Leading Edge Materials to Evaluate Restart of Graphite Production at Woxna MINE Due to Improved Market Conditions
NEWS RELEASE February 11, 2022
LEADING EDGE MATERIALS CORP.
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
[email protected] | www.leadingedgematerials.com
TSX.V: LEM | Nasdaq First North: LEMSE | OTCQB: LEMIF | FRA: 7FL
TSX.V: LEM | Nasdaq First North: LEMSE | OTCQB: LEMIF
LEADING EDGE MATERIALS TO EVALUATE RESTART OF GRAPHITE PRODUCTION
AT WOXNA MINE DUE TO IMPROVED MARKET CONDITIONS
Stockholm, February 11, 2022 – Leading Edge Materials Corp. (“Leading Edge Materials” or the “Company”)
(TSXV: LEM) (Nasdaq First North: LEMSE) (OTCQB: LEMIF) (FRA: 7FL) is pleased to announce it has initiated
an internal review focused on the potential to restart production at the Company’s fully-owned Woxna graphite
mine in Sweden (“Woxna”).
Highlights:
• Strong market conditions with European flake graphite prices up around 40% over the last year1,2
• Internal review to restart production at the Woxna graphite mine
• Woxna Graphite is one of the few built and permitted graphite mines in the western world
• Important step towards planned fully integrated production of graphite anode materials
The permitted and fully-built Woxna graphite mine and processing plant was restarted by the Company in 2014
but production was halted due to adverse market conditions at the time. The site has since been kept on care
and maintenance whilst the Company has focused on developing the planned downstream processes to
produce an upgraded graphite anode material for the lithium-ion battery industry. Improved market conditions
for traditional flake graphite products have been recognized as an additional potential opportunity with the
asset offering a relatively short time to production compared with other graphite developers. The Company
sees the current market conditions as an attractive opportunity to investigate this in more detail.
A recent assessment by Fastmarkets1 show flake graphite prices in Europe at US$775 to US$1,395 depending
on flake size, which is around 40% higher compared with the same period last year2. These price assessments
also show that there is an increasing premium for flake graphite pricing in Europe compared with China. Prices
have been driven by growing demand with concurrent supply disruptions and soaring shipping costs. In this
context, an alternative supply from Sweden, where products could be shipped by truck to potential customers
in continental Europe, could be a key competitive advantage for the Company and could offer the Company a
potential opportunity for revenue generation in the near-term.
Filip Kozlowski, CEO of Leading Edge Materials states “Restarting production at the Woxna graphite mine opens up
a number of key opportunities for the Company. Current and expected strong fundamental market conditions not
only offer attractive potential cashflow, but also opens up access to graphite users. Furthermore, this is the first
essential step toward the fully integrated production of graphite anode material as laid out in our 2021 PEA3. Owning
one of the few built and permitted graphite mines in the western world, we are very excited to be able to rapidly
respond and benefit from the accelerating strength in flake graphite prices. With natural graphite being classified as
a critical raw material by the European Union, it would also demonstrate Europe’s capability to disrupt its dependency
on raw material supply from other regions.”
The review will now perform a detailed market assessment for its potential production through engagement
with potential customers in Europe, evaluate required and preferred equipment upgrades at the processing
plant, recruitment needs for restarting production and associated timelines. Decision whether to proceed with
the restart of production expected to be made within a few months.
1 https://www.indmin.com/Article/4023733/Graphite-LatestNews/Graphite-prices-stable-but-supply-issues-continue-to-
hamper-market.html
2 https://www.indmin.com/Article/3971725/Graphite-LatestNews/GLOBAL-GRAPHITE-SNAPSHOT-Tight-availability-high-
freights-costs-support-amorphous-prices.html
3 https://leadingedgematerials.com/wp-content/uploads/2021/07/NI43-101-Technical-Report-Woxna-Graphite-2021.pdf
2
Last year, the Company filed a positive preliminary economic assessment (the “2021 PEA”) for a vertically
integrated production of graphite anode materials using Woxna flake graphite as a feed material for a planned
anode material factory demonstrating a post-tax NPV (8%) of US$248m and post-tax IRR of 37.4% 4 .
Subsequently the Company announced a non-binding Heads of Agreement with Sicona Battery Technologies
Pty Ltd for a 50/50 JV (“the MOU”) for the planned downstream anode factory and the production of silicon-
graphite composite anode materials. These downstream value-add business opportunities are still the main
strategy of the Company due to their outsized economic potential compared with only producing lower value
flake graphite products. However, these downstream plans are ultimately dependent on the production from
the Woxna mine and as such, restarting production of flake graphite concentrate is a key deliverable to enable
those future plans.
The Woxna graphite project has never had a mineral reserve defined nor has a feasibility study based on
mineral reserves been completed for Woxna. The Company is of the view that the costs and time required to
define mineral reserves and complete a feasibility study for a brownfield project of this type that has been in
production in the past is prohibitive for potentially restarting production under current market conditions.
Accordingly, a decision to restart production would not be based on a feasibility study of mineral reserves
demonstrating economic and technical viability. As a result, there may be an increased uncertainty and risk of
economic and technical failure associated with such a restart decision. The Company further cautions that the
2021 PEA is preliminary in nature. No mining study has been completed. Mineral resources are not mineral
reserves and do not have demonstrated economic viability. There is no certainty that the 2021 PEA will be
realized.
The Company cautions that there is no assurance or guarantee that the review will lead to a decision to restart
production. The Company will disclose developments with respect to the review process when further
disclosure is warranted.
The scientific, technical and economic information related to the Woxna graphite project in this news release
has been reviewed and verified by Christopher Stinton of Zenito Limited, BSc (Hons), CEng MIMMM, an
independent Qualified Person as defined by NI 43-101.
On behalf of the Board of Directors,
Leading Edge Materials Corp.
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 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 Karr HREE project (Sweden) and the
51% owned Bihor Sud Nickel Cobalt exploration alliance (Romania).
4 https://leadingedgematerials.com/wp-content/uploads/2021/07/NI43-101-Technical-Report-Woxna-Graphite-2021.pdf
3
Additional Information
This information is information that Leading Edge Materials Corp. is obliged to make public pursuant to the
EU Market Abuse Regulation. The information was submitted for publication through the agency of the
contact person set out above, on February 11, at 2:25 am 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.
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forecasts (collectively, “Forward-Looking Statements”). All statements, other than statements of historical fact,
addressing activities, events or developments that the Company believes, expects or anticipates will or may occur in
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Forward-Looking Statements are based upon the opinions and expectations of the Company based on information
currently available to the Company. Investors are cautioned that any such Forward-looking Statements 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 Statements as a result of various factors,
including, but not limited to: the Company has yet to generate a profit from its activities; there can be no guarantee
that the estimates of quantities or qualities of minerals disclosed in the Company’s public record will be
economically recoverable; uncertainties relating to the availability and costs of financing needed in the future;
competition with other companies within the mining industry; the success of the Company is largely dependent upon
the performance of its directors and officers and the Company’s ability to attract and train key personnel; changes
in world metal markets and equity markets beyond the Company’s control; the possibility of write-downs and
impairments; the risks associated with uninsurable risks arising during the course of exploration; development and
production; the risks associated with changes in the mining regulatory regime governing the Company; the risks
associated with tenure to the Norra Karr property; the risks associated with the various environmental regulations
the Company is subject to; rehabilitation and restitution costs; the fact that the Woxna project has never defined a
mineral reserve or a feasibility study and the associated increased risk of technical and economic failure in case of
restarting production; risks relating to the preliminary and non-binding nature of the MOU. Although the Company
has attempted to identify important factors that could cause actual results to differ materially from those contained
in the Forward-Looking Statements, there may be other factors that cause results not to be as anticipated, estimated
or intended. There can be no assurance that such Forward-Looking Statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated in such Forward-Looking Statements. Such
Forward-Looking Statements has been provided for the purpose of assisting investors in understanding the
Company’s business, operations and exploration plans and may not be appropriate for other purposes.
Accordingly, readers should not place undue reliance on Forward-Looking Statements. Forward-Looking Statements
are made as of the date hereof, and the Company does not undertake to update such Forward-Looking Statements
except in accordance with applicable securities laws.