LAC GUÉRET GRAPHITE PROJECT

Mason Graphite’s 100% owned Lac Guéret property is located in northeastern Quebec, about 285 km north of the main service centre of Baie-Comeau and about 660 km from Montreal.

WHAT SETS US APART?

OUR TEAM

- Cumulating several decades of true graphite experience in developing, producing and selling graphite products
- Extensive processing knowledge and distribution capabilities

THE ASSET

- Mason Graphite’s management believes that Lac Guéret is one of the highest grade graphite deposits in the world and is aiming to be one of the lowest cost producers in the world

ADVANCING DETAILED STUDY ON BATTERY MATERIALS

- Coated spherical graphite produced at the pilot scale and showing positive testing results in cycling tests
- Working with the NRC “National Research Council Canada"

FINANCIAL SPONSORSHIP

- Over 20 institutional shareholders, mostly local and including government sponsored entities with mandates that are aligned with the company’s needs

SOUND SOCIAL & ENVIRONMENTAL PROJECT

- Pessamit First Nations Impact Benefit Agreement signed in 2017
- Strong support from local community of Baie-Comeau
- Concentrator to be connected to hydroelectric power grid; Mine with limited footprint

IDEAL LOCATION AND ACCESS

Mason Graphite’s Lac Guéret property is located in Quebec, one of the world’s most attractive jurisdictions for mineral exploration and development. It also falls within the “Plan Nord” territory in northeastern Quebec, which is an economic development strategy launched by the Government of Quebec in May 2011 to help the progression of Quebec mining projects located north of the 49    parallel.

The Lac Guéret project consists of 215 claims covering 11,630 ha (116 km  ) and is easily accessible year-round by main logging roads via highway 389.

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FEASIBILITY STUDY RESULTS

The Feasibility Study was prepared in partnership with several Quebec-based engineering firms: 

• GoldMinds Geoservices: Mineral Resource estimate;
• Soutex: Process development; and

• BBA: Mineral Reserves, Mining, Environnement, Economic Sections, etc.

*Unless otherwise noted, all monetary figures related to the Feasibility Study are expressed in Canadian dollars.  
(1) FCA Baie-Comeau: Free Carrier Incoterms - Seller is responsible for the delivery to the custody of buyer's carrier. 
(2) Foreign exchange rate $0.77 USD = $1.00 CAD 

§ The Mineral Reserves are the basis of the 25 years Mine Life of the Feasibility Study published in Sept 2015 (updated on December 5   , 2018) and are not included in the “in-pit” Measured and indicated Mineral Resources of 58.0 Mt grading 16.3% Cg (which have an equivalent drilling definition). The mineral Reserves and the “in-pit” Mineral Resources are included in the total Measured and Indicated Mineral Resources of 65.5 Mt grading 17.2% Cg (19.0 Mt of Measured Resources grading 17.9% Cg and 46.5 Mt of Indicated Resources grading 16.9% Cg) that were reported in the Company’s press release dated December 5   , 2018. The reference point for the Mineral Reserves Estimate is the mill feed. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability and were not included in the mine life or the economics of the feasibility study. Environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues may materially affect the estimate of Mineral Resources. The same issues would need to be considered when conducting an eventual economic evaluation in order to classify the In-Pit Mineral Resources as Mineral Reserves. In addition, there can be no assurance that Mineral Resources in a lower category may be converted to a higher category, or that Mineral Resources may be converted to Mineral Reserves.

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MINERAL RESERVES AND ''IN-PIT'' MINERAL RESSOURCES BEYOND THE PROJECT LIFE
OF 25 YEARS

The Feasibility Study presented a project life of 25 years using the Mineral Reserves of 4.7 million tonnes. But the pit optimization study looked at a much longer mine life where the “IN-PIT Mineral Resources Beyond Project Life of 25 years” of 58.0 million tonnes grading 16.3% could be used for an eventual extension of activity. No further drilling would be necessary in order to reclassify these IN-PIT Mineral Resources as Mineral Reserves in an eventual economic evaluation but there can be no assurance that they may be converted. The same pit optimization study was able to determine the best location for the initial 25 years of project life providing a high head grade and a low waste to ore stripping ratio.

Mineral Reserves: Project Life – First 25 years

6% cut-off grade

In-Pit Mineral Resources Beyond Project Life of 25 years

6% cut-off grade

The Mineral Reserves are the basis of the 25 years Mine Life of the Feasibility Study published in Sept 2015 (updated on December 5   , 2018) and are not included in the “in-pit” Measured and indicated Mineral Resources of 58.0 Mt grading 16.3% Cg (which have an equivalent drilling definition). The mineral Reserves and the “in-pit” Mineral Resources are included in the total Measured and Indicated Mineral Resources of 65.5 Mt grading 17.2% Cg (19.0 Mt of Measured Resources grading 17.9% Cg and 46.5 Mt of Indicated Resources grading 16.9% Cg) that were reported in the Company’s press release dated December 5   , 2018. The reference point for the Mineral Reserves Estimate is the mill feed. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability and were not included in the mine life or the economics of the feasibility study. Environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues may materially affect the estimate of Mineral Resources. The same issues would need to be considered when conducting an eventual economic evaluation in order to classify the In-Pit Mineral Resources as Mineral Reserves. In addition, there can be no assurance that Mineral Resources in a lower category may be converted to a higher category, or that Mineral Resources may be converted to Mineral Reserves. 

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EXPLORATION AND GEOLOGY

To date, Mason Graphite has identified two graphite zones on its Lac Guéret property: the GC Zone and the GR Zone.

GC Zone

Graphite mineralization in the GC zone has been mapped on strike up to 1.2 km and at width up to 400 m. This zone has excellent mineral resource growth potential as the mineralization remains open at depth.

GR Zone

Graphite mineralization in the GR zone has been identified on an area of up to 1 km and up to 110 m wide. 

LAC GUÉRET PROJECT HISTORY

US$14,000,000 total acquisition cost for 100% of the project

  • US$7,500,000 payment completed in 2012

  • US$2,500,000 payment completed in 2015

  • US$4,000,000 payment completed in 2017

 

Security interests that had been registered over the property of the Company to secure payment of the mining claims are in the process of being discharged.

No remaining legacy interest exists; no royalties.

ACQUISITION TERMS WITH CLIFFS RESSOURCES

SUMMARY

Development of a world class graphite deposit

The project involves developing the Lac Guéret graphite deposit, located approximately 285 kilometers north of Baie-Comeau, one of the highest grade deposits in the world.

Including the development of an open-pit mine and the establishment of a processing plant in the industrial park Jean-Noël-Tessier in Baie-Comeau, the project will generate approximately 100 direct jobs in the operating phase. 

With a capacity of approximately 52,000 tonnes of concentrate per year, the project has an estimated initial production life of more than 25 years, after which only 7% of the estimated total resources will have been extracted. Currently, only one graphite mine is active in North America. 

Keys to success

Market: Graphite is a much sought after and essential product. Its demand and consumption are growing due to its unique properties and its many different applications.

Deposit: Located at surface, the ore of Lac Guéret has an exceptionally high purity. Studies have demonstrated a long life of the deposit and excellent economic profitability.

Competence: The project management team is experienced and has extensive experience in graphite production, R&D and sales. It has an excellent history of achievements both in Quebec and abroad in the targeted field of graphite.

Location: The territory is very conducive to mining; accessible at all times and close to major mining service centers.

CONTACT US

HEAD OFFICE
3030 Le Carrefour blvd., Suite 600
Laval, QC H7T 2P5
+1 (514) 289 3580

INVESTOR RELATIONS
T +1-514-289-3580 ext. 104
info@masongraphite.com

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