Alabama Graphite Receives Unsolicited Indicative Proposal for Acquisition; Board of Directors Appoints Special Committee

Alabama Graphite (“Alabama Graphite” or the “Company”) (TSX-V:CSPG) (OTCQB:CSPGF) (FRANKFURT:1AG) announces that today its Board of Directors appointed a special, independent committee (the “Special Committee”), led by and comprised of Dr. Gareth P. Hatch, CEng, FIMMM, FIET — an independent Director of the Company — to carefully review and consider an unsolicited, non-binding proposal that was received from a US-based, arm’s length, public, micro-cap, pre-revenue, junior mining development company (the “Interested Party”) relating to a potential offer for all of the issued and outstanding common shares in the capital of the Company.

Pursuant to the terms of a confidentiality agreement and the Interested Party’s separate request, the Company is withholding the name of the Interested Party.

According to publicly available records, the Interested Party has less than USD$7 million in unrestricted cash and a market capitalization of approximately USD$35 million.

The Interested Party’s indicative offer was conditional and non-binding. Pursuant to this offer, it was proposed that the shareholders of Alabama Graphite would receive no cash and would receive, in exchange for each common share of the Company (the “AGC Shares”), one-tenth (0.10) of one (1) common share of the Interested Party.

Click here to read the full text release.