Lomiko Metals — Investor Presentation (January 2023)
53 slides from Lomiko Metals's investor presentation, January 2023
Slide 1: Developing a pipeline of critical mineral graphite and lithium properties
Developing a pipeline of critical mineral graphite and lithium properties in Quebec for a North American climate success story January 2023
Slide 2: Disclaimer
DISCLAIMER This presentation is not a prospectus, offering memorandum or an advertisement and is being provided for information purposes only and does not constitute or form part of, and should not be construed as, an offer or invitation to sell or any solicitation of any offer to purchase or subscr
Slide 3: Land Acknowledgement
Land Acknowledgement We would like to begin by acknowledging that the land/projects where we operate are located within the traditional land of the Algonquin Anishnaabeg and Cree Eeyou Istchee Peoples. Our vision is to embrace Indigenous people and Indigenous values within our projects in order to d
Slide 4: A people-first operator of choice in Quebec
A people-first operator of choice in Quebec Strategic Stockpile of Graphite 3mt tons of in situ Scale Opportunity in graphite at La Loutre - PEA Lithium stage and moving to PFS Earn in to 70% of Leading with strategic asset on Vision and Values Exceptional scalability Nemaska lithium potential
Slide 5: Natural flake graphite claims in most prospective graphite belt in North America
Natural flake graphite claims in most prospective graphite belt in North America La Loutre and Laurentides claims • 236 claims in total, on 6 projects covering 14,255 hectares (142 km2) of mineral claims in the Laurentian region of Quebec and within KZA territory • Region consists of metasedimentary
Slide 6: Lithium exploration on massive claim package on Nemaska lithium corridor
Lithium exploration on massive claim package on Nemaska lithium corridor Bourier • Option to earn in 70% with Critical Elements, first trigger: 49% • 203 claims for a total ground position of 10,252.20 hectares (102 km2) that boasts other lithium deposits and known lithium mineralization • Bourier c
Slide 7: Battery metals catalysts in 2023
Battery metals catalysts in 2023 Canada and US Canadian critical minerals are considered domestic in US US IRA (inflation Reduction Act): 80% of all raw materials produced or recycled in North America New demand The world's top automakers are planning to spend nearly US$1.2 trillion through 2030 - 2
Slide 8: Natural flake graphite is the most important component in all EV batteries
Natural flake graphite is the most important component in all EV batteries on the market today • 95% of the anode is made of graphite and it is the heaviest mineral in the EV battery making it costly and unsustainable to import into North America • Lomiko is developing the strategic stockpile of cho
Slide 9: Graphite shortfall starting in 2027
Graphite shortfall starting in 2027 Shortfall to increase to 8Mt by 2040 Projected Anode Demand (Mt) Graphite Market Balance - Projected Demand and Supply (Mt) 12,000,000 9,000,000 8,000,000 DEMAND IS EXPECTED TO 10,000,000 EXCEED SUPPLY BY 2023 – 7,000,000 AND CONTINUE BEYOND 6,000,000 8,000,000 La
Slide 10: Lomiko can provide 10% of North American graphite
Lomiko can provide 10% of North American graphite Massive increase in battery plant capacity • Current announced capacity at 769 GWH • New plants account for 800,000 of SPG (“Spherical Graphite”) per year, or 1.6Mt pa of graphite concentrate per year Source: Benchmark and North American Battery Init
Slide 11: www.lomiko.com
www.lomiko.com TSXV: LMR OTC: LMRMF FRANKFURT: DH8C 11
Slide 12: La Loutre graphite project close to infrastructure with great geological setting
La Loutre graphite project close to infrastructure with great geological setting Highlights • Stage of development: Preliminary Economic La Loutre Graphite Project Assessment ("PEA") • 50% complete Preliminary Feasibility Studies (“PFS”) • Location: Quebec, Papineau - 192 km Highway to Port of Montr
Slide 13: La Loutre: PEA establishes a critical path ahead for improvements and project de-risking
La Loutre: PEA establishes a critical path ahead for improvements and project de-risking PEA details • Two known deposits currently being explored: EV Zone and Battery Zone EV Zone • LOM plant production of 21,8 Mtonnes of mill feed at Battery 6.78% Cg diluted Zone • Graphite concentrate production
Slide 14: La Loutre: PEA Layout – great base to build on
La Loutre: PEA Layout – great base to build on Mine layout and costs – PEA • Waste rock and tailings co-disposed • Efficient site water management with WASTE ROCK & no wet tailings EV ZONE CODISPOSAL PILE • Pits sequenced to maximize the returns starting from North – EV Pits to South – Battery Pits
Slide 15: 2022 operational milestones
2022 operational milestones PFS studies completed Completed 13,000m+ of drilling at La Loutre with exceptional results Completed early soil and surface sampling at Bourier Completed 12 months of environmental baseline studies Completed initial value-added metallurgical studies on La Loutre g
Slide 16: La Loutre Resource Estimate: focus on conversion
La Loutre Resource Estimate: focus on conversion La Loutre Resource Estimate (Effective Date: May 14, 2021) - PEA Cut-off EV Deposit Battery Deposit Total In-Situ Run-of- In-Situ In-Situ Class Run-of-Mine Run-of-Mine Grade Mine Grade Grade Graphite (%) Tonnage Graphite Tonnage Graphite (kt) Tonnage
Slide 17: 2022 summer drilling program completed
2022 summer drilling program completed Focus on higher grade EV Zone • Completed 53 drill holes in EV Zone for a total of 9,025 meters • South-east and north-east end of the EV Zone remain open to the south and east • Discovered new mineralization in EV zone below existing modelled paragneiss minera
Slide 18: La Loutre EV Zone plan view
La Loutre EV Zone plan view 5 098 500 5 098 000 5.097 500 499 000 499 500 500 000 500 500 Numerical model 15-3.0% 3.0 - 10.0% > 10% Drillhole Wetland Trail Lac Bélanger 300: ahs wk A Sistas ta sw as aw PR | f CoN Projection NADB3 UTM Zone 18N LOMIKO METALS. Prepared by. SF INNOVEXPLO September 20, 2
Slide 19: Battery Zone
Battery Zone Finished drill program at Battery Zone • Completed 26 holes in Battery South for a total of 4,076 meters by mid- September • Open on the South End Source: BreakawayX 19
Slide 20: Exploration Drilling Summary – La Loutre – press released
Exploration Drilling Summary – La Loutre – press released • Assays received with excellent widths and grades encountered including: • Wide intervals of near surface, high-grade flake graphite mineralization including 11.64% Cg over 42.0m from 7.0 to 49.0m in hole LL-22-018 including 36m wide mineral
Slide 21: La Loutre metallurgical program Next steps
La Loutre metallurgical program Next steps: Next steps • Metallurgical testing completed by SGS in Lakefield on over 800kg of the core • Further testing for battery-grade suitability including: • micronization, • spheroidization, • purification and • coating to produce CSPG • Battery trials Develop
Slide 22: La Loutre development timeline subject to financing
La Loutre development timeline subject to financing Q4 2023 Q1-Q4 2023 Q3 2023 Pre- Battery Q1/Q2 2023 feasibility Trials Concentrate to anode Study Dec/Jan 2022 Updated tests and Technical further Report purification Metallurgical testing for flotation technical testing specs results 22
Slide 23: Corporate budget requirements for La Loutre
Corporate budget requirements for La Loutre The regional exploration program and Bourier work is being funded with Canadian Flow-Through financing PLANNED COMPLETED To PFS for La Loutre Cost ($M) Phase 1 at La Loutre Cost ($M) Mining Plan $0.3 Resource Drilling $3.5 Mining Geotechnical $0.9 Metallur
Slide 24: NPV scenario analysis: Positively leveraged to expected graphite price increases
NPV scenario analysis: Positively leveraged to expected graphite price increases • PEA used a graphite concentrate selling price of US $916/t. • The current forecast selling price is US $1,000/t of graphite concentrate (source: Benchmark). • Current public information indicates a selling price of ov
Slide 25: La Loutre Long Term Development Line
La Loutre Long Term Development Line Q4 2027 Q1/Q2 2023 Production Q4 2023 MRE –NI-43-101 Q4 2024 Mineral Resource PFS – Pre- Estimate Feasibility Study Pilot Plant Q1/Q2 2025 FS – Feasibility Study Q3/Q4 2025 Permits & Q1 2026 Construction Decision Construction of La Loutre Flotation Plant and site
Slide 26: Bourier lithium project: highly prospective region
Bourier lithium project: highly prospective region Bourier Adjacent Properties: ⮚ Galaxy Resources ⮚ Nemaska Lithium ⮚ Critical Elements 1. Rose Tantalum Project FS stage 2. Lemare Property: ▪ New Discovery – March 2017 Drilling 21m @ 2.65% Li2O 41.5m @ 1.71% Li2O 23m @ 1.61% Li2O Source: Critical E
Slide 27: Bourier lithium project identifies exploration targets with Li anomalies
Bourier lithium project identifies exploration targets with Li anomalies 2021 Exploration Results Bourier Exploration Program 2022 -2023 ▪ Completed field program in July with Critical Elements and GoldSpot AI ▪ Collected over 1000 soil samples and over 400 rock samples, mapped over 350 outcrops ▪ F
Slide 28: Comparable company analysis demonstrates value creation potential
Comparable company analysis demonstrates value creation potential Dec 30, 2022 Market Cap Measured Indicated Inferred EV/Resource Symbol Price Company Name Shares O/S Cash TEV ($M) (Mt) (Mt) (Mt) (M&I) TSXV:NOU 5.160 Nouveau Monde Graphite Inc 55.8 14.0 278.8 287.7 24.5 95.8 4.5 2.3 TSX:NEXT 2.730 N
Slide 29: Capital Structure
Capital Structure As at Dec 30, 2022 Shares Issued & Outstanding 346.6M Market Cap $8.7M Options 13.4M Cash* $1.4M Warrants 131.1M Debt $- Share Units (PSU/RSU/DSU) 8.1M Total Enterprise Value $7.3M Fully Diluted 499.2M * Cash balance from interim financials – October 31, 2022 Management & Insider O
Slide 30: Sharing our values
Sharing our values Lomiko’s PEA establishes it will contribute over $130m in wages to the local community and $240m in taxes. We believe we are on the vanguard of change: • Diverse leadership: 50% of directors are women and 2 of 3 Executive Officers are female • Committed to Call to Action #92 of th
Slide 31: Diverse leadership & Experienced team, board and advisors
Diverse leadership & Experienced team, board and advisors MANAGEMENT TEAM BOARD OF DIRECTORS STRATEGIC ADVISORS Belinda Labatte, CEO, CFA, MBA, ICD.D A. Paul Gill, Executive Chair Normand Champigny, CEO 20 years experience in capital markets. Fluent in CEO of Pampa Metals, Lomiko Technologies, and a
Slide 32: Appendix
=”) LOMIKO Appendix
Slide 33: Canada's federal gov't announces: All of Canada's new cars will be electric by 2035
July 2021 Canada's federal gov't announces: All of Canada’s new cars will be electric by 2035 To reach even 50% of EV penetration in vehicles requires 20x increase in battery supply. The challenge: Renewable energy supercentres, longer life batteries, and charging stations can and should be sourced
Slide 34: Graphite and lithium in supply bottleneck
Graphite and lithium in supply bottleneck • Graphite demand is expected to increase 7x by 2030, behind lithium • Total lithium available will be enough to satisfy 22% of EV penetration • Both lithium and graphite to see a supply deficit by 2024 • Lithium-ion batteries and fuel cells demand is set to
Slide 35: Appendix Graphite
Appendix Graphite
Slide 36: Natural flake graphite is highly amenable product for the EV battery industry
Natural flake graphite is highly amenable product for the EV battery industry Natural Graphite deposits of economic interest are grouped into three main categories • Amorphous (microcrystalline) Cg % - 60 - 99.9 • Vein Graphite (lump and chip) Cg % - 90 - 99.0 • Flake Graphite (crystalline) Cg % - 8
Slide 37: Electric Vehicles Batteries
Electric Vehicles Batteries Tesla plans to replace 18650 with 4680 DBL (dry battery electrode) Raw materials in an electric car battery of 100 kWh, weighing 600kg: • 7 kg of lithium (70g per kWh) • 10 kg of manganese • 11 kg cobalt (4.5kg for 75kWh) • 70 kg of nickel (Ni-Co-Al~ 8:1:1) • 125 kg graph
Slide 38: Global battery supply opportunities are significant
Global battery supply opportunities are significant Battery manufacturers and GWH capacity worldwide ▪ Current capacity 600 GWh ▪ Projected capacity by 2030 5,500GWh (China 3,000GWh) ▪ China accounted for 90% of the world’s battery manufacturing in 2021. By the end of the decade, the region is expec
Slide 39: Graphite Pricing May 2022 – Fastmarkets
Graphite Pricing May 2022 – Fastmarkets 39
Slide 40: Flake Graphite Supply Forecast
Flake Graphite Supply Forecast Total Graphite Supply - Projected (Mt) 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Opportunity: The evolving nature of Chin
Slide 41: Appendix La Loutre
Appendix -~ “@° ome *@ 2.@ ‘o @ tas
Slide 42: 2022 summer drilling program – section view
2022 summer drilling program – section view Section LL-22-003 Section LL-22- 06&07 Source: InnovExplo Consulting 42
Slide 43: 2022 summer drilling program – section view
2022 summer drilling program – section view Section LL-22-008 & 10 Section LL-22- 06 & 12 Source: InnovExplo Consulting 43
Slide 44: 2022 summer drilling program – section view
2022 summer drilling program – section view Section LL-22-014 & 21 Section LL-22- 15, 18 & 23 Source: InnovExplo Consulting 44
Slide 45: Flow sheet La Loutre - Size Fraction Analysis
Flow sheet La Loutre - Size Fraction Analysis Size Fraction Analysis of Combined Concentrate of LCT Size (Mesh) Size (µm) Mass (%) C(t) (%) C(t) Distribution (%) +32 +500 1.0 97.6 1.0 +48 +300 9.8 97.4 9.7 +80 +180 21.6 98.0 21.7 +100 +150 10.8 98.2 10.9 +150 +106 17.5 98.1 17.5 +200 +75 13.0 98.3 1
Slide 46: Flow sheet La Loutre
CRUSHER POLISHING MILL STIIRED DRYING AND MILL CLASSIFICATION +50 mesh 297 SAG MILL -100 microns mesh 149 microns FLOTATION PRODUCT Flow sheet La Loutre FLOTATION Source: NI 43-101 Technical Report and Preliminary Economic Assessment (July 2021) 46
Slide 47: Appendix Bourier
Appendix Bourier *@ 2.@ ‘Oo @ tae a ©*% mer. of © DW OC tre “em Oe. cae © '*@
Slide 48: Bourier lithium assets close to infrastructure
Bourier lithium assets close to infrastructure Bourier Stage of development: Early-Stage Bourier Lithium Project exploration ▪ Concession size: 10,252 ha ▪ Location: Quebec, Nemaska ▪ Lomiko to earn up to 70% of Bourier with milestone payments ▪ Geology - volcanic-sedimentary unit Lithium expected t
Slide 49: Bourier lithium project targeting
Bourier lithium project targeting AI Targeting at Bourier (2021) • GoldSpot highlighted lithium exploration targets at the Bourier project, using both traditional and machine learning approaches with various combinations of the numeric and categoric data and interpretations generated from the geosci
Slide 50: Lithium Reserves by Country
Lithium Reserves by Country 50
Slide 51: 1.5m of EVs in Quebec requires 300,000tpa of graphite concentrate
1.5m of EVs in Quebec requires 300,000tpa of graphite concentrate 1.5m EVs in Quebec by 2030 means 150 GWh of capacity needed for batteries per Annum • Spherical Graphite requirement for 150GWh battery capacity is 150,000tpa • Graphite Concentrate 95% Cg requirement for 150GWh capacity is 300,000tpa
Slide 52: Why investing in Quebec is the right choice
Why investing in Quebec is the right choice Quebec critical minerals and Lomiko can generate premium pricing • The Quebec Mineral Exploration Association (“QMEA”) ECOLOGO recognizes and promotes environmental, social and economic best practices: the first certification of its kind for mineral explor
Slide 53: La Loutre study priorities underway
La Loutre study priorities underway Continue with Community and First Nations engagement and communications • Meeting with the local communities and all stakeholders and shareholders are ongoing Continue with environmental baseline studies • Completed 4 full seasons of Environmental Baseline studies