Great Lakes Graphite Corporate Presentation

GLK.V

Corporate Presentation June 2015

G R A P H I T E !Great Lakes !

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Introducing Great Lakes Graphite Great Lakes Graphite Inc. is an industrial minerals company focused on bringing carbon products to a well defined market through a vertically integrated supply chain. As there is currently no significant graphite production in North America, Great Lakes Graphite has the ability to become one of the first domestic suppliers to a growing regional customer base that requires high quality natural graphite, where pricing and demand continue to rise. The Company, through strategic acquisitions and capable management, intends to become a leader in the industrial minerals marketplace. The Company through its Innovations Division is currently recommissioning an Ontario based Micronization Facility for re-start in late 2015 to achieve the following objectives: •  Establish a position in the upgraded graphite products market with North American

customers. •  Create a competitive and disruptive advantage by leveraging existing assets. •  Pursue an accelerated timeline to cash flow and revenue by micronizing and

upgrading flake graphite, enabled by supply agreements with current graphite producers.

© 2015 Great Lakes Graphite Inc. - All Rights Reserved.

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Navigating The Path “From Mine to Market”


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Investment Highlights

Market Opportunity – Capitalize on a growing supply/demand gap for natural graphite as a strategic material in both traditional and emerging market applications.

Management and Board – the Great Lakes team has the experience

required to bring projects into production AND to complete needed commercial transactions (off take agreements) with end users.

Fast Tracking Cash Flow –The Innovations Division was recently

established to facilitate the company’s entry into the micronization and purification markets. The Company is on track for cash flow to begin in the second half of 2015, with production from the Matheson Micronization Facility.

Long-term Potential – 100% ownership of property consisting of

2,649 hectares in Quebec. Lochaber is a compelling flake graphite project with a near-surface resource located close to infrastructure and end user markets (30km from Ottawa).


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About Graphite Atomic Structure

Properties

Applications

Graphite is composed of a stack of carbon atom layers, each arranged in hexagonal groups resembling a chicken wire structure that form one atom thick “sheets” called graphene. Within a sheet, the covalent bonds between atoms are incredibly strong, whereas individual sheets are weakly attracted to each other by other forces, thus allowing sheets to cling together, yet slide over one another much like a deck of cards giving graphite its lubricity.

Strong, Flexible, Heat Resistant, Highly Conductive Thermally and Electrically, Chemically Inert, Highly Refractory

Examples: Li-Ion Batteries, Fuel Cells, Flame Retardants, Crucibles, Brake Pads, Ceramics, Lubricants, Heat Sinks


Understand their requirements.

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Know your customers.

Anticipate their needs.

The Megafactories are coming

35GWh* $5Bn Nevada, USA Li-Ion 2016 7GWh* $500M* Nanjing, China Li-Ion 2016 15GWh* $810M* Anhui, China Li-Ion 2016 *Benchmark Estimates, not disclosed by company

Source: Benchmark Minerals Intelligence [email protected]


The Growing Graphite Market

Future Demand Drivers

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“Graphite Investors Should Look for Large Flakes, Small Resources”

Kiril Mugerman 3/4/14 “Tesla battery plant will need 6 new flake graphite mines”

Simon Moores 3/9/14 “If the goal of the Gigafactory is to cut the cost of the battery in half, then natural flake graphite, with its lower overall cost profile relative to synthetic graphite, must be the material of choice.”

Chris Berry 3/12/14

DISRUPTIVE DISCOVERIES JOURNAL


Graphite In The News

8 © 2015 Great Lakes Graphite Inc. - All Rights Reserved.

1. Source

2. Process

3. Distribute Moving up the value chain = ver2cal

integra2on

an opera(ng division of Great Lakes Graphite Inc.

Introducing GLK Innovations

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●  Built for micronizing agricultural industrial minerals.

●  Recommissioning will repurpose for graphite.

●  Natural gas, power, road & rail are all available on site.

●  Plant startup targeted for 4Q15.

★  Excellent condiTon of the facility minimizes costs and Tmelines.

★  MicronizaTon equipment made by CMS in Brampton, Ontario.

★  Low cost. Short Tmeline. Cash flow posiTve by year end 2015.

The Matheson Facility is located 1 hour east of Timmins, Ontario.

The Matheson Micronization Facility


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★  Three independent complete producTon circuits.

★  Business plan calls for producTon of 10K tonnes/yr.

★  Refurbishment est. = ~$800K.

Pilot plant tes(ng has been conducted and the milling and classifying units parameters -‐ including feed rate (tons per hour), rotor/hammer seGngs, and the ability to meet customer quality size parameters -‐ has been conducted and internally qualified.

Simplified Matheson Flow Diagram


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Product Market

Micronized Flake Graphite ●  MFG-‐45, MFG-‐25, MFG-‐15, MFG-‐10 ●  Purity Range – 94C to 97C

Pencil Carbon Brush Lubricants Powder Metallurgy

High Purity Micronized Flake Graphite ●  HMG-‐45, HMG-‐25, HMG-‐15, HMG-‐10 ●  Purity Range – 99.5C to 99.9C

Composites Lubricants FricTon Dispersions Pencil Alkaline & Rechargeable Baeery Li-‐ion for EVs, energy storage

Graphite sourced from exis(ng producers is cleared through Montreal and transported to the Matheson facility by road and rail. Supply agreements have been secured that meet product requirements.

Sales and Marketing Plan


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Started

Started

Started

Commissioning Targeted in Q3 2015!


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CAPEX of over $10 Million

3 Years of planning, permiFng & construcHon!

Leveraging an exisHng facility saves:

The Matheson Advantage


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PermiFng A permieed facility miTgates the risk of the permifng process (only one modificaTon to an exisTng air/noise permit is required).

ConstrucHon ConstrucTon risks are completely miTgated by beginning with an exisTng facility. Refurbishment risks are known and miTgated.

Flowsheet Tests run on the same equipment as exists in the Matheson facility have successfully produced the four required sizes of micronized graphite.

Personnel Management with deep experience in the criTcal areas of operaTons and commercial graphite sales miTgates execuTon risk significantly.

Risk Is Mitigated Four Ways


Low Capex ($30-35MM) Modular

Lean Mining Small Footprint

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Targeted Annual Production: 10-12,000 tonnes

Core Competencies •  Graphite Mining, Concentrating, Upgrading •  Business Development - marketing / product sales •  Research & Development - internal capability; external

strategic partnering •  Tools and Technology - Lean Mining, process optimization

Target Markets •  Traditional - refractories,

brake linings, batteries, lubricants

•  Emerging - Lithium Ion batteries, graphene applications, expandable graphite

Value Proposition •  Canadian supplier of high

demand products •  Superior customer service •  Competitively priced high

purity flake

High quality natural graphite Favorable jurisdiction

Infrastructure

Engineering Marketing Finance

Team Plant Property CRITICAL SUCCESS FACTORS

Note: ProjecTons are based upon the business plan and are subject to revision as NI 43-‐101 compliant esTmates become available.


Our Development Approach

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What We Do Advance Marketing

Customer Sampling Program

Lean Mining

Modular/Scalable Mills

Tools & Technology

Why It Matters Flexibility/Repeatability

High Margin

High Purity/High Value

Low Capex/Opex

Fastest Path to Production

From resource estimate to production in two years!


The Great Lakes Advantage

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Resource Estimate to Production – 3 Years

Competitive Advantages - Customer Sampling occurs parallel to development - Fast timeline to production

Description

Y0

Y1

Y2

Y3

NI 43-101 Resource estimate

Composite testing/metallurgy

Customer Sampling programs

Feasibility Study

Mine Planning/Permitting

Offtake agreements

Finance

Construction/Commissioning

Production


Accelerated Project Example

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•  Highest quality natural Crystalline Flake in N. America. •  High percentage of Jumbo and Large flake (57%) •  Excellent minerals beneficiation and easy flotation process. •  Close to customers and infrastructure - port, water, power and

labor, amenable to year-round operations. •  Property is well suited for a mill modularly scaled to grow as the

Company acquires more customers. The natural graphite on the property will become preferred by customers as a stable, reliable, domestic source of high quality graphite supply.


Lochaber: The Property Fits The Plan Quality | Purity | Flake Size | Location | Infrastructure

Batteries Gaskets Foils

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★  100% owned, 45 claims/2,649 hectares

★  2 past producing mines

★  3 known graphite occurrences

★  Easily accessible, excellent infrastructure

★  NI 43-101 resource estimate in progress

★  Feasibility Study next, by SRK Consulting

Development Milestones Surface samples (11) demonstrated the presence of graphite mineralization with grades up to 22% graphite.

Ground geophysics identified five north-south trending conductors and several magnetic anomalies near Plumbago mine site.

Seven trenches and 7,000+ metres of diamond drilling completed in 2012. 1,200+ metres drilled in 2014/15.

Drill Highlights 111.00 metres of 3.22% graphite 91.71 metres of 2.36% graphite 27.77 metres of 8.33% graphite 23.03 metres of 3.95% graphite

The Lochaber Property is 30 Km east of Ottawa.


Lochaber Graphite Property Overview

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★  SRK Consulting hired to complete NI 43-101 Resource Estimate

★  Due in Q2 2015 ★  Focused on high-grade

graphite mineralization envelopes

★  Final precursor to Feasibility Study

Fall 2012: 35 NQ-sized holes were drilled for 7,034m total. Winter 2014/15: 8 NQ-sized holes were drilled for 1,200m total. Most holes were drilled on 2 out of 5 mapped conductors: “A” (17 holes) and “C” (15 holes). These two zones form the basis for the Resource Estimate.


NI 43-101 Resource Estimate

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The ParTcle-‐Size DistribuTon Analysis was done by Process Research ORTECH Inc. (“PRO”) of Mississauga, ON on composite material taken from a bulk sample acquired in August (see news release dated August 27, 2014). The material for this iniTal sample was visually selected from waste piles at the historical Plumbago Mine site, located on the Lochaber property, with the objecTve of retrieving high-‐grade material to be used for the iniTal beneficiaTon tesTng; this material is not intended to be broadly representaTve of the mineralizaTon that is the target of the ongoing exploraTon work on the property. The test produced six final concentrates that showed a consistent flake size distribuTon and a flake size distribuTon of 57.6% greater than 70 mesh; this is the industry-‐standard premium product.

“My ideal project is a graphite mine that would produce at a 94-‐96% purity level. It would have as much medium and large flake as possible.”

Stephen Riddle Asbury Carbons CEO From “The Mining Report”

Graphite Class Mesh % Purity

Super Jumbo / XXL +30 mesh 1.44% 96.50%

Jumbo / XL -‐ 30 to +50 mesh 44.00% 96.40%

Large -‐ 50 to +70 mesh 12.20% 94.55%

Medium -‐70 to +100 mesh 13.60%

Fine -‐100 to +140 mesh 7.70%

Powder -‐140 mesh 21.10%

Total Medium to Super Jumbo 71.24%


“Ideal” Particle Size Distribution

22 © 2015 Great Lakes Graphite Inc. - All Rights Reserved.

Lochaber Graphite Project

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Paul Gorman, CEO and Director, brings over 20 years of experience in junior mining finance to Great Lakes Graphite, including IPOs, assessing asset viability and operating emerging growth public companies. As Managing Partner of Riverbank Capital Inc., Paul spent 12 years assisting small-cap companies with financing, property development and initiating well-defined marketing programs. Paul’s responsibilities have also included raising capital totaling in excess of $85 million, promoting the companies to the investment community and writing strategic plans for business growth. Mr. Gorman currently is a director of several companies and has worked with a number of Canadian and US based firms providing expertise in the areas of capital raising, corporate governance and strategic initiatives. Mr. Gorman played a pivotal role in revitalizing the junior graphite space in North America in 2008, funding Industrial Minerals Inc, which became Northern Graphite (TSX-V: NGC). Paul also worked with four other graphite companies in an advisory role and founded Mega Graphite Inc. in 2009.

Entrepreneurial Vision / Managerial Excellence


Jerry Janik, Chief Operating Officer, GLK Innovations Division, has over 25 years’ experience in the mining industry. He brings extensive experience in quality control, mine planning/tailings deposition, production, project management, process improvement, permitting and new product development to his work at Great Lakes Graphite. Jerry is pleased to be working in his home province. Prior to joining GLK, Jerry held positions as VP Operations/GM Mining with Ontario Graphite, Area Operations Manager for Carmeuse Industrial Sand in Texas and Plant Manager with UNIMIN Canada Ltd.'s Nepheline Syenite Operations. Jerry also has extensive knowledge in the design, operation, and management of the micronization of industrial minerals, including an amorphous silica with grades as fine as 99% passing 8 micron and in Nepheline Syenite where the finest product is 99% passing 5 micron. Jerry also holds part ownership of the patents for this product, and the design of the grinding/classifier systems required to achieve this very fine grade. Jerry holds dual diplomas in geology and mineral processing from Sir Sandford Fleming College School of Natural Resources in Lindsay, Ontario.

Management Team

Michael Coscia, President, GLK Innovations and Senior Vice President of Sales, has over 30 years’ experience in the chemicals and minerals industries. He brings extensive experience in sales, marketing, technology and product development to his work at Great Lakes. Prior to joining GLK, Mike held the position of Senior Vice President of Sales and Marketing for Ontario Graphite, Sales Director at SGL Carbon, Senior Account Manager for Cabot Corporation and Vice President of Sales for Bayer Chemical. Mike has extensive knowledge of the graphite industry and his primary responsibility will be to introduce GLK and graphite products to the marketplace. His background in chemical engineering and material science provides him the ability to work closely with customers on technical issues relating to their graphite requirements. Mike holds BS and MS degrees in Chemical Engineering from Northeastern University.

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Paul Ferguson, Chief Marketing Officer and Director, has spent his career serving in technical and executive positions for a number of high technology companies. Paul is also an active investor in early stage companies ,and draws on his experience for business planning, brand development, marketing strategy and information technology. Mr. Ferguson received his Bachelor of Arts in Social Thought and Political Economy, Cum Laude degree from the University of Massachusetts at Amherst in 1981. Mr. Ferguson is a founding shareholder in the Company, serves on the Great Lakes Graphite Board of Directors and also as Chair of the Governance Committee. Mr. Ferguson is currently serving as a Director for ProcessUnity Inc., a leading provider of cloud-based applications for risk management and service delivery management.

Entrepreneurial Vision / Managerial Excellence


Management Team, cont.

Jo-Anne Archibald, Corporate Secretary is President of DSA Corporate Services Inc., and has over thirty years of corporate secretarial, investor relations and marketing experience. Previously, Jo-Anne was senior vice president at TMX Equicom Group Inc. In addition, Jo-Anne has held roles with Sun Life Financial, Nestlé Canada, Second Cup, Campbell’s and Loblaws. She has an MBA from the University of Western Ontario and is a Fellow (FCIS) of the Institute of Chartered Secretaries and Administrators (ICSA). Jo-Anne acts as Corporate Secretary to a number of client companies.

John Carter, Senior Vice President and Director, has over 30 years experience in the metals and mining industries. Mr. Carter specializes in the engineering, design, and manufacturing of mineral processing equipment for mining operations and for operators such as Timcal Inc., currently the largest natural graphite mining company in North America. Recently Mr. Carter served as Vice President of Engineering at Saint Jean Carbon, and VP Operations at Canada Carbon both junior mining companies. Mr. Carter brings significant value to Great Lakes Graphite because of his extensive knowledge of mill development and mines in the natural graphite sector.

Rob Suttie, Chief Financial Officer, currently works with Marrelli Support Services as its senior manager of financial reporting and compliance, possessing more than sixteen years of experience, ten of which were in public accounting prior to his tenure with the company. Mr. Suttie specializes in management advisory services, accounting and the financial disclosure needs of the group's public client base. In addition to managing the group's financial-statement and disclosure team, Mr. Suttie also serves as Chief Financial Officer for a number of junior mining companies listed on the TSX and TSX-V, leveraging his skills and experience to become integral to the reporting issuers. Mr. Suttie graduated from the University of Western Ontario with a BA.

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Greg Murphy (Director) received his Bachelor of Arts degree in Economics from the University of Western Ontario in 1983. He has over 27 years of international investment industry experience in Toronto, London and New York. He is currently CEO of the Lakeshore Capital group of companies and advises Lionhart Investments in relation to their natural resources investment portfolio. Greg is a Director of Aurigin Resources, Benzu Gold and Benzu Resources. Previously held positions include: former head of equity derivatives at Midland Walwyn/Merrill Lynch Canada; First Marathon and Gordon Capital.

Laura Mottola (Director) is President and CEO of Flow Partners Inc., a management consulting company that provides strategic oversight and tactical execution of technology and business improvement programs to leading global mining and engineering companies. In addition to being highly accomplished academically and professionally, for the last four years Ms. Mottola has acted as a trusted advisor to the leadership team of KGHM International and the Sierra Gorda joint-venture in Chile. Furthermore, Ms. Mottola has held a variety of leadership roles at professional organizations including the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) and served as a ofMember of the Board of Directors of PRECARN Inc. (2006-2012), an independent Innovation not-for-profit corporation that supports the pre-commercial development of Canadian leading-edge technologies. Ms. Mottola received a Bachelor of Engineering, Mining degree and a Master of Engineering, Mining Automation degree from McGill University.

Industry Expertise / Financial Acumen


Independent Directors

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Ticker Company Market Cap Flagship Project Battery Grade Graphite

High Ratio of Large Flake

Close to Infrastructure

Production in 2-3 Years

GPH-V Graphite One $16.76 M Graphite Creek, Alaska Yes No No No

NGC-V Northern Graphite $35.41 M Bissett Creek,

Ontario Yes Yes No No

ZEN-V Zenyatta Ventures $127.90 M

Albany Graphite Deposit,

Northern Ontario No No No No

GLK-V Great Lakes Graphite $10.05 M

Lochaber Graphite Project,

SW Quebec Yes Yes Yes Yes


Industry Peer Comparisons

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Outstanding 95,304,075 Warrants & OpTons 43,708,891 Fully Diluted 139,012,966

Share Price $0.10 Market CapitalizaTon $9,530,407 Market Cap – Fully Diluted $13,901,296

as of April 10, 2015

GLK.V

GLKIF

8GL


Share Structure

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Process Research ORTECH - Mississauga ON Flowsheet Development and Mineral Beneficiation Testing

Valterra Resource Corp – Vancouver BC

Development Partner

ActLabs - Ancaster ON SEM Photography & Mineral Beneficiation Testing

University of Waterloo Purification & Graphene Partner

!


Strategic Partners

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This draft internal Business Plan includes certain statements that may be deemed ʺforward‐ looking statementsʺ. All statements in this discussion, other than statements of historical facts, which address future production, reserve potential, exploration activities and events or developments that the Company expects, are forward‐looking statements. Such forward- looking statements include, without limitation: (i) estimates of future graphite prices, supply, demand and/or production; (ii) estimates of future cash costs; (iii) estimates of future capital expenditures; (iv) estimates regarding timing of future development, construction, production or closure activities; (v) statements regarding future exploration results; (vi) statements regarding cost structure, project economics, or competitive position, and; (vii) statements comparing the Company’s properties to other mines, projects or metals. Although the Company believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward‐looking statements. Factors that could cause actual results to differ materially from those in forward‐looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance, that the Company expressly disclaims any responsibility for revising or expanding the forward‐looking statements to reflect actual results or developments, and that actual results or developments may differ materially from those projected, in the forward‐ looking statements.


Forward Looking Statement

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Toll-Free: 800-754-4510

Paul Gorman x109 Mike Coscia x105 Paul Ferguson x106


Contact Information

Appendices


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Compilation Map from the 2011 Exploration Program, cobalt showings circled (purple)

Great Lakes Graphite has an option and joint-venture agreement with Eloro Resources Inc. on the polymetallic Summit-Gaber property in the James Bay region of Québec. Earlier reports on the property filed with the Government of Québec note assays as high as 55% silver, 3.0% cobalt and 25.8% copper. A 2009 NI 43-101 report proposes that both volcanogenic massive sulphide (VMS) and Ni-Co-Ag arsenide mineralization, possibly analogous to the silver-rich deposits in the Cobalt mining camp of northeastern Ontario, be used as guidelines for future exploration at Summit-Gaber.


Summit-Gaber Property – Cobalt Target

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The projected demand for natural graphite provides a solid basis for Great Lakes Graphite's business plan. The versaTle chemical and electrical properTes of graphite open a wide range of market opportuniTes for product applicaTons. We believe our success is conTngent upon the following four factors: 1.   MarkeHng & Sampling -‐ as an industrial mineral, one of the defining characterisTcs of the graphite

sector is the need to develop a strong markeTng capability. Products must be tailored to fit end user needs, brands must be developed to stand out with customers, and fully negoTated prices require a compeTTve cost structure.

2.   Research & Development -‐ natural graphite companies must develop a robust and sustainable R&D

capability in order to meet the changing needs of end users. Apart from a strong internal operaTon, the company will also develop key relaTonships with research faciliTes, universiTes and private labs around the world to stay on top of new products and applicaTons. This financial model allocates a significant porTon of the annual G&A cost structure to R&D.

3.   Strategic Partners and RelaHonships -‐ the global natural graphite sector consists of large established

companies with comprehensive internal operaTons. Partnering with these companies in one or more areas will be an effecTve way to build customer relaTonships, reduce costs and improve product capabiliTes.

4.   Planning, ExecuHon, Management -‐ A focus on business process opTmizaTon and Lean Mining are

criTcal to the success of Great Lakes Graphite. Lean Mining will be embedded in all our operaTons in a systemic and deliberate way. As an operaTng strategy it will be a differenTator for high quality product and cost compeTTveness. Great Lakes Graphite has aeracted a core team of professionals with deep industry experience in all of the criTcal operaTng areas.


Key Success Factors

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Great Lakes Graphite substantially mitigates production risk by positioning personnel with the right expertise in our critical business areas. The Company de-risks the business further by: q  Having a small mining footprint with fewer attendant environmental issues q  Deposit at surface, no overburden, simple open pit mining q  Acquiring projects close to power and transportation infrastructure, human

resources and customers, located in mining-friendly jurisdictions q  Adopting an approach that will minimize CapEx and OpEx while maximizing

scalability and flexibility q  Having world-class natural crystalline flake graphite that meets or exceeds

customer requirements

Taking the top down approach: Understanding our customer’s needs, all the way through the process.


Mitigating Conventional Risk

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Flake Class Mesh Microns

XXL “Super Jumbo” 32 600µm

XL “Jumbo” 50 300µm

Large 70 210µm

Medium 100 150µm

Fine 150 105µm

Powder +150 -‐105µm

Mesh and Microns are inversely correlated: finer screens have a higher mesh count and therefore a lower micron number. The progressively smaller flakes fall through to the lower screens.


Sorting Out Flake Size

Great Lakes Graphite Corporate Presentation

Business

Transcript of Great Lakes Graphite Corporate Presentation