Mr. Jamie Deith reports

EAGLE GRAPHITE ANNOUNCES POSITIVE LITHIUM-ION BATTERY TEST RESULTS

Eagle Graphite Inc. has released results from coin cell testing of graphite from the Black Crystal graphite project.

Graphite for lithium-ion battery anodes requires a series of processing steps following the production of conventional flake graphite concentrate. For these tests, the company elected to use the finest fraction of flakes available from the Black Crystal project, as graphite fines carry the lowest market value prior to value-added processing. The negative-100-micron fines were processed in a series of commercial spheronizing machines. It should be noted that this equipment requires a minimum of several kilograms of feed, a quantity that is not normally available from projects lacking production history. The spheronizing machinery reduced the size and shape of the graphite flakes to produce rounded particles averaging 20 microns in diameter, conforming to the most common specifications for lithium-ion battery anodes. The spheronized particles were then purified and coated before being made into coin cells for electrochemical testing. The construction of the test cells and subsequent testing were carried out by an experienced independent laboratory.

Key electrochemical results included reversible capacity of 369 milliamp hours per gram and 93.6-per-cent first-cycle efficiency. The reversible capacity is a measure of the amount of energy that can be stored in a battery anode. The theoretical limit for graphite is 372 milliamp hours per gram. Typical lithium-ion battery specifications include reversible capacity exceeding 350 milliamp hours per day and first-cycle efficiency of 92 to 94 per cent.

Jamie Deith, president and chief executive officer, noted: "The research team has come through for us again, demonstrating that we can achieve good electrochemical results even if we start with flake graphite of relatively low value. These results are a welcome addition to our existing advantages as the only junior graphite company in North America with existing infrastructure, a quarry permit and a flotation plant already constructed."

Industry analysts project that between 2017 and 2020, North American graphite consumption for lithium-ion battery production may grow to exceed all other applications combined. Western North American consumption for batteries is expected to exceed 90,000 tonnes per year. Current production capacity of flake graphite across all of North America is estimated at 25,000 tonnes per year. Eagle Graphite holds the only graphite quarry permit in western North America (sources: IM Magazine and USGS).

Edward Nunn, PEng, a qualified person as defined by NI 43-101, has approved the scientific and technical information in this press release.

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