Eagle Graphite Announces Increase in Size of Private Placement

2018-01-09

Jan. 9, 2018 - Eagle Graphite Incorporated intends to expand the size of the private placement announced on December 22, 201. Responding to strong demand for the Placement, the Company now intends to close on gross proceeds of up to $1,600,000 through the issuance of (i) 6,666,666 flow-through units at a price of $0.03 per FT Unit, and (ii) up to 56,000,000 units at a price of $0.025 per Unit. Each FT Unit consists of one flow-through common share and one-half of one common share purchase warrant. Each Unit consists of one common share and one Warrant. Each Warrant entitles the holder to acquire one common share of the Company at an exercise price of $0.05 per share before expiring 60 months after closing date. All securities issued are subject to a four month hold following closing.

To date the Company has closed on all of the FT Units, plus 24,640,000 Units, for aggregate gross proceeds of $816,000. The Company expects to close on any remaining Units within the next several days.

The Placement is being made subject to the grant of a discretionary waiver of the TSX Venture Exchange's ("TSXV") minimum $0.05 pricing requirement (the "Waiver"). With respect to the Waiver, the Company intends to conduct a share consolidation of its outstanding Common Shares on the basis of a minimum of one (1) post-consolidation Common Share for each nine (9) pre-consolidation Common Shares (the "Consolidation"). The Company will seek shareholder approval for the Consolidation at the earlier of the Company's next annual general meeting and six months from the completion of the Placement, and will give effect to the Consolidation in as expeditious a manner as is possible after receiving requisite shareholder approval. The Company has obtained written confirmation from shareholders holding a majority of the outstanding shares (post-financing) that they will vote in favour of the Consolidation.

Net proceeds from the Placement will fund exploration work and general and administrative activities. Closing of the Placement is subject to TSXV approval.

The Company advises that there is strong investor demand for this Placement. Stakeholders wishing to learn more about the Placement are advised to contact the Company as soon as possible.