Lomiko EV Battery Material Supply Strategy Includes Spherical Graphite Production from La Loutre Suitable for Graphite Anodes Spherical Graphite Price is $2,700-2,800 USD/

Vancouver, BC, Aug. 13, 2019 (GLOBE NEWSWIRE) — Lomiko Metals Inc. (TSX-V: LMR, OTC: LMRMF, FSE: DH8C) (Lomiko or the “Company”) has identified spherical graphite production as a key waypoint in plans to supply graphite anodes for Electric Vehicles (EVs) Li-ion battery megafactories in the North American market discussed in a July 16th, 2019 release.  Testing for spherical graphite is to be included in a Preliminary Economic Assessment (PEA) which is planned for the La Loutre graphite project located in Quebec, Canada.  The development of a strategy that identifies a way to create value-added products is necessary to establish a long-term, profitable business model prior to extensive capital outlay is crucial to the success of the company.

A. Paul Gill, CEO states, “We are at the beginning of the battery materials bull market with 91 Lithium-ion mega-factories built or to be built worldwide.  However, potential North American Suppliers of graphite materials are facing investor skepticism because graphite materials coming from African mines such as Syrah Resources are satisfying Chinese graphite anode demand at present.  Lomiko sees an opportunity in creating a stable and integrated North American value chain for North American EV manufacturers to African graphite or Chinese anodes which are susceptible to political strife or trade wars.”

Graphite Sector Analysis

The price for 95% C (purity), 15 microns Spherical Graphite is $2,700-2,800 USD/tonne, far above the price of other forms of graphite as indicated by the Industrial Minerals.  Lomiko’s Preliminary Economic Assessment (PEA) will include costs and the potential market for this key product.  In order to start the PEA, Lomiko must first deliver its second resource prepared in compliance with NI 43-101 Regulations from La Loutre.

Industrial Minerals indicates China imported 21,486 tonnes of flake graphite in June 2019, 14,864 tonnes came from Mozambique, accounting for 70% of total Chinese imports.  The principal source of graphite flake in Mozambique is Syrah Resources, which primarily produces 94% C, -100 mesh material. Increased exports from Mozambique has weighed on the market since Syrah began commercial production at the start of this year. June’s import volumes into China were the highest since at least January 2017.

In the first half of this year, China imported 105,462 tonnes of flake graphite in response to the healthy development of the lithium-ion anode industry in China. At least half of total imported flake graphite was used in the anode industry, with the refractory sector the second-largest consumer, according to market sources.

The use of large flake graphite as a refractory (heat-resistant) material began before 1900 with the graphite crucible used to hold molten metal. In the mid-1980s, the carbon-magnesite brick became important, and a bit later alumina-graphite material.  Graphite blocks are also used in parts of blast furnace linings where the high thermal conductivity of the graphite is critical.

Graphite electrodes are another long-term market for natural flake graphite.  Graphite conductors which release electric energy in the form of an electric arc, are used to heat and melt the steel scraps in an electric arc furnace. They are currently the only products with high electrical conductivity and are able to maintain extremely high heat generation in this demanding environment. With the growing demand for quality steel in the aerospace, automotive and electronics industries, graphite electrodes are also becoming increasingly popular.

For more information on Lomiko Metals, review the website at www.lomiko.com, contact A. Paul Gill at 604-729-5312 or email: info@lomiko.com.

On Behalf of the Board,

“A. Paul Gill”

Chief Executive Officer

We seek safe harbor. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release


A. Paul Gill
Lomiko Metals Inc. (TSX-V: LMR)
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