Ms. Belinda Labatte reports

LOMIKO METALS REFLECTS ON CHINA'S MOVE TO LIMIT GRAPHITE EXPORTS AND ANNOUNCES CORPORATE UPDATE, AND ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS ON DECEMBER 20TH, 2023

Lomiko Metals Inc. is reflecting on the news regarding China's announcements to limit and restrict graphite exports, both natural flake graphite and synthetic graphite. These restrictions are set to take effect starting Dec. 1, 2023. This announcement underlines the importance of developing Canadian graphite projects, including the next phase of studies at the La Loutre natural flake graphite project, to ensure a secure and responsibly sourced supply in North America. It is widely known that graphite supply will be in shortage starting now, to accommodate the tremendous growth of the electric vehicle (EV) market, with the shortfall to increase to eight million tonnes (Mt) by 2040, according to Benchmark Mineral Intelligence's flake graphite forecast report.

Belinda Labatte, chief executive officer and director of Lomiko Metals, stated: "The announcement from China emphasizes the need to build local and resilient supply chains in Quebec, Canada, and North America to meet our supply needs and decrease dependency on China. We are looking to advance several prefeasibility-level initiatives and continue partnerships with universities in Quebec. Advancing Canadian projects is a North American solution to minimize geopolitical risks. Lomiko is now focused on prefeasibility (PFS)-level metallurgical studies with 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) (please see press release dated Sept. 18, 2023). These studies 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. Lomiko's recent studies have shown that it has a product amenable to the anode market, as well as other industry segments.

"To build on the company's excellent results over the last 18 months, additional PFS studies are required, and the company is currently looking at sources of funding, including government grants. The complete outline and cost of studies are available in the preliminary economic assessment report on the company's website."

According to the United States Geological Survey, Mineral Commodity Summaries, January, 2023 (Andrew A. Stewart), the market for graphite used in batteries has grown 250 per cent globally since 2018.

China has declared its intention to implement export permits for certain graphite products to safeguard national security. This move is part of China's broader strategy to regulate the supply of critical minerals in response to challenges to its manufacturing dominance. The Ministry of Commerce and the General Administration of Customs clarified that it was not targeting any particular country with the restrictions, stating that the top graphite buyers from China include the United States, South Korea, Japan and India.

Graphite is a material employed in electric vehicle batteries, as well as in various industries such as semiconductors, aerospace, chemicals and steel. China maintains a dominant position in global graphite production, with the United States 100 per cent dependent on the importation of graphite and anode materials.

The automakers are actively seeking alternative sources of graphite outside of China. This is driven by the increasing demand for electric vehicle batteries, which is surpassing other applications of the material. The global sales of electric vehicles, including fully electric and hybrid models, are on the rise, as reported by the International Energy Agency (IEA), 2023. Sales exceeded 10 million units in the previous year, marking a 55-per-cent increase compared with 2021, and are projected to reach nearly 14 million vehicles this year. In 2022, it was reported by the IEA that 26 million EVs are on the road, and half of those are in China.

Corporate update

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

• Nov. 2 and Nov. 3:
  • Mining Investment North America, Toronto;
  • Gordana Slepcev, chief operating officer, will present "Lomiko Metals critical minerals portfolio."
• Nov. 9:
  • Critical Minerals, Regulatory Frameworks and Geopolitics: A Student-Industry Workshop, Faculty of Law of the University of Calgary;
  • Ms. Slepcev, COO, will present "Lamiko Metals: Lithium and Graphite Mining for the Green Energy Transition."
• Nov. 28 and Nov. 29:
  • Pathways to Net Zero Mining -- 12th Energy and Mines Toronto Summit;
  • Ms. Labatte, CEO and director, panelist for "What Do Critical Minerals Miners Need to Build Capacity and Decarbonize?";
  • Ms. Slepcev, COO, moderator for "Accelerating Decarbonization: Synergizing C-Suite and Operations to Meet Timelines."

Annual general meeting

Lomiko announces the company's virtual annual and special meeting will be held on Dec. 20, 2023.

About Lomiko Metals Inc.

Lomiko Metals 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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