SRG completes C$13 million strategic equity investment in La Mancha. SRG in a position to accelerate the development of the Lola Graphite project

MontrealSRG Mines Inc. (TSXV: SRG) (“SRG” or the “Company”) today announced that La Mancha Fund SCSp (the “Fund”), a fund advised by La Mancha Capital Advisory LLP (“La Mancha”), completed a non-brokered private placement in SRG, previously announced on March 16, 2022.

SRG issued 22,442,941 common shares (the “Shares”) to a subsidiary of the Fund at a price of CA$0.56 per share, yielding to the SRG proceeds of CA$12,568,047 (approximately $10 million). Upon closing of the private placement, the Fund now owns 19.9% ​​of the issued and outstanding common shares of SRG, making it one of SRG’s largest shareholders. Shares issued under the Private Placement will be subject to a hold period expiring four months and one day from the date of issue.

The private placement is an important first step for SRG and La Mancha to accelerate the development of the Lola Graphite Project and a downstream processing strategy to develop a fully integrated mine-to-market solution to supply active anode material to the European lithium-ion and fuel cell markets. The SSR now has cash and cash equivalents of approximately 17 million Canadian dollars ($13 million) and no significant debt. SRG will work closely with La Mancha during the development phase of the project to ensure the Fund’s continued participation in subsequent financings to move SRG towards production.

“Today’s investment comfortably provides SSR with the necessary funds to rapidly advance the Lola Graphite Project and our second downstream transformation strategy in Europe,’ noted Benoit La Sallechairman of the board of directors and Matthew BosChief Executive Officer.

The closing of the Private Placement remains subject to the usual regulatory conditions, namely the final approval of the TSX Venture Exchange.

About the Fund and La Mancha

The Fund is a Luxembourg-based high-value fund focused on investments in precious metals and the energy transition. La Mancha advises the Fund on strategic investments made in publicly traded and private exploration, royalty and mining companies with a global perspective. La Mancha is a long-term focused investor with a mandate to help mining companies achieve sustained growth by providing long-term equity, operational and board-level expertise to to promote the performance and expansion of portfolio companies.

La Mancha is an appointed representative of G10 Capital Limitedwhich is authorized and regulated by the Financial Conduct Authority (FRN 648953).

On SRG Mines

SRG Mines Inc. is a Canada-based mining company focused on the development of Lola Graphite Project located in the Republic of Guinea, West Africa. The Lola Graphite Project has probable reserves of 42Mt at a grade of 4.2% Cg. SRG aims to develop a fully integrated source of battery anode material to supply the European lithium-ion and fuel cell markets. With attractive operating costs, proximity to European end markets and strong ESG credentials, SRG is poised to become a reliable supplier while promoting sustainability and supply chain transparency. SRG is committed to generating sustainable, long-term benefits that are shared with the host countries and communities where it operates.

Contact:

Matthew Bos

Email: [email protected]

Forward-looking statements

This press release contains “forward-looking information” within the meaning of Canadian securities laws. Any information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identified by the use of forward-looking terminology such as “advance”, “develop”, “ensure”, “potential”, or variations of these words and expressions or state that certain actions, events or results “will”, “may”, “might”, “would” or “could” occur. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to differ materially from those expressed or implied by such forward-looking information, including but not limited to: (i) volatile stock price; (ii) general world markets and economic conditions; (iii) the possibility of impairments and impairments; (iv) the risk associated with the exploration, development and exploitation of mineral deposits and mining plans for the Company’s mining operations; (v) the risk associated with establishing title to mineral properties and assets, including permits, development, operations and production of the Company’s operations, is consistent with expectations and projections; (vi) fluctuations in commodity prices, the search for pick-up takers and potential customers or the enforcement of such agreements against the same and other risks and factors described or referred to in the section entitled “Risk Factors in the Company’s management report, which is available at www. sedar.com, all of which should be considered in conjunction with the information contained in this press release.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be those anticipated, estimated or expected. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. This forward-looking information has been provided for the purpose of assisting investors in understanding the Company’s business, operations and exploration plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is given as of the date of this press release, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws.

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