Lomiko Metals awarded US$8.35m grant from the United States of America Department of Defense (“DoD”) in a Technology Investment Agreement (“TIA”) and funding of CA$4.9m from Natural Resources Canada to support further studies at La Loutre natural flake graphite project
PROTECTED B - PROTÉGÉ B
#439, 7184 120th Street, Surrey, BC, V3W 0M6● Ph: (778) 228-1170 ● Fax: (604) 583-1932 ● Website: www.lomiko.com
Lomiko Metals awarded US$8.35m grant
from the United States of America Department of Defense (“DoD”)
in a Technology Investment Agreement (“TIA”) and funding of CA$4.9m
from Natural Resources Canada
to support further studies at La Loutre natural flake graphite project
in Quebec, Canada
May 16, 2024 - Lomiko Metals Inc. (TSX.V: LMR) (“Lomiko Metals” or the “Company”) is
pleased to announce that it has been awarded a Department of Defense (“DoD”) Technology
Investment Agreement (“TIA”) grant of US$8.35 million (approximately CA$11.4 million) where
Lomiko will match the funding over a period of 5 years, for a total agreement with the DoD of
US$16.7 million. The grant falls under Title III of the Defense Production Act and is funded
through the Inflation Reduction Act to ensure energy security in North America. This grant funding
is to strengthen and expand the industrial base for natural flake graphite in North America. This is
one of the first agreements the Department of Defence (“DOD”) is granting in TIA funding to a
Canadian management team and asset, at this stage of development. In addition, and concurrent to
the grant awarded by the DoD, the Company has also been approved for funding of CA$4.9 million
in a non-repayable contribution agreement from the Critical Mineral Research, Development and
Demonstration (CMRDD) program administered by Natural Resources Canada with the total
project cost being CA$6.6 million. The objective of the program is to pilot the proposed graphite
upgrading process and convert La Loutre natural flake graphite into battery-grade anode material.
Belinda Labatte, CEO and Interim Chair of the board, stated: “T o achieve these concurrent
Canadian and American funding opportunities is a tremendous and exciting milestone moment for
the Lomiko team and board, investors and partners. It is a win for Quebec, Canada, and the United
States as we approach this next phase of studies with an exceptional opportunity with the DoD and
the Canadian government to build a collaborative, inclusive approach to responsible energy
transition and supply chain resilience in North America.”
“Today’s investment in Lomiko Metals, Inc. will help advance supply chain resilience and create
job opportunities in Canada – all part of our work to build a prosperous and sustainable Canadian
economy that benefits everyone. We will continue to work with allies and industry to ensure the
development of secure resources for a prosperous net -zero future.” The Honourable Jonathan
Wilkinson, Minister of Energy and Natural Resources.
PROTECTED B - PROTÉGÉ B
The TIA is designed specifically to support the science-based continued research and development
of the La Loutre graphite project in accordance with the vision and values of Lomiko and in
accordance with all Canadian and Quebec regulations and processes. The TIA agreement entered
into with the DoD is to complete three distinct phases of research and development work with
independent experts and consultants over a 5-year period, as follows:
Phase 1: Completion of a Pre-Feasibility Study (PFS) and baseline data collection
Phase 2: Completion of metallurgical studies and bulk sample
Phase 3: Completion of a Definitive Feasibility Study (DFS)
Both the U.S. grant and the Canadian contribution support science -based approaches for the
responsible development of the La Loutre natural flake graphite in Quebec. The studies include
integrating a decarbonized mine model and community -centered studies such as progressive
reclamation. The Lomiko vision is to build a meaningful and inclusive critical minerals company
of the future.
Belinda Labatte: “Our greatest resource in critical minerals projects will always be the people we
work and engage with. We welcome those who ask questions, as those create the opportunities to
explore and innovate together to find solutions for energy transition and supply chain resilience .
Lomiko looks forward to the next steps and continuing its responsive approach in Quebec.”
Lomiko will continue to engage with First Nation s and with local communities with a direct
presence in the field and with other communication mechanisms to provide detailed and thorough
information. Lomiko provides detailed and thorough information on the website and will continue
to use its website as the primary source for accurate information and for media inquiries :
www.lomiko.com.
Critical Minerals Research, Development and Demonstration Program
The CMRDD funding is in the form of a contribution agreement, in which Natural Resources
Canada will contribute CA$4.9 million over a three -year period. Lomiko will collaborate with
established Canadian research groups, The objective of this project is to pilot the proposed graphite
upgrading process to confirm technologies and conditions that are required to convert flake
graphite into battery-grade anode material, achieving high purity levels of graphitic carbon content
and low impurity levels. The project will demonstrate Canad a’s leadership in processing quality
graphite, support the development of Canada’s and Quebec’s domestic battery supply chain, and
support employment opportunities for skilled trades in Quebec.
Global market conditions
This funding demonstrates the importance of developing supply chain resilience for natural flake
graphite in North America. The United States is 100% import-dependent on graphite, and graphite
PROTECTED B - PROTÉGÉ B
is among the key priority critical minerals in Canada, with key competitive advantages for graphite
specifically in Quebec . In December 2023, China declared its intention to implement export
permits for certain graphite products to safeguard national security. It is widely known that
graphite supply will be in shortage starting now, to accommodate the tremendous growth of the
Electric Vehicle (“EV”) market, with the shortfall to increase to 8Mt by 2040, according to
Benchmark Mineral Intelligence’s flake graphite forecast report.
A Responsible developer operating within the Quebec and Canada Critical Minerals
Strategy
Lomiko is a Quebec ECOLOGO- certified responsible graphite developer working within the
Quebec Critical Minerals Strategy framework, which supports innovation and responsible
development of projects such as Lomiko’s La Loutre natural flake graphite project.
The La Loutre Indicated Mineral Resources estimate holds 3.0 million tonnes of contained graphite
at a grade of 4.59% as announced in the Company’s Mineral Resources Estimate technical report
of May 29, 2023. This represents a 184% increase in Indicated Mineral Resources from the last
resource estimate published by the Company in July 2021. The project is located within proximity
to battery plant future production in Quebec and the United States.
The Quebec Critical Minerals strategy published by the Ministère de l’Énergie et des Ressources
naturelles can be found here: https://cdn-contenu.quebec.ca/cdn-contenu/ressources-
naturelles/Documents/PL_resume_critical_strategic_minerals.pdf. L omiko is fully aligned with
these goals and this funding directly promotes research and development to accomplish provincial
mandates.
The Company will continue to a ctively engage in funding processes in Quebec and Canada and
sees the U.S. grant and Canadian contribution as a significant catalyst for community-focused
energy transition projects.
Qualified Persons
Ms. Gordana Slepcev a COO of Lomiko Metals Inc., is a Qualified Person within the meaning of
NI 43-101. Ms. Slepcev has reviewed, approved, and verified the technical information disclosed
in this news release.
About Lomiko Metals Inc.
The Company holds mineral interests in its La Loutre graphite development in southern Quebec.
The La Loutre project site is within the Kitigan Zibi Anishinabeg (KZA) First Nation ’s territory.
The KZA First Nation is part of the Algonquin Nation, and the KZA traditional territory is situated
within the Outaouais and Laurentides regions. Located 180 kilometers northwest of Montreal, the
PROTECTED B - PROTÉGÉ B
property consists of one large, continuous block with 76 mineral claims totaling 4,528 hectares
(45.3 km2).
The Property is underlain by rocks from the Grenville Province of the Precambrian Canadian
Shield. The Grenville was formed under conditions that were very favorable for the development
of coarse -grained, flake -type graphite mineralization from organic -rich material during high-
temperature metamorphism.
Lomiko Metals published April 13, 2023 Updated Mineral Resource Estimate (MRE) which
estimated 64.7 million tonnes of Indicated Mineral Resources averaging 4.59% Cg per tonne for
3.0 million tonnes of graphite, a tonnage increase of 184%. Indicated Mineral Resources increased
by 41.5 million tonnes as a result of the 2022 drilling campaign, from 17.5 million tonnes in 2021
MRE with additional Mineral resources reported down-dip and within marble units resulted in the
addition of 17.5 million tonnes of Inferred Mineral Resources averaging 3.51% Cg per tonne for
0.65 million tonnes of contained graphite; and the additional 13,107 metres of infill drilling in 79
holes completed in 2022 combined with the refinement of the deposit and structural models
contributed to the addition of most of the Inferred Mineral Resources to the Indicated Mineral
Resource c ategory, relative to the 2021 Mineral Resource Estimate. The MRE assumes a
US$1,098.07 per tonne graphite price and a cut-off grade of 1.50%Cg (graphitic carbon).
In addition to La Loutre, Lomiko has earned-in its 49% stake in the Bourier Project from Critical
Elements Lithium Corporation as per the option agreement announced on April 27 th, 2021. The
Bourier project site is located near Nemaska Lithium and Critical Elements south-east of the Eeyou
Istchee James Bay territory in Quebec, which consists of 203 claims for a total ground position of
10,252.20 hectares (102.52 km2), in Canada’s lithium triangle near the James Bay region of
Quebec that has historically housed lithium deposits and mineralization trends.
On behalf of the Board,
Belinda Labatte
CEO and Director, Lomiko Metals Inc.
For more information on Lomiko Metals, review the website at www.lomiko.com
Contact us at 1-833-4-LOMIKO or e-mail: [email protected].
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of the applicable Canadian
securities legislation that is based on expectations, estimates, projections and interpretations as at the date
of this news release. The information in this news release about the Company; and any other information
herein that is not a historical fact may be "forward-looking information" (“FLI”). All statements, other than
statements of historical fact, are FLI and can be identified by the use of statements that include words such
as "anticipates", "plans", "continues", "estimates", "expects", "may", "will", "projects", "predicts",
“proposes”, "potential", "target", "implement", “scheduled”, "intends", "could", "might", "should",
"believe" and similar words or expressions. FLI in this new release includes, but is not limited to: the total
amount of funds available to the Company as a result of the TIA based on the requirement for the Company
PROTECTED B - PROTÉGÉ B
to match the funds allocated under the TIA, the Company’s objective to become a responsible supplier of
critical minerals, exploration of the Company’s projects, including expected costs of exploration and timing
to achieve certain milestones, including timing for completion of exploration programs; the Company’s
ability to successfully fund, or remain fully funded for the implementation of its business strategy and for
exploration of any of its projects (including from the capital markets); the Company's financial position or
operations, and the expected timing of announcements in this regard. FLI involves known and unknown
risks, assumptions and other factors that may cause actual results or performance to differ materially.
The FLI in this news release reflects the Company’s current views about future events, and while considered
reasonable by the Company at this time, are inherently subject to significant uncertainties and
contingencies. Accordingly, there can be no certainty that they will accurately r eflect actual results.
Assumptions upon which such FLI is based include, without limitation: the Company’s ability to raise
sufficient capital in order to match the funds required under the TIA, the current market for critical minerals,
current technological trends , the business relationship between the Company and its business partners,
ability to implement its overall business strategy and to fund, explore, advance and develop each of its
projects, including results therefrom and timing thereof, the ability to operate in a safe and effective manner,
uncertainties related to receiving and maintaining exploration, environmental and other permits or
approvals in Quebec, the impact of increasing competition in the mineral exploration business, including
the Company’s competitive position in the industry, and general economic conditions, including in relation
to currency controls and interest rate fluctuations.
The FLI contained in this news release are expressly qualified in their entirety by this cautionary statement,
the “Forward -Looking Statements” section contained in the Company’s most recent management’s
discussion and analysis (MD&A), which is available on SEDAR + at www.sedarplus.ca. All FLI in this
news release are made as of the date of this news release. There can be no assurance that such statements
will prove to be accurate, as actual results and future events could differ materially from those anticipated
in such statements. Accordingly, readers should not place undue reliance on such forward-looking
information. The Company does not undertake to update or revise any forward- looking information
contained herein to reflect new events or circumstances, except as may be required by applicable securities
laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.