SRG Mining Inc. (TSXV: SRG) (“SRG” or the “Company^”) today announced further details on the strategic corporate plan to develop its Lola Graphite Project in the Republic of Guinea (the “Lola Project”) into a fully integrated supplier of battery anode material to the European market. The integrated business model would result in the creation of a mine-to-market active anode material producer, hosting a large high-purity graphite production mine and concentrator in Africa and a value-added, coated spherical purified graphite (“CSPG”) conversion facility in Europe.

Two Studies Underway

The Company announced today the start of an independent, updated feasibility study (the “Updated Feasibility Study” or “UFS”), which will include basic engineering, to confirm technical opportunities and capital and operating costs for target initial production of 100,000 tonnes per annum (“tpa”) of graphite as concentrate from the Lola Project. The UFS follows the 2019 Feasibility Study which was prepared by DRA Global Limited (“DRA”).

Following extensive consultation with its partners, technical consultants, industry participants and potential offtake partners SRG has concluded that an increase in concentrate production, from 50,000 tpa as disclosed in the 2019 Feasibility Study to 100,000 tpa, is expected to significantly increase capital efficiency and project economics. The Updated Feasibility Study will also be prepared by DRA and is scheduled to be completed in Q4 2022.

In parallel with the UFS the Company also announced today the start of an independent, preliminary economic assessment (“PEA”) of initial options for the start-up of a second transformation step to produce CSPG from the Lola Project graphite concentrate. The PEA will be prepared by Dorfner Analysenzentrum und Anlagenplanungsgesellschaft mbH (“Anzaplan”), a leading consultancy and engineering company for industrial, specialty mineral and metal projects, based in Hirschau, Germany. The PEA is scheduled to be completed in Q1 2023.

An integral part of the PEA will be to update existing metallurgical test work on spheroidization, purification and coating aspects to produce a high-quality CSPG product. The Company will provide Anzaplan and its partners with part of its 10 tonnes bulk sample concentrate, which it has available from previous pilot-scale metallurgical test work. The results of the additional metallurgical test work will also provide valuable samples for future offtakers to accelerate the extensive product qualification and test work required by cell manufacturers.

“These studies are a continuation of the previously announced strategy and will enable the Company to advance discussions with both financial institutions as well as potential customers,” “Given the projected surge in demand for graphite from the electric-vehicle revolution and renewable energy technologies, the Lola Project will be of significant strategic importance for auto makers and clean-energy companies looking to secure a long-term, reliable supply of high-quality graphite.”

Matthieu Bos, President and Chief Executive Officer

Financing and Offtake Discussions Progressing

The Company is advancing discussions with multiple parties who have expressed interest in providing debt financing to advance SRG towards first production. Binding offtake offers have been received for more than 50% of the initial 100,000 tpa graphite concentrate production.

About SRG Mining

SRG Mining is a Canadian-based mining company focused on developing the Lola Graphite Project located in the Republic of Guinea, West Africa. The Lola Graphite Project has a Probably Reserves of 42Mt at a grade of 4.2% Cg. SRG aims to develop a fully integrated source of battery anode material to supply the European lithium-ion and fuel cell markets. With attractive operating costs, proximity to European end-markets and strong ESG credentials, the Company is poised to become a reliable supplier while promoting sustainability and supply chain transparency. SRG is committed to generating sustainable, long-term benefits that are shared with the host countries and communities where it operates.