This communication to shareholders and the public contains certain forward looking statements.Actual results may differ materially from those indicated by such statements. All statements, otherthan statements of historical fact, included herein, including, without limitations statementsregarding future production, are forward looking statements that involve various risks anduncertainties. There can be no assurance that such statements will prove to be accurate and actualresults and future events could differ materially from those anticipated in such statements. Neitherthe TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policiesof the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of thispresentation.
10. Jurisdiction 9. Share Structure 8. Management Team 7. Ownership 6. Graphite Focused 5. Portfolio Quality 4. Aggressive Current and Near Term Exploration Plans 3. Peer Comparables 2. Upside Potential 1. Management Character
J • All the Company’s projects are located in Québec. • Québec is consistently ranked by the Fraser Institute as one of the top 5 mining jurisdictions in the world.
Graphite is now the hottestcritical metal in the resourcesector.
J All projects are are accessible by road with nearby access to power and rail. The portfolio features projects with historical exploration work, close proximity to existing production facilities, and large near, on surface and drill ready targets.
The Champagne property is approximately 4,870 hectares located incentral eastern Québec.In 1998 Champagne was explored and a large electromagnetic surveywas conducted prospecting for sulfides. Widespread graphite wasdocumented as the belt was determined to contain visible graphite onsurface coincident with numerous electromagnetic signatures, but wasabandoned as no apparent sulfides were discovered.As a result of this program the property has multiple large high prioritygraphite target areas and is drill ready.
• A large graphite bearing geological belt extends approximately 20km long (yellow)• Electromagnetic targets coincident with graphite trend total over 11km of resource potential (red)
100% interest in approximately 4,700 hectares of the Lac des Îles Westproperty adjoining the western border of Timcal’s producing Lac desÎles Graphite Mine.The same geological structures and trends appear to continue on toCanada Rare Earths’ Lac Des Îles West property.Surface reconnaissance, mapping and an airborne electromagneticsurvey are now underway.
Approximately 250km northeast of Val d’Or. Easily accessible yearround via gravel roads for a distance of 65km from the 113 Hwy thatconnects Val d’Or to Chibougamau in the Abitibi region in northernQuébec. Railroad and power grids less than 100km from the property.Historical workings suggest graphite outcrops repeatedly on surfacealong a 5km corridor. Ground reconnaissance, mapping and anelectromagnetic survey are now underway to investigate thesefindings.
2,142 hectares, located ± 9km southwest of the Lac Gueret project ofCliffs Natural Resources.St-Georges Platinum and Base Metals Ltd. recently announced that itincreased the size of its Tétépisca property after confirming theexistence of surface grab samples that yielded results in the range of50.9% - 58.1% of carbon graphite in the area.The Company will be monitoring new activity in the area andcommencing a ground prospecting and EM survey.
The Labelle Property totals approximately ± 680 contiguous hectares (7km2)situated approximately 67km east of Timcals Lac des Îles Graphite Mine,114km northwest of Montreal.The Labelle property was originally explored and exploited in the 1950’s, with amain graphite zone identified by trenching. The size of the trench is 250 feetlong by 10 -15 feet in depth and 5 - 10 feet in width. The historically indicatedgraphite grade is variable between 8 - 15% graphite with local grades up to 30%graphite.The Labelle property covers over 5km along this contact and includes thepossible extension of a strong EM anomaly found southeast of the main historicwork area which coincides with this contact.
AN AGGRESSIVE PROGRAM NOW UNDERWAY. Exploration news will be coming throughout the Spring, Summer and Fall.
Company Comparables, May 1, 2012 Shares Out Last Close Market Cap StageNorthern Graphite (TSX-V: NGC) 46 million $2.40 $111 million DevelopmentFocus Metals (TSX-V: FMS) 91 million $1.02 $92 million DevelopmentFlinders Resources (TSX-V: FDR) 40 million $2.21 $88 million DevelopmentEnergizer Resources (TSX-V: EGZ) 157 million $0.30 $47 million DevelopmentGraphite One (TSX-V: GPH) 86 million $0.25 $21 million ExplorationZenyatta Ventures (TSX-V: ZEN) 40 million $0.55 $22 million DevelopmentStrike Graphite (TSX-V: SRK) 43 million $0.355 $15 million ExplorationStandard Graphite (TSX-V: SGH) 24 million $0.485 $12 million ExplorationCanada Rare Earths (TSX-V: CJC) 27 million $0.155 $4.1 million Exploration For a full list list of all TSX.V graphite Companies visit www.graphitestocks.com
• Low current valuation.• Large target areas.• Significant resource development potential.
• Management is heavily invested in this deal.• Management has significant experience in all aspects of this business, including resource development.• Management is transparent and operates with the utmost integrity.• Management is committed to the success of this Company.