Lomiko Metals — Investor Presentation (November 2022)
56 slides from Lomiko Metals's investor presentation, November 2022
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 November 2022
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: Lomiko purpose: The operator of choice in Quebec
Lomiko purpose: The operator of choice in Quebec By putting people first We are building a strategic stockpile of critical Strong investment proposition and leading minerals assets in Quebec with vision and values US IRA (Inflation Reduction Act) stipulates requirements for incentives to have 100% o
Slide 5: 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 6: The challenge is lack of supply in North America
The challenge is lack of supply in North America • Current capacity at 769 GWH • There is demand for 800,000 of SPG (“Spherical Graphite”) per year, or 1.6Mt pa of graphite concentrate per year • Opportunity - Lomiko can provide 10% of this demand and 30% of demand in Quebec (according to its PEA) f
Slide 7: 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 8: Critical Minerals Map of Quebec-new land package
Critical Minerals Map of Quebec-new land package www.lomiko.com TSXV: LMR OTC: LMRMF FRANKFURT: DH8C 8
Slide 9: Lomiko new natural flake graphite claims: 14,255 hectares
Lomiko new natural flake graphite claims: 14,255 hectares of mineral claims • 236 claims in total, on 6 projects in the Laurentian region of Quebec and within KZA territory • Within a 100 km radius of the Company’s flagship La Loutre graphite project • Large disseminated flake graphite mineralizatio
Slide 10: La Loutre progress in 2022
La Loutre progress in 2022 ESG and business purpose Community engagement sessions held and retained a strategic advisor to work with Kitigan Zibi community Completed 12 months of the baseline studies – full cycle Ecologo – completed the certification process Long-term working relationships w
Slide 11: La Loutre graphite project close to infrastructure
La Loutre graphite project close to infrastructure with great geological setting La Loutre • Stage of development: Preliminary Economic Assessment ("PEA") • Starting Preliminary Feasibility Studies EV Zone • Completed infill-drill program Battery • Finalizing metallurgical studies Zone • Completed b
Slide 12: 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 13: La Loutre: PEA establishes a critical path ahead
La Loutre: PEA establishes a critical path ahead for improvements and project de-risking • Resources: Ind 23.2 Mt @ 4.51% Cg for 1 Mt of graphite and inf 46.8 Mt @ 4.01% Cg for 1.9 Mt of graphite using cut-off grade of 1.5% Cg. La Loutre Graphite Project • PEA - LOM plant production of 21,8 Mtonnes
Slide 14: La Loutre: PEA Layout
La Loutre: PEA Layout – great base to build on No conventional tailings facilities • Waste rock and tailings co-disposed WASTE ROCK & • Efficient site water management EV ZONE CODISPOSAL PILE • Pits sequenced to maximize the returns starting from North – EV Pits to South – Battery Pits • Stockpiles
Slide 15: 2022 summer drilling program completed
2022 summer drilling program completed – Actual drilled Completed summer Infill and extension drilling along the strike of the deposits to Sept 28th Results confirm ore body shape, quality and extents for a total of 13,113 metres in 79 holes. Oct 12th Results Focus on higher grade EV Zone • Complete
Slide 16: 2022 summer drilling program – EV Zone plan view
2022 summer drilling program – La Loutre EV Zone plan view 16
Slide 17: 2022 summer drilling program – section view
2022 summer drilling program – section view Section LL-22-003 Section LL-22- 06&07 Source: InnovExplo Consulting 17
Slide 18: 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 18
Slide 19: 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 19
Slide 20: 2022 summer drilling program completed – Battery Zone
2022 summer drilling program completed – Battery Zone Completed summer Infill and extension drilling along the strike of the deposits to confirm ore body shape, quality and extents for a total of 13,113 metres in 79 holes. Finished drill program at Battery Zone • Completed 26 holes in Battery South
Slide 21: Exploration Drilling Summary – La Loutre
Exploration Drilling Summary – La Loutre – press released • Total holes drilled EV Zone – July 31st, 2022 – 53 holes drilled – 9,025 meters • Assays received for 53 holes and results published with excellent widths and grades encountered including: • Wide intervals of near surface, high-grade flake
Slide 22: La Loutre initial metallurgical program confirms high purity concentrate
La Loutre initial metallurgical program confirms high purity concentrate Expanded Graphite +80 & +50 mesh • ProGraphite (Germany) and Corem (Quebec) confirm graphite from La Loutre is suitable for a wide range of traditional markets such as refractories, crucibles and friction products, or expanded
Slide 23: La Loutre metallurgical program next steps
La Loutre metallurgical program Next steps: Next steps • Metallurgical sample selected from the Collected over 800kg of the core (existing& new) from EV and Battery zones • Metallurgical testing being completed by SGS in Lakefield • SGS started with the sample preparation and initial met work in Jun
Slide 24: La Loutre development timeline subject to financing
La Loutre development timeline subject to financing Q4 2023 Q1-Q4 2023 2023 Q1/Q2 2023 Battery Pre- Dec 2022 Concentrate to Trials feasibility Updated anode tests Study and further NI-43-101 purification 1 Month Metallurgical Technical testing for flotation Report technical Battery testing specs Zon
Slide 25: 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 COMPLETED PLANNED Phase 1 at La Loutre Cost ($M) To PFS for La Loutre Cost ($M) Resource Drilling $3.5 Mining & Mining Geotechnical $0.7 Metallurgy $0.6
Slide 26: NPV scenario analysis: leveraged to 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 $1,000/t of graphite concentrate (source: Benchmark). • Current public information indicates a selling price of ov
Slide 27: La Loutre Long Term Development Line
La Loutre Long Term Development Line Q4 2027 Q1/Q2 2023 Production Q4 2023 MRE –NI-43-101 Q4 2024 Mineral Resource PFS – Pre- Estimate Feasibility Study Pilot Plant Q1/Q2 2025 FS – Feasibility Study Q3/Q4 2025 Permits & Q1 2026 Construction Decision Construction of La Loutre Flotation Plant and site
Slide 28: Bourier lithium project: highly prospective region
Bourier lithium project: highly prospective region Bourier Adjacent Properties: ⮚ Galaxy Resources ⮚ Nemaska Lithium ⮚ Critical Elements 1. Rose Tantalum Project FS stage 2. Lemare Property: ▪ New Discovery – March 2017 Drilling 21m @ 2.65% Li2O 41.5m @ 1.71% Li2O 23m @ 1.61% Li2O Source: Critical E
Slide 29: Bourier lithium project
Bourier lithium project Bourier 2021 Field Work Summary ▪ The analytical results feature high- grade values for zinc and tungsten and anomalies in lithium-tantalum-cesium and gold. ▪ The lithium-tantalum-cesium anomalies represent an unprecedented discovery and spans along a 2.5 km long NE-trending
Slide 30: Bourier lithium project identifies exploration targets with Li anomalies
Bourier lithium project identifies exploration targets with Li anomalies 2021 Exploration Results Bourier Exploration Program 2022 ▪ Located on Nemiscau greenstone belt and Critical Elements south-east of the Cree Eeyou Istchee James Bay territory in Quebec. ▪ Summer: intensifying prospection over a
Slide 31: Comparable company analysis demonstrates value creation potential
Comparable company analysis demonstrates value creation potential Nov 1, 2022 Symbol Price Company Name Market Measured Indicated Inferred EV/Resource Shares O/S Cash TEV Cap ($M) (Mt) (Mt) (Mt) (M&I) TSXV:GEM 0.06 Green Battery Minerals Inc 69.3 2.5 1.7 4.2 1.8 1.5 1.0 TSXV:CCB 0.05 Canada Carbon I
Slide 32: Comparable company analysis demonstrates value creation potential
Comparable company analysis demonstrates value creation potential Oct 31, 2022 400.0 356.3 350.0 300.0 Market 250.0 237.7 Cap 200.0 150.0 106.2 100.0 70.6 56.4 50.0 35.3 26.7 4.2 6.4 7.0 8.6 11.5 0.0 Market Cap ($M) GEM CCB FMS LMR STS LEM LLG NGC SRG GPH EXT NOU Green Battery Minerals, Canada Carbo
Slide 33: Capital Structure
Capital Structure As at Nov 1, 2022 Shares Issued & Outstanding 287.4M Market Cap (Oct 3) $10.1M Options 13.0M Cash* $5.2M Warrants 82.6M Debt $- Share Units (PSU/RSU/DSU) 8.9M Total Enterprise Value $4.9M Fully Diluted 392.0M * Cash balance as at last interim financials – April 30, 2022 Management
Slide 34: Diverse leadership with solid experience building businesses
Diverse leadership with solid experience building businesses 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, an
Slide 35: Shareholder value generation in 2022
Shareholder value generation in 2022 THE LOMIKO GRAPHITE OPPORTUNITY PLUS OTHER CATALYSTS LA LOUTRE Bourier lithium exploration – Collected over Completed 13,113meters Drill program to 1,100 soil samples and 400 rock samples in increase resource quality and rerate inferred July, next steps include g
Slide 36: Appendix
=”) LOMIKO Appendix
Slide 37: Canada's federal gov't announces all 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 The challenge: To reach even 50% of EV penetration in vehicles requires 20x increase in battery supply. Renewable energy supercentres, longer life batteries, and charging stations can and should be sourced
Slide 38: 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 39: Capital Structure
Capital Structure As at Nov 1, 2022 Issued & Outstanding Shares (M) 287.4 Number of Option Issue Date Options Price Expiry Date December 18, 2020 2.6 $ 0.050 12/18/2025 August 4, 2021 3.9 $ 0.120 8/4/2026 October 25, 2021 3.9 $ 0.120 10/25/2026 February 7, 2022 2.0 $ 0.070 2/7/2027 February 21, 2022
Slide 40: 30-Day Share Price and Volume
30-Day Share Price and Volume As at Nov 1, 2022 $0.050 1,600,000 $0.045 1,400,000 $0.040 1,200,000 $0.035 1,000,000 $0.030 $0.025 800,000 $0.020 600,000 $0.015 400,000 $0.010 200,000 $0.005 $- - Source: Yahoo Finance Volume Price 30-Day average closing price $0.033 30-Day average trading volume: 368
Slide 41: Appendix Graphite
Appendix Graphite
Slide 42: 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 43: 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 44: 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 45: Graphite Pricing May 2022 – Fastmarkets
Graphite Pricing May 2022 – Fastmarkets 45
Slide 46: 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 47: Appendix La Loutre
Appendix -~ “@° ome *@ 2.@ ‘o @ tas
Slide 48: 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 49: 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) 49
Slide 50: Appendix Bourier
Appendix Bourier *@ 2.@ ‘Oo @ tae a ©*% mer. of © DW OC tre “em Oe. cae © '*@
Slide 51: 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 52: 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 53: Lithium Reserves by Country
Lithium Reserves by Country 53
Slide 54: 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 55: 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 56: 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
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