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FLCN.V ·

Srg Graphite Inc. Announces Underwriters’ Full Exercise of over -Allotment Option

Mergers & Acquisitions

SRG Graphite Inc.

1320 Graham, Suite 132

Ville Mont-Royal, Québec

H3P 3C8

PRESS RELEASE FOR IMMEDIATE RELEASE

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

SERVICES

SRG GRAPHITE INC. ANNOUNCES UNDERWRITERS’ FULL

EXERCISE OF OVER -ALLOTMENT OPTION

Montreal, Quebec, June 15 , 2018 – SRG Graphite Inc. (TSXV: SRG) (“SRG” or the

“Company”) is pleased to announce that the 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”)

for its May 2018 public offering (the “Offeri ng”) of units of the Compa ny (“Units”) has fully

exercised the over -allotment option (the “Over -Allotment Option”) granted under the Offering to

purchase 800,100 additional Units at a price of $1.50 per Unit (the “Offering Price”) for

additional gross proceeds to the Company of $ 1,200,150. This results in aggregate gross

proceeds of the Offering, including the exercise of the Over-Allotment Option on the date hereof,

of $9,201,150. In addition to the previously announced concurrent private placement with Coris

Capital S.A., this brings the aggregate gross proceeds of the raise to $11,201,150.

Each Unit issued under the Over -Allotment Option 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

at an exercise price of $2.30 per Com mon Share at any time for a period of 12 months from the

closing of the Offering as press released on May 18, 2018 .

The Company intends to use the proceeds from the Offering and the Over-Allotment Option 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 p roject; and for general working

capital purposes.

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 no t 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: [email protected]

Benoit La Salle, FCPA FCA

Tel: +1 (514) 951 -4411

Email: [email protected]

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is def ined

in the policies of the TSX Venture Exchange ) 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. Generally, such forward -looking information can be

identified by the u se of forward -looking terminology such as “reduce”, “suggest”, “opportunity”,

“demonstrate”, or variations of such words and phrases or state that cert ain actions, events or

results “may”, “could”, “would” or “ might” occur . Forward -looking information is s ubject 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 informati on, including but not limited to: (i) the

Company’s use of proceeds of the Offering and the Over -Allotment Option may differ from those

indicated; (ii) volatile stock price; ( iii) the general global markets and economic conditions;

(iv) the possibility of write-downs and impairments; ( v) the risk associated with exploration,

development and operations of mineral deposits; ( vi) the risk associated with establishing title to

mineral properties and assets; ( vii) fluctuations in commodity prices and other risks and factors

described or referred to in the section s entitled “Risk Factors” in the Annual Information Form of

the Company and the Prospectus available at www.sedar.com, all of which should be reviewed

in conjunction with the information found in this new s release.

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

at the time such statements are made, including but not limited to, continued exploration

activities and no material adverse change in mineral prices. Alth ough 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. Such forward -looking

information ha s been provided for the purpose of assisting investors in understanding the

Company's business, operations and exploration plans and may not be appropriate for other

purposes. Accordingly, readers should not place undue reliance on forward -looking informat ion.

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.