WESTERN NORTH AMERICA’S ONLY FLAKE GRAPHITE QUARRY

BLACK CRYSTAL QUARRY & PLANT

The Black Crystal project is located in the Slocan Valley area of British Columbia, Canada, 35km West of the city of Nelson, and 70km North of the border to the USA. The quarry and plant areas are the project’s two main centres of activity. Sandy, graphite-bearing feed material is excavated from the quarry, located along Hoder Creek Forest Service Road to the south of Valhalla Provincial Park. The feed material is delivered via Forest Service Road to the plant, located at the junction of Little Slocan River and Koch Creek (pronounced “Coe Creek”). The plant is strategically located for access to hydroelectric grid power and plentiful water for processing. Permitting and infrastructure for graphite production have been in place since 2001.
BLACK CRYSTAL QUARRY

5 YEAR PRODUCTION PLAN

Quarry Permit Q-5-129 has been approved by the Province of British Columbia Ministry of Energy and Mines.

Year 1

Year 2

Year 3

Year 4

Year 5

Bulk/Stockpiled Tonnage
500
0
0
0
0

Plant Feed – tonnes (t)

67,308
66,486
116,099
107,143
92,592
Feed Grade (Fixed Carbon)1
3.9%
3.8%
7.6%
8%
9.0%
Recovery 1
80%
82.5%
85%
87.5%
90%

Quarry Requirements (t)2

96,154
94,980
348,297
321,429
277,776

Total Graphite Production (t)3

2,100
2,100
7,500
7,500
7,500
1 Increase in plant feed fixed carbon grade and recovery is from removal of small bands of non-graphite bearing thin marble and gangue from the feedstock.
2Application must be made to the Environmental Assessment Office if estimated extraction for sand/gravel production is 500,000 tonnes/year or over 1,000,000 tonnes over 4 years, or if estimated extraction is 250,000 tonnes/year for quarried product.

3The operating permit is renewable every 5 years through the Notice of Work process. Renewal for the next 5 year period has been applied for and is in progress. Expanded volumes under the permit are achievable via administrative amendment.

The Quarry Permit includes the Hoder Creek Quarry allowance for haul road access, waste and product stockpiles; and exploration of the “Bo Zone” adjacent to the Processing Plant. The Quarry Permit is the material permitting requirement that would allow Eagle to move forward in reactivating the Hoder Creek Quarry and Processing Plant should the requisite financing be available. Should a commercial production decision be made by Eagle, the Quarry Permit approved the following 5 year production schedule (after which time a subsequent 5 year plan will be submitted for re-approval)
The Quarry Permit and corresponding conceptual production schedule approved by the Ministry of Energy and Mines was based on a conceptual mine plan submitted by management of Eagle and was not based on a feasibility study or economic assessment. Accordingly there can be no certainty that the permitted production schedule could be achieved if production were to commence. Any commercial production decision made by management would assume inherit increased risks and uncertainty as to the economic and technical viability of the project.

CHRONOLOGY OF THE BLACK CRYSTAL PROJECT

1960’s Property near Hoder Creek is staked by Mr. Steve Paszty. Subsequently the claims are allowed to lapse.
1960’s Property near Hoder Creek is staked by Mr. Steve Paszty. Subsequently the claims are allowed to lapse.
1993  Mr. Paszty restakes claims (2000 hectares). Industrial Mineral Park Mining Corporation (IMP) acquires the property through an option agreement with Mr. Paszty.  Preliminary sample testing carried out by DDH Geomanagement Ltd.
1993  Mr. Paszty restakes claims (2000 hectares). Industrial Mineral Park Mining Corporation (IMP) acquires the property through an option agreement with Mr. Paszty.  Preliminary sample testing carried out by DDH Geomanagement Ltd.
1994 DDH conducts a 6-hole reverse circulation drilling program totaling 250 metres of 4.5″ borehole.  400 kg bulk sample subjected to flotation testing.
1995  13-hole drilling program; total of 577 metres of NQ diameter drill hole, with hole depth ranging from 30 to 92 metres. 3,000 tonne bulk sample hauled to the processing plant site for beneficiation.
1995  13-hole drilling program; total of 577 metres of NQ diameter drill hole, with hole depth ranging from 30 to 92 metres. 3,000 tonne bulk sample hauled to the processing plant site for beneficiation.
1996 Construction begins on the processing plant, located near the junction of Little Slocan River and Koch Creek. The site provides year-round road access, electricity, and water for flotation.
1997  27-hole further NQ holes drilled; total of 914 metres.
1998  Handheld augur drilling program: 90 holes totaling 675 metres on a 100ft x 100ft grid.  Encouraging results from flotation testing prompts further development.

2000 176 slit trenches plus 1855 metres of linear trench excavated for bulk sampling; 37 samples collected. 22 NQ diamond drill holes totaling 1180 metres. Control of Black Crystal project passes from IMP to Crystal Graphite Corporation (CGC).

2000 176 slit trenches plus 1855 metres of linear trench excavated for bulk sampling; 37 samples collected. 22 NQ diamond drill holes totaling 1180 metres. Control of Black Crystal project passes from IMP to Crystal Graphite Corporation (CGC).

2001   166 slit trenches constructed; 368 samples of till and regolith taken. 42 NQ diamond drill holes totaling 1895 metres.  CGC adds 5000 hectares of new claims in the Plant area, bringing the total to 8000 hectares
2002  AMEC consultant compiles NI43-101 compliant resource estimates covering roughly 25% of the quarry.  CGC is awarded Mining Permit M-211, allowing 75,000 tonnes of graphitic feed to be quarried annually.
2003-2004  CGC develops small-scale production capability, and produces roughly 20 tonnes of fuel-cell grade graphite.  CGC’s focus on fuel cells proves to be premature.
2006  CGC falls into bankruptcy.  Eagle Graphite Corporation acquires the Black Crystal project.
2007  Quarry operation made self-sufficient with the purchase of screening, loading, and hauling equipment. Processing plant upgraded with improvements to feed handling and drying stages.
2008  Graphite production resumes.
2009  Trial orders filled leading to qualification as supplier with several customers.
2010  First offtake agreement forged for significant volumes of graphite.
2011  12-hole, 2029m, NQ diamond drill program and regolith sampling along four trenches. This work indicated the continuation of graphite mineralization about 250m east and upslope from previous work. The graphite mineralization noted in this program is not included in the current resource.
2012-2013  Small scale production resumes with truckload quantities shipped.  Offtake agreement extended for 10 years.
2012-2013  Small scale production resumes with truckload quantities shipped.  Offtake agreement extended for 10 years.
2014  Updated NI 43-101 report released, confirming resource estimates established in 2002.  Eagle Graphite goes public by way of a reverse takeover transaction with Amerix Precious Metals
2015 Eagle Graphite Inc. begins trading on the TSX Venture Exchange Quarry Permit Q-5-129 granted as a continuation/replacement of Mining Permit M-211, with increases in permitted quarry volumes

PERMITS & INFRASTRUCTURE

TENURES AND PERMITTING
QUARRY EQUIPMENT AND INFRASTRUCTURE
LOW ENVIRONMENTAL IMPACT

Environmentally Sound

Our sandy by-products pose no risk of acid or metals contamination. Graphite is liberated without having to subject the plant feed to energy-intensive grinding. Other North American sources require grinding and acid mitigation.

Ready For Production

Permits are in place, and the plant is already constructed. We are years ahead of our peers.

Strategically Located

Our facility is by far the closest to Reno, Nevada. Nearby rail provides a direct link for lithium-ion battery and electric vehicle applications. We are the only source in Western North America capable of producing graphite.

At a distance of just 955 miles, we are the closest source of flake graphite to Reno, Nevada.