SRG Mining Inc. announced further details on the strategic corporate plan to develop its Lola Graphite Project in the Republic of Guinea (the "Lola Project") into a fully integrated supplier of battery anode material to the European market. The integrated business model would result in the creation of a mine-to-market active anode material producer, hosting a large high-purity graphite production mine and concentrator in Africa and a value-added, coated spherical purified graphite ("CSPG") conversion facility in Europe. Two Studies Underway: The Company announced the start of an independent, updated feasibility study (the "Updated Feasibility Study" or "UFS"), which will include basic engineering, to confirm technical opportunities and capital and operating costs for target initial production of 100,000 tonnes per annum ("tpa") of graphite as concentrate from the Lola Project. The UFS follows the 2019 Feasibility Study which was prepared by DRA Global Limited ("DRA"). Following extensive consultation with its partners, technical consultants, industry participants and potential offtake partners SRG has concluded that an increase in concentrate production, from 50,000 tpa as disclosed in the 2019 Feasibility Study to 100,000 tpa, is expected to significantly increase capital efficiency and project economics. The Updated Feasibility Study will also be prepared by DRA and is scheduled to be completed in fourth quarter of 2022. In parallel with the UFS the Company also announced the start of an independent, preliminary economic assessment ("PEA") of initial options for the start-up of a second transformation step to produce CSPG from the Lola Project graphite concentrate. The PEA will be prepared by Dorfner Analysenzentrum und Anlagenplanungsgesellschaft mbH ("Anzaplan"), a leading consultancy and engineering company for industrial, specialty mineral and metal projects, based in Hirschau, Germany. The PEA is scheduled to be completed in first quarter of 2023. An integral part of the PEA will be to update existing metallurgical test work on spheroidization, purification and coating aspects to produce a high-quality CSPG product. The Company will provide Anzaplan and its partners with part of its 10 tonnes bulk sample concentrate, which it has available from previous pilot-scale metallurgical test work. The results of the additional metallurgical test work will also provide valuable samples for future offtakers to accelerate the extensive product qualification
and test work required by cell manufacturers.