SX:CC - Manufacturing Completed for Automated Industrial Battery Processing Circuits Financing & Lithium Processing Update

(TheNewswire)

Montréal – TheNewswire - May 18, 2023 – St-Georges Eco-MiningCorp. (CSE:SX) (OTC:SXOOF) (FSE:85G1) would liketo disclose that it has received confirmation of delivery at themanufacturer of the second and third automated industrial batteryprocessing circuits, each capable of processing 7,800 tonnes ofbattery per year. These circuits will add capacity to the circuitalready in transit and allow the Company to process 23,400 tonnes ofspent batteries per year. This additional capacity is over and abovethe 4,500 tonnes capacity for alkaline battery processing alreadyinstalled and being upgraded while awaiting environmentalauthorizations.

The Company received confirmation from the manufacturerthat the circuits were ready for independent testing. As of today, theindependent inspection is completed. Management expects to receive theindependent engineering certification report from WSP Engineeringbefore the end of May, and the shipping of these circuits will followin short order.

The Company has also received the detailed engineeringlayout from the same engineering firm for the proposed plant inQuébec that is under review.

Lithium Hydroxide ProductionUpdate

The Company has made a significant improvement to itsprocess to manufacture lithium hydroxide from spodumene concentrates.The nitric acid used in the process was, until now, recirculated at92% while 8% was recuperated by amalgamating it with fertilizersby-products.

The Company has improved the method to recover thealumina content (AI2O3) of the spodumene concentrate, allowing the production of aluminum nitratenonahydrate ) ( A l(no3)3 ? 9h2o ) at grades exceeding 99.9%.

These initial results show the possibility of producingan aluminium by-product with a ready market and very few impurities,which could be improved as the research for this by-product isadvanced by the metallurgical team. The market value of the product,which contains only 7.193% aluminum, could cover a significant portionof the costs of running the process to produce the lithiumhydroxide.

The Company was also able to produce aluminum oxides inthe same sequence. However, the by-product generated in this formreaches only 99.5% purity and would sell at a discount compared to thealuminum nitrate nonahydrate.

The carbon footprint of theprocess is currently being modelized. Thismodeling is being done on the assumption that natural gas will beused. Dark green hydrogen would change these results drastically if itwere to be used. The Company is nonetheless working on improvementswith the goal of reaching net-zero emissions with legacy fossil fuelsources.

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Table 1. Processes comparison on thebasis of actual or expected CO2 emissions.

“(…) The Company continues tomake significant improvements on its process to make lithium hydroxidefrom spodumene concentrates (…) The feed to this line is an aluminumnonahydrate Al(NO3)3*9H2O. The purity of the product is already at99.9% and can be sold ‘as is’ for a good value (…) A useful ruleof thumb is that we will produce a little more than three tons forevery ton of lithium hydroxide. The significance of this improvementis that this product has excellent value as is and eliminates one stepto produce the alumina originally planned (...) Both products arepossible (…) aluminum nitrate nonahydrate is expensive to producefrom alumina. However, it can be produced economically at a low costwhile producing lithium products. It can also greatly contribute tothe bottom line while helping eliminate waste streams. We look forwardto future updates in this area as development continues, but the earlyresults are very encouraging and exciting (…) commented Enrico Di Cesare, St-Georges VP Research &Development and CEO of St-Georges Metallurgy.

Financing Offering

Management has studied different scenarios toaccelerate the development of EVSX’s operations and has decided toleverage the newly acquired industrial setup to finance its growthwhile limiting the dilution to its share capital. Following theconclusions of this exercise, t he Company wouldlike to announce its intention to raise up to CA $3,000,000 (the“Offering”) by way of secured convertible debentures (the“Debentures”) in up to three tranches of CA $1,000,000 each. TheCompany reserves the right to cancel any subsequent tranches of thisfinancing as its operations ramp up and cash flow requirements are metby other sources.

The Debentureswill be secured and will bear interest at 9.9% per annum (the “Interest”). Subject to certain conditions, theCompany will pay the Interest accrued over the first three years inequity and may elect to satisfy payment in kind for the remainingInterest by issuing common shares (“Common Shares”) of the Company(“Interest Shares”). In the event of payment in kind, the numberof Interest Shares due will be calculated using a conversion price(the “Interest Conversion Price”) equal to the Conversion Price(as defined herein).

The holder may, at its option, convert in full or inpart, the principal of the Debentures, at any time prior to thematurity date (the “Maturity Date”), being the fifth anniversaryof the issue date, into Common Shares at CA $0.25 per share for theinitial two years and afterward at the volume weighted average of theprevious 10 trading days (VWAP) discounted by 10% subject to a floorprice of $1.00 per shares (the “Conversion Price”).

In addition, subscribers for Debentures will receiveone common share purchase warrant (“Warrant”) for each CA $0.25 ofprincipal amount of Debenture. Each Warrant will entitle the holder toacquire one Common Share of the Company for CA $0.35 at any time up to three years from the date of issuance. The Warrantswill also be subject to an acceleration clause providing for theacceleration of the expiry of the Warrants if, at any time after thedate that is four (4) months plus one (1) day after such Warrants areissued, the closing price of the Common Shares on the CanadianSecurities Exchange (“CSE”) equals or exceeds $0.50, in whichevent the Company shall have the right to accelerate the expiry dateof the Warrants to a date that is thirty (30) days after the earlierof (a) the date upon which the Company issues a press releaseannouncing the acceleration and (b) the date upon which the Companydelivers a written acceleration notice to the holder, whichever shouldoccur first.

Closing of the initial tranche of the Offering has beenset for August 15, 2023. The closing of the Offering is subject to thereceipt of necessary regulatory approvals, including, whereapplicable, the approval of the CSE. The Debentures, Common Shares,Warrants, and any Warrant Shares will be subject to a four-month holdperiod under applicable securities laws and CSE policies. The Companymay pay eligible finders a fee in connection with the Offering.

An additional review by foreign regulators might berequired to accommodate some of the potential subscribers.

The Company can buy back the debentures with theaccrued interests at any moment with no penalty after the initial twoyears.

The Company plans to use the net proceeds from theOffering for general corporate purposes and as liquidity and cash flowreserve to support the launch of the battery recycling operations ofits subsidiary EVSX Corp.

ON BEHALF OF THE BOARD OF DIRECTORS

‘FrankDumas’

FRANCOIS (FRANK) DUMAS

Chief Operating Officer & Director of St-GeorgesEco-Mining Corp.

About St-Georges Eco-Mining Corp.

St-Georges develops new technologies to solve some ofthe most common environmental problems in the mining sector, includingmaximizing metal recovery and full-circle battery recycling. TheCompany explores for nickel & PGEs on the Manicouagan and JulieProjects on Quebec’s North Shore and has multiple explorationprojects in Iceland, including the Thor Gold Project. Headquartered inMontreal, St-Georges’ stock is listed on the CSE under the symbol SXand trades on the Frankfurt Stock Exchange under the symbol 85G1 andas SXOOF on the OTCQB Venture Market for early stage and developingU.S. and international companies. Companies are current in their reporting and undergo an annual verification andmanagement certification process. Investors can find Real-Time quotesand market information for the company on www.otcmarkets.com

Visit the Company website at www.stgeorgesecomining.com

For all other inquiries: public@stgeorgesecomining.com

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the accuracy of the contents of this release.

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