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Lac Guéret Graphite Project Developing a world-class flake graphite deposit in Quebec
August 2013 | Corporate Presentation
TSX.V : LLG
This Presentation may contain “forward-looking information” which may include, but is not limited to, statements with respect to: timing of the receipt of governmental
approvals and/or acceptances; targets, estimates and assumptions in respect of production and prices; amount and type of future capital expenditures and capital resources;
mineral reserves and mineral resources; anticipated grades; 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; operating expenditures; costs and timing of future exploration; and
environmental and reclamation expenses. There can be no assurance that future required regulatory approvals will be obtained or that anticipated transactions or proposed
work and construction programmes will be completed satisfactorily. Often, but not always, 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 state 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 any future results, performance or achievements expressed or implied by the forward-looking 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 the applicable public record document 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. 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 timeline: 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 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. 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 technical content of Mason Graphite Inc.’s presentation was reviewed and approved by its Executive Vice President of Process
Development, Jean L’Heureux, P.Eng., who is a Qualified Person within the meaning of National Instrument 43-101. Mr. L’Heureux has reviewed and approved the scientific
and technical content of this presentation.
Forward Looking Statements
2 TSX.V : LLG
Long mine life at high grade: 22 yrs of production at 27.4% Cgr
Annual production of 50,000 tonnes
Low capital intensity project; excellent economics Direct capital cost requirement of $89.9 million
Production costs of $390/tonne
Pre-tax 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 up to 96.4 % Cgr
Located in excellent mining jurisdiction of Quebec, Canada
3 TSX.V : LLG
Solid Fundamentals for Success
The Product
The Project
The Team
Graphite is an essential and highly desirable
product with increasing consumption and demand
Highly experienced management team with over 5
decades in graphite production, sales and R&D
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
4 TSX.V : LLG
Flake
Graphite:
Graphite – Over 180 End Products
Flake Amorphous Vein/Lump Synthetic
Metallurgy
Refractories ■ ■ ■ Crucibles ■ ■ ■ Carbon Raisers ■ ■ ■ Moulds & Castings ■ ■ Molten Metal Protection ■ ■ High Temperature Lubricants ■ ■ Powder Metallurgy & Alloys ■ ■
Electrical Applications
Alkaline & Lithium Batteries ■ ■ Li-ion Batteries ■ ■ Fuel Cells ■ ■ Carbon Brushes ■ ■ ■
Technical Applications
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 ■
5
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
TSX.V : LLG
3 Forms of Graphite
Flake Highest Price, Lowest Supply
High Purity: 85%-99%+ carbon
Amorphous Least graphitic of the three
Lower Purity: 60%-90% carbon
Vein/Lump Uncommon & 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$2,500/t
August 2013 ($USD):
TSX.V : LLG 6
Amorphous: $525,
Small Flake:$1,050
Medium Flake: $1,200
Large Flake: $1,350
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
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 the 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
7 *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
TSX.V : LLG
Restricted and Unstable Supply in China = Opportunity
Flake graphite production outside of China:
Brazil Canada India Madagascar Norway Zimbabwe Germany
8
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 100% of mined graphite
material (from large to fine flakes)
Market Study is underway to identify all end-users in
all market segments
TSX.V : LLG
Graphite Mine Inventory of different sizes for different uses and end users
End-Users Typical 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 # of potential clients
Management: Proven Track Record
Benoît Gascon, CPA, CA
9 TSX.V : LLG
Luc Veilleux, CPA, CA
Jean L’Heureux, Eng.
20 years of executive
positions at Timcal
20 years in mining and
graphite, Timcal and Imerys
8 years in graphite at
Timcal
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)
Roles:
Senior Vice-president, Finance
COO North America
Vice-president, Finance North America
Financial Controller
Roles:
Product Manager (Marketing)
Graphite Sourcing Manager
Production Manager
Plant Metallurgist & Lab Supervisor
Major Accomplishments:
Creation of the whole customer base of
Stratmin in the 90’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
Management Team
Benoît Gascon, President & CEO Over 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 & CFO Luc 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 Development Mr. 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 Development Over 14 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. He is currently an officer of Belo Sun Mining and a board member of Copper One Resources and Antofagasta Gold. Mr.
Marcotte holds a B.A.A. from Sherbrooke University and is a Chartered Financial Analyst (CFA).
Nathalie Guillemette, Geologist Mrs. Guillemette holds a bachelor’s degree in geology and a master’s degree in Economic Geology from McGill University. She has over 15 yrs
of experience in mineral exploration for projects in Quebec, South America and Africa. Most recently, she worked for Sulliden where she
oversaw the drill data compilation for the resource calculation of their Shahuindo project in Peru. Mrs. Guillemette
is a member of the Ordre des Géologues du Québec.
10 TSX.V : LLG
Lac Guéret Graphite Project - Location
11 TSX.V : LLG
Lac Guéret - Location & Access
12 TSX.V : LLG
288 km from Baie-Comeau
service centre, + 660 km to MTL
All-weather access from
Hwy 389 and main logging
roads throughout property
Good accessibility to labour
Excellent mining jurisdiction
Only zone
drilled to date
Mason Graphite Claims Map
13 TSX.V : LLG
Mason Graphite
properties consist of
215 claims covering
11,630 ha (116 km2)
in northeastern
Québec
Lac Guéret Site
14
Lac Guéret Site
15
Two main graphite zones have
been identified to date
Two Major Graphite Zones
kilometers 16
GC Graphite Zone
1.2 km strike, up to 240 m wide
24,227 m of drilling completed in 2012 Excellent resource growth potential
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
Mineral Resource – GC Zone Only
Categories Unit Tonnes Grade ( % Cgr)
Measured (M)
Unit 1 (4 to 10% Cgr) 31,200 7.82
Unit 2 (10 to 27% Cgr) 122,800 14.85
Unit 3 ( > 27 % Cgr) 144,900 36.72
All units 298,900 24.39
Indicated (I)
Unit 1 (4 to 10% Cgr) 2,672,500 8.09
Unit 2 (10 to 27% Cgr) 2,089,200 16.83
Unit 3 (> 27 % Cgr) 2,535,300 36.20
All units 7,297,000 20.24
M + I
Unit 1 (4 to 10% Cgr) 2,703,700 8.67
Unit 2 (10 to 27% Cgr) 2,212,000 18.30
Unit 3 (> 27 % Cgr) 2,680,200 36.96
All units 7,595,900 20.40
Inferred
Unit 1 (4 to 10% Cgr) 1,272,600 7.56
Unit 2 (10 to 27% Cgr) 714,161 17.54
Unit 3 (> 27 % Cgr) 771,500 33.10
All units 2,758,261 17.29
M&I Average Grade: 20.40%
Inferred Average Grade: 17.29%
See technical report dated July 3, 2012. The graphite mineral resource estimate herein was prepared by Edward Lyons, P.Geo., and
Guy Saucier, Eng., both of whom are independent, qualified persons as defined by National Instrument 43-101. 17
Representative of this area of the GC Zone only
Mineral Resource based on 2006 drilling program (2,149m)
Metal Equivalence
18
Source: TD Securities research department (Craig Miller)
Graphite (@ $1,750)
20.40% =
Gold (@ $1,250)
9.1 g/t
Silver (@ $14)
800 g/t
Copper (@ $2.75)
6% = =
TSX.V : LLG
*PEA indicates 22 years of production at 27.4% Cgr
* Please refer to the cautionary notes related to the preliminary economic assessment (PEA) in the Appendices of this presentation
(July 2012 Mineral Resource)
Mason Graphite Comparables
19
20.0%
Million Tonnes
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.
TSX.V : LLG
NI 43-101 Mineral Resource Comparison
Company Market Cap (Aug 6, 2013)
Project
Location M&I (Mt) Grade (Cg)
Inferred (Mt)
Grade (Cg)
Northern Graphite Corp. (NGC) $36M ON, CA 18.97 1.81% 55.04 1.57%
Focus Graphite Inc. (FMS) $48M QC, CA 4.94 15.76% 3.00 15.58%
Energizer Resources (EGZ) $37M Madagascar (Indicated only)
83.99 6.36% 40.32 6.29%
Flinders Resources Ltd. (FDR) $29M Sweden 2.60 10.50% 6.93 8.82%
Mason Graphite (LLG) $33M QC, CA 7.59 20.40% 2.80 17.29%*
*PEA (April 2013) features first 22 yrs at 27.4% Cgr
Rapid Resource Growth Expected
Exploration Program Progress
26,500 metre drilling program on
the GC and GR Zones completed (July-November 2012)
New drill results from the GC Zone
expected to translate into mineral
growth in Q3-2013 resource update
July 2012 mineral resource only
considers historical drilling from
2006 (see pink square at right)
20 TSX.V : LLG
Drill intercept
highlights:
2012 Drill Program Results 26,500 metres drilled (163 holes)
GC Zone
Hole LG-207: 44 m at 17.1% Cgr, including 12 m at 31.4 % Cgr
and 28 m at 16.9% Cgr, including 13 m at 27.2% Cgr
Hole LG-213: 26 m at 18.1% Cgr and 63 m at 15.4% Cgr
Hole LG-215: 31 m at 24.3% Cgr and 17 m at 18.3% Cgr
Hole LG-221: 55 m at 26.1 % Cgr
Hole LG-227: 33 m at 13.3% Cgr and 76 m at 12.0% Cgr
Hole LG-231: 33.0 m at 19.1% Cgr
Hole LG-234: 128 m at 21.1 % Cgr, including 27 m at 37.3 %
Hole LG-235: 197 m at 17.1 % Cgr, including 39 m at 33.9 %
Hole LG-38: 60 m at 13.2% Cgr and 36 m at 15.8% Cgr
Hole LG-39: 113 m at 15.5% Cgr, including 11 m at 38.7% Cgr
Hole LG-44: 96.0 m at 16.9% Cgr
Hole LG-50: 52.3 m at 22.4% Cgr and 12.4 m at 17.5% Cgr
Hole LG-53: 43.5 m at 20.0% Cgr, 16.5 m at 15.7%
and 88.5 m at 21.0% Cgr
Hole LG-057: 55 m at 16.4% Cgr, including 16 m at 27.1%
Hole LG-61: 13.5 m at 20.2% Cgr, 13.5 m at 17.5% Cgr
and 13.5 m at 24.7% Cgr
GR Zone
Hole LG-248: 31 m at 20.2 % Cgr
Hole LG-257: 32 m at 15.9 % Cgr 21 TSX.V : LLG
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 TSX.V : LLG
Flake Size Distribution
(%)
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.
**The technical content of this slide 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.
22 years of production at 27.4 % Cgr
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 per tonne
Low capital intensity and low cash operating costs
PEA Financial Results April 2013
23 TSX.V : LLG * Please refer to the cautionary notes related to the preliminary economic assessment (PEA) on slide 2.
50 000 tonnes per year of production
27.4 % Cgr in mineralization over LOM
Graphite Recovery above 96 %
Up to 96.4 % Cgr of finished product purity
Stripping ratio of 0.76:1
Process resulting in +96% recoveries
PEA Operational Results April 2013
24 TSX.V : LLG * Please refer to the cautionary notes related to the preliminary economic assessment (PEA) on slide 2.
Flow Sheet PEA Technical Report - April 2013
1. Mining
2. Crushing
3. Milling & Flotation
4. Dewatering
5. Drying
6. Sieving
Simple process
Known and proven technologies
7. Packaging
2012 2013 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
TSX Venture Listing
Completion of 26,500 m Drilling Program
Completed Metallurgical Test Work
Completed PEA
Completion of a $5 million financing
Phase II Drilling Program
Purification Testing
NI 43-101 Mineral Resource Update
Further Metallurgical Testing
Initiation of Feasibility Study
Environmental Baseline Studies Complete
Expected Construction
Expected Production
Recent & Upcoming Milestones
26 TSX.V : LLG 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. 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.
Corporate Structure
Corporate Structure
Stock Symbol
Shares Outstanding
Options
Warrants
Fully Diluted
Market Cap (Aug 6, 2013)
TSX.V : LLG
66,785,283
5,825,000
21,657,323
94,267,606
~$33M
Major Shareholders
F&M & Insiders
Institutions
~25M shares
~33M shares
27 TSX.V : LLG
Mason Graphite began publicly trading on October 30, 2012
Analyst Coverage
Michael Goldberg
Daniel Greenspan Cash Position
Last reported quarter (ending Mar 31) $2M
* A $5M private placement financing was closed on June 28, 2013
Appendices
Board of Directors
29 TSX.V : LLG
Tayfun Eldem, Chairman Mr. 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-Chairman Mr. 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, Director Mr. Moore is a finance executive with over 20 years of experience in the resource sector. He presently serves as 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, Director Former CFO of Consolidated Thompson Iron Mines Ltd. (CLM). He is currently the CFO of Alderon Iron Ore Corp.; and formerly acted
as President and CEO of Cap-Ex Ventures Inc. and CFO of Copper One Inc., two exploration mining companies listed on the TSXV.
Alastair Neill, Director Mr. 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
Backed by the Forbes&Manhattan Group
*Excellent track record of success in the Labrador Trough*
Stan Bharti
Founder & Executive Chairman
Over 50 engineers
Over 50 geologists
Expertise in all mining,
energy and agriculture
products
8 full-time
securities lawyers
and support staff
Over 30 people
with expertise in M&A
Investment banking
Corporate Finance
Corporate Development
Investor Relations
Over 20 accounting
and administration
staff
Advisory Board
Technical Team
Legal Team
Financial Team
Admin / Accounting
Team built on technical/operational expertise
Accomplished financial markets professionals
30 TSX.V : LLG
F&M International Advisory Board
General John Abizaid, U.S. Army (Ret.) Served for 34 years in U.S. military; was Commander of US Central Command from 2003-2007
Peter Boot, South America 25 years financial markets experience; 15 years with ING Group in Brazil, Curacao, Venezuela, Paraguay and Bolivia
General Jay Garner, U.S. Army (Ret.) Served for 35 years in the U.S. military; Command of Air Missile Defense Units during the Gulf War
General Ron Hite, U.S. Army (Ret.) Served 33 years in the U.S. military; Senior Military Advisor to the Army Chief of Staff
Larry King, U.S.A. American icon; Former Host of CNN’s Larry King Live
General Lewis MacKenzie, Canadian Army (Ret.) Served in the Canadian Forces for 35 years; led the UN peacekeeping mission in Sarajevo
Hon. Pierre Pettigrew, Canada Served as Canadian Federal Minister of Foreign Affairs and Minister of International Trade
Jim Rogers Author, financial commentator and successful international investor.
James Rooney Investment and Infrastructure development expert; Established and cultivated new businesses
General Sir Michael Rose, British Army (Ret.) Highly decorated former SAS Commander for the British Army
Bernard Wilson Corporate Finance and Investment Banking advisor with substantial experience in financial restructurings
31 TSX.V : LLG
Lac Guéret – Project History
1950’s
Exploration for iron by
Quebec Quartier Mines 2002-2006
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
32
* 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
2012 2013 2014 2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Fauna & Flora Inventory
IBA
ESIA & BAPE
Certificate of Authorization
Completed and Upcoming Milestones:
1) Q1 2013 – Fauna and Flora Inventory Preliminary Report by Roche
2) Q4 2013 – Fauna and Flora Inventory Final Report by Roche
3) Q4 2013 – Completion of Impact and Benefits Agreement (IBA)
4) Q2 2014 – Completion of Environmental Social Impact Assessment (ESIA) and Public Hearings on the Environment (BAPE) by Roche
5) Q1 2015 – Completion of Certificate of Authorization
1
5
3
4
33
Environmental Permitting Expected Timeline
2
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Technical Partners
34 TSX.V : LLG
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) – Expected in 2013
35
Pessamit is the Innu First Nation
community 60 km west of Baie Comeau
Pessamit
Lac Guéret Deposit
TSX.V : LLG
Montreal Office
2000 McGill College Ave., Suite 2210
Montreal, QC, H3A 3H3
T +1 (514) 289-1180 F +1 (514) 289-0958
Toronto Office
65 Queen Street West, Suite 800
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