Ms. Belinda Labatte reports

LOMIKO ANNOUNCES PRIVATE PLACEMENT OF UNITS AND FLOW-THROUGH UNITS AND PARTICIPATION IN LAVAL UNIVERSITY STUDY, QUEBEC AND UK CANADA TRADE MISSION

Lomiko Metals Inc. has launched a private placement to support the company's progress with its graphite and lithium projects. The private placement will comprise a hard-dollar component for gross proceeds of up to $2.1-million and a flow-through component for gross proceeds of up to $500,000, as described herein.

Belinda Labatte, chief executive officer and director of Lomiko Metals: "Lomiko has accomplished many milestones in the last 18 months, and with this financing, it is looking to advance several prefeasibility-level initiatives within its portfolio of projects. In addition, we are pleased that the company was selected to participate in the Canada-U.K. trade mission from June 25 to 30 to develop new connections with potential partners. Chief operating officer Gordana Slepcev will be attending.

"Also, as Lomiko Metals wishes to work with the universities of Quebec on projects and programs focused on energy transition, we are delighted to participate in the study 'Tracing the geological processes controlling the formation of high-grade graphite deposits in the Grenville Province of Central and Western Quebec.' This study is to last 36 months in partnership with the department of geology and geological engineering of Laval University and the Center Eau Terre Environnement of the National Institute for Scientific Research (INRS)."

Units and flow-through units private placement

As described above, the private placement will consist of a hard-dollar component for gross proceeds of up to $2.1-million and of a flow-through component for gross proceeds of up to $500,000. Pursuant to the hard-dollar offering, the company may issue up to 70 million units of the company at a price of three cents per unit. Each unit will consist of one common share and one common share purchase warrant. Each hard warrant shall entitle the holder to acquire one common share at a price of five cents for a period of 60 months.

The net proceeds of the hard-dollar offering will be used to incur expenses on its graphite and lithium properties. Below is a summary of the major categories applied to the gross proceeds as required by TSX Venture Exchange policy, in addition to working capital requirements:

• 12 per cent -- anode material studies;
• 5 per cent -- metallurgical studies;
• 10 per cent -- environmental, social and indigenous studies;
• Not more than 10 per cent -- investor relations and strategic advisory work;
• The balance will be applied to working capital, finder fees and other project expenses.

Pursuant to the flow-through offering, the company may issue up to 12.5 million flow-through units at a price of four cents per FT unit. Each FT unit consists of one common share that will qualify as a flow-through share within the meaning of the Income Tax Act (Canada) and one common share purchase warrant, with each whole warrant being exercisable at a price of six cents per share for a period of two years following the closing.

The company intends to use the gross proceeds of the flow-through offering to incur Canadian exploration expenses and flow-through critical mineral mining expenditures as defined in the Income Tax Act (Canada) on the company's recently acquired Carmin graphite project, Laurentides regional graphite exploration program and the Bourier lithium property exploration program, which will be incurred on or before Dec. 31, 2024, and renounced with an effective date no later than Dec. 31, 2023, to the initial purchasers of FT units in an aggregate amount not less than the gross proceeds from the sale of the FT units. For subscribers that are residents of Quebec at all relevant times, the expenses shall be: i) expenses which qualify for inclusion in the exploration base relating to certain Quebec exploration expenses within the meaning of Section 726.4.10 of the Taxation Act (Quebec); and ii) expenses qualifying for inclusion in the exploration base relating to certain Quebec surface mining expenses or oil and gas exploration expenses within the meaning of Section 726.4.17.2 of the Taxation Act (Quebec).

Finder fees and commissions may be paid in accordance with the TSX Venture Exchange policies.

Pursuant to applicable Canadian securities laws, all securities issued under this private placement are subject to a hold period of four months and one day. The private placement remains subject to the final approval of the TSX Venture Exchange.

Closing is subject to several prescribed conditions, including, without limitations, approval of the TSX Venture Exchange. All the securities issued under the offering are subject to resale restrictions under applicable securities legislation.

Private placement use of proceeds

The prefeasibility metallurgical test work achieved excellent results and demonstrate that an optimized flotation plant flow sheet can achieve 94.7-per-cent graphite recovery and average 98.7-per-cent graphitic carbon purity at the La Loutre natural flake graphite project. The company is seeking financing to continue its metallurgical testing, value-added testing and battery trials and has initiated discussions with battery manufacturers and OEMs (original equipment manufacturers). To complement the financing process, Lomiko is now engaging with several organizations related to grant application processes to advance its projects, and funds are intended to match these grants. Lomiko will provide updates as these grant applications are approved and completed.

Within its exploration portfolio, the company has an exploration proposal to explore further its Bourier lithium property located on the prolific Nemaska lithium belt, to obtain its 49-per-cent ownership position with Critical Elements. On Dec. 31, 2021, the company and Critical Elements agreed to amend Section 4.1(d) of the option agreement such that $1,001,772 of exploration expenditures be incurred on the property on or before Dec. 31, 2022, and if such exploration expenditures cannot be approved or incurred by the operator they shall be deferred to Dec. 31, 2023. The current amount required to be incurred before this date is $583,844. Investors can view the full terms of the option agreement on the company's website.

Coming conference participation

Lomiko is pleased to be presenting and participating in the following coming events:

• Mining Investment North America, Quebec City, June 19 to 21, 2023;
• The Canada-U.K. Critical Minerals Technology Partnering Event at the prestigious Canada House in London on June 26, 2023.
  • Organized by the High Commission of Canada in collaboration with Innovate U.K. and delivered by its business growth service Innovate U.K. Edge, this exclusive event is a result of the Canadian critical minerals mission to the United Kingdom, aiming to foster industrial research and development partnerships between Canadian and U.K. organizations.
  • Please check the company's social media for details.

About Lomiko Metals Inc.

The company holds mineral interests in its La Loutre graphite development in Southern Quebec. The La Loutre project site is within the Kitigan Zibi Anishinabeg (KZA) First Nation's territory. The KZA First Nation is part of the Algonquin Nation, and the KZA traditional territory is situated within the Outaouais and Laurentides regions. Located 180 kilometres northwest of Montreal, the property consists of one large, continuous block with 76 mineral claims totalling 4,528 hectares (45.3 square km).

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