TORONTO, ONTARIO--(Marketwired - Jan. 10, 2017) - Alabama Graphite Corp. ("AGC" or the "Company") (TSX VENTURE:CSPG) (OTCQX:CSPGF) (FRANKFURT:1AG) is very pleased to announce that it has manufactured and shipped two specifications of its Coated Spherical Purified Graphite ("CSPG"), trademarked as ULTRACSPG™, and two specifications of its CSPG production byproduct, Purified Micronized Graphite ("PMG"), 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, USA. All requisite downstream secondary processing to manufacture AGC's CSPG was conducted in the United States of America. Additionally, the Company announces that it has executed three additional non-disclosure agreements ("NDAs") for the purposes of evaluating AGC's battery-ready graphite.
The first shipment of CSPG and PMG evaluation samples was sent to a leading United States Department of Defense ("DoD") battery manufacturer, that had been awarded a multi-million 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 CTO stated that the DoD has instructed them to utilize American-sourced materials (including its graphite) whenever possible. AGC's battery-ready CSPG will be evaluated for use in defense critical technologies, including the U.S. Navy's electromagnetic railgun.
The second potential end user that AGC shipped CSPG and PMG samples to is an internationally known and well-respected research and development company for both the DoD and United States 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 AGC's materials. If successful, AGC's CSPG and/or PMG will serve as this research company's laboratory standard for battery-ready graphite, particularly for DoD- and DoE-funded projects.
AGC expects to receive test results from up to three DoD battery manufacturers (that previously received AGC's CSPG samples) by the end of Q1 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 November 30, 2015, entitled: 'Alabama Graphite Corp. Announces Positive Preliminary Economic Assessment for Coosa Graphite Project in Coosa County, Alabama, USA; Files Completed PEA NI 43-101 Technical Report'), AGC'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, AGC is focused on becoming a U.S.-sourced-and-manufactured green-energy supply chain producer for the United States government and defense 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 AGC will be a viable domestic upstream supply option for these and other American lithium-ion battery manufacturing entities."
Note: A Preliminary Economic Assessment ("PEA") 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
AGC has executed three additional NDAs - the first with a respected leader in high-tech critical application battery technologies. AGC's NDA is with the American division of this multi-billion-dollar multi-national battery manufacturer. The company has requested a range of custom CSPG samples for both defense and aerospace applications. The second executed NDA is with the above-mentioned research and development laboratory with extensive DoD and DoE research contracts. Note, 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 ("Li-ion") battery cells and packs. This potential end user is focused on Li-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-USA" and "Made-in-USA" vendors.
AGC has entered into a total of nine (9) non-disclosure agreements with U.S. DoD Li-ion battery manufacturers and suppliers for the purpose of carrying on discussions and due diligence evaluation of samples of AGC's American sourced and manufactured battery-ready CSPG. The testing by these DoD suppliers is designed to determine if AGC's CSPG would qualify for Li-ion battery applications - both for primary and secondary Li-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 AGC has entered into with U.S.-based entities that are not affiliated with the U.S. DoD.
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 we are 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).
