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Eagle Graphite closes $816K first tranche of private placement

News Release

EAGLE GRAPHITE ANNOUNCES FIRST CLOSING IN PRIVATE PLACEMENT

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Toronto, Ontario – December 29, 2017 – Eagle Graphite Incorporated (TSXV:EGA – Frankfurt: NJGN) (“Eagle Graphite” or the “Company”) is pleased to announce first closing of the placement announced on December 22, 2017 (the “Placement”), for aggregate gross proceeds of $816,000. Gross proceeds of $200,000 have been raised through the issue of 6,666,666 flow-through units (the “FT Units”) at a price of $0.03 per FT Unit (the “FT Placement”), plus $616,000 in gross proceeds through the issuance of 24,640,000 units (the “Units”) at a price of $0.025 per Unit. Each FT Unit consists of one flow-through common share and one-half of one common share purchase warrant (each whole warrant a “Warrant”). Each Unit will consist of one common share and one Warrant. Each Warrant entitles the holder to acquire one common share of the Company at an exercise price of $0.05 per share before expiring on December 28, 2022. All securities issued in the first closing are subject to a four month hold period ending April 29, 2018.

The Company has paid finder’s fees of $65,280 plus 2,504,533 Warrants relating to the Placement. The Company expects to close on the remaining $384,000 of gross proceeds of the Placement in early January of 2018.

The Placement is being made subject to the grant of a discretionary waiver of the TSX Venture Exchange’s (“TSXV”) minimum $0.05 pricing requirement (the “Waiver”). With respect to the Waiver, the Company intends to conduct a share consolidation of its outstanding Common Shares on the basis of a minimum of one (1) post-consolidation Common Share for each nine (9) pre-consolidation Common Shares (the “Consolidation”). The Company will seek shareholder approval for the Consolidation at the earlier of the Company’s next annual general meeting and six months from the completion of the Placement, and will give effect to the Consolidation in as expeditious a manner as is possible after receiving requisite shareholder approval. The Company has obtained written confirmation from shareholders holding a majority of the outstanding shares (post-financing) that they will vote in favour of the Consolidation.

The net proceeds from the Placement will be used to fund exploration work and for general and administrative purposes. Closing of the Placement is subject to TSXV approval.
The Company advises that there is strong investor demand for this Placement. Current stakeholders in the Company who wish to learn more about the Placement are advised to contact the Company as soon as possible.

About Eagle Graphite

Eagle Graphite Incorporated is an Ontario company that owns the only natural flake graphite production facility in Western Canada, located 35 kilometres west of the city of Nelson in British Columbia, Canada, and 70 kilometres north of the state of Washington, USA, known as the Black Crystal graphite quarry. The Company’s shares are listed on the TSXV under the symbol “EGA” and on the Frankfurt Stock Exchange under the symbol “NJGN”.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Contact:
Eagle Graphite Incorporated
Jamie Deith
President & Chief Executive Officer
(604) 909-4237
jdeith@eaglegraphite.com

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