The Lola Graphite Deposit
Eastern Guinea, West Africa
Corporate Presentation
SRG AT A GLANCE
SRG’S OBJECTIVE IS TO BECOME A LEADER
IN THE PRODUCTION AND DELIVERY OF
LOW COST, QUICK-TO-MARKET, QUALITY
GRAPHITE.
SRG – (TSXV : SRG)
A Canadian-based emerging graphite company owns the
Lola Graphite Deposit.
The Lola Graphite occurrence has a prospective surface
outline of 3.22 km2 of continuous graphitic gneiss, one of
the largest surface outlines in the world.
SRG is committed to operate in a socially,
environmentally and ethically responsible manner.
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LOLA GRAPHITE - OVERVIEW
RESOURCE SIZE
POTENTIAL
8.7 km long graphite deposit with an average
width of 370m at surface
FLAKE SIZE
89% of graphite flakes are super-jumbo, jumbo
and large (> 0.18 mm)
WEATHERED
Favourable weathering profile has positive
implications on metallurgy of upper ~20m
GRADE
QUICK-TO-MARKET
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Metallurgical tests on representative surface
samples, grading up to 20% carbon
Minimal investment will rapidly and costeffectively advance the project to PFS
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THE LOLA DEPOSIT
The Lola Graphite deposit is 8.7 km long with an avg. width of 370 meters.
The first 20 meters or so of the deposit are
well weathered (lateralized), freeing graphite
flakes from the silicate gangue and allowing
for an easy grinding with optimal recovery of
all large and jumbo flakes.
The graphite
mineralization continues
at depth within the nonweathered sheared
gneiss.
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THE LOLA DEPOSIT
History
•
Discovered in the 50’s by the French’s BUMIFOM
•
BUMIFOM: 309 pits, metallurgical tests, plans for production
•
1959: Guinean independence, BUMIFOM left the country
•
SRG re-discovered the deposit in 2012
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LOLA GRAPHITE PROJECT
(EASTERN GUINEA)
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LOLA GRAPHITE PROPERTY
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METALLURGICAL TESTS
Preliminary metallurgical tests performed at the ActLab Laboratory in Canada for the oxide
material (saprolite; 0-20 m from surface) returned excellent results:
Flotation Testing – December 2016 (Fourth Test)
The graphite concentrate appears to be exempt of contaminants (Cu, Mo, V, etc) that are often
seen in higher concentrations in graphite concentrates from numerous other graphite deposits
around the world and particularly in southern Africa.
Mineralogical studies show that all the sulphide minerals have been naturally leached from the
oxide facies, resulting in a chemically purer concentrate.
For the same reason, the tailings are also expected to be non-acid generating.
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FLOTATION AND CONCENTRATE
Lola Graphite
89%
Based on four
metallurgical
tests conducted
to date
Source: Triton Mineral Ltd.
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2017 EXPLORATION PROGRAM
AND DEVELOPMENT
•
Additional drilling to establish mineral resources in
saprolite (oxide material) 157 DDH for 4,825 m
•
Metallurgical tests to refine processes
•
Environmental Baseline Study
•
Economic Assessment
Proposed 2017 Drilling
Program
Proposed Development Program
Drilling (4,825 m)
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CONCENTRATE & POTENTIAL MARKET
Mine
On-Site
Processing
Purification
on/offsite
Markets
$US/t
Refractory,
Foundry
Special
Products
$1,200
to
$1,500
Expandable
$800 to $1,000
Crushing
Super-Jumbo 29%
Floating
Drying
Jumbo 28%
Large 32%
Sorting
Packing
Transport
Shipping
Medium 6%
Fine 5%
Micronization
VALUE ADDED POTENTIAL
Fine Flakes
Spheronising, Spheric Grapite, Coating
Large Flakes
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$500
Expandable
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$7,000 - $12,000
$1,500 - $5,000
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CAPITALIZATION
Shares
Outstanding
(basic)
Stock Options
Warrants
Shares
Outstanding
(fully diluted)
50,154,719
3,783,000
None
53,937,719
Sama Resources 24,658,276
Insiders: 55%
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STRONG MANAGEMENT &
BOARD OF DIRECTORS
BOARD OF DIRECTORS
Benoit La Salle – Executive Chairman and Director (FCPA, FCA, MBA)
– Former President & CEO of SEMAFO Inc.
Marc-Antoine Audet – President, CEO, and Director (PhD Geo., P.Geo.)
– 27 years of geological experience in exploration and development with
Falconbridge and Xstrata Nickel
Marc Filion – Director (PhD, MBA, Eng., ASC )
– Former Chairman, SOQUEM and former President & CEO, SGF Mineral
Inc.
Rene Lessard – Independent Director
– An independent sales consultant and member of the Board of Nemaska
Lithium.
Marcel Duchesne – Independent Director
– Over 35 years of experience in graphite processing, including tenure as Mill
Superintendent at Asbury Graphite and Timcal’s Lac des Iles Graphite, Qc.
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GRAPHITE FUNDAMENTALS
Increasing Worldwide Demand
Global world graphite production has risen more than tenfold, from a base of
100,000 tpa in the early 1900’s to an estimated 1.2 mtpa in 2016 at a compound
annual growth rate of over 2% according to USGS and the World Steel
Association, and by 4% according to P&S Market Research.
Strong demand for green energy initiatives including lithium + carbon batteries
(hybrid vehicles), solar energy, supra-conductors and nuclear energy
Opportunities
The graphite market (1.2 Mtpy) is almost as large as the nickel market and 50
times larger than the lithium or rare earth elements markets
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GRAPHITE FUNDAMENTALS
Graphite Consumption by Industry 2015
(Source: Benchmark Minerals Company Reports, Canaccord Genuity)
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GRAPHITE FUNDAMENTALS
Graphite Together with Diamonds and Coal are the only Forms of Crystalline
Carbone, “C”
Metallurgy: electrodes, crucibles, etc.
Batteries: Electric and hybride cars.
Special alloys
Lubricants, pencils, paints, oil additives, etc.
Molecular Structure
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THE GRAPHITE MARKET
Facts
The demand for flake graphite is being driven
upwards by green technology


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Graphite facts:

Excellent conductor of electricity and
heat

Most natural strength and rigidity of
any metal

Most light-weight reinforcement metal

Excellent lubricant
Only high purity crystal flake graphite can
be used for Li-ion batteries, fuel cells ad
other green technologies
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BATTERY-ANODE MARKET FORECAST
Benchmark Mineral Intelligence forecasts the battery anode market, which is nearly
exclusively served (98%) by naturally sourced spherical graphite and synthetically produced
graphite, to increase from 80,000 TPY in 2015 to at least 250,000 TPY by the end of 2020.
The market could be as large as 400,000 TPY in the most bullish of cases with no supply
restrictions.
Battery Anode Market Forecast (TPY)
Benchmark estimates (most
conservative case) that over 360,000
tonnes of medium-flake graphite will
be needed as a feedstock source for
the spherical material by 2020.
Based on the same natural-tosynthetic demand proportions, this
represents nearly double the 2015
flake concentrate market.
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GRAPHITE PRICING
According to the USGS (2016), the USA imported 66,000 tons of natural
graphite in 2015 at an average price of $1,240 per ton.
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DISCOVERY OUTCROP
Weathered to a depth of approximately 20 meters
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MINERALIZED OUTCROPS
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STRONG GOVERNMENT RELATIONS
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FORWARD-LOOKING STATEMENT
This presentation contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties
and assumptions and accordingly, actual results and future events could differ materially from those expressed or implied in such
statements. You are hence cautioned not to place undue reliance on forward-looking statements. Forward-looking statements include
words or expressions such as “objectives”, “forecast”, “pursue”, “growth”, “estimate” and other similar words or expressions. Except for
statements of historical fact relating to the Corporation, information contained or incorporated by reference herein constitutes forwardlooking information, including, but not limited to, the future price of, and demand for, minerals, as well as the Corporation’s strategy,
plans or future financial or operating performance. Forward-looking information is based upon assumptions that were applied in
drawing a conclusion or making a forecast or projection that are believed to be appropriate in the circumstances, including the
following: the Corporation will be able to obtain additional financing on reasonable terms or at all; the Corporation will be able to recruit
and retain the services of its key technical and management personnel; the Corporation’s management will not identify and pursue
other business objectives in future; there will be no unexpected technological, economic, political or other disruptions that will affect
supply or demand for minerals in manner that would have a material adverse effect on the Corporation; the Corporation will be able to
obtain all required regulatory approvals without undue delay or subject to excessively burdensome conditions; the results of current
exploration activities will be favorable; the price of minerals will remain sufficiently high and the costs of advancing the Corporation’s
projects sufficiently low so as to permit it to successfully implement its business plans; and that the risks referenced above, collectively,
will not have a material impact on the Corporation. While management considers these assumptions to be reasonable based on
currently available information, they may prove to be incorrect.
Risk factors that could cause future results or events to differ materially from current expectations expressed or implied by the forwardlooking statements include, but are not limited to, exploration results, revenue, fluctuations in the price of currencies or minerals or of
local operating costs, mining industry risks, delays, political and social stability in Africa including our ability to maintain or renew
permits and other risks as described in our documents filed from time to time with Canadian securities regulatory authorities.
Information with regards to these and other risk factors can be found in Sama’s MD&A for the period ended September 30, 2016.
These forward-looking statements are dated as of February 28, 2017 and we disclaim any obligation to update or revise these forwardlooking statements, except as required by applicable law.
All amounts are in US dollars unless otherwise specified.
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The Lola Graphite Deposit
Eastern Guinea, West Africa
Corporate Presentation
March 2017
TSXV : SRG
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