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SRG Graphite Reports on Latest Metallurgical and Expandable Graphite Test Results

Metallurgy & Processing

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SRG Graphite Inc.

1320 Graham, Suite 132

Ville Mont-Royal, Québec

H3P 3C8

PRESS RELEASE FOR IMMEDIATE RELEASE

SRG Graphite Reports on Latest Metallurgical

and Expandable Graphite Test Results

Montreal, Quebec, March 1 4th, 2018 – SRG Graphite Inc. (TSXV: SRG) (“SRG” or the

“Company”) today is pleased to announce progress in the development of its mineral processing

flowsheet designed in conjunction with DRA Americas and SGS Canada. Additionally, the

Company has received positive test work results o n the expandable properties of its graphite

flakes from the Lola deposit.

The key result highlights are as follows:

 Preliminary testwork suggests wet scrubbing as an alternative to traditional grinding is

possible, which would reduce capital and operating costs while promoting flake size

preservation.

 Ongoing test work suggests the developed flowsheet would allow for 95% -98% Cg

concentrate to be produced over all size fractions.

 Performed expandability test work on +50mesh and +80mesh graphite concentrate

obtained 350ml/g and 300ml/g, respectively, well over industry requirements.

Scrubbing Testwork

A first round of testwork is ongoing at SGS Canada Lakefield, with focus on the grinding

method, flotation and flowsheet development. SGS Canada conducted positive preliminary

testwork, using rotary scrubbing for mineral size reduction and graphite liberation. These results

support the hypothesis that, for SRG Graphite’s weathered mineralized material, wet scrubbing

alone, instead of the conventional primary grinding, is sufficient to produce the particle size

required and ensure graphite liberation for flo tation. The wet scrubbing method promotes

graphite flake size preservation during mineral size reduction.

“The Installation of rotary scrubbing circuit presents a great opportunity for the reduction in

capital and operating cost, as rotary scrubbing equipm ent is typically less expensive and

consumes less electric power compared to conventional (SAG, rod or ball mill) grinding circuit

employed for the same feed rate and processing duty” said Volodymyr Liskovych, P.Eng. Senior

Process Engineer, DRA.

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Flowsheet Refinement

In addition to the ongoing test work for the Company’s preliminary economic assessment, SGS

processed a 120kg bulk sample of material from the Lola deposit using its latest flowsheet. The

resulting grade concentrate is between 94.8% Cg and 97.9% Cg depending on the size fraction.

Purity of 96.6% Cg was obtained for the -100mesh concentrate, and 97.9% Cg was obtained for

the +50mesh. Jumbo flakes alone (+50mesh) accounted for 39% of the total concentrate

produced.

“The ongoing test work continues to demonstrate a simple flotation flowsheet applied to SRG

Graphite’s ore produces high purity graphite concentrate with a sig nificant amount of large and

jumbo flake fractions” says Russell McCarley, Senior Metallurgist at SGS Canada.

Graphite Expandability Testing

In addition to flowsheet development, the Company has tested its graphite flakes with

specialized German graphite laboratory, ProGraphite, for expandability properties. ProGraphite

performed expandability testwork on +50mesh and +80mesh graphite concentrate and obtained

350ml/g and 300ml/g respectively using an industry standard method for expandability .

Sulphuric acid (H2SO4) acted as acid and donor of the intercalation molecules, while potassium

permanganate (KMnO4) acted as oxidizing media to start the intercalation.

“To our knowledge, graphite flakes treated with this method typically require ratios higher than

250ml/g and 200ml/g for the +50mesh and +80mesh respectively, to be suitable for expandable

graphite markets. The coarse nature of SRG Graphite’s flakes along with the results obtained

during testing, makes this market particularly interesting for the Compan y.” Christoph Frey,

Managing Director at ProGraphite GmbH said.

The technical information in this release has been reviewed and approved by Raphael

Beaudoin, P.Eng, Director of Operations, SRG and a 'qualified person' as defined by National

Instrument 43-101, Standards of Disclosure for Mineral Projects.

ABOUT SRG

SRG is a Canadian-based company focused on developing the Lola graphite 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]

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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. Generally, such forward -looking information can be

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

“demonstrate”, or variations of such words 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 factor s 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, including but not limited to: (i) volatile

stock price; (ii) the general global markets and economic conditions; (iii) the possibility of write -

downs and impairments; (iv) the risk associated with exploration, development and operations

of mineral deposits; (v) the risk associated with establishing title to mineral properties and

assets; (vi) fluctuations in commodity prices and other risks and factors described or referred to

in the section entitled "Risk Factors" in the MD&A of the Company and which is available at

www.sedar.com, all of which should be reviewed in conjunction with the information found in

this news 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. 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. Such forward -looking

information has 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 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.