Executive Officer. CEO’S LETTER TO THE SHAREHOLDERS Dear Shareholders and Stakeholders, When I was offered the opportunity to become the Chief Executive Officer of Leading Edge Materials in May last year the world had just been upended by the COVID pandemic and clean energy raw
NEWS RELEASE March 22, 2021
LEADING EDGE MATERIALS CORP.
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
T +1 604 685 9316 | www.leadingedgematerials.com
TSX.V: LEM | Nasdaq First North: LEMSE | OTCQB: LEMIF
TSX.V: LEM | Nasdaq First North: LEMSE | OTCQB: LEMIF
Vancouver, March 22, 2021 – Leading Edge Materials Corp. (“Leading Edge” or the “Company”)
(TSXV: LEM) (Nasdaq First North: LEMSE) (OTCQB: LEMIF) provides a letter from the Chief
Executive Officer.
CEO’S LETTER TO THE SHAREHOLDERS
Dear Shareholders and Stakeholders,
When I was offered the opportunity to become the Chief Executive Officer of Leading Edge Materials
in May last year the world had just been upended by the COVID pandemic and clean energy raw
material stocks were suffering from a multi-year decline in sentiment. Today, less than 12 months
later, vaccination programs are being rolled out across the globe and companies focused on raw
materials that drive the transition to climate neutrality are attracting significant interest again.
After an initial short-lived fall in demand and supply chain distortions momentum shifted
dramatically during the second half of 2020. Governments around the world increased efforts to
stimulate their economies due to the pandemic with the EU continuing supporting its Green Deal
which is looking to mobilize €1trn of investments over the next decade. In the US, the new presidency
under Joe Biden signed a number of climate related executive orders and more recently passed a
$1.9trn stimulus package skewed towards green investments. This combined with increasing
demand for electric vehicles and limited supply of key battery materials, including cobalt and lithium,
which have then experienced strong moves upward since the beginning of this year. Similarly, prices
for key magnet rare earth elements such as neodymium, praseodymium, dysprosium and terbium
have risen sharply year on year due to strong demand and limited supply.
The pandemic also proved to be an alarm bell for over-reliance on single third countries for critical
supplies. In September the European Commission launched an action plan on critical raw materials
and formed the European Raw Materials Alliance to establish more resilient and sustainable value
chains for critical raw materials that underpin the transition to climate neutrality. A number of media
reports in 2021 have again underlined the risk of China limiting or cutting off supply for rare earth
elements. At the same time, China proposed new regulations further cementing its control over the
domestic rare earth industry.
On the corporate side, the Company in August raised $3.5m in a private placement with continued
support from long-term shareholders. Later in the year, two preliminary economic assessment
studies were initiated on our Swedish projects.
For Woxna, the study is about demonstrating the potential added economic benefit of producing an
active anode material for the lithium-ion industry based on last few years development of the
required downstream processes. Woxna benefits from access to low cost green hydropower which
offers a competitive advantage as sustainability is becoming increasingly important. To demonstrate
this advantage we have also commissioned a life cycle assessment on the envisioned production
from Woxna which aligns with the sustainable battery regulation announced by the European
Commission in late 2020 that will enforce carbon footprint declarations on any batteries placed on
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the European market. There has been a constant flow of battery factory capacity announcements,
most recently by Volkswagen announcing plans for six 40GWh battery plants by 2030 in Europe
alone. With a built mine looking to add the downstream value add processing, and an ideal location
logistically in Sweden, Woxna is in the right time and place to benefit from the expected exponential
growth in graphite anode demand over the next decade.
For Norra Karr, the study is about maximizing the resource efficiency whilst minimizing the
environmental footprint of the project in order to regain a social license in addition to potential
improvements in the economics of the project. Norra Karr is one of few heavy rare earth element
projects of its kind globally, and the only project in Europe that could supply significant amounts of
critical permanent magnet rare earths such as dysprosium and terbium. As Europe is urgently
looking to support the development of its own rare earth magnet value chain to reduce reliance on
China, Norra Kärr could be a key piece to solve that puzzle.
The results from these two studies, which are expected in the near future, will provide the basis for
the next steps in development for each project. So we are looking at a very active remainder of 2021.
Importantly, the studies will provide the details of what the investment case looks like for the
projects which can then be communicated to the broader investment community.
Lastly, we entered an agreement to sell 100% of the Bergby Lithium project at attractive terms
allowing us to direct all resources on our main two projects whilst continuing to wait for a final
decision on the granting of an exclusive exploration license in Romania.
In summary, the new Board and Management in place since last spring is operating under the
highest conviction that the steps described above and the plan going forward is the best way to
create shareholder value. As such, the Company benefits from a high insider ownership and
continued strong support from its shareholder base. I believe the Company is uniquely positioned
to offer a highly convex exposure to the clearly emerging trends and stated political and social goals
in the EU.
We are looking forward to the outcomes of the two PEA studies, expected shortly. Clearly, the best
immediate path to create shareholder value is the responsible development of our two principal
assets in Sweden, and we are incredibly excited to execute on this.
Yours Sincerely,
/s/ “Filip Kozlowski”
Filip Kozlowski
CEO
For further information, please contact the Company at:
www.leadingedgematerials.com
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About Leading Edge Materials
Leading Edge Materials is a Canadian public company focused on developing a portfolio of critical
raw material projects located in the European Union. Critical raw materials are determined as such
by the European Union based on their economic importance and supply risk. They are directly linked
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to high growth technologies such as batteries for electromobility and energy storage and permanent
magnets for electric motors and wind power that underpin the clean energy transition towards
climate neutrality. The portfolio of projects includes the 100% owned Woxna Graphite mine
(Sweden), Norra Kärr HREE project (Sweden) and the 51% owned Bihor Sud Nickel Cobalt exploration
alliance (Romania).
Additional Information
The information was submitted for publication through the agency of the contact person set out
above, on March 22, 2020 at 2.45 pm Vancouver time.
Leading Edge Materials is listed on the TSXV under the symbol “LEM”, OTCQB under the symbol
“LEMIF” and Nasdaq First North Stockholm under the symbol "LEMSE". Mangold Fondkommission
AB is the Company’s Certified Adviser on Nasdaq First North and may be contacted via email
[email protected] or by phone +46 (0) 8 5030 1550.
Reader Advisory
This news release may contain statements which constitute “forward-looking information” under
applicable Canadian securities laws, including statements regarding plans, intentions, beliefs and current
expectations of the Company, its directors, or its officers with respect to the future business activities of
the Company. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”,
“expect” and similar expressions, as they relate to the Company, or its management, are intended to
identify such forward-looking information. Investors are cautioned that any such forward-looking
information is not a guarantee of future business activities and involves risks and uncertainties, and that
the Company’s future business activities may differ materially from those in the forward-looking
information as a result of various factors, including, but not limited to, fluctuations in market prices,
successes of the operations of the Company, continued availability of capital and financing and general
economic, market or business conditions. There can be no assurances that such information will prove
accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. The
Company does not assume any obligation to update any forward-looking information except as required
under the applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this news release.