Lomiko Metals Inc. Delivers PosiƟve Preliminary Feasibility Study For La Loutre Graphite Project
MONTREAL (March 24th, 2026) Lomiko Metals Inc. (Lomiko) (TSX-V: LMR, OTC: LMRMF, FSE: DH8C) (“Lomiko" or “The Company”) is pleased to announce posi�ve results from the Preliminary Feasibility Study (“PFS”) on its 100%-owned La Loutre Project in south-eastern Quebec. The PFS was completed by DRA Global (“DRA”) in accordance with Na�onal Instrument 43-101 (“NI 43-101”).
Lomiko Metals Inc. has delivered a Posi�ve Preliminary Feasibility Study for La Loutre Graphite Project with a pre-tax NPV of CAD$797.5M with 30.3% IRR; a�er-tax NPV of CAD$617.4M with 24.7% IRR at US$1,524/t Cg.
The project has probable mineral reserves prepared in accordance with NI43-101 using a 1.50% Cg cut-off grade of 46.8 Mt at an average grade of 4.79%Cg for a contained in-situ graphite quan�ty of 2.24 Mt.
Highlights of the PFS (all figures are stated in Canadian dollars unless otherwise stated):
- Pre-tax NPV (8%) of CAD$797.5M
- A�er-tax NPV (8%) of CAD$617.4M
- Pre-tax IRR of 30.3 %
- A�er-tax IRR of 24.7 %
- Pre-tax payback period of 3.1 years
- A�er-tax payback period 3.2 years
- Ini�al capital costs (“CAPEX”) of CAD$504.6M
- Life of mine processing period (“LOM”) of 28 years
- Average LOM strip ra�o (Waste: Ore) of 2.4:1
- Mined ore of 46.8 Mt at 4.79% Cg with 1.5% cutoff grade and waste of 40.0 M bcm (bank cubic meters), including 2.2 M bcm of overburden.
- LOM plant produc�on of 46,803 Kilotons (kt=1,000 metric tonnes) of mill feed yielding 2,149 kt of graphite concentrate grading 97.0% Cg.
- LOM Average graphite mill head grade of 4.79 % Cg
- Average LOM mill recovery of 93.0% Cg.
- At the base case cut-off grade of 0.95% Cg, a measured resource of 215 kt at a 4.47 % Cg grade for 9,7 kt of graphite, an indicated resource of 69,741 kt at a 4.41 % Cg grade for 3,075 kt of graphite, and an inferred resource of 20,297 kt at a 3.53 % Cg grade for 716 kt of graphite.
- Long-term Weighted-Average Graphite Price US$1,524/t Cg conc. (graphi�c carbon concentrate). The projec�on was completed for the purposes of the PFS Market Study Report by Lone Star Tech Minerals - USA
- Exchange rate: CAD$1.00 = US$0.70. A projec�on was completed for the purposes of the PFS Market Study Report by Lone Star Tech Minerals - USA
Gordana Slepcev, CEO and director, Lomiko commented: “We are pleased to announce a significant milestone for the Company and a positive Pre-Feasibility Study at our La Loutre natural flake graphite Project that reinforces its position as a large and robust North American undeveloped graphite project in Canada and North America. Since the original PEA was published in 2021, we have completed significant engineering work to better define the project footprint and resource base, resulting in the updated resources, declaration of reserves, development of project infrastructure, and design plans for the project with the aim of minimizing the footprint and creating a compact, environmentally responsible, and sustainable project. At the same time, this study demonstrates the strong economic leverage the Project possesses, and clearly demonstrates the potential for La Loutre to be a large economic driver in southern Quebec and Canada with the mine life spanning for 28 years delivering hundreds of jobs and careers in the region, significant contracting opportunities for regional and Indigenous businesses and more than $4.7 billion in revenue, as well as generational opportunities for local residents and the Indigenous community in the area.
Lomiko looks forward to working with its partners in the MRC of Papineau region, including the local municipali�es as well as the surrounding First Na�ons community of Ki�gan Zibi First Na�on. We will also con�nue to work closely with the Quebec, Federal and U.S. governments to advance the La Loutre Project.”
Overview
The La Loutre Graphite Project is located in the Nominingue-Chénéville Deforma�on Zone in south-central Quebec. The Property consists of one large con�guous block of 42 mineral claims totaling 4,528 hectares (45.3 km2) and is located approximately 117 km northwest of Montréal in southern Québec, 230 km southwest of the Nouveau Monde Matawinie Project and 100 km southeast of the Imerys Graphite & Carbon Lac-des-îles mine.
The responsibilities of the engineering consultants are as follows:
- DRA Global was commissioned by Lomiko to manage and coordinate the work related to the N.I. 43-101. DRA Global also developed the PFS level design and cost estimating of the process plant, surface infrastructure, and was responsible for the compilation of the PFS Report.
- Norda Stelo Inc. (Norda Stelo), was engaged to complete the geology and mineral resources scope, mineral reserves and mine design for the open pit, conduct water management and environmental studies, planning, assessment, licensing, and permitting.
- Knight Piésold Ltd. (KP) completed the following related to mining and infrastructure development:
Geotechnical design of the Waste Disposal Facilities (WDFs), noise bunds around the pit perimeters, backfilled o open pits, and associated water management measures
- Open pit slope geometry recommendations
- Open pit groundwater inflow estimates
- Geochemical characterization of the filtered tailings from the metallurgical process and the waste rock from open pit development.
- Metpro Management Inc. (Metpro) was engaged to interpret metallurgical testing completed by SGS Canada Inc.
Financial Analysis
The size distribu�on was derived from the lock cycle tes�ng (LCT) on the master composite by SGS Canada Inc. and confirmed as part of the PFS process design work. Lone Star Tech Minerals - USA (Lone Star) provided pricing informa�on based on Mesh Size as part of the detailed marke�ng study Lone Star performed for the purposes of the PFS. As part of the marke�ng study report, Lone Star also provided the long-term exchange rate projec�ons un�l 2030 at US$1.00 = CAD$1.42.
Table 1: Graphite Price Forecast
| Mesh Size | % Distribution | Weighted-Average Price (US$/t) |
|---|---|---|
| +80 | 24 | 1,795 |
| -80 +200 | 45 | 1,616 |
| -200 | 31 | 1,179 |
| Average | 100 | 1,524 |
Descrip�on of Economic Valua�on
The economic analysis was performed assuming an 8% discount rate. This analysis shows a projected pre-tax NPV of CAD$797.5 M, an internal rate of return IRR is 30.3 % and a payback period of 3.1 years. On an a�er-tax basis, an NPV of CAD$ 617.4 M, an IRR of 24.7 %, and a payback period of 3.2 years is expected.
Table 2: Summary of Project Economic Evaluation
| Economics General | LOM Total / Avg. |
|---|---|
| Graphite Price (US$/tonne) | $1,524 |
| Exchange Rate ($US:$C) | 1.42 |
| Mine Life (years) | 28 |
| Total Waste Tonnes Mined (kt) (including pre-stripping) | 112,127 |
| Total Mill Feed Tonnes (kt) | 46,803 |
| LOM Operating Strip Ratio (W:O) | 2.4 |
| LOM Gross Revenue ($M) | $4,686 |
| Pre-tax LOM NPV @ 8% Discount Rate ($M) | $797.5 |
| Pre-tax LOM IRR (%) | 30.3% |
| After-tax LOM NPV @ 8% Discount Rate ($M) | $617.4 |
Economic Evaluation
| After-tax LOM IRR (%) | 24.7% |
| Production | LOM Total / Avg. |
| Mill Head Grade (% Cg) | 4.79% |
| Mill Recovery Rate (%) | 93.0% |
| Concentrate Grade (% Cg) | 97.0% |
| Total Graphite Concentrate Recovered (kt) | 2,149 |
| Total LOM Average Annual Concentrate Production (kt) | 79.6 |
| Operating Costs | LOM Total / Avg. |
| Mining Cost (C$ /t Milled) | $12.43 |
| Processing Cost (CAD$/t Milled) | $12.87 |
| G&A Cost (C$/t Milled) | $1.17 |
| Total Operating Costs (C$/t Milled) | $26.47 |
| Transport Cost (C$/t Cg conc.) | $19.2 |
| Royalty NSR * | 1.0 % |
| Capital Costs | LOM Total / Avg. |
| Initial Capital (C$M) | $504.6 |
| Sustaining Capital (C$M) | $252.1 |
| Closure Costs (C$M) | $35.7 |
| Salvage Costs (C$M) | $35.8 |
| Financials – Pre-tax | LOM Total / Avg. |
| NPV (8%) (C$M) | $797.5 |
| IRR (%) | 30.1% |
| Payback (years) | 3.1 |
| Financials – After-tax | LOM Total / Avg. |
| NPV (8%) (C$M) | $617.4 |
| IRR (%) | 24.7% |
| Payback (years) | 3.2 |
Sensi�vity
A sensi�vity analysis was conducted on the base case pre-tax and a�er-tax NPV and IRR of the project, using the following variables: metal price, total capex (ini�al + sustaining), total opera�ng costs and exchange rate. The tables below provide a summary of the sensi�vity analysis.
Table 3: Pre-Tax NPV (8%) Sensi�vity
| Graphite Price (US$/t) | Post-Tax NPV (8%) (CDN$) | Initial CAPEX | OPEX | FX | |||
|---|---|---|---|---|---|---|---|
| Base Case | (-20%) | (+20%) | (-20%) | (+20%) | (1.5) | (1.3) | |
| $1,400 | $650 | $742 | $558 | $732 | $568 | $744 | $510 |
| $1,450 | $710 | $802 | $617 | $791 | $628 | $807 | $564 |
| $1,524 | $798 | $890 | $705 | $879 | $716 | $899 | $645 |
| $1,550 | $828 | $921 | $736 | $910 | $747 | $932 | $673 |
| $1,600 | $888 | $980 | $796 | $970 | $806 | $995 | $727 |
Table 4: Pre-Tax IRR Sensi�vity
| Graphite Price (US$/t) | Post-Tax IRR (%) | Initial CAPEX | OPEX | FX | |||
|---|---|---|---|---|---|---|---|
| Base Case | (-20%) | (+20%) | (-20%) | (+20%) | (1.5) | (1.3) | |
| $1,400 | 26.3% | 33.6% | 21.4% | 28.3% | 24.2% | 28.9% | 22.5% |
| $1,450 | 27.9% | 35.7% | 22.8% | 30.0% | 25.8% | 30.6% | 23.9% |
| $1,524 | 30.3% | 38.7% | 24.8% | 32.4% | 28.3% | 33.2% | 26.1% |
| $1,550 | 31.2% | 39.8% | 25.5% | 33.2% | 29.1% | 34.1% | 26.9% |
| $1,600 | 32.8% | 41.9% | 26.8% | 34.9% | 30.8% | 35.9% | 28.4% |
Table 5: Post-Tax NPV (8%) Sensi�vity
| Graphite Price (US$/t) | Post-Tax NPV (8%) (CDN$) | Initial CAPEX | OPEX | FX | |||
|---|---|---|---|---|---|---|---|
| Base Case | (-20%) | (+20%) | (-20%) | (+20%) | (1.5) | (1.3) | |
| $1,400 | $496 | $577 | $416 | $569 | $425 | $573 | $379 |
| $1,450 | $545 | $627 | $466 | $618 | $474 | $625 | $425 |
| $1,524 | $617 | $702 | $538 | $693 | $546 | $704 | $491 |
| $1,550 | $643 | $728 | $564 | $719 | $571 | $731 | $515 |
| $1,600 | $694 | $777 | $613 | $768 | $620 | $784 | $560 |
Table 6: Post-Tax IRR Sensi�vity
| Graphite Price (US$/t) | Post-Tax IRR (%) | Initial CAPEX | OPEX | FX | |||
|---|---|---|---|---|---|---|---|
| Base Case | (-20%) | (+20%) | (-20%) | (+20%) | (1.5) | (1.3) | |
| $1,400 | 21.6% | 27.3% | 17.7% | 23.2% | 19.9% | 23.6% | 18.5% |
| $1,450 | 22.8% | 28.9% | 18.8% | 24.5% | 21.2% | 24.9% | 19.7% |
| $1,524 | 24.7% | 31.3% | 20.4% | 26.4% | 23.1% | 26.9% | 21.5% |
| $1,550 | 25.4% | 32.1% | 20.9% | 27.0% | 23.7% | 27.6% | 22.1% |
| $1,600 | 26.7% | 33.7% | 22.0% | 28.3% | 25.0% | 29.0% | 23.2% |
Mineral Resource
The mineral resource is es�mated from a drill hole database containing 190 drill holes consis�ng of 28,243 metres of drilling and 17,343 m of sampled drilled core.
The total Mineral Resource Es�mate (MRE) is summarized in Table 7, with the base case cut-off of 0.95% graphite highlighted. The requirement of ‘reasonable prospects for eventual economic extrac�on’ has been met by having resources constrained by op�mized pit-shell designs and by applying a cut-off grade based on reasonable inputs amenable to poten�al in-pit extrac�on scenarios. The cut-off grade is based on a processing cost of CDN$16.2/tonne, and General and Administra�ve Costs of CDN$4.11/tonne and a USD:CAD exchange rate of 1.35 as summarized in the notes below.
These mineral resource es�mates include inferred mineral resources that are considered too specula�ve geologically to have economic considera�ons applied to them that would enable them to be categorized as mineral reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
Table 7: Mineral Resource Es�mate (effec�ve date February 19, 2026)
| Deposit | Cut- off (%) | Measured resource | Indicated resource | M + I resource | Inferred resource | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Tonnage (kt) | Graphite (%) | Graphite (kt) | Tonnage (kt) | Graphite (%) | Graphite (kt) | Tonnage (kt) | Graphite (%) | Graphite (kt) | Tonnage (kt) | Graphite (%) | Graphite (kt) | ||
| EV | 0.95 | 215 | 4.47 | 9,6 | 27,114 | 5.43 | 1,473 | 27,329 | 5.42 | 1,483 | 4,021 | 3.93 | 158 |
| Battery | 0.95 | 0 | - | 0 | 42,627 | 3.76 | 1,602 | 42,627 | 3.76 | 1,601 | 16,258 | 3.43 | 558 |
| TOTAL | 215 | 4.47 | 9,6 | 69,741 | 4.41 | 3,075 69,956 | 4.41 | 3,084 | 20,279 | 3.53 | 716 |
Notes to accompany the Mineral Resource Estimate:
1. The independent and qualified persons for the mineral resource estimate, as defined by NI 43-101, are Marina Iund, P.Geo. (Norda Stelo), Kerrine Azougarh, P.Eng. (Norda Stelo) and Oliver Peters, P.Eng. (DRA). The effective date of the estimate is February 19, 2026.
2. These mineral resources are not mineral reserves as they do not have demonstrated economic viability. The mineral resource estimate follows current CIM Definitions (2014) and CIM MRMR Best Practice Guidelines (2019).
3. The estimate encompasses two mineralized deposits (EV and Battery) using the grade of the adjacent material when assayed or a value of zero when not assayed.
4. No capping was applied on 1.5-m composites.
5. The estimate was completed using a sub-block model in Leapfrog Edge 2025.3 with a user block size of 5m x 5m x 5m and a minimum block size of 2.5m x 2.5m x 2.5m. Grades interpolation was obtained by ID2 using hard boundaries.
6. Bulk density values were applied by lithology (g/cm3): mineralized domain = 2.82; paragneiss = 2.8; quartzite = 2.73; pegmatite = 2.63; marble = 2.75; and overburden (“OB”) = 2.0.
7. The mineral resource estimate is classified as measured, indicated and inferred where reasonable geological and grade continuity have been demonstrated. The Measured mineral resource category is defined with a minimum of three (3) drill holes in areas where the drill spacing is less than 55 m and within a 25 m wide buffer surrounding bulk samples. The Indicated mineral resource category is defined with a minimum of three (3) drill holes in areas where the drill spacing is less than 55 m. The Inferred category is defined with a minimum of two (2) drill holes in areas where the drill spacing is less than 100 m. Clipping boundaries were used for classification based on those criteria.
8. The mineral resource estimate is pit-constrained with a variable bedrock slope angle and an overburden slope angle of 30°. It is reported at a graphite cutoff grade of 0.95%. The cut-off grade was calculated using the following parameters: processing cost = C$16.20/t; mining cost (rock) = C$3.31/t; mining cost (OB) = C$2.59/t; graphite conc 97% price = US$1,524/t of graphite; Royalties = 1.5%; G&A = C$4.11/t; USD:CAD exchange rate = 1.35; graphite recovery to concentrate product = 93.5%. The cut-off grade should be re-evaluated in light of future prevailing market conditions (metal prices, exchange rates, mining costs etc.).
9. The number of metric tons was rounded to the nearest thousand, following the recommendations in NI 43-101, and any discrepancies in the totals are due to rounding effects.
10. The authors are not aware of any known environmental, permitting, legal, title-related, taxation, socio-political or marketing issues or any other relevant issue not reported in the Technical Report that could materially affect the Mineral Resource Estimate.
Mining
The mine plan includes 46.8 Mt of mill feed and 112.1 Mt of waste over the 28-year project life. Mine planning is based on conven�onal open pit methods suited for the project loca�on and local site requirements. Owner-operated open pit mining is planned to commence prior to mill start-up, and con�nue for 28 years to pit exhaus�on, with low-grade stockpile supplemen�ng mill feed forward the end of mine life.
Mining opera�ons are scheduled over a ten-month opera�ng year, with a planned two-month shutdown during the summer season.
The subset of Mineral Resources contained within the designed open pits, summarized in Table 8 at a 1.5% Cg cut-off grade, forms the basis of the mine plan and produc�on schedule.
Table 8: PFS Mine Plan Produc�on Summary
| Mine Plan Production Description | Mine Plan Production Summary Values |
|---|---|
| PFS Mill Feed | 46,803 kt |
| Average Graphite Mill Head Grade (incl. dilution) | 4.79% Cg |
| Waste Overburden and Rock | 112,127 kt |
| LOM Strip Ratio (W:O) | 2.4 |
| Mill Feed Graphite Grade | 4.79 % Cg |
| Strip Ratio | 2.4 |
The economic pit limits are determined using Minesight™ Lerchs-Grossmann algorithm. La Loutre deposit comprises the Ba�ery (BAT) zone and the Electric Vehicle (EV) zone. The La Loutre deposit comprises the Ba�ery (BAT) and Electric Vehicle (EV) zones, each planned as a single open pit with five mining phases. Pit designs are based on varied pit slope recommenda�ons from KP for 10 metre bench heights, in a single or double-bench configura�on, with bench face angles between 60° and 75°, and with berm widths between 7 and 11 metres. Pit-constrained resources used for mine scheduling are summarized in Table 9.
Table 9: PFS Mine Plan Pit Sequencing
| Pit | ROM Tonnage (kt) | Cg Grade (%) | Waste (k bcm) |
|---|---|---|---|
| EV PH 1 | 2,156 | 7.23 | 644 |
| EV PH 2 | 3,605 | 4.94 | 2,177 |
| EV PH 3 | 2,143 | 5.05 | 2,403 |
| EV PH 4 | 7,988 | 5.41 | 9,017 |
| EV PH 5 | 3,004 | 6.57 | 4,805 |
| BAT PH 1 | 1,882 | 8.53 | 5,580 |
| BAT PH 2 | 5,546 | 5.04 | 4,261 |
| BAT PH 3 | 7,898 | 3.30 | 3,862 |
| BAT PH 4 | 8,674 | 3.53 | 5,157 |
| BAT PH 5 | 3,907 | 3.13 | 2,112 |
| Total | 46,803 | 4.79 | 40,017 |
Mining will commence in the EV pit, with development of the Ba�ery pit beginning in Year 5. EV pit Phases 1 to 3 are fully mined by Year 4, allowing Ba�ery pit waste to be used for backfilling star�ng in Year 5. Mining in the EV and Ba�ery pits then proceeds in parallel un�l Year 23, a�er which mining con�nues solely in the Ba�ery pit, with waste disposed into the exhausted EV pit through the end of the 28-year mine life. Final reclama�on includes rehandling waste rock and filtered tailings from the northeast (NE) and east (E) waste disposal facili�es (WDFs) back into the pits.
The processing plant will be supplied at an average rate of 1,733 ktpa (4,750 tpd). Cut-off grade op�miza�on is applied during the first five years, with low-grade ore (1.5–2.99% Cg) stockpiled between the two pits near the haul road, while ore grading above 3.0% Cg is delivered directly to the mill or to a small stockpile near the crusher. These stockpiles provide opera�onal flexibility and help maintain consistent mill feed throughout most of the mine life.
Waste rock and filtered tailings will be managed through a combina�on of surface storage and in-pit backfilling. A waste rock and co-disposal facility is located north of the EV pit within the NE WDF, with overburden stockpiled between the EV pit and the NE WDF. Ba�ery pit waste will be par�ally backfilled into the EV pit, with remaining waste co-disposed in the E WDF and overburden hauled to the overburden stockpile north of the EV pit. All facili�es will be reclaimed into the excavated pits as part of the closure plan.
Mining opera�ons are scheduled for 303 opera�ng days per year with two 12-hour shi�s per day, including a planned shutdown during July and August. During this period, stockpile reclaim will supply the crusher, allowing the mill to con�nue opera�ng at full produc�on.
The mining fleet includes diesel-powered produc�on and grade-control drills, a 12 m³ hydraulic excavator, a 13 m³ wheel loader, and 100-t rigid-frame haul trucks, supported by ancillary equipment. In-pit dewatering systems will manage groundwater, surface water, and precipita�on, with rou�ne maintenance conducted in the field and major repairs completed at workshops near the processing plant.
The total Mineral Reserves are summarized in Table 10 and are reported at a base-case cut-off grade of 1.50% Cg. All Mineral Reserves are classified as Probable and are derived from Indicated Mineral Resources following the applica�on of appropriate modifying factors.
Table 10: Mineral Reserves Statement (effec�ve date February 19, 2026)
| Deposit | Cut-off Grade, Cg (%) | Probable Reserves | ||
|---|---|---|---|---|
| Tonnage (kt) | Graphite (%) | Graphite (kt) | ||
| EV | 1.50 | 18,894 | 5.66 | 1,070 |
| Battery | 1.50 | 27,906 | 4.20 | 1,171 |
| Total | 1.50 | 46,804 | 4.79 | 2,241 |
Notes to accompany the Mineral Reserves:
1. The independent and qualified person for the Mineral Reserves, as defined by NI 43-101, is Kerrine Azougarh, P.Eng. (Norda Stelo). The effective date of the Mineral Reserve estimate is February 19, 2026.
2. All Mineral Reserves are classified as Probable and are derived from Indicated Mineral Resources following the application of modifying factors, including:
a. The mineral reserve estimate is pit-constrained with a variable bedrock slope angle and an overburden slope angle of 30°.
b. The cut-off grade was calculated using the following parameters: processing cost = C$16.20/t; mining cost (rock) = C$3.31/t; mining cost (overburden) = C$2.59/t; graphite concentrate (97% Cg) price = US$1,048/t; royalties = 1.5%; G&A = C$4.11/t; USD:CAD exchange rate = 1.35; and graphite recovery to concentrate product = 93.5%.
3. The pit solids containing the Mineral Reserves were based on the resource block model with parent blocks of 5mx 5m x 5m and sub-blocks of 2.5m x 2.5m x 2.5m. No dilution was applied as there is internal dilution within the MineSight™ reported reserves.
4. The number of metric tonnes was rounded to the nearest thousand in accordance with the recommendations of NI 43-101, and any discrepancies in the totals are due to rounding effects.
5. The author is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political or marketing issues or any other relevant issue not reported in the Technical Report that could materially affect the Mineral Reserve Estimate.
Milling and Processing
The La Loutre Process Plant employs standard flota�on technology to produce graphite concentrates. The plant includes crushing, grinding, classifica�on, flota�on, tailings thickening and filtra�on, graphite concentrate filtra�on, drying and screening separa�on into the product sizes and placement of graphite concentrate into 1 tonne bags for shipment and sale.
The plant is expected to treat 1.73 Mt of feed per year at an average throughput of 4,750 t/d. The mill design availability is 8,059 hours per year or 92%, with an opera�ng throughput of 215.1 t/h.
The plant has been designed to realize an average recovery of 93.0% of the graphite at a concentrate grade of 97% Cg over the life of the project based on metallurgical test work completed by SGS Lakefield in 2021 and the process design work as part of the PFS. Graphite product split is es�mated to be 24% plus 80 mesh (177 microns), 45% minus 80 mesh (177 microns) plus 200 mesh (74 microns), and 31% minus 200 mesh (74 microns).
Water Management
The current water management involves minor diversions during culvert placements for haul roads. Li�le to no other diversion is required for other infrastructure due to the placement of the tailings and waste rock outside of permanent flowing stream areas or water bodies.
The processing involves filtering the tailings to low moisture contents and recycling the water back into the processing circuits. Commissioning and makeup water, when required, will be sourced from any contact water runoff, and if necessary, surface fresh water will make up the difference. Water from the WDFs is expected to be minimal other than rain, snow runoff, and infiltra�on, ul�mately collected at the base of the piles and routed through collec�on ponds for final discharge or recircula�on.
Contact water will be managed as per the descrip�on in the waste management sec�on, and will involve sedimenta�on to clarify the water for ul�mate discharge or use in process make-up water.
Waste Management
Filtered tailings and waste rock generated during mining will be managed and co-disposed as follows:
- Waste rock will be placed around the pit perimeters to construct noise berms shortly after the start of mining operations in each pit to reduce noise during mining.
- Filtered tailings and waste rock produced during mining of the EV pit will be hauled by truck and temporarily co-disposed in the WDFs on surface during the early years of the mine plan.
- Filtered tailings and waste rock produced during mining of the Battery pit will be hauled by truck and permanently co-disposed in the mined-out EV pit during later years of the mine plan.
- Filtered tailings and waste rock temporarily stored in the WDF areas will be relocated into the Battery Pit and co-disposed during the Active Closure period following the cessation of mining operations.
Each WDF and por�ons of the backfilled pits above original ground will be constructed with a waste rock shell. The inner por�on of each WDF and backfilled pit will primarily contain filtered tailings. The waste rock will provide erosion protec�on and dust control during construc�on and at closure.
The WDF contact water will be managed to provide �me for sedimenta�on prior to ul�mate discharge or use in process make-up water. Underdrains will be installed at select loca�ons along the founda�on to collect and convey any seepage to perimeter ditches surrounding the WDFs. Perimeter ditches, which will also collect runoff from the WDF slopes and noise bunds, will convey water by gravity to collec�on ponds. Water collected in the collec�on ponds will be pumped to discharge points near natural waterbodies.
The open pit, noise bunds, and overburden piles will u�lize a sedimenta�on pond in the vicinity of the pits before being conveyed to the lake discharge loca�ons. Monitoring sta�ons will ensure quality con�nues to meet criteria and environmental objec�ves.
Capital and Opera�ng Costs
The total pre-produc�on capital cost for the La Loutre Graphite Project is es�mated at CAD$504.6M, including allowances for indirect costs and con�ngencies of CAD$60.2M and CAD$53.5M, respec�vely. Sustaining capital costs are es�mated at CAD$252.1M as shown in Table 11. Opera�ng costs are es�mated at CAD$26.47 per tonne milled as per Table 12.
Table 11: Capital Costs Cost
| Area Description | Initial Capital Cost (CAD$M) | Sustaining Capital Cost (CAD$M) |
|---|---|---|
| Mining | $31.6 | $132.8 |
| Processing | $298.7 | $27.4 |
| Infrastructure (and Co-Disposal) | $44.1 | $91.9 |
| Off-site Infrastructure | $16.5 | |
| Indirect Costs | $60.2 | |
| Contingency | $53.5 | |
| Total | $504.6 | $252.1 |
Table 12: Opera�ng Costs
| Area Description | LOM Cost (CAD$M) | Avg. Annual Cost (CAD$M) | Avg. per tonne milled (CAD/t) |
|---|---|---|---|
| Mining Costs | $582 | $21.1 | $12.43 |
| Processing Costs | $614 | $22.3 | $12.87 |
| G&A Costs | $56 | $2.0 | $1.17 |
| Total | $1,252 | $45.4 | $26.47 |
Graphite Produc�on
Projected graphite concentrate produc�on averages for the first 20 years @97,000tpa and then produc�on drops to @39,000tpa in years 20-28 as Ba�ery Zone depletes. The average is 79.6 kt/a per year over the 28-year LOM.
Figure 1. Site Layout
Next Steps
The results of the PFS indicate that the proposed Project has technical and financial merit using the base case assump�ons. It has also iden�fied addi�onal field work, metallurgical test work, trade-off studies, and analysis required to support more advanced mining studies. The QPs consider the PFS results sufficiently reliable and recommend that the La Loutre Project be advanced to the next stage of development through the ini�a�on of a FS and working towards comple�on of an Environmental Impact Study for the Project while con�nuing to explore the geological poten�al of the La Loutre property.
Department of War Technology Investment Agreement
The work on the prefeasibility study and baseline data collec�on was supported by an award made via Title III of the U.S. Defense Produc�on Act of 1950 (“DPA Title III) and announced in May 2024, with a total of US$8.35M awarded to complete Phases 1, 2, and 3. This work on the Pre-Feasibility and baseline data collec�on completed Phase 1 – pre-feasibility study and baseline data collec�on.
Qualified Person
All technical informa�on, not pertaining to the PFS, in this news release has been reviewed and approved by Mike Petrina, P.Eng., who is a "qualified person" as defined by Na�onal Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). He is an independent Consultant working for the Company.
The PFS has been prepared by DRA. The contributors to the report are Qualified Persons (“QP”) under Na�onal Instrument 43-101 and are independent of Lomiko for the purposes of the NI 43-101. The technical content of the PFS and this press release has been reviewed and approved by: Colin Fyfe, P.Eng., Danielle Demers, P.Eng. ing., David Sims, P.Geo (B.C.), Géo, Denys Verme�e, P.Geo (Qc), Georgi Doundarov, P.Eng. PMP, CCP, M.Sc., Jessica Breault, ing, Jordan Zampini, P.Eng., Kerrine Azougarh, P.Eng., Marina Iund, P.Geo., M. Sc., Oliver Peters, P.Eng.
About Lomiko Metals Inc.
The Company holds mineral interests in its La Loutre graphite development in southern Quebec. The La Loutre project site is within the Ki�gan Zibi Anishinabeg (KZA) First Na�on’s territory. The KZA First Na�on is part of the Algonquin Na�on, and the KZA tradi�onal territory is situated within the Outaouais and Lauren�des regions. Located 180 kilometers northwest of Montreal, the property consists of one large, con�nuous block with 76 mineral claims totaling 4,528 hectares (45.3 km2).
The Company also holds interest in seven early-stage projects in southern Quebec, including Ruisseau, Tremblant, Meloche, Boyd, Dieppe, North Low, and Carmin, covering 328 claims in total on 7 early-stage projects covering 18,622 hectares in the Lauren�an region of Quebec and within KZA territory. The grades presented below for the Lauren�des graphite por�olio were press-released on January 7th, 2025. (h�ps://lomiko.com/news/lomiko-metals-encounters-up-to-27-9-graphite-at-its-lauren�des-early-stageprojects-including-the-discovery-of-four-new-zones-at-the-ruisseau-project-spanning-over-3-kilometres-long/)
The Yellow Fox Property is located approximately 10 km southwest of the Town of Glenwood NL, and south of the Trans-Canada Highway. The Property occurs within NTS map sheets 02D/14 and 15 with excellent access along several logging and skidder roads origina�ng from Glenwood.
This property is on the same trend as the past-producing an�mony mine, Beaver Brook, which is located 25km southwest of the property. Yellow Fox is an early-stage explora�on property prospec�ve in an�mony, gold, and silver, where historic works returned samples anomalous in gold (Au), an�mony (Sb), lead (Pb), zinc (Zn), and silver (Ag). The trenching exposed the rocks, resul�ng in grab samples to 59.43g/t Au, 11.10% Sb, 7.00% Zn, 72.90g/t Ag, and 5.50% Pb in arsenopyrite-s�bnite veins within altered monzogranite. (See Metals Creek assessment report at h�ps://gis.geosurv.gov.nl.ca/geofilePDFS/Batch2016/002D_0779.pdf) Lomiko QP relied on the informa�on provided by Metals Creek. Metals Creek QP is Wayne Reid, P.Geo. is registered in Newfoundland.
For more informa�on on Lomiko Metals, review the website at www.lomiko.com, contact Gordana Slepcev at 647-391-7344 or email: [email protected].
About DRA
DRA Global Limited (DRA) is an interna�onal mul�-disciplinary engineering, project delivery and opera�ons management group, predominantly focused on the mining, minerals and metals industry. DRA has an extensive track record spanning four decades across a wide range of commodi�es. DRA’s teams have deep exper�se in the mining, minerals and metals processing industries, as well as related non-process infrastructure such as, water, and energy solu�ons. DRA covers all major mining centres with offices across Africa and the Middle East, North and South America, and Asia-Pacific.
Cau�onary Note Regarding Forward-Looking Informa�on
This news release contains "forward-looking informa�on" within the meaning of the applicable Canadian securi�es legisla�on that is based on expecta�ons, es�mates, projec�ons and interpreta�ons as at the date of this news release. The informa�on in this news release about the transac�on; and any other informa�on herein that is not a historical fact may be "forward-looking informa�on". Any statement that involves discussions with respect to predic�ons, expecta�ons, interpreta�ons, beliefs, plans, projec�ons, objec�ves, assump�ons, future events or performance (o�en but not always using phrases such as "expects", or "does not expect", "is expected", "interpreted", "management's view", "an�cipates" or "does not an�cipate", "plans", "budget", "scheduled", "forecasts", "es�mates", "believes" or "intends" or varia�ons of such words and phrases or sta�ng that certain ac�ons, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking informa�on and are intended to iden�fy forward-looking informa�on. This forward-looking informa�on is based on reasonable assump�ons and es�mates of management of the Corpora�on, at the �me it was made, involves known and unknown risks, uncertain�es and other factors which may cause the actual results, performance or achievements of the companies to be materially different from any future results, performance or achievements expressed or implied by such forward-looking informa�on. Such factors include, among others, risks rela�ng to the restart of opera�ons; further steps that might be taken to mi�gate the spread of COVID-19; the impact of COVID-19 related disrup�ons in rela�on to the Corpora�on's business opera�ons including upon its employees, suppliers, facili�es and other stakeholders; uncertain�es and risk that have arisen and may arise in rela�on to travel, and other financial market and social impacts from COVID-19 and responses to COVID-19. Although the forwardlooking informa�on contained in this news release is based upon what management believes, or believed at the �me, to be reasonable assump�ons, the par�es cannot assure shareholders and prospec�ve purchasers of securi�es that actual results will be consistent with such forward-looking informa�on, as there may be other factors that cause results not to be as an�cipated, es�mated or intended, and neither the Corpora�on nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking informa�on. The Corpora�on does not undertake, and assumes no obliga�on, to update or revise any such forward-looking statements or forward-looking informa�on contained herein to reflect new events or circumstances, except as may be required by law.
Neither the TSX Venture Exchange nor its Regula�on Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
On Behalf of the Board, “Gordana Slepcev” Chief Execu�ve Officer