Leading Edge Materials Reports Quarterly Results to January 31, 2018
NEWS RELEASE April 4, 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 Reports Quarterly Results to January 31,
2018
Vancouver, Canada – Leading Edge Materials Corp . (“ Leading Edge Materials ”) or (the
“Company”) (TSXV: LEM) (OTCQB: LEMIF) (Nasdaq First North: LEMSE ) announces first quarter
results for the period ending Jan 31, 2018. All amounts in this release are in Canadian dollars.
Leading Edge Materials achieved two milestones during the first quarter of 2018. In December 2017 the
Company completed an application to dual list on the Nasdaq First North in Stockholm, where trading
commenced January 22, 2018.
Furthermore, the Company was a raw material industry representative within the EU Battery Alliance, a
forum comprised of more than 50 of Europe’s strongest corporate voices within the emerging lithium ion
battery sector, plus numerous support and government agencies. This culminated in February 2018 with
the delivery of an action plan to the European Commission to support then creation of a competitive and
sustainable battery cell manufacturing in Europe and a full EU-based value chain.
Selected Financial Data
The following selected financial information is derived from the unaudited condensed consolidated interim
financial statements of the Company prepared in accordance with IFRS.
Fiscal 2018 Fiscal 2017 Fiscal 2016
Three Months Ended January 31,
2018
$
October 31,
2017
$
July 31,
2017
$
April 30,
2017
$
January 31,
2017
$
October 31,
2016
$
July 31,
2016
$
April 30,
2016
$
Operations
Expenses (1,979,241) (843,952) (598,339) (661,022) (669,396) (2,060,555) (454,144) (460,150)
Other items 42,816 75,938 (85,392) (59,749) (78,116) 63,761 19,661 10,467
Net loss (1,936,425) (768,014) (683,731) (720,771) (747,512) (1,996,794) (434,483) (449,683)
Basic and diluted
loss per share (0.02) (0.00) (0.01) (0.01) (0.01) (0.04) (0.01) (0.01)
Dividends per share Nil Nil Nil Nil Nil Nil Nil Nil
Financial Position
Working capital 2,698,150 3,490,760 4,430,469 3, 980,145 3,582,767 2,436,641 1,947,010 2,314,419
Total assets 36,902,593 37,915,728 39,267,743 38, 320,958 36,893,309 36,037,751 19,632,405 18,808,738
Total non-current liabilities (8,204,190) (8,330,321) (9,557,984) (8,967,308) (7,942,687) (8,072,937) (8,272,979) (7,057,850)
Results of Operations
Three Months Ended January 31, 2018 Compared to Three Months Ended October 31, 2017
During the three months ended January 31, 2018 (“Q1/2018”) the Company reported a net loss of
$1,936,425 compared to a net loss of $768,014 for the prior three months ended October 31, 2017
(“Q4/2017”), for an increase in loss of $1,168,411. The increase in loss was primarily attributed to the
recognition of share-based compensation of $1,168,525 on the granting of stock options in Q1/2018. No
stock options were granted or vested in Q4/2017.
Financial Condition / Capital Resources
During the Q1/2018 period the Company recorded a net loss of $1,936,425 and, as at January 31, 2018,
had an accumulated deficit of $24,604,464 and working capital of $2,698,150. The Company is
maintaining its Woxna Graphite Mine on a “productio n-ready” basis to minimize costs. The Company
currently has no significant budget allocated for the Norra Kärr rare earth element (“REE”) project.
Although the Company has sufficient funding to meet anticipated levels of corporate administration and
overheads for the ensuing twelve months it anticipates that it may need additional capital to recommence
operations at the Woxna Graphite Mine and/or upgrade the plant to produce value added production.
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There is no assurance such additional capital will be available to the Company on acceptable terms or at
all. In the longer term the recoverability of the carrying value of the Company’s long-lived assets is
dependent upon the Company’s ability to preserve its interest in the underlying mineral property interests,
the discovery of economically recoverable reserves, the achievement of profitable operations and the
ability of the Company to obtain financing to su pport its ongoing exploration programs and mining
operations. Whether the Company can generate positive cash flow and, ultimately, achieve profitability
is uncertain. These uncertainties may cast significant doubt upon the Company’s ability to continue as a
going concern.
Financings
During fiscal 2017 the Company completed private placement financings of 4,004,222 units at $0.45 per
unit and 3,636,364 units at $0.55 per unit for total gross proceeds of $3,801,900. In addition, the
Company issued 1,026,916 common shares on the exercise of share options and warrants for $427,491.
Summary and Outlook
Leading Edge Materials had a successful 2017 and anticipates progress on many fronts during the coming
year. The Company progressed value adding research on the Woxna graphite project which will be
further advanced in 2018. The drill program on the Company’s Bergby lithium project revealed
encouraging results which will be followed up. Rese arch and development work on the Nora Kärr REE
project achieved significant milestones and it is anticipated further optimization work shall be undertaken
during 2018.
The Company maintains the Woxna plant in an operation ready status, running it on an as needs basis
to provide feedstock product for value added test work. Leading Edge Materials is working with potential
customers to identify products that can be supplied from Woxna. The Company continues to work
towards establishing a position as a supplier of choice in terms of price, supply security and quality to the
European graphite market. The production model being researched aims to displace synthetic graphite
with high purity natural graphite products.
Process development research on Norra Kärr completed under the European Commission funded EURARE
project achieved significant technical milestones. Research culminated with the production of
approximately 25 kg of mixed REE carbonate produc ed from a eudialyte concentrate, using a new and
optimized hydrometallurgical flowsheet. This process flow sheet development work will be progressed in
2018 to better understand potential commercial byproduct streams.
With regard to tenure at Norra Kärr the Company’s Mining Lease is under review by the Swedish Mining
Inspectorate (“Bergsstaten”). In mid-January 2018 the Company submitted to Bergsstaten all requested
information arising from this review. The Company continues to hold exclusive rights to the Norra Kärr
project through the Mining Lease application process. The Norra Kärr Mining Lease is surrounded by an
Exploration License (“EL”) which was first granted to Tasman on August 31, 2009 until August 31
2015. Since that date the company has filed for extensions to the EL, and on March 19 2018 the Company
was advised by the Bergsstaten that the EL had been extended until August 31 2019. This decision is
open to appeal until April 9 2018. The Company believes that it will continue to be successful in defending
its tenure over the Norra Kärr Property.
The Bergby lithium project remains a new lithium discovery at a very shallow depth, and it is anticipated
that the project will be advanced wi th metallurgical testwork utilizing core material retained during the
drill program.
The Company continues to seek out prospective battery material projec ts in Europe and will provide
updates as information becomes available.
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.
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Additional information
The Company's condensed consolidated interim financial statements for the period January 31, 2018 and
related management's discussion and analysis are available on the Company's website at
www.leadingedgematerials.com or under its profile on SEDAR at www.sedar.com
This 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 April 4, 2018 at 2:45 am Vancouver time.
On behalf of the Board,
"Blair Way"
Blair Way, President & CEO
For further information, contact: 1.604.685.9316
www.leadingedgematerials.com
About Leading Edge Materials
Leading Edge Materials was formed with our sights firmly focused on the material demands of a once-in-
a-generation revolution, as the world shifts to the efficient production, storage and preservation of low
carbon energy. From the lithium batteries in our electric vehicles to our ability to generate energy from
the sun, wind and waves LEM is focused on the green energy markets. With a focus on Europe and assets
in innovation-rich Scandinavia, Leading Edge Material s is ideally placed to play a pivotal role in the
sustainable supply of critical technology materials. Remium Nordic AB is the Company’s Certified Adviser
(“CA”) as part of the listing requirements for Nasdaq First North.
About Nasdaq First North
Nasdaq First North is regulated as a multilateral tr ading facility, operated by the different exchanges
within Nasdaq Nordic (Nasdaq First North Denmark is regulated as an alternative marketplace). It does
not have the legal status as an EU-regulated market. Companies at Nasdaq First North are subject to the
rules of Nasdaq First North and not the legal requirements for admission to trading on a regulated market.
The risk in such an investment may be higher than on the main market.
Important information
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, uncertainti es 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, the Compan y’s expectations regarding the benefits of the listing on the Nasdaq First
North; the Company’s ability to fulfil the customary conditions set out in th e conditional acceptance letter from
Nasdaq Stockholm AB; unexpected geological conditions; the Company’s expectations regarding exploration activities
to advance critical material projects fo r energy storage markets, delays in ob taining 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 co uld 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 revi sions to any of the forward- looking information contained
herein to reflect future results, events or developments, except as required by law.