LMR.V · 2023-02-06 12:00:00

Lomiko Metals’ La Loutre Graphite Flotation Optimization Studies Produce Consistent High-Grade Flotation Concentrates Grading up to 99.5% C(t)

Metallurgy & Processing

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Lomiko Metals’ La Loutre Graphite Flotation Optimization Studies Produce

Consistent High-Grade Flotation Concentrates Grading up to 99.5% C(t)

Montreal, Quebec – February 6th, 2023 - Lomiko Metals Inc. (TSX.V: LMR) (“Lomiko Metals”

or the “Company”) is pleased to announce an update on the optimization studies of the concentrator

flowsheet design and the development of graphite value-add processes, as detailed below.

Lomiko completed a pre -feasibility (“PFS”) level flotation flowsheet optimization program that

culminated in a flowsheet for the Company’s Pre -Feasibility Study at La Loutre . The samples

submitted for metallurgical testing were selected by Innov Explo in Val -d'Or, Quebec. Three

different types of composites were generated, namely mine plan, domain, and grade composites.

The mine plan composites represented the first several years of expected mine operations and were

blended in the appropriate ratio into a Master composite containing material from the EV Zone .

This Master composite was employed in the flowsheet optimization program and produced

consistent high-grade flotation concentrates. The total weight of the samples was approximately

640kg.

The flowsheet optimization program was carried out by SGS Lakefield Inc. (SGS) using the above

samples and the final report was completed by Metpro Management Inc.

At the end of the opti mization program, this Master composite containing only material from the

EV Zone was subjected to a locked -cycle flotation test (“LCT”). The LCT simulates the

metallurgical performance of a continuous plant operation. The LCT produced a combined

concentrate grade of 98.6% C(g) at a closed -circuit graphite recovery of 94.7%. Please refer to

Table 1 for details.

The robustness of the flowsheet was verified in open- circuit tests with twelve variability

composites, which represented different phases in the mine plan, domains, and head grades. The

average concentrate grade of the 15 variability flotation tests, which included three repeat tests,

was 97.8% C(t) with a low relative standard variation of 1.08%. Taking into account the standard

deviation, the lowest value of 95.2% C(t) is considered an outlier. All other tests produced

consistently high grades between 96.4% C(t) and 99.5% C(t) as shown in Table 2.

Belinda Labatte, CEO and Director stated: “ We are very pleased to achieve a high purity of La

Loutre’s graphite flotation concentrate in the LCT testing which is indicative of the grades to be

produced in the operational setting. It is very encouraging to see that the PFS level of metallurgical

testing shows that Lomiko can achieve a purity of 98.6% C(g) while recovering 94.7% C(g) of the

graphite using a m aster composite that represents the first several years of operation s. Th e

consistent high flotation concentrate grades that were achieved from head grades ranging from as

low as 1.39% C(g) to as high as 9.86% C(g) demonstrate a high level of robustness of the proposed

flow sheet.”

Table 1: Locked Cycle Mass Balance of EV Master Composite

Open-circuit tests

A summary of pertinent results of the variability flotation program is presented in Table 2

including a basic statistical analysis.

The open-circuit graphite recovery displayed more variance with graphite recoveries between

78.0% and 92.6% with an average value of 86.8% . Open-circuit tests treat intermediate tailings

streams as final tailings and, therefore, overstate losses that would be incurred during closed-circuit

operation. In a commercial plant the circuit is closed and the intermediate tailings are cycled back

to the previous flotation stage. This allows any graphite particles lost to the intermediate tailings

to be recovered into the flotation concentrate. Hence, overall graphite recoveries are expected to

increase noticeably during closed circuit operation as demonstrated by the LCT.

The robustness of the proposed flowsheet and conditions is further underlined by the fact that these

very consistent metallurgical results were achieved for head grades ranging from as low as 1.39%

C(g) to as high as 9.86% C(g). This range of head grade variation frequently requires significant

adjustments to the process conditions, which was not required f or the La Loutre mineralization

since all tests employed identical flotation conditions.

Repeat tests conducted on three composites displayed very low test -to-test variance with regards

to final concentrate grade and open circuit recovery.

Weight Assays (%) % Distr.

% C(t) C(t)

ombined Conc 6.01 98.6 94.7

+80 mesh 2nd Clnr Conc 2.07 98.2 32.5

+80 mesh 1st Clnr Tails 0.07 46.8 0.6

-80 mesh 3rd Clnr Conc 3.94 98.8 62.2

-80 mesh 1st Clnr Tails 0.24 7.22 0.3

2nd Clnr Tails 2.16 1.40 0.5

1st Clnr Tails 15.4 0.79 2.0

Scav Tails 76.2 0.17 2.1

Combined Tailings 94.1 0.36 4.9

Head (calc) 100 6.26 100.0

Sample ID

Table 2: Variability Flotation Results

LCT Size Fraction Analysis

In the LCT test, the final concentrates of the EV master composite LCT were submitted for a size

fraction analysis and the weighted combined concentrate grade and size distribution are presented

in Table 3. A total of 24% of the concentrate mass reported to the +80 mesh size fractions at a

grade of 98.6% C(t). 12.7% of the mass reported to the -325 mesh product at a very high grade of

99.0% C(t).

The EV zone is scheduled to be mined first and accounts for two-thirds of the graphite production

as outlined in the July 2021 Preliminary Economic Assessment (“PEA”).

The high flotation concentrate grades facilitate different marketing or process options. Th e study

indicates it may be possible to sell the high-grade concentrates into specialty markets that require

a 98-99% C(t) concentrate grade.

Composite Composite ID Head Grade

% C(g)

Concentrate

Grade

% C(t)

Recovery

% C(g)

MP_FLOT_EV2 9.37 98.1 92.6

MP_FLOT_EV3 6.84 98.3 92.0

MP_FLOT_EV4 6.52 99.3 91.6

MP_FLOT_EV5 5.02 99.5 90.8

DOM_FLOT_EV2 5.30 97.9 83.5

DOM_FLOT_EV3 9.86 97.9 91.2

DOM_FLOT_BAT2 4.13 97.2 86.5

DOM_FLOT_EV3 9.91 97.7 90.3

DOM_FLOT_BAT2 4.10 97.6 86.6

GRAD_FLOT_EV1 2.79 95.2 84.5

GRAD_FLOT_EV2 1.39 97.9 81.0

GRAD_FLOT_EV3 4.29 96.9 85.6

GRAD_FLOT_EV4 5.04 98.5 78.0

GRAD_FLOT_BAT1 5.17 96.4 84.6

GRAD_FLOT_BAT1 5.30 97.9 83.5

Average 97.8 86.8

Min 95.2 78.0

Max 99.5 92.6

StdDev 1.06 4.44

Rel. StdDev 1.08 5.11

Mine

Plan

Composite

Domain

Composite

Grade

Composite

Table 3: EV Master Composite Flake Size Distribution

The reconciled combined concentrate grade of 99.1% C(t) is slightly higher than the direct

concentrate grade of 98.8% C(t) for the LCT. The reasons for the small discrepancies are sampling

and analytical measurement uncertainties, which are inherent with any assay method.

Next steps

A 10.5 kg bulk flotation concentrate was generated during the PFS metallurgical program and has

been dispatched to ProGraphite in Germany for micronization, spheroidization, and purification

testing to produce spheroidized and purified graphite (SPG). Results of this value-add program are

expected late Q1 or early Q2 2023.

Parallel purification work will be conducted by Corem in Quebec City, where Corem will further

upgrade t he SPG material by carbon coating i nto coated, spheroidized, and purified graphite

(CSPG), which will then be evaluated in battery trials by Polaris Battery Labs. Complete test

results are expected in late Q2 or early Q3 2023. The Company continues to actively work with

partners in Quebec for battery trials as a next step.

The Company’s updated investor presentation and website can be found at www.lomiko.com.

Qualified Persons

Mr. Oliver Peters, a Principal Metallurg ist with Metpro Management Inc., is a Qualified Person

within the meaning of NI 43-101. Mr. Peters is satisfied that the analytical and testing procedures

used are standard industry operating procedures and methodologies, and he has reviewed,

approved and verified the technical information disclosed in this news release, including sampling,

analytical and test data underlying the technical information.

Wei ght Assays Distribution

% % C(t) % C(t)

+32 mesh 0.4 98.3 0.4

+48 mesh 5.6 98.7 5.5

+65 mesh 10.6 98.3 10.5

+80 mesh 7.5 98.3 7.4

Medium +100 mesh 9.5 98.8 9.4

+150 mesh 17.0 99.4 17.1

+200 mesh 18.6 99.6 18.7

+325 mesh 18.2 99.5 18.2

+400 mesh 6.0 99.3 6.0

-400 mesh 6.7 98.7 6.6

Final Concentrate (SA) 100.0 99.1 100.0

Flake