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Cautionary Note Forward-looking statements Certain statements contained herein constitute “forward-looking statements.” Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as “plans,” “intends,” anticipates,” “should,” “estimates,” “expects,” “believes,” “indicates,” “targeting,” “suggests,” “potential,” and similar expressions. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. Investors are advised to review the Company’s Annual Information Form filed at www.sedar.com for a detailed discussion of investment risks. The Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.
Management & Consultants • Spiro Kletas, President & CEO, Director – Over 10 years experience in the financial industry with 7 years in
the public capital markets, working for several Toronto Exchange-listed companies in project procurement, corporate development and financing. He has been directly involved in raising over $100 million dollars for junior resource companies, most recently as part of a management team seeing a TSX.V gold exploration company into production.
• Andrew Rees, Director – Mr. Rees is currently President and CEO of WellStar Energy Corp. and sits on the board of directors of Barkerville Gold Mines Ltd. and several additional publicly trading companies. Mr. Rees brings 15 years of public company experience having been involved with developing projects from concept to production. Mr. Rees has been directly involved in raising over $150 million for junior resource companies.
• Dean Nawata, Director – Over 18 years of public market experience, nine of which he spent as a licensed stockbroker focusing on financing of junior mining and oil/gas projects with Nesbitt Burns, Research Capital and, most recently, Raymond James. Mr. Nawata currently holds a position in Business Development for 49 North Resources.
• Connie Norman, Corp Secretary
• Minaz Dhanani, CFO
• Zimtu Capital – Project Vendors/Technical Support
Capital Structure • Issued & Outstanding 19.8 m • Warrants 7.6 m 4.4 m @ .15 cents exp Dec 15, 2012 3.2 m @ .15 cents exp Feb 15, 2013
• Options 1.65 m 1.2 m @ .10 cents 450 k @ .22 cents
• Fully Diluted 29.05 million
• Working Capital - $1 million • Management & Insiders – approx 25%
Key Milestones
Big North Capital Qualified – Dec 2011 Financing Completed – Feb 2012 Acquired First Graphite Asset – Mar 2012 Strategic acquisition of additional Graphite assets Additions to Management, Operational and Technical Teams Commence Exploration, Drilling and Development Work
Investment Highlights • Building a strong company focused on select graphite projects in Canada
• Experienced management team – directly involved in bringing a Canadian mine into production
• Management responsible for raising over $30 million in last 3 years, over $100 million in last 5
• Partnered with Zimtu Capital (ZC:TSX.V) – the leaders in the graphite space
• Favorable capital structure (19.8 million I&O)
• Approximately $1 million in working capital
• Increasing graphite prices as supply tightens in an historically underexplored sector
First Project – the Griffith/Brougham Project
• Large land package in a geographically friendly, highly prospective environment for large flake, high purity graphite
• Aggressive exploration program planned for 2012
What is Graphite? • Critical supply industrial metal • One of two natural carbon polymers (diamonds) • Light weight with highest natural
strength and stiffness of any material • Conductor of heat/electricity • Corrosion and heat resistant • High natural lubricity
Graphite Uses • Lithium Ion Batteries
– uses in portable consumer devices such as laptops, cell phones, MP3 players, digital cameras, power tools
• Automotive industry – Brake linings, gaskets, clutch materials
• Steel industry – liner for ladles, crucibles, component in
bricks which line furnaces and to increase carbon content of steel
• Pencils, lubricants, fire retardants and reinforcements in plastics
Graphite Major End Uses
41%
14%
14%
11%
10%
10%
Steel & Refractories
Automotive parts
Lubricants
Carbon Brushes
Batteries
Other
Source: Merchant Research & Consulting (2011)
Supply/Demand Dynamics • Industrial demand growing 5% per annum over last 10 years due to
industrialization of emerging economies such as China and India • European Union and USA named graphite a mineral in critical supply • Lack of exploration and development over last 20 years and China producing
70% of the world’s graphite, has made Li-ion battery manufacturers “very concerned” about securing long-term, stable sources of supply
• China discouraging export with 20% tax , 17% VAT and export licensing system
• Chinese production and exports expected to decline due to China’s strategy to keep value added manufacturing in the country
• Graphite market is more than 50 times larger than lithium and rare earths markets
• Demand for graphite increasing globally for green technology applications which have potential to consumer more graphite than all current uses combined
Source: Industrial Minerals, Supply Situation Report: Graphite demand soars above pre-crisis Levels, April 2011
Green Graphite Technology • Lithium ion batteries (laptops, cell phones, MP3 players, digital
cameras, power tools) • Fuel cells (buses, boats, trains, planes, forklifts, vending
machines, vacuum cleaners and highway road signs) • Wastewater treatment plants • Emergency power to facilities • Hybrid/Electric Vehicles (US Government offering tax incentives,
loans and grants to stimulate electric and hybrid vehicle industry with target of 1 million vehicles on the road by 2015)
• Solar energy • Semi conductors • Nuclear energy
Graphite Price Chart
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
High
Low
Price Range of +80 mesh, 94-97% graphite (US$/tonne)
Source: Industrial Minerals Magazine
Griffith/Brougham Graphite Properties • Approximately 6,500-hectare land position in central southeastern Ontario • High value, high quality large-flake graphite exploration target • Area of well-established access and infrastructure • Close to major end-use markets (United States and Europe) • Other companies with active development projects in the region include
Northern Graphite Corp. (Bissett Creek) and Ontario Graphite Ltd. (Kearney). • 100% interest (less 2% NSR) • Properties covers substantial tracts of graphite-prospective Grenville-age
marble+/-gneiss geology and are unexplored for graphite using modern technology.
• The Brougham Graphite Property is anchored by two historic graphite occurrences (based on Ontario Geological Survey maps from the 1970's) to the southeast.
• Acquired March 2012 from Zimtu Capital
Graphite Property Map
2012 Exploration Activities
• Airborne EM Survey – Commencing April 2012 • Ground Geophysics (1 week per property) • Mapping, Sampling, Trenching • Prepare drill targets for Phase One Drilling
Luciana Gold Property • 40km North of Lebel-sur-Quevillon, Quebec • 21 claims totalling 2916 hectares • Option to earn 70% of property • 22km SE of North American Palladium’s Discovery Project (237K oz
M&I @ 5.74 g/t plus 294K oz Inf @5.93 g/t) • 8km SE of North American Palladium’s Flordin Project (93K oz M&I
@4.25 g/t plus 170K oz Inf @3.63 g/t • Prospecting and IP Surveys completed in 2007/08 by Golden Valley
Mines • Phase one drilling completed in 2008 with anomalous gold values
however several targets were not tested. • Exploration to begin Q2 2012
Luciana Property
Notes
Contact Info:
Spiro Kletas, President: 604.723.0710 [email protected]
www.bignorthgraphite.com
Big North Graphite Corp. Suite 350 - 885 Dunsmuir Street
Vancouver, BC V6C 1N5
604.629.8220 (Office)
