Alabama Graphite ships CPSG samples to U.S. providers

Jan 11, 2017

ALABAMA GRAPHITE CORP. ANNOUNCES MULTIPLE SHIPMENTS OF AMERICAN SOURCED AND MANUFACTURED CSPG SAMPLES TO UNITED STATES DEPARTMENT OF DEFENSE (DOD) LITHIUM-ION BATTERY SOLUTIONS PROVIDERS

Alabama Graphite Corp. has manufactured and shipped two specifications of its coated spherical purified graphite, trademarked as UltraCSPG, and two specifications of its CSPG production byproduct, purified micronized graphite, trademarked as UltraPMG, to two U.S-based potential end-users. AGC conveyed various sizes of its CSPG and PMG, sourced and manufactured exclusively from the company’s flagship Coosa graphite project property, located in Coosa county, Alabama, United States. All requisite downstream secondary processing to manufacture AGC’s CSPG was conducted in the United States. Additionally, the company announces that it has executed three additional non-disclosure agreements (NDAs) for the purposes of evaluating Alabama Graphite’s battery-ready graphite.

The first shipment of CSPG and PMG evaluation samples was sent to a leading U.S. Department of Defense (DoD) battery manufacturer that had been awarded a multimillion-dollar contract by the Naval Sea Systems Command (NAVSEA) as a sole-source battery provider to manufacture a lithium-iron battery to power the U.S. Navy’s next-generation electromagnetic railgun. The DoD has requested that this battery manufacturer begin establishing U.S. manufacturing capability within the United States. Further, the chief technology officer stated that the DoD has instructed the battery manufacturer to utilize American-sourced materials (including its graphite) whenever possible. Alabama Graphite’s battery-ready CSPG will be evaluated for use in defence critical technologies, including the U.S. Navy’s electromagnetic railgun.

The second potential end-user that Alabama Graphite shipped CSPG and PMG samples to is an internationally known and well-respected research and development company for both the DoD and U.S. Department of Energy (DoE). Established nearly 50 years ago, this U.S. company has both government and corporate clients, including global commercial battery makers. This entity will provide a basic independent evaluation and qualification of Alabama Graphite’s materials. If successful, Alabama Graphite’s CSPG and/or PMG will serve as this research company’s laboratory standard for battery-ready graphite, particularly for DoD-funded and DoE-funded projects.

Alabama Graphite expects to receive test results from up to three DoD battery manufacturers (that previously received Alabama Graphite’s CSPG samples) by the end of the first quarter this year.

President and chief executive officer, Donald Baxter, stated: “As the only known graphite development company with its core business predicated entirely on the production of secondary-processed, specialty CSPG in the graphite development space (per the company’s preliminary economic assessment, announced Nov. 30, 2015, entitled ‘Alabama Graphite Corp. Announces Positive Preliminary Economic Assessment for Coosa Graphite Project in Coosa County, Alabama, USA; Files Completed PEA [National Instrument] 43-101 Technical Report’), Alabama Graphite’s business strategy continues to be validated by numerous DoD contractors and manufacturers expressing that sourcing specialty input materials from within the United States is of critical importance to them. With a ‘DoD first’ approach, Alabama Graphite is focused on becoming a U.S.-sourced-and-manufactured green-energy supply chain producer for the U.S. government and defence sectors’ battery solutions providers.” Mr. Baxter added, “Pending the initiation and completion of a positive feasibility study, followed by project financing and construction of a graphite mine and downstream CSPG production facilities, I firmly believe that Alabama Graphite will be a viable domestic upstream supply option for these and other American lithium-ion battery manufacturing entities.”

Note: A preliminary economic assessment is not a feasibility study. The PEA is preliminary in nature, that it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA based on these mineral resources will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Additional non-disclosure agreements (NDAs)

Alabama Graphite has executed three additional NDAs — the first with a respected leader in high-technology critical application battery technologies. Alabama Graphite’s NDA is with the American division of this multibillion-dollar multinational battery manufacturer. The company has requested a range of custom CSPG samples for both defence and aerospace applications. The second executed NDA is with the above-mentioned research and development laboratory with extensive DoD and DoE research contracts. Note that this entity is not a DoD battery manufacturer. The final executed NDA is with a U.S.-based innovative developer and manufacturer of prismatic, large-format lithium-ion battery cells and packs. This potential end-user is focused on lithium-ion batteries, specifically engineered for large-scale commercial transportation, as well as commercial stationary battery/grid-storage applications. Additionally, this battery manufacturer has communicated its strong preference for sourced-in-the-United-States and made-in-the-United States vendors.

Alabama Graphite has entered into a total of nine non-disclosure agreements with U.S. DoD lithium-ion battery manufacturers and suppliers for the purpose of carrying on discussions and due diligence evaluation of samples of Alabama Graphite’s American-sourced-and-manufactured battery-ready CSPG. The testing by these DoD suppliers is designed to determine if Alabama Graphite’s CSPG would qualify for lithium-ion battery applications — both for primary and secondary lithium-ion batteries — specifically for DoD use. The names of the nine DoD battery manufacturers are being withheld for reasons of commercial confidentiality. These nine NDA agreements are in addition to the multiple NDA agreements Alabama Graphite has entered into with U.S.-based entities that are not affiliated with the U.S. DoD.

Alabama Graphite 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 the company is able to disclose. Please note that 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).

Qualified person

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

About Alabama Graphite

Alabama Graphite is focused on the exploration and development of its flagship Coosa graphite project in Coosa county, Alabama, and its Bama mine project in Chilton county, Alabama as well the research and development of its proprietary manufacturing and technological processing process of battery materials.

Alabama Graphite holds a 100-per-cent interest in the mineral rights for these two U.S.-based graphite projects, which are both located on private land. The two projects encompass more than 43,000 acres and are located in a geopolitically stable, mining-friendly jurisdiction with significant historical production of crystalline flake graphite in the flake graphite belt of central Alabama, also known as the Alabama graphite belt.

http://alabamagraphite.com/news-releases-2017/