Alabama Graphite Announces Shipment of American Sourced and Manufactured CSPG Samples to United States Department of Defense Lithium-ion Battery Solutions Provider and to Subsidiary of Total S.A.

TORONTO (September 7, 2016) — Alabama Graphite Corp. (TSXV:ALP,OTCQX:ABGPF)  is very pleased to announce that it has manufactured and shipped samples of two specifications of its coated spherical graphite (“CSPG”) to a long-established, U.S.-based leader in Lithium-ion (“Li-ion”) battery production for numerous and varied military applications for the United States Department of Defense (“DoD”). Additionally, AGC announces that it has shipped a CSPG sample to a subsidiary of Paris-based multi-national energy conglomerate, Total S.A.(“Total”). The names of the DoD battery manufacturer and Total subsidiary are not being disclosed due to reasons of commercial confidentiality.
The Company conveyed fine- and coarse-sized CSPG made from its Coosa Graphite Project material — located in Coosa County, Alabama, USA — to the DoD contractor, which is located within a day’s drive from AGC’s offices in Sylacauga, Alabama. The fine CSPG has been designed with the intent of eventually being used for power-based applications, namely rechargeable batteries for soldiers. The coarse CSPG has been designed with the intent of eventually being utilized for energy-based applications, such as micro-grid energy storage for forward deployed soldiers. All requisite downstream secondary processing to manufacture these test samples of AGC’s Coosa CSPG was conducted in the United States of America.
This large-scale, specialty advanced Li-ion battery manufacturer was awarded a USD$22,000,000 DoD contract to manufacture Li-ion batteries — including battery cells, which are a critical element in energy-dependent weaponry — in the United States. For years, the U.S. government has relied on other countries for the production of its Li-ion cells. The DoD has demonstrated its intent to address security of supply as it pertains to American Li-ion battery and cell production by investing to guarantee domestic Li-ion capacity, and specifically sourcing American input materials. The DoD’s significant investment is meant to ensure the affordable production of critical items deemed essential for national defense and was funded under the DoD’s Lithium-ion Battery for Military Applications (“LIMA”) project.
AGC President, Chief Executive Officer, and Executive Director, Donald Baxter stated, “AGC is very pleased to have again manufactured CSPG samples to end users’ requested specifications. We have shipped CSPG samples to another major DoD Li-ion battery manufacturer, as well as to a multi-billion-dollar global subsidiary of energy giant Total.
“We believe that our DoD-focussed business strategy addresses an issue critical to U.S. national defense — manufacturing Li-ion battery cells in the United States with American-sourced and manufactured input materials,” said Mr. Baxter. “The DoD battery manufacturers that we are in discussions with certainly appreciate that our CSPG is made in America, but they seem far more interested in the fact that our battery graphite is sourced in the United States. It is our intent that one day in the not-too-distant future, our graphite from the great state of Alabama will help power the critical-application batteries that will save lives and protect American soldiers.”
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