GLK Innovations - Matheson Micronization Facility

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Matheson

Micronization Facility

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

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The Matheson Micronization Facility

●  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 condition of the facility minimizes costs and timelines.

★  Micronization equipment made by CMS in Brampton, Ontario.

★  Low cost. Short timeline. Cash flow positive by year end 2015.

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


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Simplified Matheson Flow Diagram

★  Three independent complete production circuits.

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

★  Refurbishment est. = ~$800K.

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

Key Numbers (annual, by Y3) Revenue: $25MM Op Ex: $18.2MM EBITDA: $6.8MM


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Sales and Marketing Plan

Product Market

Micronized ●  MG-45, MG-25, MG-15, MG-10 ●  Purity Range – 94C to 97C

Pencil Carbon Brush Lubricants Powder Metallurgy

High Purity Micronized ●  HMG-45,HMG-25, HMG-15,

HMG-10 ●  Purity Range – 99.5C to

99.9C

Composites Lubricants Friction Dispersions Pencil Alkaline & Rechargeable Battery Li-ion for EVs

Graphite will be sourced from producers in Brazil and shipped to Montreal. From there the material will be moved to and from the Matheson facility by rail. Supply Agreements have been secured with Brazilian graphite sources.


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Commissioning Targeted in 2H15!


The Matheson Advantage

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saves over $10 million of CAPEX spending...

and three years of planning, permitting & construction.

Leveraging an existing facility...


Matheson: Risk is Mitigated 4 Ways

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Permitting Starting with a permitted facility mitigates the risk of the permitting process (only one modification to the Air/Noise Permit is required, to allow graphite processing).

Construction Construction risks are completely mitigated by beginning with an existing facility. Refurbishment risks are known and mitigated.

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 critical areas of operations and commercial graphite sales mitigates execution risk significantly.
