Ms. Belinda Labatte reports

LOMIKO PROVIDES OPERATIONAL, MARKET AND CORPORATE UPDATE

Lomiko Metals Inc. has provided an update on its operations, market conditions and corporate activities.

Belinda Labatte, chief executive officer and director, stated: "Partnerships and collaborations are a key Lomiko advantage: We are pleased to be progressing with metallurgical testing with our partners, the National Research Council of Canada (NRC) and Corem, along with support from CRITM, the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) and the MRNF on these projects. We have completed the first steps with the bulk sample material selection, and characterization work is under way with a 1,000-kilogram representative sample from our La Loutre graphite project, located on Kitigan Zibi traditional land. With a partnership model, we believe that the responsible development of the La Loutre natural graphite project will ensure we can provide energy security, resilience and a high-quality product for North America.

"According to the International Energy Agency global electric vehicle outlook 2023, demand for EVs and the underlying batteries is robust: In 2020, only 5 per cent of all new cars sold were electric, with that figure now at 14 per cent and projected to be 18 per cent by the end of 2023. The 30-per-cent-to-40-per-cent annual growth rates in EV sales, and graphite demand, underline the importance and rapid acceleration of energy transition to critical mineral supply chains.

"Natural flake graphite remains a key component in all current battery technologies, and Quebec has a tremendous opportunity to lead in the exploration, development and production of a high-quality, responsibly sourced, carbon-neutral product.

"On behalf of the Lomiko team and board, we also wish to thank our many supportive investors and colleagues who have reached out over the summer with comments, ideas and questions. We appreciate you."

CRITM partnership and testing progress

Lomiko announced on July 24, 2023, that the company secured up to $500,000 in funding from federal and provincial agencies to continue advancing prefeasibility-level battery trials with its La Loutre natural flake graphite concentrate.

The project is supported by advisory services and funding from NRC IRAP and funding from CRITM through the Quebec Plan for the Development of Critical and Strategic Minerals from Ministere des Ressources naturelles et des Forets (MRNF).

Bulk flotation sample: Lomiko has compiled a bulk sample of over 1,000 kg of rock samples with an average grade of 8.0 per cent Cg (graphitic carbon) for the bulk flotation testing that will take place at Corem in Quebec City to produce flotation concentrate. The work on characterizing the material on six-by-two-kilogram samples will take place in September and early October with the aim of running a bulk sample in mid-October. The work with the NRC is progressing on characterizing flotation samples prior to proceeding with micronization and spheriodization tasks.

Prototyping: As indicated in the July press release, this project will involve the research and development of a technological prototype for graphite processing, comprising several stages, including flotation testing, micronization, spheronization, purification and coating of the flotation concentrate prior to coin and pouch battery testing. The work is being carried out over the next 24 months by experts from the National Research Council of Canada's Automotive and Surface Transportation Research Centre at its Boucherville facility in Quebec, and is an important aspect of the Canadian critical mineral strategy, advancing transformation of its raw natural resources into value-added high-technology products, such as anode material. The main deliverables of this process, particularly after electrochemical characterization of the transformed graphite material, are anode composition and defined charge/discharge capacities. The steps of the flotation testing and cSPG replicate the sequence of the business process on a smaller scale. The data collected during processing will be used to develop the integrated process design criteria, which form the basis for large-scale plant engineering.

It should be noted that the prefeasibility metallurgical testwork achieved excellent results and demonstrated 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 La Loutre natural flake graphite project. Lomiko's La Loutre project is a possible source of high-quality natural flake graphite located in Southern Quebec.

Graphite and downstream market update

North American natural graphite production continues to be at critical deficit levels for all natural graphite grades as battery manufacturers are currently dependent on China for graphite, as the country extracts around 70 per cent of the world's natural graphite and controls almost 100 per cent of the refining process, according to the International Energy Agency. China itself is experiencing massive domestic growth: Of the 26 million EVs on the road, over 50 per cent are currently in China, therefore providing indications of a sustained and long-term supply chain issue. This activity has increased the reliance on foreign natural graphite shipments from across the globe to supply end-users across Mexico, the United States and Canada. According to Lone Star Consulting USA, "The urgency for a new natural graphite project in North America is more important than ever to meet the demand for qualifiable graphite powder products for the highest visible applications, such as EV batteries, but also for critical applications, including fire retardants/fire suppressants, primary batteries, nuclear applications, automotive applications, plastics/polymers/rubber, fuel cells and industrial applications."

In 2023, progress toward global electrification continued at a measured pace as EV sales reached four million during the first five months of 2023. China sales are up 23 per cent year over year to a 34-per-cent share despite the reduction and subsequent elimination of subsidies beginning in 2018 and ending on Jan. 1, 2023. Europe is up 29 per cent YoY to a 23-per-cent share, and demand for EVs/HEVs is showing signs of measured recovery supported by price discounts by Tesla, Ford and GM in the first and second quarters of 2023.

In terms of demand, graphite is projected to be at 30-per-cent-to-40-per-cent demand growth per year according to Benchmark. Even with continuing research and development and diversification in battery chemistry, graphite is needed in all battery types and remains lower cost and far less emission-intensive than synthetic graphite.

Lomiko continues its progression across multiple lab programs to provide a diversified view of its product, therefore meeting the various important technical metrics for customers and being a successful and valued source of natural graphite project for the energy transition.

Corporate update

The company's updated investor presentation is available at the Lomiko website. Management will be participating at the following fall events.

Sept. 20

Ms. Labatte, CIM Toronto branch, participation in the panel participation on the critical minerals outlook

Sept. 21 to Sept. 22

Fourth energy transition and emission reduction for metals and mining in Toronto, Canada

Gordana Slepcev, chief operating officer, Lomiko presentation

Ms. Labatte, round table host, Sept. 22: "Creating a link between emission reduction, energy transition and community acceptability. What do we have to do differently?"

Sept. 28

Ms. Labatte, presenting Lomiko and corporate purpose (virtual event)

Metals and mining, Veristellinstitute

Nov. 28 and Nov. 29

Pathways to net zero mining -- 12th Energy and Mines Toronto Summit

Ms. Labatte, panelist, "What Do Critical Minerals Miners Need to Build Capacity and Decarbonize?"

Ms. Slepcev, moderator, "Accelerating Decarbonization: Synergizing C-Suite and Operations to Meet Timelines"

About Lomiko Metals Inc.

The company holds mineral interests in its La Loutre graphite development in Southern Quebec. 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 kilometres).

The property is underlain by rocks from the Grenville province of the Precambrian Canadian Shield. The Grenville was formed under conditions that were very favourable for the development of coarse-grained, flake-type graphite mineralization from organic-rich material during high-temperature metamorphism.

Lomiko published an April 13, 2023, updated mineral resource estimate (MRE), which estimated 64.7 million tonnes of indicated mineral resources averaging 4.59 per cent Cg per tonne for 3.0 million tonnes of graphite, a tonnage increase of 184 per cent. Indicated mineral resources increased by 41.5 million tonnes as a result of the 2022 drilling campaign from 17.5 million tonnes in 2021 MRE, with additional mineral resources reporting downdip and within marble units resulting in the addition of 17.5 million tonnes of inferred mineral resources averaging 3.51 per cent Cg per tonne for 650,000 tonnes of contained graphite; and the additional 13,107 metres of infill drilling in 79 holes completed in 2022 combined with the refinement of the deposit and structural models contributed to the addition of most of the inferred mineral resources to the indicated mineral resource category, relative to the 2021 mineral resource estimate. The MRE assumes a $1,098.07-(U.S.)-per-tonne graphite price and a cut-off grade of 1.50 per cent CG.

In addition to La Loutre, Lomiko is working with Critical Elements Lithium Corp. toward earning its 49-per-cent stake in the Bourier project as per the option agreement announced on April 27, 2021. The Bourier project site is located near Nemaska lithium and critical elements southeast of the Eeyou Istchee James Bay territory in Quebec, which consists of 203 claims, for a total ground position of 10,252.20 hectares (102.52 square kilometres), in Canada's lithium triangle near the James Bay region of Quebec that has historically housed lithium deposits and mineralization trends.

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