LOLA GRAPHITE PROJECT Amended Technical Report – Preliminary Economic Assessment Prepared by: Silvia Del Carpio, P. Eng., MBA DRA/Met-Chem Yves A. Buro, P. Eng. DRA/Met-Chem Volodymyr Liskovych, P. Eng., Ph. D. DRA/Met-Chem William Shadeed, P. Eng. DRA/Met-Chem Sivanesan (Desmond) Subramani, HBSc. Caracle Creek International Consulting MINRES (Pty) Ltd. Patrick Pérez, P. Eng. DRA/Met-Chem Martin Stapinsky, P. Geo., M. Sc., Ph. D. DRA/Met-Chem Martin Saint-Amour, P. Eng. DRA/Met-Chem Effective Date: June 14, 2018 Original Report Date: August 2, 2018 Amended Report Date: September 7, 2018 DRA/Met-Chem Ref.: G02275-Amended DRA-PRO-FO-007 Date and Signature This Report, entitled “Amended Technical Report, Preliminary Economic Assessment, Lola Graphite Project” was prepared for SRG Graphite Inc., originally issued August 2, 2018, amended September 7, 2018 and signed by the following Authors: “Original document signed” “Original document signed” Silvia Del Carpio, P. Eng., MBA Patrick Pérez, P. Eng. September 7, 2018 September 7, 2018 DRA/Met-Chem DRA/Met-Chem “Original document signed” “Original document signed” Yves A. Buro, P. Eng. Sivanesan (Desmond) Subramani, HBSc. September 7, 2018 September 7, 2018 DRA/Met-Chem Caracle Creek International Consulting MINRES (Pty) Ltd. “Original document signed” “Original document signed” Volodymyr Liskovych, Ph.D., P. Eng. Martin Stapinsky, P. Geo., M. Sc., Ph.D. September 7, 2018 September 7, 2018 DRA/Met-Chem DRA/Met-Chem “Original document signed” “Original document signed” William Shadeed, P. Eng. Martin Saint-Amour, P. Eng. September 7, 2018 September 7, 2018 DRA/Met-Chem DRA/Met-Chem Lola Graphite Project Amended Preliminary Economic Assessment / Page i TABLE OF CONTENTS 1 Summary ................................................................................................................................................ 1 1.1 Property Description and Location ........................................................................................................... 1 1.2 Accessibility, Climate, Local Resources, Infrastructure, and Physiography ............................................. 2 1.3 History ..................................................................................................................................................... 3 1.4 Geological Setting and Mineralization...................................................................................................... 3 1.5 Deposit Type ........................................................................................................................................... 3 1.6 Exploration Work and Drilling .................................................................................................................. 4 1.6.1 Exploration ................................................................................................................................... 4 1.6.2 Drilling .......................................................................................................................................... 4 1.7 Mineral Processing and Metallurgical Testing ......................................................................................... 4 1.8 Mineral Resources Estimate .................................................................................................................... 5 1.9 Mining Method ......................................................................................................................................... 8 1.10 Recovery Methods ................................................................................................................................... 8 1.11 Project Infrastructure ............................................................................................................................... 8 1.12 Market Studies and Contracts ................................................................................................................. 9 1.13 Environmental Studies, Permitting and Social or Community Impact ...................................................... 9 1.14 Capital and Operating Costs .................................................................................................................. 10 1.14.1 Capital Cost Estimate (Capex) ................................................................................................... 10 1.14.2 Operating Cost Estimate (OPEX) ............................................................................................... 11 1.15 Economic Analysis ................................................................................................................................. 12 1.16 Adjacent Properties ............................................................................................................................... 13 1.17 Interpretation and Conclusions .............................................................................................................. 13 1.17.1 Conclusions ................................................................................................................................ 14 1.17.2 Risk Evaluation ........................................................................................................................... 14 1.18 Recommendations ................................................................................................................................. 15 1.18.1 Mining and Geology.................................................................................................................... 15 1.18.2 Process ...................................................................................................................................... 15 1.18.3 Environment ............................................................................................................................... 15 1.18.4 Proposed Work Program ............................................................................................................ 16 2 Introduction .......................................................................................................................................... 17 2.1 Terms of Reference Scope of Study ...................................................................................................... 17 2.2 Source of Information ............................................................................................................................ 18 2.2.1 Qualified Persons ....................................................................................................................... 18 2.3 Effective Date and Declaration .............................................................................................................. 19 2.4 Site Visit ................................................................................................................................................. 19 2.5 Units and Currency ................................................................................................................................ 20 3 Reliance on Other Experts .................................................................................................................. 21 4 Property Description and Location .................................................................................................... 22 4.1 Location and Access .............................................................................................................................. 22 4.2 Property Ownership and Agreements .................................................................................................... 22 4.3 Royalties Obligations ............................................................................................................................. 24 4.4 Permits and Environmental Liabilities .................................................................................................... 24 DRA/Met-Chem Ref.: G02275-Amended September 2018 DRA-PRO-FO-007 Lola Graphite Project Amended Preliminary Economic Assessment / Page ii 5 Accessibility, Climate, Local Resources, Infrastructure and Physiography .................................. 26 5.1 Physiography ......................................................................................................................................... 27 5.2 Climate .................................................................................................................................................. 27 5.3 Local Resources and Infrastructure ....................................................................................................... 28 5.4 Surface Rights ....................................................................................................................................... 29 6 History .................................................................................................................................................. 30 6.1 Regional Government Surveys .............................................................................................................. 30 6.2 Mineral Exploration Work ....................................................................................................................... 30 7 Geological Setting and Mineralization ............................................................................................... 31 7.1 Regional Geology .................................................................................................................................