SRG:CC - La Mancha to Acquire a 19.9% Stake in SRG for C$13 Million

(TheNewswire)

SRG to Accelerate Development of Lola GraphiteProject

and Downstream Processing Strategy

Montreal, Quebec – TheNewswire - March 16, 2022 - SRG Mining Inc. (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” ), has agreed to acquire a significant 19.9% stake inSRG.

Subject to final due diligence, execution of definitivedocumentation, and approval from La Mancha’s Investment AdvisoryCommittee and the Fund’s manager, SRG will issue 22,442,941 commonshares to the Fund (or its designated affiliate) through a privateplacement at a price of C$0.56 per share, yielding proceeds to SRG ofapproximately C$13 million (US$10 million). The Fund will come to own19.9% of SRG’s issued and outstanding common shares when theplacement is completed, establishing it as one of SRG’s largestshareholders.

Upon receipt of the proceeds, SRG will have cash andcash equivalents of approximately C$17 million (US$13 million) and nosignificant debt. SRG intends to use the proceeds to advance theCompany’s large-scale Lola Graphite Project in the Republic ofGuinea, to develop a fully integrated mine-to-market solution tosupply active anode material to the European lithium-ion and fuel cellmarkets and for general corporate purposes.

SRG will work closely with La Mancha, during thedevelopment phase of the project, to ensure the Fund’s continuedparticipation in subsequent financings to advance SRG towardsproduction.

“ We areconfident that La Mancha shares our development vision and has theexperience and access to financial resources to help us develop ourlarge-scale Lola Graphite Project and second transformation strategy,creating value for SRG’s stakeholders in the Republic of Guinea, andour international shareholders ,” said BenoitLa Salle, Chairman of the Board.

Naguib Sawiris, Chairman of La Mancha’s InvestmentAdvisory Committee, said: “ La Mancha has seen significant successes in the gold industry, and this investment in SRG is a logical continuation of the Fund’s strategy to investin commodities necessary to shift the energy system away from onedominated by hydrocarbons. The supply-demand dynamics for clean, future facing metals andminerals could mean we are at the dawn of a new commoditysupercycle . La Mancha is pleased tosupport SRG with this initial investment and , depending on the outcomes of thedevelopment programme, there is the potential for up to C$50 million in subsequent financings tofund SRG through to production . ”

The Fund’s investment into SRG is subject to LaMancha’s and the Fund manager’s internal approval processes,execution of definitive documentation, approval by the TSX VentureExchange, and other customary closing conditions. Receipt of allnecessary approvals and completion of the transaction is expected onor before March 31, 2022.

Upon closing of the private placement, SRG will grantthe Fund or its affiliate certain investor rights under an investorrights agreement. Among key provisions, the Fund or its affiliate willhave the right to nominate two directors to SRG’s board. Inaddition, the Fund or its affiliate will be granted anti-dilutionrights to enable it to maintain its SRG ownership at 19.9%.

About the Fund and La Mancha

The Fund is a Luxembourg-based deep value fund focusedon investments in the precious metals and energy transition space. La Mancha advises the Fund on strategic investments made in publicly listed and privateexploration, royalty and mining companies with a global outlook.  LaMancha is a long-term minded investor, with a mandate to supportmining companies to achieve sustained growth by providing long-termequity capital as well as operational and board level expertise, tofurther portfolio company performance and expansion.

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

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 a Measured andIndicated Resource of 46Mt at a grade of 4.1% Cg. SRG aims to developa fully integrated source of battery anode material to supply theEuropean lithium-ion and fuel cell markets. With attractive operatingcosts, proximity to European end-markets and strong ESG credentials,SRG is poised to become a reliable supplier while promotingsustainability and supply chain transparency. SRG is committed to generating sustainable, long-term benefits thatare shared with the host countries and communities where itoperates.

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

Contact:

SRG Mining Inc.                                               La Mancha CapitalAdvisory LLP

1320 Graham, Suite 132                                        14 Grosvenor Street

Ville Mont-Royal, Québec                                           London

H3P 3C8                                           W1K 4PS

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-looking information. Generally, suchforward-looking information can be identified by the use offorward-looking terminology such as “intend”, “advance”,“develop”, “ensure”, “confident”, “create”,“potential”, “believe”, or variations of such words andphrases or state that certain actions, events or results “will”,“may”, “could”, “would” or “might” occur.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 bematerially different from those expressed or implied by suchforward-looking information, including but not limited to: (i) LaMancha Fund SCSp’s investment in SRG Mining Limited not beingcompleted as a result of failure to execute definitive documentationand/or obtaining applicable approvals (ii) volatile stock price; (iii)the general global markets and economic conditions; (iv) thepossibility of write-downs and impairments; (v) the risk associatedwith exploration, development and operations of mineral deposits andmine plans for the Company’s mining operations; (vi) the riskassociated with establishing title to mineral properties and assetsincluding permitting, 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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