Alabama Graphite ships three PMG samples to U.S.

Aug 15, 2016

ALABAMA GRAPHITE CORP. ANNOUNCES MULTI-KILOGRAM SHIPMENT OF AMERICAN SOURCED AND MANUFACTURED SAMPLES TO UNITED STATES DEPARTMENT OF DEFENSE (DOD) LITHIUM-ION BATTERY MANUFACTURER

Further to its June 23, 2016, announcement (Alabama Graphite announces shipment of American-sourced-and-manufactured CSPG (coated spherical graphite) samples to United States Department of Defense (DoD) lithium-ion battery solutions provider), Alabama Graphite Corp. has manufactured and shipped three one-kilogram evaluation samples of its purified micronized graphite (PMG) to a U.S.-based leader in both lithium-ion and lithium batteries for a diverse range of military applications under contract from the United States Department of Defense. AGC conveyed sub-10 micron, fine-sized PMG made from the company’s Coosa graphite project material — located in Coosa county, Alabama, U.S. — that will be tested in various defence applications, specifically, primary (non-rechargeable) lithium batteries. All requisite downstream secondary processing to manufacture Coosa PMG was conducted in the U.S.

Employing nearly 700 people, this international battery company is known for its extensive expertise and experience in battery development for the DoD. Although government and defence accounts for the vast majority of the battery manufacturer’s revenues, it designs and manufacturers both primary and secondary (rechargeable) lithium batteries for multiple other industries, including health care/medical, critical stationary energy storage, safety and industrial markets. The aforementioned company will remain unnamed for reasons of commercial confidentiality.

Execution of additional non-disclosure agreements (NDAs) with U.S. DoD lithium-ion battery manufacturers

Further to AGC’s July 18, 2016, announcement (Alabama Graphite announces the execution of six non-disclosure agreements with U.S. Department of Defense lithium-ion battery solution providers for coated spherical graphite samples), the company announces the execution of an additional two non-disclosure agreements with U.S. DoD lithium-battery manufacturers and suppliers for the purpose of carrying on discussions and due-diligence evaluation of samples of AGC’s American-sourced-and-manufactured CSPG and PMG for use in lithium batteries. These two new agreements bring AGC’s total of DoD-related agreements to eight currently and are in addition to the multiple NDAs AGC has entered into with U.S.-based entities that are not affiliated with the U.S. DoD.

AGC’s president, chief executive officer and executive director, Donald Baxter, commented: “As we continue to advance our CSPG and PMG graphite initiatives, I am extremely pleased to report that we have conveyed a significant-sized sample of our 100-per-cent U.S.-sourced-and-manufactured battery-ready material to yet another DoD manufacturer. This multikilogram shipment is important because it demonstrates that we can produce battery-ready graphite to a battery manufacturer’s precise specifications and, as importantly, that we can do so in comparatively significant quantities — with a very short lead time.

“This particular DoD battery manufacturer requested samples of both AGC’s CSPG and PMG materials. The company required kilogram quantities of PMG immediately for a primary lithium application development project. Additionally, we are preparing CSPG samples for this and multiple other DoD contractors. The interest we have received thus far from U.S. DoD battery manufacturers for our battery-ready graphite is extremely encouraging,” stated Mr. Baxter.

AGC will continue to update shareholders and the market in a timely fashion of further material developments with respect to this and other potential American-based end-users, as it is able to disclose. Please note, certain potential end-users preclude the company from announcing any aspect of its relationship and activities, ranging from the execution of an NDA to the shipment(s) of sample material(s).

AGC announces granting of stock options

Further to AGC’s Aug. 8, 2016, announcement (Dr. Gareth Hatch appointed to the board of directors of Alabama Graphite), the company announces that it has granted incentive stock options to purchase up to 400,000 common shares at an exercise price of 15 cents per share for a period of two years to Dr. Hatch, in accordance with the provisions of its stock option plan.

Qualified person

Mr. Baxter, PEng, president, chief executive officer and executive director of Alabama Graphite, is a qualified person as defined by National Instrument 43-101 guidelines, and has reviewed and approved the content of this news release.