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SRG Graphite Files NI 43-101 Preliminary Economic Assessment Report for Lola Graphite Deposit

Economic Studies

SRG Graphite Files NI 43-101 Preliminary

Economic Assessment Report for Lola

Graphite Deposit

MONTREAL

,

Aug. 3, 2018

/CNW Telbec/ -

SRG Graphite Inc.

(TSXV: SRG) ("SRG" or the

"Company") today announced that it has filed, on

August 2, 2018

, its National Instrument 43-101 ("NI

43-101") Preliminary Economic Assessment study ("PEA") for the development of its Lola graphite

project in the Republic of

Guinea

,

West Africa

, on SEDAR, as reported in its news release dated

July 10, 2018

.

Highlights of the Lola graphite PEA:

Production of 50,200 tons of graphite concentrate per year over a 16-year mine life

Capital costs of

$105 million

("M") including contingency of

$15M

Operational costs of

$372

/tonne ("t") of concentrate and

$130

/t of transport

Pre-tax NPV (8%) of

$204M

(post-tax NPV (8%) of

$121M

) at an average sales price of

$1,328

/t

Project pre-tax IRR of 35% and post-tax IRR of 25%

Finished grade of over 94% and up to 98% over all size fractions

Strip ratio of 0.39

The NI 43-101 PEA was prepared by Montréal-based Met-Chem, a division of DRA Americas Inc.

("Met-Chem/DRA"). All dollar figures are in

United States

dollars.

The Lola Graphite Project is under the direct supervision of Raphaël Beaudoin, P.Eng., Dr.

Marc-

Antoine Audet

, P.Geo, Ph.D (Geology) is the Qualified Person ("QP") as defined by National

Instrument 43-101.

The NI-43-101 Technical Report may be referenced on SRG's website at

www.srggraphite.com

and on SEDAR at

www.sedar.com

.

About Met-Chem/DRA

Met-Chem, a division of DRA Americas Inc., was originally established in 1969 as a consulting

engineering company, headquartered in

Montreal

, and provides a wide range of technical and

engineering services. Met-Chem is well recognized for its capabilities in mining, geology and mineral

processing and has a talented team of engineering, technical and project management personnel

with experience in

North America

,

Latin America

,

Europe

,

West Africa

and

India

. DRA is a

multidisciplinary global engineering group that originated in

South Africa

and delivers mining, mineral

processing, energy, water treatment and infrastructure services from concept to commissioning, as

well as comprehensive operations and maintenance services for the mineral resources, water,

agriculture and energy sectors. DRA has offices in

Africa

,

Australia

,

Canada

,

China

,

India

and

the

United States

.

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

.

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.

Forward-Looking Statements

This press release contains "forward-looking information" within the meaning of Canadian securities

legislation. All information contained herein that is not clearly historical in nature may constitute

forward-looking information, including references to the plans and project of the Company such as

proceeding with production at the Company's Lola Project, proceeding with exploration activities on

its permits including Lola and Gogota. Generally, such forward-looking information can be identified

by the use of forward-looking terminology and phrases or state that certain actions, events or results

"may", "could", "would" or "might". Forward-looking information is subject to known and unknown

risks, uncertainties and other factors that may cause the actual results, level of activity, performance

or achievements of the Company to be materially different from those expressed or implied by such

forward-looking information.

Forward-looking information is based on assumptions management believes to be reasonable at the

time such statements are made. Although the Company has attempted to identify important factors

that could cause actual results to differ materially from those contained in the forward-looking

information, there may be other factors that cause results not to be as anticipated, estimated or

intended. There can be no assurance that such forward-looking information will prove to be

accurate, as actual results and future events could differ materially from those anticipated in such

forward-looking information. Accordingly, readers should not place undue reliance on forward-looking

information. Forward-looking information is given as of the date of this press release, and the

Company does not undertake to update such forward-looking information except in accordance with

applicable securities laws. Additional information on these and other factors that could affect SRG's

operations and financial results are included in reports on file with Canadian securities regulatory

authorities and may be accessed through the SEDAR website (

www.sedar.com

).

SOURCE

SRG Graphite

View original content with multimedia:

http://www.newswire.ca/en/releases/archive/August2018/03/c5456.html

%SEDAR: 00008697E

For further information:

Ugo Landry-Tolszczuk, Tel: +1 (514) 679-4196, Email:

[email protected]; Benoit La Salle, FCPA FCA, Tel: +1 (514) 951-4411, Email:

[email protected]

CO: SRG Graphite

CNW 07:00e 03-AUG-18