shot to help reduce oxidation and perhaps allow it to flow easier through your reloader. Graphite will also make the inside of the shot hopper dark and make it difficult to see how much shot is left.
Same way. Put the shot back in the bottle (1/4 full) with a 1/4 teaspoon of powdered graphite and roll around for a few minutes. It should come out nice and shiny. If not add more graphite and roll some more.