Mr. Paul Gill of Lomiko reports

LOMIKO RECEIVES DRILLING PERMIT FOR 75 - 100 DRILL HOLES AT LA LOUTRE CRYSTALLINE FLAKE GRAPHITE PROPERTY AND MONITORS SALES AND REVENUE DEVELOPMENTS AT GRAPHENE 3D LAB

Lomiko Metals Inc. and Canada Strategic Metals Inc. have received two drilling permits for 5,000 metres each at the La Loutre crystalline flake graphite properties located in Quebec.

"Approximately 10,000 metres of drilling are planned at La Loutre. Drilling should reach a vertical depth of no more than 150 metres, the rule-of-thumb physical depth limit of a standard open pit," stated A. Paul Gill, chief executive officer. "Our goal is to become a low-cost producer of graphite in Quebec. A good example of an open-pit mining operation established on this principal is the Imerys carbon and graphite mine located nearby."

After the current program is complete, the property will be assessed for a resource and, if warranted, a pre-economic assessment (PEA). The primary focus is intersections which start within 15 metres of the surface as highlighted in the table. Viable near-surface mineralization reduces the amount of waste rock that needs to be moved, reducing overall cost of the project and reducing environmental impact.

Recent PEA publications in the graphite industry indicating capital expenditures of $100-million or more for developing a project and an oversupply of graphite projects requiring sustained prices of over $2,500 per tonne stress the need to deliver a low-capital-expenditure project with sustainable costs in a small, volatile market.

In a Jan. 7, 2015, release, the company indicated that to be economically viable, La Loutre must be able to deliver one million tonnes of 94 per cent purity graphite. To achieve this, the minimum resource must be at least 20 million tonnes of 5 per cent Gp (graphite). Setting high standards is required to stand out in the current and future graphite market. In addition, Lomiko hopes to define material greater than 99.99 per cent graphite crystalline flake to serve as the base material for testing graphite for the ultrapure carbon market and for conversion to graphene and use in 3-D printing and supercapacitors.

On March 16, 2015, Graphene 3D Lab announced that it launched commercial sales of its conductive graphene filament for 3-D printing. The filament incorporates highly conductive proprietary nanocarbon materials to enhance the properties of PLA, a widely used thermoplastic material for 3-D printing; therefore, the filament is compatible with most commercially available 3-D printers. The conductive filament can be used to print conductive traces (similar to as used in circuit boards) within 3-D printed parts for electronics.

Further developments on June 23, 2015, indicating Graphene 3D Lab has doubled its graphene production capacity and on June 29, 2015, indicating that it is developing distribution deals, bode well for future demand in high-quality graphite for graphene conversion. Lomiko currently owns 4.4 million shares of Graphene 3D Lab through its 100-per-cent-owned subsidiary, Lomiko Technologies.

The La Loutre property reported grab samples up to 22.04 per cent carbon flake graphite (CFG) and carbon purity test results reporting up to 100.00 per cent carbon purity in the large and extralarge flake graphite categories. Graphite is the base material used for graphene conversion by Graphene 3D Lab. Drilling in 2014 (shown in table) indicated significant near-surface mineralization. Details regarding these tests are available in a Sept. 23, 2014, news release.

The 2014 drilling program at La Loutre was managed by Consul-Teck Exploration of Val d'Or, Que., which designed the drilling campaign, supervised the program, and logged and sampled the core. A full set of drill results is reported in a Feb. 9, 2015, news release.

HIGHLIGHTED DRILL RESULTS FROM LA LOUTRE 

Hole       From       To  Length*      Gp
             (m)      (m)     (m)      (%)

LL-14-05   6.65   135.00  128.35     4.72
LL-14-15   3.40    56.65   53.25     4.40
LL-14-17   3.70    17.90   14.20     6.52
LL-14-19   3.00    15.40   12.40     5.36
LL-14-21   15.3     35.6    20.3     8.01
LL-14-24   14.1    32.25   18.15     7.73

*Length along the core. The company 
estimates the true width of the 
mineralized zone at 70 to 90 per cent of 
the width intersected in the drill holes.

Consul-Teck Exploration implemented quality assurance/quality control procedures to ensure best practices in sampling and analysis of the core samples. The drill core was logged and then split, with one-half sent for assay and the other retained in the core box as a witness sample. Duplicates and blanks were inserted regularly into the sample stream.

The samples in secure tagged bags were delivered directly to the analytical facility for analysis. In this case, the analytical facility was the ALS minerals in Val d'Or, Que. The samples are weighed and identified prior to sample preparation. The samples are crushed to 70 per cent minus-two millimetres, then separated and pulverized to 85 per cent passing 75 microns. All samples are analyzed for Carbon Graphite using C-IR18.

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.