DNI Metals Inc

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DNI METALS INC.DNI : CSE

NEW MANAGEMENT WITH A NEW VISION AND FOCUS

January 2016

FORWARD LOOKING STATEMENT

This presentation contains projections and forward looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include, without limitation, statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company. These risks and uncertainties could cause actual results and the Company’s plans and objectives to differ materially from those anticipated in such information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change.

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DNI METALS

DNI GRAPHITE

100% OWNED MADAGASCAR GRAPHITE ASSET

DNI WHOLESALE

BRAZIL GRAPHITE WHOLESALE TO N.AMERICA

DNI LABS

PROFITABLE TECHNICAL LAB & PATENT OWNER

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DNI IS ON THE PATH TO BE ACASH-FLOW POSITIVEGRAPHITE COMPANY

In final stages of Acquiring Assets

DNI METALSDNI – CSE DG7N – Frankfurt DMNKF – OTC Pink29.6 million shares 25% owned by Management, Board and

Advisors 6,199,707 warrants @ $0.20 Expire Dec. 2016280,000 options @ $1.50 or higher725,000 options @ $0.09

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Management and Board *Advisory Board Biographies in Appendix

Daniel J. Weir Chairman, CEO, President and SecretaryColin A. Grant CFOSteven Goertz Country Manager, MadagascarPeter Eriksson Country Manager, BrazilDenis A. Clement DirectorPaul Gorman DirectorRaymond E. Mitchell Director

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DNI METALS MANAGEMENTBIOGRAPHIES

Daniel J. Weir – Chairman, CEO, President and SecretaryMr. Weir has worked for over 18 years at some of the top financial firms in Toronto, focused on financing mining companies and projects and has raised millions of dollars, both publicly and privately. He is an expert at evaluating and financing mining deals. He has served on Boards of several mining companies, and is currently on the board of Mag Copper.

Colin A. Grant – CFOMr. Grant is a chartered accountant and obtained his designation from the Institute of Chartered Accountants of Scotland in 1973 and from the Ontario Institute of Chartered Accountants and Chartered Accountants of Canada in 1982. He has spent over 25 years as a financial executive at junior public companies and large corporations in various industries. He has a in depth knowledge and breadth of experience in public company accounting, finance, and corporate governance.

Steven Goertz – Country Manager - MadagascarMr. Goertz is the Principal of Hendry Consulting, a consultancy group servicing the resources and business sectors and based in Madagascar’s capital city, Antananarivo. A (Canadian / Australian) geologist and investor with over 30 years’ experience in various countries, Mr. Goertz has been based full-time in Madagascar since early 2007. During this period, he has developed an extensive local contact network of professional and administrative personnel within Madagascar’s government and business communities.

Peter Eriksson – Country Manager - BrazilMr. Eriksson is the Managing Director of SR Brazil., in Belo Horizonte, Brazil. He has lived in Brazil since 1993, and is fluent in Portuguese and English. Prior to moving to Brazil from Canada, Mr. Eriksson was the VP Business Development at Longview Capital. He has over 18 years in the natural resource industry.

GRAPHITE SALESNatural

Graphite

DNI LABSProfitable

Technical LabUpgrade facility

potential

MADAGASCAR MINE

Future production

DNI WHOLESALE

Brazil Graphite to

N. America Markets

DNI METALS INCIndustrial MineralsMining Company

SECURE, CONSISTANT & RELIABLE SOURCE OF NATURAL GRAPHITE

- Chinese Alternative -

DNI METALSNew Management team: Nov 2014• NEW FOCUS:

– Acquire and enhance P.R.O. Technical Lab and Facility, located in the GTA, a cash-flow positive business, conducting assay work, environmental studies and pilot plant modeling

– Wholesale graphite business from high-quality producers in Brazil to North America

– Graphite exploration in Madagascar with a fully permitted property covering 43 km2

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DNI LABSDNI has entered into an agreement to purchase P.R.O. Labs, a 37,000 sq foot technical lab and testing facility in the GTA for $4 million

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DNI has arranged 75% of the purchase price with secure debt from a top tiered bank and a Vendor Take-Back agreement


DNI LABSTHE ACQUISITION:• HARD ASSETS: The overall condition of the facility is

excellent, valued at $2.9 million and is situated on +2 acres of commercial licensed land. Equipment is valued at $700,000

• The Lab is fully permitted – up to and including Uranium (Radioactive Materials)

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DNI LABS

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THE ACQUISITION:• CUSTOMERS:• The facility is currently used by mining and clean tech companies for assay

work, pilot plant modeling, technical studies and environmental work • Water Treatment, Environmental, Chemical and Special Situations Industries

conduct tests utilizing our technicians and facilities


• TECHNOLOGIES AND PATENTS: • More than 62 Canadian & US patents have been developed at this facility

DNI LABSTHE PLAN:

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DNI aims to close this acquisition before the end of 2015 for $4 million

Focus will be to conduct assay tests and pilot plant work for DNI’s Madagascar Graphite project

In 2016, Management will bolster marketing efforts at the Facility to increase operations and usage

Current FinancingDNI is Raising up to C$3 million to complete the acquisition of P.R.O. Labs

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Financing Facility Indicated AmountVendor Take-Back C$1.25 millionMajor Bank Mortgage C$1.75 million

Indication C$3,000,000 Announced Nov. 1st, 2015Convert. Debenture terms C$3 million

Each Debenture is defined as a Principal Amount of C$1,000• Five year term• 12 % coupon per annum• Convertible at C$0.15 into common shares• 1,000 warrants attached per Principal Amount of $1,000 of which

one warrant is exercisable at a price of $0.20 for a period of 18 months from closing of the Offering.

DNI WHOLESALE• Graphite produced in Brazil has similar

characteristics to graphite from Madagascar

• DNI has engaged graphite producers in Brazil for wholesale agreements

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• DNI is building a network of buyers to establish off-take agreements for future production of graphite from the Madagascar Project

HARD ROCK COMPLEX AND COSTLY PROCESS

SAPROLITE (SOFT ROCK) ADVANTAGE – BRAZIL & MADAGASCAR

DNI WHOLESALEBrazil is an attractive graphite producer and wholesale partner for DNI because of the “Saprolite Advantage” and host rock, similar to Madagascar

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DrillingExpensive!

BlastingExpensive!

GrindingExpensive!Loading Floating Graphite

Mining Saprolite host rock in Brazil and Madagascar starts at the “Free Dig” stage, removing the need and cost of drilling and blasting

Saprilitic soft rock does not need a grinding circuit

DNI WHOLESALE• To date, DNI has

shipped 22 tonnes of graphite to N. American customers

• DNI plans to increase shipments to 3,000 tonnes in 2016

• The wholesale business contributes to the Company’s overall revenue and profitability

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Brazil

Shipping

DNI GRAPHITEDNI owns 100% of Vohitsara Graphite Project in Madagascar

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• DNI acquired the asset in July 2015 for $400k

• Near infrastructure:• Paved road to major port 1km

from project• Access to water and power

• Close proximity to Sherritt’s Ambatovy Mine and Stratmin’s Mine

• Fully permitted for commercial mining

• Historical artisanal mining conducted on the property

DNI GRAPHITEThe property has the potential to host a large graphite resource

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• The host rock is weathered (saprolitic), soft rock

• Soft rock can be mined at less than 1/3 the CapEx and OpEx of hard rock graphite projects

• In July 2015, DNI conducted a geophysical survey and identified a graphite trend

• A trenching program was completed over a 900m x 400m area of the mapped trend

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• Weathered (saprolitic) host rock at DNI’s Madagascar property.• SOFT HOST ROCK like this can be mined at half the

Capex and half the Opex of a hard rock operation• North American HARD ROCK MINES are not cost

competitiveMaterial from DNI’s

trenching program in Madagascar

crumbles in your hand

DNI GRAPHITE

High-value Super Jumbographite flakes areeasily preserved

DNI GRAPHITEDEVELOPMENT PLAN:In Dec. 2014, DNI’s New Management team set a Project Timeline

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Q1 - Q2 2015 Completed $575,000 equity financingQ3 - Q4 2015 Completed purchase of Madagascar Asset

Raise $2mil for Madagascar project development

Q1 - Q2 2016 Initiate and complete 1,500m drill program at Madagascar projectComplete NI-43-101 Resource

Q3 - Q4 2016 Complete PEA

Q1 - Q2 2017 Begin construction of processing plant and millComplete construction of processing plant and mill

Q3 - Q4 2017 Graphite Production at Madagascar AssetFirst shipments of graphite from Madagascar Asset

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Raymond E. Mitchell - DirectorMr. Mitchell Joined the Company in June, 2007, and has over 30 years of experience as a chartered accountant and senior executive. Mr. Mitchell has previously served as Senior Vice President and Chief Financial Officer for the Canadian Depository for Securities (CDS). During his 24 year career with CDS, he undertook a variety of senior roles, including Executive Oversight of the development of SEDAR. Prior to CDS, Mr. Mitchell was responsible for a variety of financial functions for a large Canadian trust company. He currently serves as CFO of Latin American Minerals (LAT-V).

Denis A. Clement – B.Comm., LL.B., LL.M. – DirectorMr. Clement has over 30 years of experience in finance, law, M&A, management and entrepreneurship throughout various industries including financial, oil and gas, mining and technology. Currently, Mr. Clement provides advisory services for different companies around the world. He is on the Board of Directors of a number of private and public companies. Mr. Clement began his career practicing law with a large Canadian law firm, Smith Lyons, Torrance, Stevenson and Mayer, in Toronto. His practice included international trade, corporate reorganizations, banking, finance and corporate law.

Paul Gorman - DirectorMr. Gorman is the President and CEO of Great Lakes Graphite and a Director of several companies . He brings over 20 years of experience in junior mining finance, including IPOs, assessing asset viability, operating emerging growth public companies and writing strategic plans for business growth. As Managing Partner of Riverbank Capital Inc., Paul spent 12 years assisting small‐cap companies with financing, property development and initiating well-defined marketing programs.Mr. Gorman played a pivotal role in revitalizing the junior graphite space in North America in 2008, funding Industrial Minerals Inc, which became Northern Graphite (NGC-V). Paul also worked with four other graphite companies in an advisory role and founded Mega Graphite Inc. in 2009.

Daniel J. Weir – Chairman, CEO, President and SecretaryMr. Weir has worked for over 18 years at some of the top financial firms on Bay Street, focused on financing Mining companies and projects and has raised millions of dollars, both public and privately. He is an expert at evaluating and financing mining deals.He has served on Boards of several mining companies, and is currently on the board of Mag Copper.Dan lived in Brazil for one year, and speaks Portuguese.

Biographies BOARD OF DIRECTORS

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Biographies ADVISORS

John Carter – Special AdvisorHas over 35 years experience in the metals and mining industries. Mr. Carter specializes in the engineering design and manufacturing of mineral processing equipment for mining operations and operators such as Timcal Inc., currently the largest natural graphite mining company in North America. Recently Mr. Carter served as Vice President of Engineering at Saint Jean Carbon, and VP Operations at Canada Carbon both junior mining companies.He is currently Senior VP and Director of Great Lakes Graphite. Mr. Carter brings significant value to DNI Metals because of his extensive knowledge of mill development and mines in the natural Graphite sector.Terry Loney - Special Advisor31 years as President of Klondike Bay Resources with expertise in property acquisitions, exploration and development. President of Northern Skye Resources and Director of Golden Bridge Mining.Harrison O. Cookenboo - P.Geo., Ph.D., M.Sc., B.Sc. cum laude – AdvisorA professional geologist with more than 25 years experience evaluating geologic prospects, deposits and processes. He has broad exploration and research experience in diamonds, precious and base metals, as well as sedimentological processes, including oil and gas deposits. Harrison has worked extensively in Brazil since 2001, evaluating and reporting on potash, diamond, gold, tungsten, and manganese exploration targets. He has authored more than 20 reports to the standards of NI 43-101 as a Qualified Person describing potash in Brazil, uranium, diamonds, Ni-Cu-PGE and gold properties. as well as preparing numerous reports for both academic journals and public companies.John Gillett – H.B.Sc. – AdvisorHas been involved in DNI’s Alberta Projects since 2008, and previously during the 1990’s. From 2003 to 2008 Mr. Gillett worked on DNI’s Utah, Nevada, and Arizona Projects. The Kiewit Gold Project 0.5% royalty is one of the Utah ProjectsKatrin Tosine – Capital Markets and Investor Relations AdvisorMs. Tosine has worked in the Canadian Capital Markets industry for over 10 years and brings to the Company extensive financial and investment-focused experience and a broad range of high level buy and sell side contacts. Ms. Tosine has been providing Investor Relations and Corporate Communications services to Canadian companies for over 4 years. Further experience includes senior positions on Institutional Equity Sales teams, consulting for resource companies and financial institutions, and hedge fund administration.

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Dan Weir – CEO

[email protected] p: 416.595.1195c: 416.720.0754

DNI Metals Inc.

25 Adelaide St. East, Suite 1711Toronto, ON

M5C 3A1

Thank You

Kat Tosine – Investor RelationsCapital Markets and IR [email protected] c: 647.388.4984

www.dnimetals.com