Mr. A. Paul Gill reports

LOMIKO RELEASES 43-101 TECHNICAL REPORT ON THE QUATRE MILLES GRAPHITE PROPERTY IN QUEBEC OUTLINING HISTORICAL DRILLING RESULTS

Lomiko Metals Inc.'s National Instrument 43-101-compliant report by Consul-Teck Exploration Services regarding the Quatre Milles flake graphite property, located in southwestern Quebec, has been accepted by the TSX Venture Exchange and has thus been filed with SEDAR (Canadian Securities Administrators).

Lomiko recently optioned the Quatre Milles graphite property in Quebec to search for large-flake, crystallite graphite, which is sought after for use in electric cars, fuel cells and pebble-bed nuclear reactors and to create graphene, a newly discovered, chicken-wire-shaped formation of carbon that is one atom thick and has incredible properties that can make it 200 times stronger than steel, a superconductor at room temperature and heat resistant. Research scientists worldwide are experimenting with new technology that uses graphene, and at least 25 new patents have been filed.

Lomiko's Quatre Milles graphite property

The Quatre Milles property is road accessible and is located approximately 175 kilometres northwest of Montreal and 17 kilometres due north of Sainte-Veronique, Que. The property consists of 28 contiguous claims totalling approximately 1,600 hectares.

The property was originally staked and explored by Graphicor Resources Inc. in the summer of 1989, based on the results of a regional helicopter-borne electromagnetic survey. The underlying geology consists of intercalated biotite gneiss, biotite feldspar gneiss, marble, quartzite and calc-silicate lithologies of the Central metasedimentary belt of the Grenville province.

Historical highlights

• Graphicor completed reconnaissance mapping and prospecting as well as ground geophysics and a 26-hole diamond drill program totalling 1,625 metres.
• The work identified several conductive trends in the central portion of the property and at least three, relatively flat-lying graphitic beds.
• Three surface samples were collected and analyzed, returning results of 14.16 per cent carbon graphite (Cgf), 18.06 per cent Cgf and 20.35 per cent Cgf.
• Twenty-three of the initial 26 drill holes intersected graphite concentrations, with graphite concentration ranging from 4.69 per cent in hole Q90-1 to a highlight of 8.07 per cent Cgf over 28.6 metres in hole Q90-7.
• The highest individual assay was reported in hole Q90-10, reporting 15.48 per cent Cgf over 0.5 metre.

The accompanying table, included in the National Instrument 43-101-compliant report, summarizes the results.

Hole No.      From       To     Width    Grade
                (m)      (m)       (m)  (% Cgf)

Q90-1         8.94    10.46      1.52     7.33
Q90-2        28.68    30.13      1.45    10.38
Q90-3        16.23    17.84      1.61     4.09
Q90-4          9.4     14.1       4.7     3.95
Q90-5            2     3.90      1.90     2.07
Q90-5        22.13    23.25      1.12    10.52
Q90-6        32.54    41.19      8.65     8.07
Q90-6        43.47    44.05      0.98     3.87
Q90-7         3.94    32.54     28.60     8.07
Q90-8         1.54     2.16      0.62    14.89
Q90-8         5.23     8.05      2.82     7.45
Q90-9         2.05     3.10      1.05     8.47
Q90-9         5.76      6.8      1.04    10.86
Q90-10        2.14     5.54      3.40     8.02
Q90-10        7.03     7.61      0.58    10.59
Q90-10        8.53     9.03      0.50    15.48
Q90-10        9.27    11.24      1.97    12.37
Q90-10       14.16    15.46      1.30     4.26
Q90-11       26.82    34.02      7.20     4.63
Q90-12        0.94     8.53      7.59     8.60
Q90-12       38.16    43.61      5.45     3.79
Q90-13        0.69    10.28      9.59     4.64
Q90-13       40.95    43.14      2.19     3.82
Q90-14        5.56     7.22      1.66     8.12
Q90-15        2.21     5.59      3.38     9.76
Q90-16                                     NSV
Q90-17       15.48    18.63      3.15     8.11
Q90-17       21.43    23.67      2.24    13.29
Q90-17       36.77    47.97     11.20     5.88
Q90-17       57.15    58.21      1.06     9.53
Q90-17       59.54    69.82     10.28     5.99
Q90-18       10.68    12.90      2.22     8.12
Q90-19       47.80    49.25      1.45     9.16
Q90-19       50.42    58.49      8.07     5.72
Q90-20       13.51    16.98      3.47     5.81
Q90-21        2.80     4.98      2.18     5.56
Q90-22       17.37    20.04      2.67     2.58
Q90-23                                     NSV
Q90-24        1.78     4.14      2.36     3.77
Q90-24       12.32    13.09      0.77     4.20
Q90-24       16.86    18.66      1.80     4.96
Q90-25       19.69    21.24      1.55     3.67
Q90-25       25.27    26.65      1.38     9.66
Q90-26                                     NSV   

The company cautions that it has not had the chance to verify the quality and accuracy of the historic sampling and drilling results reported in this news release, which predate the introduction of National Instrument 43-101, and cautions readers not to rely upon them. The historic figures were generated from sources believed to be reliable; however, they have not been confirmed. Although the sampling and drilling results are relevant, they have not been verified.

Graphite market

• The price for flake graphite is $2,000 to $3,000 per tonne, depending on flake size and grade.
• Graphite prices have been increasing in recent months, and over the last couple of years, prices for large-flake, high-purity graphite (plus 80 mesh, 94 to 97 per cent carbon) have more than doubled.
• Graphite prices have almost tripled since 2005 due to the continuing industrialization of China, India and other emerging economies and resultant strong demand from traditional steel and automotive markets.
• Demand for graphite is expected to rise as electric vehicles and lithium battery technology are adopted, as nuclear reactors are built in China, and if fuel cells and graphene patents become products.
• China, which produces about 70 per cent of the world's graphite, is seeing production and export growth levelling, and export taxes and a licensing system have been instituted.
• Europe and the United States have both indicated graphite is of economic importance and has a supply risk (Critical Raw Materials for the European Union, July, 2010).

Graphite facts

• Natural graphite comes in several forms: flake, amorphous and lump.
• Southwestern Quebec is host to some of the most favourable geological terrain for graphite exploration in Canada, and is known to host graphite resources, including the nearby Lac des Iles mine, operated by Timcal.
• Graphite has many important new applications, such as lithium-ion batteries, fuel cells, and nuclear and solar power, that have the potential to create significant incremental demand growth.
• There is roughly 20 to 30 times more graphite by weight needed to produce a lithium-ion battery than there is lithium.
• Of the 1.2 million tonnes of graphite produced annually, approximately 40 per cent is of the most desirable flake type.
• High-growth, high-value graphite applications require large-flake and high-purity graphite, which is the prime exploration and development target at the Quatre Milles property.

Near-term strategy

Lomiko plans to mount an aggressive exploration campaign on the Quatre Milles graphite property, commencing with a complete compilation of historic geologic work followed by surface mapping, prospecting and follow-up diamond drilling.

Jean-Sebastien Lavallee (OGQ No. 773), geologist, a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical content of this release.

We seek Safe Harbor.