FLCN.V · 2018-06-06 12:00:00

SRG Reports Its Maiden Resource Estimate

Resource Estimates

for the Gogota Nickel-Cobalt Deposit 44.9Mt @

1.28% Ni and 0.13% Co

MONTREAL

June 6, 2018

/CNW Telbec/ -

SRG Graphite Inc.

(TSXV: SRG) ("SRG" or the

"Company") is pleased to report its maiden resource estimate for the 100%-owned Gogota nickel-

cobalt deposit located in the Republic of

Guinea

. The mineral resource estimate, prepared by

Montréal based Met-Chem, a division of DRA Americas Inc. ("Met-Chem/DRA"), includes a pit-

constrained inferred resource of 44.9 million tonnes ("Mt") of mineralized material grading 1.28%

nickel ("Ni") for 573,040 tonnes ("t") of contained nickel. The cobalt ("Co") grade of the resource is

0.13% Co for 59,560t of contained cobalt. The resource also contains 29.4 grams per ton ("g/t") of

scandium ("Sc") for 1.17 tonnes of contained scandium in the limonitic portion of the deposit.

The highlights of the pit constrained estimate are as follows:

44.9 Mt of mineralized weathered material (limonite and saprolite) from surface to 40

meters

1.28% nickel, 0.13% cobalt, 29.4g/t scandium

38Mt of limonite material grading 0.15% Co for 57,140 t of in-situ cobalt

Preliminary strip ratio of 0.23

Mineral resources were based on 51 vertical drill holes carried out over the Gogota deposit in 2012-

2013. 31 drill holes were drilled over a 200-meter by 400-meter grid and the remaining 20 were

drilled over a 200-meter by 200-meter grid.

SRG will file a NI 43-101 technical report supporting the mineral resource estimate with SEDAR

within 45 days of the issuance of this press release.

"The Met-Chem/DRA resource estimate demonstrates the exceptional potential of the Gogota

project and reaffirms the tremendous geological potential in the sub-region" said Dr.

Marc-Antoine

Audet

, Lead Geologist and Qualified Person ("QP") for SRG.

"While our focus remains on bringing our Lola graphite deposit into production, we are investigating

the best way to pursue the development of the Gogota deposit given its significant potential for value

creation" said

Ugo Landry-Tolszczuk

, President and Chief Operating Officer of SRG.

Resource Summary

The mineral resource for the Gogota project incorporates assay results from 51 vertical diamond

drill holes representing 1,361 meters. 800 samples were sent for analysis in 2013 representing 31

drill holes and the remaining 425 samples representing 20 drill holes were sent for analysis in 2018

for a total 1,225 samples representing all 51 drill holes. The maiden resource is established for the

weathered profile of the deposit, from surface to a depth ranging from surface to approximately 40

meters with an average thickness of 22 meters. The surface area of the deposits covers 1.96

kilometers-squared.

Core logging and sampling were performed at the Company's facility in the village of Gogota.

Sample preparation was performed by Veritas Laboratory in

Abidjan

, Côte d'Ivoire. Pulp samples

were delivered to Activation Laboratories Ltd. ("ActLab"),

Ancaster, Ontario, Canada

. All samples

were assayed for nickel, cobalt and all major oxides using peroxide fusion XRF. Scandium was

determined by inductively coupled plasma optical emission spectrometry.

The estimate was prepared using a block model constrained with 3D wireframes of the principal

mineralized domains. Values for nickel, cobalt and scandium, were interpolated using inverse-

distance ("ID") interpolation methodologies on 40 × 40 ×

blocks. A preliminary open pit

optimization algorithm was run on the estimated grade block model to constrain the resources and to

support the Canadian Institute of Mining, Metallurgy and Petroleum's ("CIM") requirement that

mineral resources have "reasonable prospects for eventual economic extraction." Only mineralization

contained within the preliminary pit shell has been included in the resource estimate.

The base case mineral resource estimate is summarized in the following table at a cut-off grade of

0.07% Co in the limonite facies of the profile and 0.70% Ni in the transition and saprolite layers

together. Sensitivity estimates were conducted at 0.10% Co and 1.0% Ni, and 0.12% Co and 1.2%

Ni in limonite and transition/saprolite respectively. The resource estimate and sensitivities are

established with data from boreholes drilled in 2012 and 2013.

Base Case Mineral Resources

Cut-off-grade

Facies

Tonnes

MgO

g/t

0.07% Co

Limonite

38.00

1.20

0.15

46.20

0.81

454,500

57,140

1,166,200

0.7% Ni

Transition

1.34

2.18

0.05

17.81

12.30

29,200

650

0.7% Ni

Saprolite

5.55

1.61

0.03

13.17

23.90

89,340

1,770

Total

44.89

1.28

0.13

41.27

4.01

573,040

59,560

1,166,200

Sensitivity 1: 0.10% Co, 1.0%Ni

Cut-off-grade

Facies

Tonnes

MgO

g/t

0.10% Co

Limonite

33.22

1.25

0.16

47.01

0.82

414,800

53,100

1,015,900

1.0% Ni

Transition

1.24

2.29

0.05

17.67

13.06

28,300

600

1.0% Ni

Saprolite

4.69

1.75

0.03

13.68

23.92

82,000

1,600

Total

39.15

1.34

0.14

42.09

3.97

525,100

55,200

1,015,900

Sensitivity 2: 0.12% Co, 1.2%Ni

Cut-off-grade

Facies

Tonnes

MgO

g/t

0.12% Co

Limonite

28.58

1.27

0.17

47.64

0.77

363,400

47,900

875,800

1.2% Ni

Transition

1.16

2.36

0.05

17.60

13.57

27,500

600

1.2% Ni

Saprolite

4.05

1.85

0.03

14.11

23.74

74,900

1,400

Total

33.79

1.38

0.15

42.58

3.97

465,800

49,800

875,800

Notes:

CIM definitions (May 10, 2014) observed for classification of mineral resources.

Block bulk densities interpolated from specific gravity measurements taken from core samples.

Resources are constrained by a Lersch Grossman (LG) optimized pit shell using MineSight software.

Pit shell defined using 30-degree pit slope, $USD 5.5/lbs Ni, $USD 30/lbs Co, $USD 0.0/g Sc, $USD 2.00/t mining costs, $USD 43/t processing costs, $USD 3.50/t G&A and

$USD 175/t for concentrate transportation costs.

Mineral resources are not mineral reserves and have not demonstrated economic viability. The estimate of mineral resources may be materially affected by mining,

processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors ("Modifying Factors").

Numbers may not add due to rounding.

Effective Date of Resource estimate is June 6

, 2018.

About Met-Chem/DRA

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

engineering company, headquartered in Montréal, 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 multi-

disciplinary 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

Qualified Person

Met-Chem/DRA's consultant, Schadrac Ibrango, P. Geo was responsible for estimating the mineral

resources and has reviewed and approved the contents of this press release. Mr. Ibrango is a

Qualified Person ("QP"), independent of SRG Graphite, within the meaning of NI 43-101 –

Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

The Gogota deposit resource is under the direct supervision of Dr.

Marc-Antoine Audet

, P.Geo.,

Lead Geologist, SRG, and a QP as defined by National Instrument.

ABOUT SRG

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

Gogota nickel-cobalt deposit, both 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 such as "potential", "high-potential", "expected",

"optimistic", "looking forward", "moving forward", 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 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, 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; (vii) the risks associated with uninsurable risks arising during

the course of exploration, development and production; (viii) competition faced by the issuer in

securing purchasers, off-taker markets, clients and experienced personnel and financing; (ix) access

to adequate infrastructure to support mining, processing, development and exploration activities; *

the risks associated with changes in the mining regulatory regime governing the issuer; (xi) the risks

associated with the various environmental regulations the issuer is subject to; (xii) risks related to

regulatory and permitting delays; (xiii) risks related to potential conflicts of interest; (xiv) the reliance

on key personnel; (xv) liquidity risks; (xvi) the risk of litigation; and (xvii) risk management.

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, no

material adverse change in metal prices, exploration and development plans to proceed in

accordance with plans and such plans to achieve their stated expected outcomes, receipt of

required regulatory approval, and such other assumptions and factors as set out herein. 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.

SOURCE

SRG Graphite

View original content with multimedia:

http://www.newswire.ca/en/releases/archive/June2018/06/c5446.html

%SEDAR: 00008697E

For further information:

Benoit La Salle, FCPA, FCA, MBA, Executive Chairman, SRG Graphite

Inc., Tel: +1 (514) 951-4411, Email: [email protected]; Ugo Landry-Tolszczuk, P.Eng,

CFA, President & COO, SRG Graphite Inc., Tel: +1 (514) 679-4196, Email:

[email protected]

CO: SRG Graphite

CNW 07:00e 06-JUN-18

← Back to feed