SRG:CC - SRG Completes Strategic Equity Investment of C$13 Million from La Mancha

(TheNewswire)

SRG Positioned to Accelerate Development of LolaGraphite Project

Montreal, Quebec – TheNewswire - March 31, 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” ), has completed a non-brokered private placement in SRG,previously announced on March 16, 2022 (“ Private Placement ”).

SRG has issued 22,442,941 common shares (the“ Shares ”) to a subsidiary of the Fund at a price of C$0.56 pershare, yielding proceeds to SRG of C$12,568,047 (approximately US$10million). Upon completion of the Private Placement, the Fund now owns19.9% of SRG’s issued and outstanding common shares, establishing itas one of SRG’s largest shareholders. The Shares issued pursuant tothe Private Placement will be subject to a hold period expiring fourmonths and one day from the date of issue.

The Private Placement is an important first step by SRGand La Mancha to accelerate development of the Lola Graphite Projectand downstream processing strategy to develop a fully integratedmine-to-market solution to supply active anode material to theEuropean lithium-ion and fuel cell markets. SRG now has cash and cashequivalents of approximately C$17 million (US$13 million) and nosignificant debt. 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.

“ Theinvestment completed today comfortably provides SRG with the fundsrequired to rapidly advance the Lola Graphite Project and ourdownstream, second transformation strategy in Europe ,” said Benoit La Salle, Chairman of the Board and MatthieuBos, Chief Executive Officer.

Closing of the Private Placement remains subject tocustomary regulatory conditions namely final approval of the TSXVenture Exchange.

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 Inc. is a Canadian-based mining companyfocused on developing the Lola Graphite Project located in theRepublic of Guinea, West Africa. The Lola Graphite Project hasProbable Reserves of 42Mt at a grade of 4.2% Cg. SRG aims to develop afully 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-lookinginformation. Generally, such forward-looking information can beidentified by the use of forward-looking terminology such as,“advance”, “develop”, “ensure”,  “potential”, orvariations of such words and phrases or state that certain actions,events or results “will”, “may”, “could”, “would” or“might” occur. Forward-looking information is subject to known andunknown risks, uncertainties and other factors that may cause theactual results, level of activity, performance or achievements of theCompany to be materially different from those expressed or implied bysuch forward-looking information, including but not limited to: (i)volatile stock price; (ii) the general global markets and economicconditions; (iii) the possibility of write-downs and impairments; (iv)the risk associated with exploration, development and operations ofmineral deposits and mine plans for the Company’s mining operations;(v) the risk associated with establishing title to mineral propertiesand assets including permitting, development, operations andproduction from the Company’s operations being consistent withexpectations and projections; (vi) fluctuations in commodity prices,finding offtake takers and potential clients or enforcing suchagreements against same and other risks and factors described orreferred to in the section entitled “Risk Factors” in the MD&Aof the Company and which is available at www.sedar.com, all of whichshould be reviewed in conjunction with the information found in thisnews 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 be other factors that cause results not to be asanticipated, estimated or intended. There can be no assurance thatsuch forward-looking information will prove to be accurate, as actualresults and future events could differ materially from thoseanticipated in such forward-looking information. Such forward-lookinginformation has been provided for the purpose of assisting investorsin understanding the Company’s business, operations and explorationplans and may not be appropriate for other purposes. Accordingly,readers should not place undue reliance on forward-lookinginformation. Forward-looking information is given as of the date ofthis press release, and the Company does not undertake to update suchforward-looking information except in accordance with applicablesecurities laws.

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