Mr. A. Paul Gill reports

UPDATE ON BROKERED PRIVATE PLACEMENT AND LA LOUTRE PROPERTY OPTION

Further to the press releases dated Aug. 20, 2019, Sept. 16, 2019, Oct. 17, 2019, and Dec. 31, 2018, Lomiko Metals Inc. is updating shareholders regarding its option to earn 100 per cent of the La Loutre flake and Lac des Iles flake graphite properties, Quebec. The company has completed its initial option and has earned its 80-per-cent interest in the properties.

Pursuant to an agreement dated Dec. 22, 2018, the company and Quebec Precious Metals Inc. (QPM) (previously known as Canada Strategic Metals Inc.) agreed to extension agreements relating to the properties, which allow the company to earn a 100-per-cent ownership. Pursuant to an amendment dated May 13, 2016, to earn a further 20-per-cent interest for a total of 100 per cent, the company was to issue an aggregate of five million shares (preconsolidation) (2.5 million on or before July 31, 2017, and 2.5 million on or before Dec. 31, 2018) and finance exploration expenditures of an aggregate of $1,125,000 ($250,000 by Dec. 31, 2016; $375,000 by Dec. 31, 2017; and $500,000 by Dec. 31, 2018). The parties agreed to extend the deadline date for the company to finance exploration work of $1,125,000 to Dec. 31, 2019, and the company shall forthwith, upon regulatory approval, issue 500,000 common shares (five million preconsolidation shares). The transaction is arm's length.

Further to the press release dated Aug. 20, 2019, announcing the engagement of Leede Jones Gable Inc. as lead agent on a commercially reasonable agency basis to undertake a brokered private placement, this financing has not completed and is now cancelled. In addition, the extension agreement cannot be fulfilled without the completion of the financing, and Lomiko confirms it cannot make the required payment by the deadline. It will explore other options with QPM and financing partners.

We seek Safe Harbor.