• OGL Website Public Presentation v.16-11 High Quality, Large Flake, Near-Term Graphite Producer Public Presenta.on OGL Website Presenta/on v.16-11 Kearney Mine Processing Facility
• OGL Website Public Presentation v.16-11
HighQuality,LargeFlake,Near-TermGraphiteProducer
PublicPresenta.on
OGLWebsitePresenta/onv.16-11
KearneyMineProcessingFacility
• OGL Website Public Presentation v.16-11
Disclaimer
No representa+onorwarranty, expressedor implied, ismade as to the accuracyor completeness of the informa+on contained in this presenta+on.Nothingcontainedhereinis,orshallberelieduponas,apromiseorrepresenta+onastothepastorthefuture.
This presenta+on may include or incorporate by reference certain “forward-looking statements” within the meaning of applicable securi+es laws.Statementsthatarepredic+ve,thatdependuponorrefertofutureeventsorcondi+onsorthatincludewordssuchas“expect”,“an+cipate”,“es+mate”,“contemplate”,“target”,“plan”,“con+nue”,“budget”,“schedule”,“may”,“will”,“should”,“intend”,“believe”areforward-lookingstatements.Forward-lookingstatementsarenotguaranteesoffutureresultsandperformancebutratherreflectourcurrentviewswithrespecttofutureevents.Resultsaresubjecttorisks,uncertain+es,assump+onsandotherfactors,andactualresultsandfutureeventsmaydiffermateriallyfromtheconclusions,forecasts,projec+onsorresultsan+cipatedintheseforward-lookingstatements. Becauseoftheserisksanduncertain+es,forward-lookingstatementsshouldnotbereliedon.Alloftheforward-lookingstatementsinthispresenta+on,expressorimplied,arequalifiedbythesecau+onarystatements.
Forward-lookingstatementsaremadeasofthedateofthispresenta+onbasedonavailableinforma+on.Certainassump+onswereappliedindrawingconclusionsormakingforecastsorprojec+ons.Althoughsuchassump+onsareconsideredreasonableasatthedateofthepresenta+on,theforward-lookinginforma+onisinherentlysubjecttosignificantbusiness,economicandcompe++veuncertain+esandcon+ngencies.Someofthematerialrisks,factors andassump+ons that could causeactual results todiffermaterially fromexpecta+ons include,butarenot limited to, ability to stakemineralclaims prior to compe+ng businesses, staking ofmineral claims on land unsuitable for development or landwhich does not encompass keymineralreserves, inability to raiseor allocate sufficient capital toperform intendedexplora+onanddevelopmentor tomaintainminimumyearlyexplora+onexpenses and consequent loss of mining claims, fluctua+ons in currency markets, fluctua+ons in spot and forward prices of minerals and othercommodi+es,changesinna+onalandlocalgovernmentlegisla+on,taxa+on,controls,regula+onsandpoli+caloreconomicdevelopmentsinCanadaandinterna+onally, other business opportuni+es thatmay be presented to or pursued, change inmanagement or control of the company, ac+vi+es ofcompe+ngbusinesses,opera+ngortechnicaldifficul+esinconnec+onwithmining,explora+onordevelopmentac+vi+es,employeerela+ons,availabilityandcostsofminingandexplora+oninputs,labourandequipment,risksofobtainingnecessarylicencesandpermits,diminishingquan++esorgradesofmineralreserves,abilitytomeetopera+onalexpenses,contestsover+tleorrighttoproper+esormineralclaims,conflic+ngaboriginallandclaimsandaboriginal rights, environmental regula+ons, the risks and hazards associated with mineral explora+on and development, environmental hazards,industrialaccidents,unusualorunexpectedgeologicalforma+onsorpressures,flooding, inaccessibilityof lands, inclementweathercondi+onsandtheriskofinadequateinsuranceorinabilitytoobtaininsurance. Wedisclaimanyinten+onorobliga+ontowithdraw,updateorreviseanyforward-lookingstatementswhetherasaresultofnewinforma+on,futureeventsorotherwise,excepttotheextentrequiredbyapplicablelaws.
Nopartofthispresenta/onisintendedtobedeemedanofferingofsecuri/estoinvestors.
2
• OGL Website Public Presentation v.16-11
TheOntarioGraphiteOpportunity
LargestconfirmedgraphiteresourceinNorthAmerica,andoneofthelargestintheworld
− 51.5MtofIndicatedataveragegradesof2.14%Cg,and46.8Mtofinferredataveragegradesof2.00%Cg
Strongleadershipteam,withaverageof30yearsexperienceingraphiteandfinance
Strongfuturegraphitemarketfundamentals
- Kearneyis+melybasedonincreasingsupply/demandgap
- Demandgrowing(LED,LiBa_eries);supplystrained(Chinashut-downs;limitednewsizableprojects)
~9monthramp-up(aPerfunding)toproduc/onof22ktpa,at~2.2%Cgheadgrade
Substan/alupsidepoten/altoincreasecapacitybasedondemandandfasterresourceexploita/on
3
Seekingfinancingtocompletere-commissioningoftheworld-classKearneygraphiteproject,centrallylocated2.5hoursnorthofToronto,withallapprovalsandmajorityofinfrastructurealreadyinplace
Loca/on Resource People 1st-Mover FocusedonHighMargin
• OGL Website Public Presentation v.16-11
Kearney–ExcellentLoca/onwithInfrastructureinPlace
● Poli+callystable,first-ratecountry,withcloseproximitytomajorUSgraphitemarkets=dependableand+melydeliveryforUScustomers
● PortsforshipmenttoEuropeancustomers
Ø Torontotosite–270kmoffourlanehighway,30kmofpavedroad,10kmofallweatherloggingandminesiteroad
● Areahasstrongpoli+calandcommunitysupportforminers,equipmentvendorsandavailablelabor
● Transporta+oncostscanbekeptrela+velylow,withOGLendproductsdelivereddirectlytoend-users
4
Kearney Mine Property
(near Huntsville and Parry Sound)
KearneyMineProcessingFacility(InfrastructureinPlace)
Toronto
Buffalo
• OGL Website Public Presentation v.16-11
KearneyClaimMap–SignificantUpsidePoten/al
● Currentleasesarelocatedintwozones
Ø The7miningleasesarecomprisedof26claims;allleasesineffecthavebeenrenewed(21yearterm)
● Inaddi+onOGLcontrols29addi+onalac+veclaims
Ø 15areownedfreeandclear;14aresubjecttoroyaltyagreementswith2third-partyclaimholders
5
UnexploredClaimArea
Zone2
Zone1
Zone2● 4mining
leasescomprisedof4claims
Zone1● 3mining
leasescomprisedof22claims
• OGL Website Public Presentation v.16-11
MineralInventory–LargestGraphiteResourceinN.America
● Withthecurrentplantoprocess~1MMtonnesoforeperyear,thepropertyisexpectedtohavemorethan50yearsofminelife(illustratesacasefora>20minelife)
6
GolderAssociatesBlockModel(August2013)
MineralZone MetricTonnes Carbongrade(%)
Zone1:
IndicatedResources 51,505,894 2.14
InferredResources 28,393,361 2.00
Zone2:
InferredResources 18,427,547 2.00
Source:GolderAssociates,NI43-101TechnicalReportandAugust2013MineralResourceEs.mate;KearneyGraphitePropertyOntario,Canada
• OGL Website Public Presentation v.16-11
TheRightLeadershipTeaminPlacetoExecuteonPlan 7
CoreTeam–Average30YearsExperienceWorkingforLeadingGraphite/IndustrialMineralsPlayers
TomBurkee(CEO)• 37+yearsofseniormanagementandsalesexperienceacrossNorthAmerica,EuropeandAsiaincarbonandgraphitesectors
• Mostrecently,USVPofGraphiteMaterials&SystemsforSGLGroup
EllertonCastor(CFO)• 24+yearsofinvestmentbankingandprincipalinves+ngexperienceincludingextensiveworkasanM&AadvisortoavarietyofcompaniesintheAmericas,EuropeandAsia
• OGL Website Public Presentation v.16-11
AllMajorPermitsinPlace
● OGLhasallmajorpermitsinplaceandhaspassedtechnicalreviews,publiccommentperiods,andFirstNa+onsconsulta+ons;withMOUsinplacewithFirstNa+ons
● FirstNa+onsbenefitagreementsbeingnego+ated&finalizedin-linewithMOUs
8
Permit Ministry IssuanceDate Approved
Closureplan NorthernDevelopment February2012
TemporaryPTTW(“PermittoTakeWater”) Environment June2012
Damdesign NaturalResources October2012
Archeologicalstudy Tourism&Culture November2012
Site-widePTTW Environment May2013
Site-widewaterenvironmentalcomplianceapproval Environment May2013
Site-wideair/noiseenvironmentalcomplianceapproval(amendedfordifferentgenerator)
Environment May2013
• OGL Website Public Presentation v.16-11
Graphite101–ASuperMetal
● Naturalgraphiteisanindustrialmineralwithmanyproper+esofa“SuperMetal”Ø Excep+onalheatandelectricalconduc+vityproper+es(highmel+ngpointof3,650oC)
Ø Asthermallyconduc+veascopperwith1/8ththedensity
Ø Extremelyresistanttostrongacids,chemicallyinertandhighlyrefrac+ve
Ø Outstandinglubrica+onproper+esduetothecrystallinestructure
● Existsnaturallyinthreeforms:
9
• Mostpopularfortechnicalapplica+ons(~40%ofthegraphitemarket)
• Highestmarketgrowthpoten+al• Highergrade–carbonrangeof80%-98%• Flakesizerangesfrommicronsizeto2-3m• Sizeisimportantcommercialconsidera+on
• Leastvaluablebutmostabundant(~60%ofthegraphitemarket)
• Carbonrangeof70%-75%• Seammineralandtypicallyhigherinashbecauseouenassociatedwithandformedwithincoalseams
• Environmentallyunfriendly
• Rareandvaluable• Trueveinmineral• BesttypefoundinSriLanka• Usuallyhighgradedeposits
Source:NaturalandSynthe.cGraphite:GlobalIndustryMarketsandOutlook;8thEdi.on,2012.Roskill
(SEMimage)
Vein/Lump Flake(Macrocrystalline) Amorphous(Microcrystalline)
• OGL Website Public Presentation v.16-11
Graphite’sManyUsesCreatesSignificantDemandPoten/al 10
FuelCellPlates
Refractories
Fric/onMaterialsLubricants
FoilsandGaskets
Alkalinebaeeries
Li-ionMobilePhoneBaeeries
LeadAcidBaeeries
Crucibles
SuperCapacitors
Graphenes
Polymers
Li-ionEVBaeeries
2015CoreMarketSegmenta/on:NaturalFlakeGraphite
Refractories32%
EngineeredProducts26%
Lubricants19%
EnergyStorage13%
Polymers10%
LED’sThermallyConduc/vePlas/cs
ThermalManagement
NaturalFlakeGraphite:Tradi/onalMarkets
NaturalFlakeGraphite:EmergingMarkets
• OGL Website Public Presentation v.16-11
Addi/onalUpsideinAutomobileSectorviatheLi-IonBaeery● Theelectricandhybridautomobilemarketisexpectedtoincreasesubstan/allyby2020
● Newdemandcreatedbythesevehiclescouldaddasmuchas~170,000tonnesofgraphitedemand
Ø TheEV/HEVvehiclesareprojectedtouse~30-100kgofgraphiteanodematerialperunit.Thisrepresentslessthan1%ofthetotalvehiclecost.
Ø Excludingothergraphitegrowthareas,the~170,000tonnescouldrepresentgrowthof~15%vs.2015consump/on
Ø Addi+onalupsidedriversincludebuses,powertools,andcityebikes
11
Tesla NissanLeaf
ToyotaPrius BMWi8
0.7 0.91.2
1.72.2
3.2
4.2
5.6
0.0
2.0
4.0
6.0
8.0
2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E
MMso
fLi-ion
BatteryUnits
Hybridelectricvehicles(HEV) Plug-inelectricvehicles(PHEV) Batteryelectricvehicles(BEV)
ElectricandHybridAutomobileEs/mates
Sources:BasedonRoskillConversion:unitxkg÷1000kgpertonne
• OGL Website Public Presentation v.16-11
OGLMiningandProcessing
● Designedcapacityof~20ktpa(1MMtonnesore)atheadgradesof~2.2%Cg
● An+cipated~20-yearmineplanbasedonconven+onalopenpitmethodsthatwillconsistofdrilling,blas+ng,loading,haulingandpitservicesonafull+mescheduleof16hours/dayx5days/week
● Straightforwardsingle-productplanwithcrushing,grinding,flota+on,tailings,dewatering,productdryingandsizing,andbagging
Ø Historicaldatasupportsrecoveriesof~90%,with94%-97%Cg
● Amicronizingandpurifica+onareatobeassemblednearby
12
KearneyMineProcessingFacility BallMill Flota/onCells
• OGL Website Public Presentation v.16-11
OGLProcessingFlowsheet–MajorityofEquipmentonSite 13
JawCrusher
PrimaryScreen
SAGMill
RoughFlota+on
BallMill
SecondaryScreen
1stCleanerFlota+on
2ndCleanerFlota+on
ConcentrateThickener
BeltFilter
TorbedDryer
DryerBagFilter
SiuerScreens
(-150µm) (-180µm+150µm) (-300µm+180µm) (+300µm)
ConcentrateBaggers
TailingsPond
KearneyMineProjectOntarioGraphiteLtd
PROCESSFLOWDIAGRAM
Ø Highlighteditemsrequirefuturecapexspend,non-highlighteditemsarecurrentlysubstan.allyinplace
Ø Addi.onalspendonelectricalgenera.on,distribu.on&control
LEGEND
=On-site&installedorreadyforinstalla+on
• OGL Website Public Presentation v.16-11
BuyersWantConsistentandReliableSupply
Impacttobuyers
14
Diversifica/onfromChina
• Avoiddelaysorin-transitdamagepoten+al
• Reduc+oninworkingcapital• OGLabletorunyearround(Chinaclosedforweather4+months/year)
• Easiertoplanproduc+on• ManagestorageandA/Pwithweeklytruckloads
• Chinaproduceslimitedamountsoflargeflake(+50mesh)
• Limitedlargescaleopera+onsproducinglargeflake
ImprovedOpera/onalEfficiency
SourceofConsistentPremiumFlake
• Reduc+onindependenceonChina• EliminateChinesequalityissues
• Environmentalissues-shutdownsandsupplystrain
IncreasedSupplyReliability
WhatBuyersWant(OGLMeetsNeeds)
• OGL Website Public Presentation v.16-11
WhyOntarioGraphite?
Loca/on–EasyAccesstoNorthAmericanEnd-UserMarket
Resource–LargestconfirmedgraphiteresourceinNorthAmerica,andoneofthelargestglobally
People–Strongexperienceanddeeprela/onshipsacrossthevaluechain.GreataccesstostrongMiningLaborMarket
First-moveradvantage–Canachieverobustmarketshare,throughlong-termrela/onships,annualcontractsandspotcontractswithNorthAmericancustomers
Focusedonhighmarginbusiness–Modeldevelopedtohave~+90%oftargetedbusinessinthehighmarginROMandMicronized/Value-Addbusiness
15
• OGL Website Public Presentation v.16-11
TheOntarioGraphiteOpportunity
LargestconfirmedgraphiteresourceinNorthAmerica,andoneofthelargestintheworld
− 51.5MtofIndicatedataveragegradesof2.14%Cg,and46.8Mtofinferredataveragegradesof2.00%Cg
Strongleadershipteam,withaverageof30yearsexperienceingraphiteandfinance
Strongfuturegraphitemarketfundamentals
- Kearneyis+melybasedonincreasingsupply/demandgap
- Demandgrowing(LED,LiBa_eries);supplystrained(Chinashut-downs;limitednewsizableprojects)
~9monthramp-up(aPerfunding)toproduc/onof20ktpa,at~2.2%Cgheadgrade
Substan/alupsidepoten/altoincreasecapacitybasedondemandandfasterresourceexploita/on
16
Seekingfinancingtocompletere-commissioningoftheworld-classKearneygraphiteproject,centrallylocated2.5hoursnorthofToronto,withallapprovalsandmajorityofinfrastructurealreadyinplace
Loca/on Resource People 1st-Mover FocusedonHighMargin
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