SRG Mining Inc. the positive results of an independent Updated Feasibility Study for the high- quality Lola Graphite Project in the Republic of Guinea. The Lola Graphite Project 2023 UFS evaluates a doubling in annual production capacity from the previous 2019 Lola Graphite Project Feasibility Study to an average of 94,000 tonnes of graphite flakes in concentrate per annum over its 17-year life of mine. The UFS was prepared by DRA Global Limited.

The UFS was prepared in compliance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects (NI 43-101). The UFS is the first phase of the Company's integrated business model aimed at the creation of a mine-to-market active anode material producer, hosting a large high-purity graphite production mine and concentrator in Africa and a value-added, coated spherical purified graphite conversion facility in Europe, North America, Middle East or Africa. The Company anticipates publishing the fully integrated business model in Second Quarter 2023 upon completion of the independent preliminary economic assessment ("PEA").

Dorfner Anzaplan GmbH, a leading consultancy and engineering company for industrial, specialty mineral and metal projects, based in Hirschau, Germany, is in final phases of completing the PEA. The UFS focuses on an open pit mine which targets the oxide and fresh rock reserves of the Lola Graphite Project, which have an estimated 6.4 Mt of Proven Reserves grading 4.38% Cg and 34.5 Mt of Probable Reserves grading 4.09% Cg. The processing plant will consist of a conventional crusher, concentrator, floatation, dewatering and screening circuit.

The Company anticipates exporting the final product by road through the port of Monrovia in the Republic of Liberia. Over the life of the mine, the Lola Graphite Project is expected to produce an average of 94 ktpa of saleable graphite flakes in concentrate. At an average sale price of USD 1,400 per tonne, this represents USD 131 million annual revenue incurring average operating costs of USD 585/t representing USD 54 million operating cash flow annually.

Given the volatility of graphite prices in recent years and the bilateral nature of the sales contracts, a sensitivity analysis of the project's economics is presented below. The resource estimate was established using data from boreholes drilled and sampled up to December 1, 2018. The total resource estimate of the Lola Project includes Measured and Indicated Resources of 54.0 Mt grading 3.98% Cg, and Inferred Resources of 12.3 Mt grading 3.6% Cg.

The resource estimate has been prepared using a cut-off grade of 1.0% Cg for oxides and 1.4% Cg for fresh rock. The Lola Graphite Project is characterised by its oxide surface mineralization, which continues along strike and at depth into the fresh rock bed. For the UFS, mining operations considered the mineralized material contained in the oxide weathered lateritic and saprolitic zones, as well as the mineralized material contained in the fresh rock formation.

The total reserve estimate includes Proven and Probable Mineral Reserves of approximately 40.9 Mt grading 4.14% Cg. To access these Mineral Reserves, 35.9 Mt of overburden and waste rock must be mined, resulting in a low life-of-mine strip ratio of 0.88:1. The Company anticipates using a contract-mining operation to mine approximately 2.6Mtpa of ore and 2.3Mtpa of waste in a conventional drill-and-blast mining operation. The resulting average head- grade to the processing facility is 4.14% Cg.

The mineral processing plant consists of a crushing area and a concentrator where material beneficiation and concentrate dewatering, screening, and packaging takes place. The process flowsheet includes crushing, grinding, rougher flotation, polishing, and cleaner flotation. The back end of the concentrator includes tailings thickening, concentrate filtration and drying, dry screening and bagging of graphite products, and material handling.

All the tailings from the concentrator will be thickened and pumped to the lined tailings ponds. Reclaiming water from the tailings ponds has been considered in the process design to minimize freshwater makeup to the concentrator. The graphite concentrate will be recovered by a conventional flotation process at an overall recovery over the life of mine of 83.6%.

Saprolite ore beneficiation process has an overall graphite recovery of 73.1%, producing a graphite concentrate grade of 95.4 % Cg. The addition of up to 45% of fresh rock in the feed blend improves the average graphite recovery over the life of mine to 83.6%. Over the life of the mine, the processing plant is expected to produce graphite concentrate divided into four standard-size fractions: +48 mesh, -48+80 mesh, -80+100 mesh and -100 mesh.

The projected capital and operating costs for the project are presented below in Table 6 and 7 and have an accuracy of +/-15%. The costs include the Company's contract mining operations, an owner operated processing facility using its own power generators (5 generators for a total installed capacity of 13 MW) as well as a logistics operation to the port of Monrovia. There is further scope to reduce these costs as the Company explores the viability of third-party contractors working in close collaboration with the Company on certain elements of the operating cost.

A key focus area for the Company will be to investigate to possibility to connect the Lola Graphite Project to the national electricity grid, which would yield significant savings on the pre-production capital costs. The average annual sustaining capital expenditure over a 17-year period is USD 6 million.