Leading Edge Materials Corp. · TSXV:LEM
Leading Edge Materials — Investor Presentation (June 2023)
44 slides from Leading Edge Materials's investor presentation, June 2023
Slide 1: Critical Raw Materials in Europe
Critical Raw Materials in Europe June 2023 TSX.V: LEM Nasdaq First North: LEMSE OTCQB: LEMIF FRA: 7FL
Slide 2: Disclaimer
DISCLAIMER This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regula
Slide 3: Strategy and Project Portfolio
Strategy and Project Portfolio Developing a portfolio of critical raw material projects located in the European Union. Critical raw materials are determined as such by the European Union based on their economic importance and supply risk. They are directly linked to high growth technologies such as
Slide 4: Board and Management
Board and Management Canadian public company with experienced EU leadership Lars-Eric Past President & CEO Ivanhoe Mines CFO Kinross Gold Corporation Stefan Dutch qualified lawyer Founder STAUNCH BV Chairman Counsel Derksen General Past Johansson CFO Noranda Inc CFO Falconbridge Senior lawyer in the
Slide 5: The Share
The Share ▪ Tickers: LEM.V (TSXV), LEMIF (OTCQB), LEMSE (NFN), 7FL (Fra) ▪ Quote: CAD $0.165 / SEK 1.46 (per 5 June 2023) Share price LTM (LEM.V; CAD) ▪ Mkt Cap: CAD $27.3m / SEK 242m (non-diluted) Capital Structure Swedish Ownership Insider Ownership 51% (60%) 39% (48%)
Slide 6: Critical Raw Materials
Critical Raw Materials Supply Risk Economic Importance ▪ EU is dependent on imports of CRMs ▪ CRMs are directly linked to technologies such as batteries and permanent magnets that are critical for growth industries like renewables, energy storage and electromobility ▪ A few single countries dominate
Slide 7: CRMs are key enablers of a green, digital and autonomous EU
CRMs are key enablers of a green, digital and autonomous EU… E-mobility and renewables are mineral intensive and …and demand for graphite, REE, cobolt and nickel- built out rapidly… cobalt grow in tandem6) Mineral kt Low-carbon generation EV and battery storage Growth outlook intensity 5,000 Graphit
Slide 8: The EU is exposed to significant value chain risk
…and the EU is exposed to significant value chain risk Global extraction of Critical Raw Materials is concentrated to a few countries, and processing even more so – exposing the EU to significant value chain risk, and in term, risk of not making the transition to a green, digital, and autonomous eco
Slide 9: The Challenge for Europe
The Challenge for Europe “Green and digital technologies currently depend on a number of scarce raw materials. We import lithium for electric cars, platinum to produce clean hydrogen, silicon metal for solar panels. 98% of the rare earth elements we need come from a single supplier: China. This is n
Slide 10: Woxna Graphite Anode project
Woxna Graphite Anode project
Slide 11: Battery Value Chain Gap
Battery Value Chain Gap Predicted share of EU supply vs. expected EU demand until 2030 per value chain step Source: Business Sweden, The Nordic Battery Value Chain Step 2, August 2021
Slide 12: Woxna Graphite Overview
Woxna Graphite Overview Mine Concentrator Sizing Shaping Purification Coating Coated Spherical Purified Graphite Graphite Spherical Spherical Concentrate Graphite Purified Graphite Existing Planned
Slide 13: European Battery Industry
European Battery Industry Woxna Graphite is ideally positioned to become a Swedish supplier to the European battery industry 25x 71% - 100% 1,000,000 tpa Expected increase in demand for China’s global supply dominance of graphite of anode demand by 2030 based on 1,000 graphite by 2040 raw material a
Slide 14: Woxna Graphite Anode PEA
Woxna Graphite Anode PEA* Mineral Resource Estimate – Measured and Indicated Financial Highlights Property Classification of Mineral Tonnes (Mt) Grade C (%) Resource Measured 0.96 9.21 ▪ Post-tax Net Present Value (NPV 8%) of $248m Kringel Indicated 1.65 9.09 Sub-total Measured + 2.61 9.13 ▪ Post-ta
Slide 15: Woxna Graphite Anode PEA
Woxna Graphite Anode PEA* The PEA indicates the potential viability of a Swedish operation producing battery grade graphite anode material utilizing an existing graphite mine and concentrator with the addition of a value-add processing facility offsite ▪ Thermal purification process which, combined
Slide 16: Woxna Graphite LCA Results
Woxna Graphite LCA Results* ▪ 1 tonne of natural graphite anode material (coated spherical purified graphite ▪ 62.5% of the 1.8 tonnes CO2 eq. for Woxna contributed by (“CSPG”)) from natural graphite extracted at the Woxna Graphite mine is forecast argon and nitrogen. Local suppliers can offer clima
Slide 17: Proposed 50/50 JV with Sicona
Proposed 50/50 JV with Sicona* Targeting the production of advanced natural graphite and silicon-graphite-carbon composite active anode materials ▪ Sicona is commercialising innovative silicon-graphite-carbon composite anode and binder technology and materials that have been developed over the last
Slide 18: Woxna Graphite Mine
Woxna Graphite Mine
Slide 19: Annual potential anode output from Woxna Graphite
Annual potential anode output from Woxna Graphite* could support the production of lithium-ion batteries needed for a significant amount of electric cars 100 000 * Management estimate calculations based on publicly available data and product output numbers from National Instrument 43-101 report enti
Slide 20: Norra Kärr HREE Project
Norra Kärr HREE Project
Slide 21: Rare Earth Elements and permanent magnets
Rare Earth Elements and permanent magnets Permanent Magnets Electric Vehicles Wind Power
Slide 22: Location of Norra Kärr
Location of Norra Karr Sara rae ge fa Nechalacho (Satfartoa Fy. Strange .—Kvanefjeld, Norra Karr aii Hoi lake Yt) Set dll sh Sefer Pe os : =, Seas gor SS gBavan abe ZA \ eras ae a s eo. oS F A : EXPLANATION ~ Noval oii { Active mines 4 ayia TRE @ Carbonatite a f ae OF, i i Hastings © Peralkaline ign
Slide 23: Norra Kärr Site Plan Overview
Norra Kärr Site Plan Overview
Slide 24: Norra Kärr Mineral Resource Statement
Norra Kärr Mineral Resource Statement Resource REO Distribution Ce2O3 21.0% Pr2O3 3.0% Nd2O3 11.0% La2O3 10.0% Tb2O3 0.7% Dy2O3 5.0% Y2O3 34.1% 52% HREO Contained dysprosium 30,000 20,000 10,000 0 Norra Kärr Inferred Resource Norra Kärr 26 year LoM Mt Weld Reserve** * See National Instrument 43-101
Slide 25: Norra Kärr 2021 PEA
Norra Kärr 2021 PEA* Operational Highlights 1,150ktpa • Life of Mine (LOM) is 26 years 733ktpa • LOM average annual • Mining rate of 1,150,000 tonnes 292ktpa • strip ratio of 0.32 • TREO 5,341 tonnes 103ktpa @ 5.8% TREO • Magnet REOs (Nd, Pr, Dy, Tb) 1,005 tonnes • Dy2O3: 248 tonnes • Tb2O3: 36 tonn
Slide 26: Norra Kärr 2021 PEA
Norra Kärr 2021 PEA* Financial Highlights Revenue Distribution Nb2O5 5% Nepheline ZrO2 11% Syenite • Post-tax Net Present Value (NPV 10%) of $762M 11% • Post-tax Internal Rate of Return (IRR) of 26.3% • Accumulated LoM project revenues of $9,962M REO 74% • Average annual EBITDA of $206M • Initial Ca
Slide 27: Norra Kärr 2021 PEA
Norra Kärr 2021 PEA* Total Operating Cost (excl. toll separation, by-product credit): USD14.27/kg Total Operating Cost (incl. toll separation, by-product credit): USD14.57/kg * See National Instrument 43-101 report titled “PRELIMINARY ECONOMIC ASSESSMENT OF NORRA KÄRR RARE EARTH DEPOSIT AND POTENTIA
Slide 28: Norra Kärr 2021 PEA vs 2015 PFS
Norra Kärr 2021 PEA* vs 2015 PFS ▪ More than 50% of total mined material is planned to be sold as products compared with less than 1% in the previously project submitted for permitting ▪ Opportunity for further improvement with waste rock for construction material and aegirine for paint pigment or b
Slide 29: Norra Kärr 2021 PEA Environmental Context
Norra Kärr 2021 PEA Environmental Context Past footprint 2021 PEA footprint
Slide 30: Off-site Chemical Plant Localization
Off-site Chemical Plant Localization ▪ Luleå chosen conceptually due to vicinity of sulphuric acid production, brownfield industrial areas and logistics ▪ Access to low cost low carbon footprint 900km hydropower ▪ 900 kilometers by train ▪ Other locations in Sweden, or neighbouring countries will be
Slide 31: Sustainability Opportunity of Norra Kärr
Sustainability Opportunity of Norra Kärr Comparison of dysprosium production from different resources by life cycle assessment Source: Zapp, 2018
Slide 32: Radionuclide Content
Radionuclide Content Mt Weld 500 Yangibana Dubbo Thorium (ppm, log scale) Lofdal Mountain Pass Nechalacho 50 Ngualla Browns range Norra Kärr 5 5 10 20 40 80 Uranium (ppm, log scale) Data for peer projects is managements estimates based on publicly available data. Leading Edge Materials Corp. does no
Slide 33: Sweden's Power Advantage
Sweden’s Power Advantage Source: NodePole
Slide 34: Social License of Norra Kärr
Social License of Norra Kärr 2013 2019 2021 • Mining lease • County granted with Administrativ • Mining support by e Board Inspectorate 2015 2023 Mining demands rejects 2009 • Natura 2000 Inspectorate • Pre- N2000 permit mining lease • Exploration and County Feasibility prior to application 2021 per
Slide 35: Annual potential output from Norra Kärr
Annual potential output from Norra Kärr* could support the production of NdFeB permanent magnets needed for a significant amount of electric cars 1 200 000 1 900 000 * Management estimate calculations based on publicly available data and product output numbers from National Instrument 43-101 report
Slide 36: Bihor Sud Exploration Project
Bihor Sud Exploration Project
Slide 37: Romania Bihor Sud Nickel-Cobalt Project
Romania Bihor Sud Nickel-Cobalt Project Overview • JV from 2018 with 51% ownership with potential to move to 90%. Local JV partner operates a Dolomite mine in the area offering shared resources and local knowledge • Located in the upper Cretaceous metallogenic belt, part of the Tethyan Belt in a his
Slide 38: Bihor Sud Exploration License
Bihor Sud Exploration License Historic mining camp • Tens of kilometers of galleries are developed in the license area, previously targeting and mining uranium in replacement orebodies on carbonate. • A separate, close-by mineralization phase yielded Co-Ni-bodies, which was ignored because the respo
Slide 39: Bihor Sud Samples
Bihor Sud Samples Stringers of Co-Ni mineralization in low grade metamorphic sediments Sampled rock from previously mined polymetallic deposit showing massive sulphides including bornite, malachite and chalcopyrite Oxidized Co-Ni mineralization yielding greenish colours in low grade metamorphic dark
Slide 40: Bihor Sud – In situ Co-Ni mineralization
Bihor Sud – In situ Co-Ni mineralization • On 23 January 2023, the Company Below: Powdery, greenish nickel oxide minerals Left: Powdery, on the gallery wall and rocks on the gallery floor. pinkish cobalt reported having entered two of the Yellow magnetic pen for scale. oxide mineral on targeted hist
Slide 41: Romania Bihor - Project Update
Romania Bihor - Project Update Gallery safety • The two re-opened historic galleries G4 and G7 are technically in a very good condition • Measurements of the air quality detected radon, which needed to be reduced for a safe work environment. • The Company and Romanian contractors installed a ventila
Slide 42: Current and Future Focus
Current and Future Focus
Slide 43: Current and Future Focus
Current and Future Focus Woxna Anode project Corporate and Financial • Working with equipment suppliers for bulk samples of anode • Internally funded through options and warrants that are in the precursor material money for planned development initiatives over next 12-18 months • Natural graphite an
Slide 44: www.leadingedgematerials.com
www.leadingedgematerials.com [email protected] @LeadingEdgeMtls TSX.V: LEM Nasdaq First North: LEMSE OTCQB: LEMIF FRA: 7FL
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