Leading Edge Materials Reports Quarterly Results to July 31, 2018
NEWS RELEASE September 20, 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 July 31, 2018
Vancouver, BC – September 20, 2018 – Leading Edge Materials Cor p. ( “Leading Edge
Materials” or the “ C o m p a n y”) ( TSXV: LEM ) ( Nasdaq First North: LEMSE ) ( OTCQB: LEMIF )
announces its third quarter results for the period ending July 31, 2018. All references to dollar amounts
in this release are in Canadian dollars.
Work undertaken by Leading Edge Materials during the third quarter of 2018 are in line with the Board’s
strategic roadmap to support and benefit from the electrificati on of Europe. Key elements of the
Company’s ongoing investment strategy include high value produc t development from the Woxna
graphite mine; increasing community engagement at the Norra Kar r rare earth element project while
identifying project improvements that reduce the environmental footprint; ongoing discovery of lithium
at the Bergby project and in the surrounding region; and rapidly advancing various opportunities in cobalt
across Europe, including Finnish and Romanian assets.
The Company is close to finalising test work to identify key equipment for the design and install of a value
adding demonstration plant at the Woxna facility. This demonst ration plant will enable the Company to
demonstrate the commercial scaling of the process and produce samples of battery grade materials and
by products for customer evaluation and qualification.
The Company continues to be an active participant in the EU Battery Alliance.
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 July 31,
2018
$
April 30,
2018
$
January 31,
2018
$
October 31,
2017
$
July 31,
2017
$
April 30,
2017
$
January 31,
2017
$
October 31,
2016
$
Operations
Expenses (697,426) (665,364) (1,979,241) (843,952) (598,339) (6 61,022) (669,396) (2,060,555)
Other items (7,721) 32,508 42,816 75,938 (85,392) (59,749) (78, 116) 63,761
Comprehensive loss (705,147) (632,856) (1,936,425) (768,014) (6 83,731) (720,771) (747,512) (1,996,794)
Basic and diluted loss per
share (0.01) (0.01) (0.02) (0.00) (0.01) (0.01) (0.01) ( 0.04)
Financial Position
Working capital 1,369,748 2,041,550 2,698,150 3,490,760 4,430,4 69 3,980,145 3,582,767 2,436,641
Total assets 36,132,517 36,139,745 36,902,593 37,915,728 39,267 ,743 38,320,958 36,893,309 36,037,751
Total non-current liabilities (8,902,310) (8,157,203) (8,204,19 0) (8,330,321) (9,557,984) (8,967,308) (7,942,687) (8,072,937)
Results of Operations
Three Months Ended July 31, 2018 Compared to Three Months Ended April 30, 2018
During the three months ended July 31, 2018 (“ Q3”) the Company reported a comprehensive loss of
$705,147 compared to a comprehensive loss of $632,856 for the t hree months ended April 30, 2018
(“Q2”), for an increase in loss of $72,291, primarily attributable to the recognition of general prospecting
exploration expenses incurred in Romania of $91,044 in Q3.
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Nine Months Ended July 31, 2018 Compared to Nine Months Ended July 31, 2017
During the nine months ended July 31, 2018 (the “ 2018 period”) the Company reported a net loss of
$3,274,428, compared to a net loss of $2,152,014 for the nine months ended July 31, 2017 (the “2017
period”), an increase in loss of $1,122,414. The increase in loss is primarily attributed to the recognition
of share-based compensation of $1,168,525 on the granting of st ock options in the 2018 period. No
stock options were granted or vested in during the 2017 period.
Excluding share-based compensation, expenses increased by $244,749, from $1,928,757 during the 2017
period to $2,173,506 during the 2018 period.
Financial Condition / Capital Resources
During the 2018 period the Company recorded a net loss of $3,27 4,428 and, as at July 31, 2018, the
Company had an accumulated deficit of $25,942,467 and working c apital of $1,369,748. The Company
is maintaining its Woxna Graphite Mine on a “production-ready” basis to minimize costs. The Company
currently has no significant budget allocated for the Norra Kär r Project. Although the Company has
sufficient funding to meet anticipated levels of corporate admi nistration and overheads for the ensuing
twelve months, it anticipates that it will need additional capital to maintain current levels of research and
development, recommence operations at the Woxna Graphite Mine and/or upgrade the plant to produce
value added production. 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 r eserves, the achievement of profitable
operations and the ability of the Company to obtain financing to support its ongoing exploration programs
and mining operations. Whether the Company can generate positi ve cash flow and, ultimately, achieve
profitability is uncertain. These uncertainties may cast signi ficant doubt upon the Company’s ability to
continue as a going concern.
Financings
No financings were undertaken during the 2018 period. The Company issued 400,000 common shares on
the exercise of share options for $156,000.
During the 2017 period 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. The net proceeds
from these financings were used to conduct test work toward the production of high-purity graphite at
the Woxna graphite project, to further lithium and cobalt exploration activities and for general corporate
requirements. In addition, the Company issued 526,916 common shares on the exercise of share options
and warrants for $232,491.
Summary and Outlook
At the Woxna Graphite Mine, the Company is focused on optimizat ion of the purification and shaping
processes required to convert low value graphite into high value battery-ready anode material. Laboratory
based work to date has produced battery-ready anode materials by both chemical and thermal purification
methods yielding high quality graphite materials that meets the electrochemical specifications of battery
cell manufacturers. Ongoing larger scale testing and lab work is targeting process optimization of the
Woxna flow sheet to define equipment requirements to produce battery grade materials and salable by-
products. The research focus is directed towards commercially proven process improvements which can
be installed on the Woxna mine site within existing operating permits.
In February 2018, the Company announced participation as a raw material industry representative within
t h e EU B a t t e ry A l l i a nc e ( t he “Alliance”), which is comprised of more than 50 of Europe’s strongest
corporate voices within the emerging lithium ion battery sector, plus numerous support and government
a g e nc i e s . T he C o m p a n y i s t he o n l y p o t e n t i a l s u p p l i e r o f na t u r al graphite anode material within the
Alliance, which allowed the Company’s voice to be clearly heard with regards to the sustainable supply of
European raw materials.
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Leading Edge Materials Strategic roadmap
Woxna Graphite’s goal is to become the leading European producer and supplier of sustainable graphite
anode material for lithium ion b atteries, targeted at meeting t he forecast growth in European demand.
The objective is to own and control a sustainable production chain for anode material from mining through
processing to blending of customer specific products.
The Norra Karr project goals are directed towards increasing community and government engagement to
demonstrate the positive aspects of the project. Ongoing technical optimisation of the process is targeting
as close to a zero-waste project as possible to reduce the environmental footprint of the project.
The Swedish Lithium objectives are to undertake early stage exploration work to identify similar deposits
t o c o m p l e m e n t t h e B e r g b y L i t h i u m p r o j e c t o n a r e g i o n a l l e v e l . G r o u n d b a s e d p r o s p e c t i n g w o r k i s
underway this summer.
The Cobalt Project’s objectives are to undertake data review, c ombined with grassroots field work, to
determine if further exploration works are warranted. Currentl y focused on ground based prospecting
activities in Finland and both historic and ground based activities in Romania.
The Company continues to seek out prospective battery material projects in Europe and will provide
updates as information becomes available.
Qualified Person
The technical content of this release has been reviewed and app roved by 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
and a Qualified Person as defined by National Instrument 43-101.
Additional Information
The Company's consolidated financial statements for the year en ded October 31, 2017 and related
m a n a g e m e n t ' s d i s c u s s i o n a n d a n a l y s i s a r e a v a i l a b l e o n t h e C o m p an y ' s w e b s i t e a t
www.leadingedgematerials.com or under its profile on SEDAR at www.sedar.com.
On behalf of the Board of Directors,
Leading Edge Materials Corp.
Mr. Blair Way, President and CEO
For further information, please contact the Company at:
1.604.685.9316
www.leadingedgematerials.com
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 recognized
for its promotion and investment in innovation. The Company’s f lagship asset is the Woxna Graphite
production facility located in central Sweden, targeting the su pply of specialty materials for lithium ion
battery production. The Company’s assets and research focus are towards the raw materials for Li-ion
batteries (graphite, lithium, cobalt); materials for high therm al efficiency building products (graphite,
silica, nepheline); and materials that improve the efficiency o f energy generation (dysprosium,
neodymium, hafnium). Investments are linked to the global shift to low-carbon energy generation and
energy storage. Leading Edge Materials currently operates 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.
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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 CA on Nasdaq First North.
Reader Advisory
This news release may contain statements which constitute “forw ard-looking information”, including
statements regarding the 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”, “es timate”, “expect” and similar expressions, as
they relate to the Company, or its management, are intended to identify such forward-looking statements.
Investors are cautioned that any such forward-looking statements are not guarantees of future business
activities and involve 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, fluctuations in market prices, successes of the ope rations of the Company, continued
availability of capital and financing and general economic, mar ket or business conditions. There can be
no assurances that such information will prove accurate and, th erefore, 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 policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.