TSX.V: LLG OTCQX: MGPHF
Lac Guéret Graphite ProjectDeveloping a world-class flake
graphite deposit in Quebec
Corporate Presentation - August 2015
TSX.V: LLG OTCQX: MGPHF
TSX.V: LLG OTCQX: MGPHF
Forward Looking Information: This Presentation may contain “forward-looking information” which may include, but is not limited to, statements with respect to: anticipated
timing of the receipt of governmental approvals and/or acceptances; targets, estimates and assumptions in respect of production and prices; estimates regarding amount and
type of future capital expenditures and capital resources; mineral reserves and mineral resources; anticipated grades; expected recovery rates; future financial or operating
performance; costs and timing of the development of new deposits; costs, timing and location of future drilling; production decisions; costs and timing of construction;
estimates regarding operating expenditures; costs and timing of future exploration; and environmental and reclamation expenses. Generally, forward-looking statements can
be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations
(including negative variations) of such words and phrases, or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be
achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of
the Company and/or its subsidiaries and/or its affiliated companies to be materially different from those anticipated in such statements. Although the Company has attempted
to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other
factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of
this presentation of which the information is derived from and the Company has disclaimed any obligation to update any forward-looking statements, whether as a result of
new information, future events or results or otherwise, except in accordance with applicable securities law. There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements due to the inherent uncertainty therein.
Unless indicated otherwise, all dollar figures are in Canadian dollars.
Cautionary Notes related to the PEA: A preliminary economic assessment (PEA) is preliminary in nature and includes Inferred Mineral Resources, which are considered too
geologically speculative to have mining and economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that
the reserves development, production, and economic forecasts on which the PEA is based will be realized. Full technical details and notes for the PEA can be found in the
technical report entitled “NI 43-101 Technical Report on the Preliminary Economic Assessment, Lac Guéret Graphite Project, Quebec, Canada” dated June 6, 2013 and
effective April 22, 2013, which is available under Mason Graphite’s profile on SEDAR at www.sedar.com and on Mason Graphite’s website at www.masongraphite.com.
Cautionary Statement regarding Mason Graphite’s estimated timeline for production: Mason Graphite has not made a production decision. A decision to proceed with
production will be based the results of a feasibility study demonstrating economic and technical viability. The production timeline in this presentation assumes that Mason
Graphite will complete a feasibility study and that the results of such feasibility study will be positive. The timing and results of such study are not guaranteed and no inference
should be made in this regard. There is no certainty that the events outlined in the timeline will be realized.
Cautionary Statements Regarding Mineral Resource Estimate: Mineral resources, which are not mineral reserves, do not have demonstrated economic viability.
Environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues may materially affect the estimate of Mineral Resources. 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.
Quality Control and Assurance: The scientific and technical content of this presentation was reviewed and approved by Mason Graphite’s Executive Vice President of
Process Development, Jean L’Heureux, P.Eng., who is a Qualified Person within the meaning of National Instrument 43-101. M
Legal Disclaimers
2
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Solid Fundamentals for Success
* Please refer to the press release dated February 22, 2013 for details on metallurgical test results.
** Please refer to the PEA technical report entitled “NI 43-101 Technical Report on the Preliminary Economic Assessment, Lac Guéret Graphite Project,
Quebec, Canada” dated June 6, 2013 and effective April 22, 2013 for more details. Also see cautionary statements related to the PEA on slide 2.
Long mine life at high grade Annual production of 50,000 tonnes for 22 yrs 27.4% Cgr
Low capital intensity project; excellent economics Direct capital cost requirement of $89.9 million
Production costs of $390/tonne of concentrate
Internal Rate of Return of 33.7%
Excellent recovery of high quality graphite Only flake graphite (29% large flake graphite: +50, +80 mesh)
Graphite recovery in excess of 96%
Purity of 99.9% Cg achieved in preliminary purification trials
Located in excellent mining jurisdiction of Quebec, Canada
High Quality Project
Graphite is an essential and highly desirable
product with increasing consumption and demandNecessary Product
Experienced TeamExperienced management with a proven track record
Over five decades in graphite production, sales and R&D
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The Value of High Grade Graphite
Company Market Cap (June 1, 2015)
Grade (Cg) Cut-off Grade Recovery
Northern Graphite Corp. (TSX: NGC) ~$35.4M 1.81% 0.98% 97%
Focus Graphite Inc. (TSX: FMS) ~$33.0M 15.76% 5% 92.5%
Energizer Resources (TSX: EGZ) ~$35.5M 6.36% 2% 96.2%
Syrah Resources (ASX:SYR) ~$707.2M 19.9% 13% 87%
Zenyatta (TSX: ZEN) ~$110.1M 3.89% 0.6% n/a
Flinders Resources Ltd. (TSX: FDR) ~$14.0M 10.50% 7% 96%
Mason Graphite (TSX: LLG.V) ~$46.4M 17.19% 5% +96%
If you can meet the customer's specifications via good metallurgy (particle
size, recovery and carbon content) , and product design then its all about grade; as a
higher grade typically results in lower costs of production.
M&I Mineral Resources include: 9.7 Mt grading 31.2% Cg
PEA Results: First 22 yrs of production at 27.4% Cg
Strip Ratio of 0.76:1
*See press release dated December 5, 2013 for details relating to the latest mineral resource estimate.
** Please refer to the PEA technical report entitled “NI 43-101 Technical Report on the Preliminary Economic Assessment, Lac Guéret Graphite Project,
Quebec, Canada” dated June 6, 2013 and effective April 22, 2013 for more details. Also see cautionary statements related to the PEA on slide 2.
TSX.V: LLG OTCQX: MGPHF
Graphite, along with diamonds and Coal, are crystalline forms of Carbon
Graphite 101
Graphene - Individual layers -
Graphite - Combined layers
Graphite is an essential but often unrecognized material for modern life
It has broad range of industrial applications due to its unique properties:
Properties of both metals and non-metals (ideal for industrial applications)
Highest natural strength and stiffness of any material
Lightest weight of all reinforcement materials
Very high melting (sublimation) point; low thermal expansion/shrinkage
High electrical and thermal conductivity
Low frictional resistance (excellent lubricant) and hydrophobic behaviour
Non-toxic, chemically inert and high resistance to corrosion
Properties vary
depending on the
purity and size of the
graphite crystals;
this directly affects
the price of the
resource
5
Details of Mason Graphite’s
Partnership with NanoXplore
can be found in Appendix.
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Flake
Graphite:
Graphite – Over 180 End Products
Flake Amorphous Vein/Lump Synthetic
Metallurgy (40%)
Refractories ■ ■ ■
Crucibles ■ ■ ■
Carbon Raisers ■ ■ ■
Moulds & Castings ■ ■
Molten Metal Protection ■ ■
High Temperature Lubricants ■ ■
Powder Metallurgy & Alloys ■ ■
Electrical Applications (25%)
Alkaline & Lithium Batteries ■ ■
Li-ion Batteries ■ ■
Fuel Cells ■ ■
Carbon Brushes ■ ■ ■
Technical Applications (25%)
Expanded Graphite & Foils ■
Thermal Management ■
Flame Retardants ■
Brake Linings & Clutch Facings ■ ■ ■ ■
Insulation ■ ■
Nuclear Reactors ■
Plastics, Resins & Rubbers ■ ■
Catalysts ■ ■
Cloth & Fibers ■ ■
Others
Pencils ■ ■ ■ ■
Lubricants ■ ■ ■ ■
Oil Drilling Additives ■ ■
Paints ■
6
Widest range of end uses
Increasing demand for
high purity flake graphite
No substitute:Synthetic graphite has high
purity but is 4x the cost
Synthetic graphite (USD $7,000-20,000/t)
Natural flake (USD $2,000-3,000/t)
Flake graphite used in
batteries - not amorphous,
not vein
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3 Forms of Graphite
FlakeHighest Price, Lowest Supply
High Purity: 85%-99%+ carbon
AmorphousLeast graphitic of the three
Lower Purity: 60%-90% carbon
Vein/LumpUncommon & highly localized;
<1% of world production;
Marginal applications
45% 55%
Global
Production
Graphite is not a homogenous commodity; it occurs naturally in 3 forms:
Flake size and purity directly affects the price
Natural medium/large flake graphite forecasted
between USD$1,750 and USD$2,500/t
7
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China represents +70% of world production
China has experienced a significant increase in domestic demand
Export tariffs and new safety and environmental regulations have resulted in a
reduction of export supply and an increase in prices.
China is experiencing a reduction of large and medium flake production
Issues of quality consistency for high-end applications such as batteries
Flake Graphite – Investment Opportunity
Global consumption of natural graphite has doubled from 2000 to 2010
Urbanization of China and India is driving the demand of graphite
For graphite used in the battery application alone,
demand is expected to increase from 125,000 tons in 2010
to 320,000-640,000 tons in 2020; a growth rate of 10-18%*
European Union declared graphite as one of 14 critical raw materials
8*Cormark Report on Electric Graphite, July 2011
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
2000 2010
Graphite Global Consumption
To
nnes
Restricted and Unstable Supply in China = Opportunity
Flake graphite production outside of China:
Brazil Canada India Madagascar Norway Zimbabwe GermanyTimcal/Imerys
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How is graphite sold?
Graphite is not an openly traded mineral
Prices are negotiated between end-users and
producers for annual or multi-year contracts
Prices for graphite vary based on parameters
such as purity, size, impurities and shape
Continuous contact with customers is fundamental
There is a market for ALL of mined
graphite material (from large to fine flakes)
Market Study is underway to identify
all end-users in all market segments
Graphite MineInventory of different sizes for different uses and end users
End-UsersTypical one-year supply contracts establishing
prices, specifications, volume, timing and delivery
The finished graphite product of a mine must be adapted to the buyers
Requires the right finished product
Requires strong relationships with clients Management with over 5 decades of experience
Years of client relations; large number of potential clients
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Management: Proven Track Record
Benoît Gascon, CPA, CA
President & CEO
10
Luc Veilleux, CPA, CA
Executive VP & CFO
Jean L’Heureux, Eng.
Executive VP, Process Development
20 years of executive
positions at Timcal
20 years in mining and
graphite, Timcal and Imerys
8 years in graphite
at Timcal
Previous Roles:
Senior Vice-president, Business
Development and Strategy, Sales and
Deputy General Manager (11 yrs)
President of Stratmin Graphite Inc.
from 1993 to 1999; renamed Timcal
Canada in 1999 (7 yrs)
Vice-president and CFO (4 yrs)
Previous Roles:
Senior Vice-president, Finance
COO North America
Vice-president, Finance North America
Financial Controller
Previous Roles:
Product Manager (Marketing)
Graphite Sourcing Manager
Production Manager
Plant Metallurgist & Lab Supervisor
Major Accomplishments:
Creation of a whole customer
base for Stratmin in the 1990’s
Acquisition and integration of
a private company in China
Supervision of nine sites in seven countries
Operational merger of Stratmin and Timcal
Major Accomplishments:
Implementation of a new production
organizational structure
Operational merger of
Stratmin and Timcal
Reorganization and improvement of
North American customer support
Major Accomplishments:
Optimization of the graphite flow sheet
Sales growth through technical support
to production & customers
Development of customers’
specifications management system
Development of production
planning system
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Management Team
Benoît Gascon, President & CEOOver 20 yrs of experience in the Graphite & Carbon industries. He was the CEO of Stratmin Graphite which operates the Lac-des-Iles deposit; one of North
America's only producing graphite mines. He was responsible for negotiating the complete take-over of Stratmin Graphite by Imerys SA, a world leader in
Industrial Minerals, to form Timcal Graphite & Carbon. Mr. Gascon, CPA, CA, holds a bachelor’s degree in Business Administration from Haute Etudes
Commerciales (HEC, Montreal).
Luc Veilleux, Executive Vice-President & CFOLuc Veilleux, CPA, CA, holds a Bachelor’s degree in Business Administration from Hautes Études Commerciales (HEC, Montreal) and has over 20 years of
experience in the mining and manufacturing industries including eight years at Timcal in the roles of Chief Financial Officer (based in Switzerland), COO and
Vice-President of Finance (North America), and Controller for the Lac-des-Iles graphite mine.
Jean L’Heureux, Executive Vice-President, Process DevelopmentMr. L’Heureux is a professional metallurgical engineer who has been involved in the mining and processing of graphite for over 20 years with the Imerys SA in
Quebec and in Europe. Since 2000, he has been the Product Manager, Refractory and Metallurgy for Timcal. Mr. L’Heureux obtained his Bachelor of Engineering
degree at Laval University in Quebec City and is currently enrolled in a Master’s Degree in Engineering Management at Sherbrooke University. Mr. L’Heureux is a
member of the Ordre des Ingénieurs du Québec.
Simon Marcotte, Vice-President Corporate DevelopmentOver 15 years of capital market experience. He was a partner of Cormark Securities for 4 years (institutional equity sales) and was also a member of their
Board. Previously, Mr. Marcotte was a Director for CIBC World Markets in Montreal for 8 years and also acted as an officer for Alderon Iron Ore and Belo Sun
Mining. He is currently a board member of Copper One and Arena Minerals. Mr. Marcotte holds a B.A.A. from Sherbrooke University and is a Chartered
Financial Analyst (CFA).
Jacqueline Leroux, Director of Sustainable Development Mrs. Leroux specializes in sustainable development, environmental studies and social relations. She formerly helped develop the projects of two major mining
companies in Quebec (Project BlackRock and Project Éléonore) where she successfully advanced the permitting processes.
Yves Caron, Director of Geology and ExplorationMr. Caron brings over 20 years of geological experience and an extensive knowledge in mining exploration and the minerals industry. Most recently, Mr. Caron
was Exploration Vice-President for Nemaska Lithium Inc. where he participated to their Whabouchi project development. He also had previously worked as
senior project manager at North American Palladium Ltd. Member of the association of professional geologists of Quebec (OGQ), Mr. Caron holds a Master’s
in Earth Sciences from INRS and a bachelor’s degree in economic geology from UQAM.
11
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Lac Guéret - Location & Access
13
288 km from Baie-Comeau
service centre, + 660 km to Montreal
All-weather access from
Hwy 389 and main logging
roads throughout property
Good accessibility to labour
Excellent mining jurisdiction
Extensive logging road system throughout the
Lac Guéret property and to Baie Comeau
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Only zone
drilled to date
Mason Graphite Claims Map
14
Mason Graphite’s
properties consist of 215
claims covering 11,630 ha
(116 km2) in northeastern
Québec
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Two main graphite zones have
been identified to date
Two Major Graphite Zones
km 17
GC Graphite Zone
1.2 km strike, up to 240 m wide
+600% M&I mineral resource growth
from 2012 to 2014; with further
opportunities to expand
GR Graphite Zone
1 km strike, up to 110 m wide
2,321 m of drilling completed in 2012
Further drilling planned and expected
to contribute to mineral resource
GC Zone
GR Zone
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GC Zone Mineral Resource (Dec 2014)
Categories Unit Tonnes Grade ( Cgr)
Measured (M)U1/U2 (5 to 25 % Cg)U3 (> 25 % Cg)
15,730,0003,375,000
15.16%30.58%
All units 19,105,000 17.88%
Indicated (I)U1/U2 (5 to 25 % Cg)U3 (> 25 % Cg)
40,257,0006,332,000
14.59%31.58%
All units 46,589,000 16.90%
M & I
U1/U2 (5 to 25 % Cg)U3 (> 25 % Cg)
55,987,0009,707,000
14.75%31.23%
All units 65,694,000 17.19%
Inferred
U1/U2 (5 to 25 % Cg)U3 (> 25 % Cg)
15,201,0002,450,000
14.90%31.75%
All units 17,651,000 17.24%
See cautionary statements related to mineral resource estimate on slide 2.
See press release dated Dec. 5, 2013 for details related to the mineral resource estimate. 18
Mineral Resource
July 2012
7,595,900 tonnes
Mineral Resource
Dec 2013
50,024,000 tonnes
Based on +/- 43,324 m metres of drilling
GC Zone Resource
Significant increase in a short period of time
Mineral Resource
Dec 2014
65,694,000 tonnes
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In Situ Metal Grade Equivalence
19
Source: TD Securities research department (Craig Miller) 2012
Graphite(@ $1,750)
20.40%=
Gold(@ $1,250)
9.1 g/t
Silver(@ $14)
800 g/t
Copper(@ $2.75)
6%= =
Dec 2014 mineral resource:
Measured & Indicated: 65.7Mt grading 17.2% Cg, including 9.7Mt grading 31.2% Cg
Measured: : 19.1Mt grading 17.9% Cg, including 3.4Mt grading 30.6% Cg
*PEA indicates first 22 years of production at 27.4% Cg
* Please refer to the cautionary notes related to the preliminary economic assessment (PEA) on slide 2 of this presentation
(July 2012 Mineral Resource)
PEA: 27.4% Cg (April 2013) =
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Mineral Resource Comparison
20
Million Tonnes (Measured & Indicated Mineral Resources)
Gra
de %
Cg
**The projected quantity and grade is conceptual in nature. There has been insufficient exploration to define the mineral
resource growth target and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
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Rapid Resource Growth
21
Latest Intercept highlights(October 8, 2014 drill results)
Inside PEA pit shell:LG-403: 76 m at 27.5 % Cg, incl. 38 m at 39.3 % Cg;LG-421: 46 m at 28.7 % Cg, incl. 27 m at 40.3 % Cg;LG-424: 86 m at 32.7 % Cg, incl. 73 m at 36.1 % Cg; andLG-471: 50 m at 23.9 % Cg near the surface (4 m), incl.21 m at 37.4 % Cg.
Outside PEA pit shell:LG-420: 42 m at 24.6 % Cg, incl. 17 m at 34.7 % Cg near surface (7 m);LG-439: 58 m at 20.2 % Cg, incl. 14 m at 36.6 % Cg;LG-455: 202 m at 21.6 % Cg, incl. 3 intersections of 17, 24 and 46 m at 30.7 % Cg to 33.3 % Cg, respectively;LG-458: 91 m at 25.3 % Cg, incl. 30 m at 40.8 % Cg; LG-463: 130 metres at 26.7 % Cg, incl. 57 m at 39.0 % Cg.
The latest mineral resource estimate is based on drill data from the GC Zone (at left), which represents only one of two mineralized zones identified on the Lac Guéret property to date.
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Excellent Metallurgy
Graphite recoveries in excess of 96%
Concentrate purity of 96.3% for the +150 mesh cumulative
29% of +80 mesh cumulative, including 16% of +50 mesh
22
Flake SizeDistribution
(%)
Carbon Content
(% Cg)
+50 mesh (Large Flake) 16% 96.3%
+80 mesh (Large Flake) 13% 96.4%
+150 mesh 14% 96.2%
-150 mesh 57% 91.7%
Total / Average 100% 93.7%
Preliminary Metallurgical Testing Completed in February 2013
* Please refer to the press release dated February 22, 2013 for complete result details.
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22 years of production at 27.4 % Cg
Direct capital costs of $89.9M
Production costs of $390/tonne
$364M pre-tax NPV @ 8 % ($283M @ 10 %)
33.7 % pre-tax Internal Rate of Return
Payback period of 2.5 years
Only flake graphite (29% large flake)
Conservative average sales price of $1,525/t
Low capital intensity and low operating costs
PEA Financial ResultsApril 2013
23
Cautionary Notes related to the PEA: A preliminary economic assessment (PEA) is preliminary in nature and includes Inferred Mineral Resources, which are considered too geologically speculative to have mining
and economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the reserves development, production, and economic forecasts on which the PEA
is based will be realized. Full technical details and notes for the PEA can be found in the technical report entitled “NI 43-101 Technical Report on the Preliminary Economic Assessment, Lac Guéret Graphite Project,
Quebec, Canada” dated June 6, 2013 and effective April 22, 2013, which is available under Mason Graphite’s profile on SEDAR at www.sedar.com and on Mason Graphite’s website at www.masongraphite.com.
Trade-Off Study Results: (not included in PEA)
This adjustment could
result in CAPEX
reductions of up to 8%
and OPEX
reductions of up to 20%
Project optimized
with new proposed
concentrator site
near Baie-Comeau
PEA does not include revenue for value added graphite - work is already underway: SEE PAGE 27
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50 000 tonnes per year of production
27.4 % Cg in mineralization in first 22 yrs
Graphite Recovery above 96 %
Up to 96.4 % Cg of finished product purity
Stripping ratio of 0.76:1
Process resulting in +96% recoveries
PEA Operational ResultsApril 2013
24* Please refer to the cautionary notes related to the preliminary economic assessment (PEA) on slide 2.
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Preliminary Purification Test ResultsSeptember 2013
25
Flake Size Graphite (Cg)
+48 mesh 99.6%
+80 mesh 99.7%
+150 mesh 99.9%
Purity of 99.9% Cg achieved in
preliminary purification trials
* Please refer to the press release dated September 24, 2013 for complete result details.
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5. Drying6. Sieving
1. Mining
2. Crushing
3. Milling & Flotation
4. Dewatering
Flow SheetPEA Technical Report - April 2013
Simple process
Known and proven technologies
Pilot plant underway Testing of additional processing technologies; Characterization for the upcoming EIA; Testing to create value added products such
as spherical graphite used in lithium-ion batteries Testing with key potential customers
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2013 2014 2015 2016Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Completed Metallurgical Test Work
Completed PEA
Purification Testing
NI 43-101 Mineral Resource Update
Pilot Plant and Bulk Sample Testing
Completion of Feasibility Study
Environmental Baseline Update & EIA
Construction Financing
Expected Construction
Expected Production Start
Recent & Upcoming Milestones
27Mason Graphite has not made a production decision. A decision to proceed with production will be based on the results of a feasibility study demonstrating economic and technical
viability. All reference herein with respect to production and anticipated timelines for production assume that Mason Graphite will complete a feasibility study and that the results of such
feasibility study will be positive. The timing and results of such study are not guaranteed and no inference should be made in this regard.
TSX.V: LLG OTCQX: MGPHF
Corporate Structure
Corporate Structure (As at May 28, 2015)
Shares Outstanding
Options
Warrants
85,983,653
7,970,000
16,947,937*
Fully Diluted 110,901,590
Analyst Coverage
Daniel Greenspan
Rupert Merer
David Talbot
Cash Position
Fiscal Q1 (ending March 31, 2015) $10 M
Trading Symbols
TSX.V: LLG (Listed since Oct. 30, 2012)
OTCQX: MGPHF (Listed since Nov. 12, 2013)
Mason Graphite is
recognized as one of
the top ten performing
mining companies on
the TSX Venture in 2013
* Maturity after 5 years, interest of 12% per annum, payable semi-annually, and a conversion rate into common shares of $0.845 per share. Mason
Graphite can trigger the conversion and anticipate the redemption under certain conditions. The transaction also includes an aggregate of 2,075,000
warrants, each granting the purchase of a common share at a price of $0.91 for a period of 24 months following the closing of the transaction.
Capital Raised in 2014
Private Placement(January 2014; NanoXplore transaction)
$700,000
Bought Deal Private Placement(Incl. $3.0M from Ressources Québec; April 2014)
$11.5M
Sodémex; Fonds de solidarité
FTQ; Fonds regional de solidarité
FTQ Côte-Nord (June 2014*)
$4.15M
28
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Strong Institutional Support
Source:* Public Information | ** Bloomberg | *** Direct Consent
ARX Capital ***
******
***
***
***
**
*
**
**
**
**
*
29
More than 25 identified institutions, including:Institutions, Management & Insiders: ±65%; Retail: ±35%
**
**
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First Nations
No one residing near the planned operations
or in the vicinity of the Lac Guéret project
Successful dialogue since early 2012
Consent for drilling obtained in April 2012
Ongoing discussions and negotiations for
completion of the Impact Benefit Agreement (IBA)
Cooperation Agreement announced in July 2014
30
Pessamit is the Innu First Nation
community 60 km west of Baie Comeau
Pessamit
Lac Guéret Deposit
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Performance Overview
31
Mason Graphite Stock Chart since TSX.V Listing
Mason Graphite vs. Canadian Venture Exchange Index
Trading Activity (Up to November 2014)
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Partnership with Group NanoXplore Inc.
33
Private R&D company focused on developing low cost,
large-scale production of graphene from natural flake graphite.
NanoXplore's proprietary technique is a low cost, low energy, safe and scalable electrochemical
conversion method which turns natural flake graphite into graphene.
www.nanoxplore.ca
2014: Mason Graphite acquired 40% interest in Group NanoXplore for $700 000
Remaining 60% owned by management of Group NanoXplore Inc.
2015: Following external financing of $2.725M for minority position, Mason Graphite now owns 31%
2015: Mason announces 2 agreements with NanoXplore:
License Agreement for Graphite Thinning Process
Lab-for-Hire Agreement for design of Value-Added graphite products
Mason Graphite acting as NanoXplore’s sales, marketing and distribution agent
Benoit Gascon appointed Chairman of NanoXplore’s Board
Luc Veilleux appointed as Director and CFO of NanoXplore
TSX.V: LLG OTCQX: MGPHF 34
Sodemex Developpement:(source: Caisse de Depot Website)
Montréal, June 20, 2013 – The Caisse de dépôt et placement du Québec announced the creation of Sodémex Développement, a $250-million fund. This new
fund, to which the Caisse has been committed since November 2012, will make investments of $5 million to $20 million in Québec companies in the natural
resources sector that are in the development stage. A flexible, hybrid financing structure that can take the form of a debenture, a convertible debenture or
equity will be introduced to meet the needs of Québec companies while ensuring an acceptable level of risk.
“The current business climate in the natural resources sector can present attractive long-term investment opportunities,” said Normand Provost, Executive
Vice-President, Equity at the Caisse. “This represents a critical entry point for the Caisse in projects that are in the development stage.”
The development phase represents a critical period because these companies are often acquired by bigger players in their industry due to insufficient capital to
continue operations. This new fund will alleviate the shortage of available capital.
Selection criteria
The process implemented to grant financing is based on discipline and rigour. The selected projects must show promise and meet the following criteria:
The executive team must:
• Be solid and experienced
• Have technical and operational knowledge of the sector
• Have very sound knowledge of the market
• Have a high-quality board of directors that complements the management team
Quality of the field
• In terms of size
• In terms of content
• In terms of the types of minerals present
Global competitiveness
• In terms of production and operating costs
• In terms of being close to adequate infrastructure
Acceptability
• A credible and well-established social acceptability and sustainable development process
Solid financial partners with mandates suggesting
investments in stages
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Ressources Québec:(Source: Investissement Quebec website)
Accompagne les entreprises tout au long de la réalisation
de leurs projets, de l'exploration à l'exploitation, jusqu'à la
transformation des ressources. Elle offre toute la gamme
des produits financiers tels que des participations dans le
capital-actions des entreprises, des débentures et
diverses formes de prêts.
Ressources Québec complète le financement privé en
favorisant les projets qui ont de bonnes perspectives de
rendement et qui sont structurants pour l'économie du
Québec.
Ressources Québec Ressources Québec dispose d'une
capitalisation de plus de 480 M$ destinée à réaliser des
investissements dans ces secteurs.
Ressources Québec agit aussi à titre de gestionnaire du
fonds Capital Mines Hydrocarbures, doté d'une enveloppe
de 750 M$. Ce fonds est destiné aux investissements du
gouvernement du Québec dans les ressources naturelles
non renouvelables
Solid financial partners with mandates suggesting
investments in stages
TSX.V: LLG OTCQX: MGPHF 36
“Plan Nord” Overview
Unveiled in May 2011
25 year, $80 billion development project focused on
the mining, energy, forest and wildlife resource
sectors among others
Plan Nord affects 72% of territory,
but only 1.6% of its population
Four-fold funding strategy where private sector
partners will participate in the funding of
infrastructure development
Government revenues resulting from economic
development initiatives, along with direct and indirect
tax spinoffs from public infrastructure projects will be
reinvested in the Plan Nord.
Investissement Quebec, the investment arm of the
Government of Quebec, will take equity stakes in
mining companies (and other businesses)
Hydro-Québec will also contribute annually to
development projects in the region
PLAN NORD
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Main Markets: USA - Europe - Japan
Graphite never ships by rail;
it is not a bulk commodity
Ports open markets to Europe and Japan
Most of the U.S. demand is in the North East
Approx shipping cost generally
assumed by the buyer: 75$/t
TSX.V: LLG OTCQX: MGPHF
Board of Directors
38
Tayfun Eldem, ChairmanMr. Tayfun Eldem currently serves as the President and CEO of Alderon Iron Ore Corp. He has worked for the Iron Ore Company of
Canada (“IOC”), a Rio Tinto subsidiary, for more than 20 years, including three years as a Director on the joint-venture Board. Mr. Eldem
holds a Bachelor of Engineering degree from Dalhousie University along with Operations & Strategic Management Certificates from Richard
Ivey School of Business and London Business School.
Tyrone Docherty, Vice-ChairmanMr. Docherty has over 25 years of experience in the resource industry. He was previously CEO of Quinto Mining Corporation and
President, CEO and Director of Deer Horn Metals. Mr. Docherty is an active board member of a number of other public and private mining
companies.
Scott Moore, DirectorMr. Moore is a finance executive with over 20 years of experience in the resource sector. He presently serves as Chairman & CEO of Copper
One and COO of Forbes & Manhattan, Inc. and previously acted as President for Dacha Strategic Metals Inc. and VP of Corporate
Development for Sulliden Gold Corp. Ltd. He holds a Bachelor of Arts degree from the University of Toronto and an MBA from the Kellogg
School of Management.
François Laurin, DirectorMr. Laurin has held several senior management positions in Canada before joining BioAmber Inc. as Chief Financial Officer. He previously
served as CFO of Alderon Iron Ore Corp. and President and CEO of Cap-Ex Iron Ore Ltd. Prior to those positions, he served as CFO of
Consolidated Thompson Iron Mines Ltd.
Alastair Neill, DirectorMr. Neill is currently an executive VP of Dacha Strategic Minerals Inc. who holds a Master of Business Administration from York University
and a Bachelor of Engineering in Material Science from the University of Western Ontario. He is the former VP sales, Rare Earth Division and
VP Business Development for AMR.
Benoit Gascon, CEO & Director
TSX.V: LLG OTCQX: MGPHF
Lac Guéret – Project History
1950’s
Exploration for iron by
Quebec Quartier Mines2002-2006
Quinto Mining Corp.
exploration activities
2012
Mason Graphite acquires
Lac Guéret from Cliffs
Natural Resources
2008
Consolidated Thompson
acquires Quinto Mining
Acquisition Terms with Cliffs Resources ($USD)
$15,000,000 total acquisition cost for 100% of the project $7,500,000 payment completed on April 5, 2012
$2,500,000 payable upon completion of a Feasibility Study*
$5,000,000 payable upon commencement of commercial production*
2,041,571 warrants @ $0.75 (expires in April 5, 2014) issued
to Quinto Mining (sub. of Cliffs Resources)
No remaining legacy interest exists, no royalties
39
* If the feasibility study is not completed by April 5, 2015, Mason Graphite is required to pay (a) $1,250,000 on April 5, 2015, and (b) $1,250,000 on the earlier of (i) the fifth business day following the day on which
a feasibility study is completed; and (ii) October 5, 2015. If commercial production is not achieved by October 5, 2016, Mason Graphite is required to pay (a) $2,500,000 on October 5, 2016; and (b) $2,500,000 on
the earlier of (i) the fifth business day following the day on which commercial production is achieved; and (ii) April 5, 2017
2011
Cliffs acquires CLM
TSX.V: LLG OTCQX: MGPHF
Head Office (Greater Montreal)
3030 Le Carrefour blvd., Suite 600
Laval, QC, H7T 2P5
T +1 (514) 289-1180 F +1 (514) 289-0958
Toronto Office
65 Queen Street West, Suite 800
Toronto, Ontario M5H 2M5
T +1 (416) 861-1685 F +1 (416) 861-8165
TSX.V: LLG
OTCQX: MGPHFwww.masongraphite.com