SRG:CC - La Mancha Confirms Completion of Confirmatory Due Diligence and Receipt of Internal Approvals Necessary to Complete its Investment in SRG

(TheNewswire)

Montreal, Quebec – TheNewswire - March 21, 2022 - SRG MiningInc. (TSXV:SRG) (“ SRG ” or the“ Company ” ) announced today that La Mancha Fund SCSp (the“ Fund ”), a fund advised by La Mancha Capital Advisory LLP (“ La Mancha” ), hascompleted its confirmatory due diligence and has received the internalapprovals necessary to complete the private placement in SRG.

The private placement now remains subject only tocustomary closing conditions, including TSX Venture Exchange approval,and is expected to close on or before March 31, 2022.

About the Fund, La Mancha and the Terms of the PrivatePlacement

On March 18, 2022, La Mancha Investment S.à.r.l (the “ Subscriber ”) entered into a subscriptionagreement (the “ SubscriptionAgreement ”) with SRG pursuant to which theSubscriber has agreed to subscribe for 22,442,941 common shares in thecapital of SRG (the “ CommonShares “) at a price of C$0.56 per Common Sharefor aggregate cash consideration of $12,568,047.

The Subscriber does not otherwise currently own or havecontrol or direction over any Common Shares. Following completion ofthe private placement, the Subscriber will beneficially own and havecontrol and direction over an aggregate of 22,442,941 Common Shares,representing 19.9% of the currently issued and outstanding CommonShares.

At the closing of the private placement, the Subscriberand SRG will enter into an investment agreement, upon which theSubscriber or an affiliate will be granted the right to nominate twodirectors to SRG’s board as well as certain anti-dilution andregistration rights.

The Common Shares to be acquired by the Subscriber oncompletion of the private placement have been acquired for investmentpurposes. In the future, the Subscriber may, from time to time,increase or decrease its investment in SRG through markettransactions, private arrangements, treasury issuances orotherwise.

The Subscriber is a wholly-owned subsidiary of theFund. The Fund is a Luxembourg-based deep value fund focused oninvestments in the precious metals and energy transition space. LaMancha advises the Fund onstrategic investments made in publicly listed and private exploration,royalty and mining companies with a global outlook. La Mancha is along-term minded investor, with a mandate to support mining companiesto achieve sustained growth by providing long-term equity capital aswell as operational and board level expertise, to further portfoliocompany performance and expansion.

La Mancha is an AppointedRepresentative of G10 Capital Limited, which is authorised andregulated by the Financial Conduct Authority (FRN 648953).

The Subscriber’s head office is located at 31-33Avenue Pasteur L-2311 Luxembourg.

The Subscriber will file an early warning report inaccordance with applicable Canadian securities laws, which will beavailable under SRG’s profile on the SEDAR website at www.sedar.com,and may also be obtained by contacting Vincent Benoit as provided forbelow.

About SRG Mining

SRG Mining is a Canadian-based mining company focusedon developing the Lola Graphite Project located in the Republic ofGuinea, West Africa. The Lola Graphite Project has Probable Reservesof 42Mt at a grade of 4.2% Cg. SRG aims to develop a fully integratedsource of battery anode material to supply the European lithium-ionand fuel cell markets. With attractive operating costs, proximity toEuropean end-markets and strong ESG credentials, SRG is poised tobecome a reliable supplier while promoting sustainability and supplychain transparency. SRG is committed togenerating sustainable, long-term benefits that are shared with thehost countries and communities where it operates.

For additional information, please visit SRG’swebsite at www.srgmining.com and LaMancha’s website at www.lamancha.com

Contact:

Neither the TSXV nor its RegulationServices Provider (as that term is defined in the policies of theTSXV) accepts responsibility for the adequacy or accuracy of thisrelease.

Forward-Looking Statements

This press releasecontains “forward-looking information” within the meaning ofCanadian securities legislation. All information contained herein thatis not clearly historical in nature may constitute forward-lookinginformation. Generally, such forward-looking information can beidentified by the use of forward-looking terminology such as“intend”, “aims”, “become”, “committed” or variationsof such words and phrases or state that certain actions, events orresults “will”, “may”, “could”, “would” or “might”occur. Forward-looking information is subject to known and unknownrisks, uncertainties and other factors that may cause the actualresults, level of activity, performance or achievements of the Companyto be materially different from those expressed or implied by suchforward-looking information, including but not limited to: (i) theprivate placement not being completed as a result of failure tosatisfy the conditions (ii) volatile stock price; (iii) the generalglobal markets and economic conditions; (iv) the possibility ofwrite-downs and impairments; (v) the risk associated with exploration,development and operations of mineral deposits and mine plans for theCompany’s mining operations; (vi) the risk associated withestablishing title to mineral properties and assets includingpermitting, development, operations and production from theCompany’s operations being consistent with expectations andprojections; (vii) fluctuations in commodity prices, finding offtaketakers and potential clients or enforcing such agreements against sameand other risks and factors described or referred to in the sectionentitled “Risk Factors” in the MD&A of the Company and whichis available at www.sedar.com, all of which should be reviewed inconjunction with the information found in this news release.

Although the Company has attempted to identifyimportant factors that could cause actual results to differ materiallyfrom those contained in the forward-looking information, there may beother factors that cause results not to be as anticipated, estimatedor intended. There can be no assurance that such forward-lookinginformation will prove to be accurate, as actual results and futureevents could differ materially from those anticipated in suchforward-looking information. Such forward-looking information has beenprovided for the purpose of assisting investors in understanding theCompany’s business, operations and exploration plans and may not beappropriate for other purposes. Accordingly, readers should not placeundue reliance on forward-looking information. Forward-lookinginformation is given as of the date of this press release, and theCompany does not undertake to update such forward-looking informationexcept in accordance with applicable securities laws.

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