Equity Financing TSX Venture Graphite Guinea Quebec

SRG Graphite closes $10M financing

News Release

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

SRG GRAPHITE INC. ANNOUNCES CLOSING OF $8,001,000 MARKETED UNIT OFFERING AND CONCURRENT PRIVATE PLACEMENT OF $2,000,000

Montreal, Quebec, May 18, 2018 – SRG Graphite Inc. (TSXV: SRG) (“SRG” or the “Company”) is pleased to announce that it has closed its marketed public offering (the “Offering”) through a syndicate of underwriters co-led by National Bank Financial Inc. and TD Securities Inc. and including Macquarie Capital Markets Canada Ltd., Beacon Securities Limited and Clarksons Platou Securities AS (collectively, the “Underwriters”). In connection with the closing of the Offering, the Company issued 5,334,000 units of the Company (“Units”) at a price of $1.50 per Unit for gross proceeds of $8,001,000. Each Unit is comprised of one common share of the Company (a “Common Share”) and one Common Share purchase warrant of the Company (a “Warrant”). Each Warrant will entitle the holder thereof to acquire one additional Common Share (each a “Warrant Share”) at an exercise price of $2.30 per Common Share at any time for a period of 12 months from today.

In connection with the Offering, the Company paid to the Underwriters a cash fee of $480,060 and issued 320,040 broker warrants to the Underwriters, each such broker warrant entitling the holder thereof to acquire one Common Share at an exercise price of $1.50 for a period of 12 months from today.

The Company has granted the Underwriters an over-allotment option to purchase up to an additional 15% of the Units sold pursuant to the Offering, exercisable in whole or in part at any time for a period of 30 days from today. The over-allotment option may be exercised for Units, Warrants or a combination thereof.

In addition, the Company has completed its previously announced concurrent non-brokered private placement (the “Concurrent Private Placement”) with Coris Capital SA (“Coris”) pursuant to which Coris subscribed for 1,333,333 units (the “Private Placement Units”), which were issued on the same terms and conditions as those issued pursuant to the Offering. The Private Placement Units are subject to a statutory four month hold period in accordance with applicable securities laws.

The Company intends to use the proceeds from the Offering and the Concurrent Private Placement for advancement of the Company’s Lola graphite project, including, in the near term, to further regional exploration and infill resource drilling and to progress towards a feasibility
study; for continued exploration of its Gogota cobalt-nickel-scandium project; and for general working capital purposes.

The TSX Venture Exchange has conditionally approved the Offering and the Concurrent Private Placement. Listing of Common Shares and Warrant Shares will be subject to the fulfillment by the Company of the customary listing conditions of the TSX Venture Exchange. The Offering was made pursuant to a short form prospectus dated May 11, 2018 (the “Prospectus”), filed in each of the Provinces of Canada and available on SEDAR at www.sedar.com.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

ABOUT SRG

SRG is a Canadian-based company focused on developing the Lola graphite deposit and the Gogota cobalt-nickel-scandium deposit located in the Republic of Guinea, West Africa. SRG is committed to operating in a socially, environmentally and ethically responsible manner.
For additional information, please visit SRG’s website at www.srggraphite.com.

For more information contact:

Ugo Landry-Tolszczuk
Tel: +1 (514) 679-4196
Email: ultolszczuk@srggraphite.com

Benoit La Salle, FCPA FCA
Tel: +1 (514) 951-4411
Email: benoit.lasalle@srggraphite.com

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

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