Lomiko Metals reflects on China's move to limit graphite exports and announces corporate update, and Annual and Special Meeting of
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Lomiko Metals reflects on China's move to limit graphite exports and
announces corporate update, and Annual and Special Meeting of
Shareholders on December 20th, 2023
Montreal, Quebec – October 23, 2023 - Lomiko Metals Inc. (TSX.V: LMR) (“Lomiko Metals”
or the “Company”) reflects on the news regarding China's announcements to limit and restrict
graphite exports, both natural flake graphite and synthetic graphite. These restrictions are set to
take effect starting December 1 st, 2023. This announcement underlines the importance of
developing Canadian graphite projects, including the next phase of studies at the La Loutre natural
flake graphite project, to ensure a secure and responsibly sourced supply in North America. 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.
Belinda Labatte, CEO and Director of Lomiko Metals: “ The announcement from China
emphasizes the need to build local and resilient supply chains in Quebec, Canada, and North
America to meet our supply needs and decrease dependency on China. We are looking to advance
several pre- feasibility level initiatives a nd continue partnerships with Universities in Quebec.
Advancing Canadian projects is a North American solution to minimize geopolitical risks. Lomiko
is now focused on Pre-Feasibility (“PFS”) level metallurgical studies with NRC IRAP and funding
from CRITM, through the Québec Plan for the Development of Critical and Strategic Minerals
from Ministère des Ressources naturelles et des Forêts (MRNF) (please see Press Release dated
September 18, 2023) . These studies involve the research and development of a technological
prototype for graphite processing, comprising several stages, including flotation testing,
micronization, spheronization, purification, and coating of the flotation concentrate prior to coin
and pouch battery testing. Lomiko’s recent studies have shown that it has a product amenable to
the anode market, as well as other industry segments.
To build on the Company’s excellent results over the last 18 months , additional PFS studies are
required, and the Company is currently looking at sources of funding, including government
grants. The complete outline and cost of studies are available in the Preliminary Economic
Assessment report on the Company’s website.”
According to the U.S. Geological Survey, Mineral Commodity Summaries, January 2023 (Andrew
A. Stewart), the market for graphite used in batteries has grown 250% globally since 2018.
China has declared its intention to implement export permits for certain graphite products to
safeguard national security. This move is part of China's broader strategy to regulate the supply of
critical minerals in response to challenges to its manufactur ing dominance. The Ministry of
Commerce and the General Administration of Customs clarified that it was not targeting any
particular country with the restrictions stating that the top graphite buyers from China include the
U.S., South Korea, Japan, and India.
Graphite is a material employed in electric vehicle batteries, as well as in various industries such
as semiconductors, aerospace, chemicals, and steel. China maintains a dominant position in global
graphite production, with the United States 100% depe ndent on the importation of graphite and
anode materials.
The automakers are actively seeking alternative sources of graphite outside of China. This is driven
by the increasing demand for electric vehicle batteries, which is surpassing other applications of
the material. The global sales of electric vehicles, including fully electric and hybrid models, are
on the rise, as reported by the International Energy Agency (“IEA”), 2023. Sales exceeded 10
million units in the previous year, marking a 55% increase compared to 2021, and are projected to
reach nearly 14 million vehicles this year. In 2022, it was reported by the IEA that 26 million EVs
are on the road, and half of those are in China.
Corporate Update
The Company’s updated investor presentation is available at www.lomiko.com. Management will
be participating at the following Fall events:
November 2nd&3rd
Mining Investment North America, Toronto
Gordana Slepcev, COO, presenter “Lomiko Metals critical minerals portfolio“
November 9th
Critical Minerals, Regulatory Frameworks and Geopolitics: A Student- Industry Workshop,
Faculty of Law of the University of Calgary
Gordana Slepcev, COO, presenter “Lamiko Metals: Lithium and Graphite Mining for the Green
Energy Transition “
November 28, 29th
Pathways to Net Zero Mining - 12th Energy and Mines Toronto Summit
Belinda Labatte, CEO and Director, panelist “What Do Critical Minerals Miners Need to Build
Capacity and Decarbonize?”
Gordana Slepcev, COO, moderator “Accelerating Decarbonization: Synergizing C-Suite and
Operations to Meet Timelines “
AGM
Lomiko announces the Company’s virtual Annual and Special Meeting will be held on December
20th, 2023.
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
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 Apr il 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 category, 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 is working with Critical Elements Lithium Corporation towards
earning its 49% stake in the Bourier Project as per the option agreement announced on April 27th,
2021. The B ourier 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 Vincent Osbourne at 647-528-1501 or Belinda Labatte at 647-402-8379 or at 1-833-456-
6456 or 1-833-4-LOMIKO
or email: [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
Company’s objective to become a responsible supplier of critical minerals, explorati on 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); any anticipated impacts of COVID-19 on the Company’s business objectives or projects,
the Company's financial position or operations, and the expec ted 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 , and statements relating to the intended use of proceeds of the Offering
and the receipt of final acceptance of the TSX Venture Exchange. This FLI 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 reflect actual results. Assumptions upon which such FLI is based include, without limitation:
current market for critical minerals; current technological trends; the business relationship between the
Company and its business partners; ability to implement its 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; any unforeseen impacts of COVID -19; impact of increasing
competition in the mineral exploration business, including the Company’s competitive position in the
industry; 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 “Fo rward-Looking Statements” section contained in the Company’s most recent management’s
discussion and analysis (MD&A), which is available on SEDAR at www.sedar.com, and on the investor
presentation on its website. 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 forward-looking information. The Company does not undertake to update or revise any such
forward-looking statements or 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.