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LEM.V ·

Leading Edge Materials Closes Exploration Alliance in Romania

Mergers & Acquisitions

NEWS RELEASE August 9 th, 2018

LEADING EDGE MATERIALS CORP.

1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7

T +1 604 685 9316 | leadingedgematerials.com

TSX.V : LEM | Nasdaq First North: LEMSE | OTCQB : LEMIF

emerging materials, expanding markets

Leading Edge Materials Closes Exploration Alliance in Romania

Vancouver, August 9, 2018 – Leading Edge Materials Corp. (“Leading Edge Materials ” or “ the

“Company”) (TSXV:LEM) (OTCQB: LEMIF ) (Nasdaq First North: LEMSE ) is pleased to report closing

of the previously announced exploration alliance focused on lithium ion battery materials in Romania (the

“Alliance Transaction”) (refer to the Company’s press release dated April 26, 2018).

In connection with the Alliance Transaction, the Company entered into a share purchase agreement dated

April 26, 2018 (the “Share Purchase Agreement ”) with an arm’s length party (the “Co-owner”) pursuant

to which Leading Edge Materials has acquired an initial 51% interest (the “ Initial Interest”), with the right

to acquire an additional 39% interest (the “ Additional Interest ”) (for an aggregate 90% interest), in a

Romanian incorporated company (the “ Joint Venture Company ”) that holds a prospecting permit. In

connection with the acquisition of the Initial Interest, Leading Edge Materials issued 367,006 common shares

(“Common Shares”) of the Company (the “Initial Shares”) to the Co-owner.

The Company, the Co-owner and the Joint Venture Company have entered into a shareholder joint venture

agreement to govern the affairs of the Joint Venture Company (the “ Joint Venture Agreement ”). Under

the terms of the Joint Venture Agreement:

 In order to earn the Additional Interest, the Company is required to issue to the Co-owner an

additional 2,202,036 Common Shares (the “Additional Shares”);

 Leading Edge Materials will incur all exploration expenditures and shall free carry the Co-owner to

production although no firm exploration expenditure commitments are required under the Joint

Venture Agreement; and

 Leading Edge Materials may be required to issue additional Common Shares to the Co-owner to an

aggregate maximum of 8,074,136 Common Shares as bonus payments should historic resources or

a subsequent National Instrument 43-101 mineral resource estimate on either cobalt, nickel or silver

based metal areas exceed certain thresholds.

In connection with the Alliance Transaction, the Company will pay a finder’s fee equal to 5% of the

aggregate consideration paid by the Company to the Co-owner under the Share Purchase agreement and

the Joint Venture Agreement payable by the issuance of cash and/or Common Shares. The finder’s fee is

payable in stages concurrently and conditionally with the issuance of the Initial Shares and Additional

Shares. On the closing date of the Alliance Transaction, the finder was issued 18,350 Common Shares.

All Common Shares issued or to be issuable pursuant to the Share Purchase Agreement, Joint Venture

Agreement or to the finder in connection with the Alliance Transaction will be subject to a four month hold

period expiring four months from the date of issuance.

Blair Way, President and CEO, stated: “We are very pleased to have closed on this transaction and now that

the documentation is in place we look forward to initiating work programs and advancing the property. We

look forward to providing details on exploration program results when they become available”.

On behalf of the Board,

"Blair Way"

Blair Way, President & CEO

For further information, contact: 1.604.685.9316

or [email protected]

www.leadingedgematerials.com

2

Qualified Person

The qualified person for the Company’s project, Mr. Blair Way B.S. (Geology) M.B.A., a Fellow of the

Australasian Institute of Mining and Metallurgy, the Company’s President and CEO, has reviewed and verified

the contents of this document.

About Leading Edge Materials

Leading Edge Materials is a Canadian public company focused on production of high value critical raw

materials for the European market, with an operating base in the Nordic region, a region well recognised for

its promotion and investment in innovation. LEM’s flagship asset is the Woxna Graphite production facility

located in central Sweden targeting the supply of specialty materials for lithium ion battery production. LEM’s

assets and research focus are towards the raw materials for Li-ion batteries (graphite, lithium, cobalt);

materials for high thermal efficiency building products (graphite, silica, nepheline); and materials that

improve the efficiency of energy generation (dysprosium, neodymium, hafnium). Investments are linked to

the global shift to low-carbon energy generation and energy storage. Leading Edge Materials currently

operate in four divisions, Graphite, Lithium, Rare Earth and Cobalt. Mangold Fondkommission AB is the

company’s Certified Adviser (“CA”) as part of the listing requirements for Nasdaq First North.

Additional Information

Leading Edge Materials is listed on the TSXV under the symbol “LEM” and Nasdaq First North Stockholm

under the symbol " LEMSE". Mangold Fondkommission AB is the Company’s Certified Adviser on Nasdaq

First North.

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.

Forward-Looking Information. This news release may contain forward-looking statements and information

based on current expectations. These statements should not be read as guarantees of future performance or

results. Such statements involve known and unknown risks, uncertainties and other factors that may cause

actual results, performance or achievements to be materially different from those implied by such

statements. Such statements include but are not limited to, unexpected geological conditions; the

Company’s expectations regarding exploration activities to advance critical material projects for energy

storage markets, delays in obtaining or failure to obtain necessary permits and approvals from government

authorities. Although such statements are based on management’s reasonable assumptions, there are risk

factors which could cause the Company’s actual results, performance or achievements to be materially

different from any future results, performance or achievements expressed or implied by the forward-looking

information contained herein. All forward-looking information herein is qualified in its entirety by this

cautionary statement, and the Company disclaims any obligation to revise or update any such forward-

looking information or to publicly announce the result of any revisions to any of the forward-looking

information contained herein to reflect future results, events or developments, except as required by law.