First Canadian Graphite Inc. Announces Closing Financing - $2,768,100.00

Executive Summary

• First Canadian Graphite Inc. closed a private placement of 9,227,000 units at $0.30 per unit, generating gross proceeds of $2,768,100 (oversubscribed by $168,100).
• Each unit consists of one common share and one‑half warrant; each whole warrant allows purchase of one common share at $0.50 for two years.
• Proceeds are earmarked for general working capital and an exploration/drill program at the Berkwood Graphite Project in northern Quebec.

Key Details

• Units Sold: 9,227,000 units @ $0.30 each → $2,768,100 gross proceeds.
• Oversubscription Amount: $168,100.
• Unit Composition: 1 common share + ½ warrant per unit.
• Warrant Terms: Whole warrants exercisable at $0.50 per share, valid for two years from issuance.
• Use of Proceeds: General working capital and exploration/drilling on the Berkwood Graphite Project (northern Quebec).
• Insider Participation: Three insiders subscribed for 270,000 units; a new insider position created with a subscription of 750,000 units – qualifies as a “related party transaction” exempt from MI 61‑101 valuation/approval thresholds.
• Finder Compensation: $38,802.02 cash plus 125,440 finder warrants (exercisable at $0.50 for two years).
• Holding Period: Securities subject to a hold period of four months + one day after issuance; U.S. resale restrictions may apply.
• Regulatory Filing: Company will seek TSX Venture Exchange approval to close the financing and issue securities.
• Securities Registration Status: Not registered under the U.S. Securities Act; cannot be offered/sold in the United States absent exemption or registration.

Notable Quotes

• “The gross proceeds from the financing will be for general working capital and an exploration and drill program on the Company’s Berkwood Graphite Project located in northern Quebec.” – Thomas Yingling, President, CEO & Director

Materiality Assessment: Material – Positive (significant capital raise to fund ongoing exploration activities).