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Joining the Global Battery Supply Chain

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This presentation was prepared for the 2015 Benchmark Minerals Intelligence Battery Raw Materials | Supply Chain 20/20 World Tour and was presented in NYC and Toronto by CEO Paul Gorman.

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Joining the Global Battery Supply Chain

  1. 1. G R A P H I T E Great Lakes BENCHMARK | WORLD TOUR 2015 BATTERY RAW MATERIALS | SUPPLY CHAIN 20/20 Joining the Global Battery Supply Chain
  2. 2. Great Lakes G R A P H I T E 2 FORWARD LOOKING STATEMENT BENCHMARK | WORLD TOUR 2015 BATTERY RAW MATERIALS | SUPPLY CHAIN 20/20 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.
  3. 3. Great Lakes G R A P H I T E 3 BATTERY EVOLUTION TO... Lead-Acid NiMH Alkaline Lithium-ion
  4. 4. Great Lakes G R A P H I T E 4 BATTERY REVOLUTION Courtesy of Argonne National Laboratory
  5. 5. Great Lakes G R A P H I T E 5 BATTERY RAW MATERIALS ●  GRAPHITE ●  LITHIUM ●  COBALT ●  VANADIUM
  6. 6. Great Lakes G R A P H I T E 6 ANTICIPATED IMPACT ON GRAPHITE DEMAND mining, purification, shaping & coating. micronization, Tesla Gigafactory Estimated Graphite Requirement: 72,000 tonnes/year by 2020 Equivalent to an approximate 100% increase in demand over current annual production. That will require more...
  7. 7. Great Lakes G R A P H I T E 7 FORECASTED GROWTH IN LITHIUM-ION BATTERIES
  8. 8. Great Lakes G R A P H I T E 8 WHY GRAPHITE? CHARACTERISTICS APPLICATIONS
  9. 9. Great Lakes G R A P H I T E 9 G R A P H I T E Great Lakes WHY
  10. 10. Great Lakes G R A P H I T E 10 Mining Crushing Grinding Floating Drying Jumbo Micronization Purification Medium Shaping & Coating Fine MARKETS Flake Graphite Micronized Flake Graphite High Purity Micronized Flake Graphite Large Sorting Spherical Graphite MINE WE’RE CONCENTRATING ON ADDING VALUE BENCHMARK | WORLD TOUR 2015 BATTERY RAW MATERIALS | SUPPLY CHAIN 20/20 Great Lakes Graphite is concentrating on value-added carbon products.
  11. 11. Great Lakes G R A P H I T E 11   Moving To The Top Of The Food Chain BENCHMARK | WORLD TOUR 2015 BATTERY RAW MATERIALS | SUPPLY CHAIN 20/20
  12. 12. Great Lakes G R A P H I T E 12 THE RIGHT PLAN FOR THIS MARKET Weak concentrate prices +  Stable pricing for upgraded products +  Funding drought for new mine construction +  Ability to enter MG market with minimal CAPEX = Opportunity to move GLK to the front of the pack
  13. 13. Great Lakes G R A P H I T E 13   THE RIGHT TEAM WITH THE RIGHT SKILLS Vision / Strategy Entrepreneurialism Industrial Minerals marketing Database Marketing Capital Markets / Finance Sales Information Technology Mine site development expertise LEAN Methodologies Purification Business Process Management Operations Micronization Management Team Paul Gorman Chief Executive Officer Mike Coscia Senior VP of Sales Jerry Janik Chief Operating Officer Paul Ferguson Chief Marketing Officer Independent Directors Laura Mottola Independent Director Greg Murphy Independent Director BENCHMARK | WORLD TOUR 2015 BATTERY RAW MATERIALS | SUPPLY CHAIN 20/20
  14. 14. Great Lakes G R A P H I T E 14 VISION AND STRATEGY BENCHMARK | WORLD TOUR 2015 BATTERY RAW MATERIALS | SUPPLY CHAIN 20/20 Enter Micronization market, develop purification technologies Enter spherical market, full vertical integration Enter purification market, develop spheronization capabilities Stage I: Launch Stage II: Ramp Stage III: Integrate Vision: Capitalize on a growing supply/demand gap for natural graphite as a strategic material in both traditional and emerging market applications.
  15. 15. Great Lakes G R A P H I T E 15   BENCHMARK | WORLD TOUR 2015 BATTERY RAW MATERIALS | SUPPLY CHAIN 20/20 SOURCE DISTRIBUTE PROCESS STAGE I: LAUNCH (2015-2016) Production Line No. 1 2 3
  16. 16. Great Lakes G R A P H I T E 16   SOURCE BENCHMARK | WORLD TOUR 2015 BATTERY RAW MATERIALS | SUPPLY CHAIN 20/20 SOURCE NOW: import flake graphite from Brazil FUTURE: acquire synergistic asset(s)
  17. 17. Great Lakes G R A P H I T E 17 BY THE NUMBERS SOURCE - LOCHABER FOR THE LONG HAUL? Lochaber hosts a flat-lying near surface graphite deposit. BENCHMARK | WORLD TOUR 2015 BATTERY RAW MATERIALS | SUPPLY CHAIN 20/20 PURITY AND PARTICLE SIZE 4,090,000 tonnes of 4% graphite (inferred) 11,000+ metres of drilling 2649 hectares 100 percent owned 30 kilometers from Ottawa 3 high grade occurrences 2 past producing mines Graphite Class Particle Size Distribution Purity (%C) Super Jumbo Flake/XXL 1.44% 96.50% Jumbo Flake / XL 44.00% 96.40% Large Flake 12.20% 94.55% NOTE: There is no guarantee that Lochaber contains a mineable resource. No studies have yet been performed to establish the economic viability of advancing the Lochaber Graphite project to production.
  18. 18. Great Lakes G R A P H I T E 18   PROCESS BENCHMARK | WORLD TOUR 2015 BATTERY RAW MATERIALS | SUPPLY CHAIN 20/20 1) Feed 2) Grind 3) Bag 4) Ship PROCESS Production Line No. 1 2 3
  19. 19. Great Lakes G R A P H I T E 19 PROCESS - MICRONIZED FLAKE GRAPHITE Fast Facts ●  Made by grinding graphite powder to superfine grades. ●  Standard products that are sold into many markets at prices well above raw graphite prices. ●  MFG is an intermediary product between raw graphite and spheronized graphite. Key Differentiator Our near-term focus is on processing graphite, a superior business model given current market conditions. BENCHMARK | WORLD TOUR 2015 BATTERY RAW MATERIALS | SUPPLY CHAIN 20/20
  20. 20. Great Lakes G R A P H I T E 20   ❏  Saves  $15MM  in  CAPEX  and  3  years   of  permi>ng  and  construcCon.   ❏  Natural  gas,  power,  road  &  rail  are  all   available  on  site.   ❏  Plant  startup  scheduled  for  4Q15.   Jerry  Janik   The  Matheson  Facility  is  located  1  hour  east  of  Timmins,  Ontario.   PROCESS - MATHESON MICRONIZATION FACILITY BENCHMARK | WORLD TOUR 2015 BATTERY RAW MATERIALS | SUPPLY CHAIN 20/20 Capital  Expended   Refurbish/EPCM:  $1.2MM     Key  Numbers  (annual)   Lease:  Yr  1  $1,  Yr  2  $30K,  Yr  3-­‐5  $50K   Op  Ex:  $18.1MM     Revenue:  $30.0MM   Cash  Flow:  $11.9MM   Note:  Op  Ex,  Revenue  and  Cash  Flow  are  esCmated.   ●  Over  25  years  experience  in  the   mining  industry.   ●  Extensive  knowledge  in  the  design,   operaCon  and  management  of   micronizaCon  operaCons.   ●  Dual  diplomas  in  geology  and  mineral   processing.  
  21. 21. Great Lakes G R A P H I T E 21   DISTRIBUTE BENCHMARK | WORLD TOUR 2015 BATTERY RAW MATERIALS | SUPPLY CHAIN 20/20 DISTRIBUTE Set an achievable plan Focus on North American markets Solidify relationships with key customers Build credibility and steady cash flow Mike  Coscia   ●  Over  30  years  experience  in  the   chemical  and  minerals   industries.   ●  Extensive  experience  in  sales,   markeCng,  technology  and   product  development.   ●  Senior  sales  posiCons  with   Cabot  Corp,  SGL  Carbon,  H.C.   Starck  and  Ontario  Graphite.  
  22. 22. Great Lakes G R A P H I T E 22   Market Micronized Graphite Drilling Fluids Carbon Brush Lubricants Powder Metallurgy High Purity Micronized Graphite Composites Lubricants Friction Dispersions Pencil Alkaline & Rechargeable Battery Li-ion for EVs, energy storage QualificaCon  Time  Required   Product  Value  &  Cost   MG   HMG   HMG  (Spheronized)   Qual-1 Qual-2 Purchase Qual-1 Qual-2 Purchase Qual-2Qual-1 Purchase Phase I: MG Phase II: HMG Phase III: HMG (Spheronized) Sampling  is  typically  done  at  bench  scale  and  again  at  pilot  scale  before  purchase  orders  are  placed.   BENCHMARK | WORLD TOUR 2015 BATTERY RAW MATERIALS | SUPPLY CHAIN 20/20 STAGE II: RAMP (2016-2017)
  23. 23. Great Lakes G R A P H I T E To Identify SolutionsParallel Development 23 PURIFICATION FOR BATTERY USAGE GETTING TO 99.9% STRATEGY Chemical METHODS Thermal 2200⁰C With Partners HydroMetallurgical
  24. 24. Great Lakes G R A P H I T E 24   What We Do Advance Marketing Customer Sampling Lean Manufacturing Targeted Vertical Integration Strategic Partnerships Why It Matters Flexibility/Repeatability High Margin High Purity = High Value Minimal Capex/Opex Fast Path to Cash Flow THE GREAT LAKES ADVANTAGE BENCHMARK | WORLD TOUR 2015 BATTERY RAW MATERIALS | SUPPLY CHAIN 20/20
  25. 25. Great Lakes G R A P H I T E 25 OPPORTUNITY IS KNOCKING ON CANADA’S DOOR Graphite Deposit Graphite Micronization (pre-commissioning) Canada is uniquely positioned to become a dominant player in energy storage. World-class Infrastructure Graphite Production Lithium Deposit
  26. 26. Great Lakes G R A P H I T E 26 Thank You!

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