Neodymium Oxide Neodymium Metal NdFeB Magnets Electric Motors R ARE E ARTHS R ECYCLING FOR THE P ERMANENT M AGNET I NDUSTRY Corporate Presentation November 2018 TSX.V: GMA
A BOUT U S GEOMEGA Rare Earth Elements in Canada INNORD MONTVIEL GeoMega’s innovation arm 100% owned REE asset focused on scaling up “ISR”, located in Quebec with a a local, environmentally 43‐101 resource, permanent friendly REE recycling and access and excellent refining technology. infrastructure. Page 2 | Geomega & Innord (GMA.V) Rare Earths Recycling for the Permanent Magnet Industry
F ORWARD ‐ LOOKING STATEMENT Our presentation contains “forward‐looking statements” not based on historical facts. Forward‐looking statements express, as of the date of this presentation, our estimates, forecasts, projections, expectations and opinions as to future events or results. The forward looking statements that are contained in this presentation are based on various assumptions and estimates by the Corporation and involve a number of risks and uncertainties. As a consequence, actual results may differ materially from results forecast or suggested in these forward‐looking statements and readers should not place undue reliance on forward‐looking statements. We caution you that such forward‐looking statements involve known and unknown risks and uncertainties, as discussed in the Corporation’s filings with Canadian Securities Administrators. Various factors may prevent or delay our plans, including but not limited to, contractor availability and performance, weather, access, mineral prices, success and failure of the exploration and development carried out at various stages of the program, and including as regards the commercialization of any of the technology, general business, economic, competitive, political and social conditions. The Corporation expressly disclaims any obligation to update any forward‐looking statements, except as required by applicable securities laws. TSX.V: GMA
W HY I NVEST IN REE S ECTOR ? • 15 Lanthanide elements critical to our clean tech & high tech Lanthanum Cerium Neodymium Promethium Samarium Europium Gadolinium Terbium Dysprosium Holmium Erbium Thulium Ytterbium Lutetium Yttrium industries Praseodymium 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 39 La Ce Pr Nd Pm Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Y 138.91 140.12 140.91 144.24 [145] 150.36 151.96 157.25 158.93 162.50 164.93 167.26 168.93 173.05 174.97 88.90 • Key product is the permanent magnet – the driver of the renewable energy revolution & transportation electrification • >85% mined in China • Strong demand growth (Wind Power & EV Industry) • Expected supply shortfall & Reducing exports from China • Expecting Magnet REE price increase in coming years Page 4 | Geomega & Innord (GMA.V) Rare Earths Recycling for the Permanent Magnet Industry
REE I NDUSTRY B OTTLENECK • REE refining capacity is >90% in China • Know‐how for Solvent Extraction (SX) is in China • Organic solvents not environmentally friendly • High CAPEX & difficult to permit outside of China Page 5 | Geomega & Innord (GMA.V) Rare Earths Recycling for the Permanent Magnet Industry
I NNORD ’ S S EPARATION OF REE – ISR T ECHNOLOGY • Organic solvent free • Clean technology for REE separation • Sustainable & competitive alternative to SX Page 6 | Geomega & Innord (GMA.V) Rare Earths Recycling for the Permanent Magnet Industry
ISR S CALE U P P ROGRESS DRAMATIC INCREASES IN CONCENTRATION AND CAPACITY 140 10000 Increase in Capacity (L) 130 • 2014 – 0.03 L 120 • 2018 – 20 L 1000 • 2019 (F) – 200 L 100 CONCENTRATION (g REO / L) 100 100 100 100 CAPACITY (LITRES) 80 Log scale 10 60 1 40 30 0.1 20 0.0035 0.06 0 0.01 2014 2015 2016 2017 2018 2019 2020 Page 7 | Geomega & Innord (GMA.V) Rare Earths Recycling for the Permanent Magnet Industry
ISR S CALE U P P ROGRESS DRAMATIC DECREASES IN COST ($/L Capacity) $1,000,000 $100,000 COST ($/L Capacity) $10,000 log. scale $1,000 $100 Decrease in Capital Cost ($/L Capacity) • $10 2014 ‐ $5M / L • 2019 (F) ‐ $500 / L $1 2014 2015 2016 2017 2018 2019 2020 PURITY ‐ RECOVERY ‐ RESIDENCE TIME INCREASE IN SEPARATION FACTOR 140 50 45 120 40 100 35 Range of SF in Solvent 30 Extraction 80 25 60 20 15 40 10 20 5 0 0 2013 2014 2015 2016 2017 2018 2019 2020 2017 2018 2019 Purity (% REO) Recovery Single Run Residence Time (hr/L Capacity) Separation factor (SF) Page 8 | Geomega & Innord (GMA.V) Rare Earths Recycling for the Permanent Magnet Industry
F EED M ATERIAL • Focusing on magnet based feed • Grades >25% TREO (Nd, Pr, Tb, Dy) • Two main sources available: 1. Magnet & alloy manufacturers residues 2. Bulk magnets ‐ end of life recycling Page 9 | Geomega & Innord (GMA.V) Rare Earths Recycling for the Permanent Magnet Industry
F EED M ATERIAL October 25, 2018 – 1 st feed secured • LOI with US based magnet manufacturer • 1,000 kg per month • Potential to increase to 2,000 kg per month Working on securing additional sources of both feed types Page 10 | Geomega & Innord (GMA.V) Rare Earths Recycling for the Permanent Magnet Industry
P RODUCTION FROM R ECYCLING & B LUE S KY Commercial production plans • To be located in Quebec, Canada • Initial throughput capacity of 500 tonnes per year • Potential to produce over 150 tpy of Nd, Pr, Tb & Dy Growth potential Once ISR is derisked through magnetic feeds & cash flows: • Expand toward other industrial feeds • Mining feeds Pr 2 O 3 Nd 2 O 3 Nb 2 O 5 • Montviel feed TREO Million Category Grade Grade Grade Grade Tonnes (%) (ppm) (ppm) (ppm) Indicated 82.4 1.51 766 2,452 1,715 Inferred 184.2 1.43 746 2,433 1,315 Page 11 | Geomega & Innord (GMA.V) Rare Earths Recycling for the Permanent Magnet Industry
REE IN THE INDUSTRIAL CYCLE 2 1 3 3 • 3 different feeds Page 12 | Geomega & Innord (GMA.V) Rare Earths Recycling for the Permanent Magnet Industry
I NVESTING IN THE CRITICAL METALS FOR FUTURE TECHNOLOGIES ? Innovative Technologies Alternative sources Derisking through production & cash flow Recycling Mining should not be the only answer! Page 13 | Geomega & Innord (GMA.V) Rare Earths Recycling for the Permanent Magnet Industry
M ANAGEMENT Kiril Mugerman ‐ President & CEO • Over 8 years in the REE sector • Previously mining analyst with IA Securities in industrial minerals and exploration geologist with Gold Fields Ltd. • President & CEO of Kintavar Exploration • Holds a B.Sc. With Honors from McGill University in Earth & Planetary Sciences Dr. Pouya Hajiani, Ph.D. ‐ Chief Technology Officer • Over 5 years of research in lanthanides extraction and purification • Inventor of the FFE and ISR separation of REE and hydrometallurgical extraction method for REE and Nb for Montviel ore • Previously project manager and process engineer for petrochemical companies under RSI Mathieu Bourdeau, CPA, CA ‐ Chief Financial Officer • 6 years at Deloitte as Director of Audit and Consulting Services • Previously financial controller for Explorance Inc. Alain Cayer, P. Geo., M.Sc. ‐ VP Exploration • Responsible for delineating the large carbonatite deposit at Montviel • VP Exploration of Kintavar Exploration • Discovered the Eleonore gold deposit and the Mitchi Copper project Page 14 | Geomega & Innord (GMA.V) Rare Earths Recycling for the Permanent Magnet Industry
B OARD OF D IRECTORS Gilles Gingras, CPA, CA • Retired and former Partner in Audit and Advisory Services at Deloitte LLP (1987 to 2013) • Member of Deloitte LLP Canadian Board of Directors and of its finance, risk management and governance committees (2002 to 2010) Kosta Kostic • Partner and member of McMillan LLP National Capital Markets and M&A group • Practice focused on corporate finance, securities and M&A in the mining, renewable energy and information technology Jean Demers, P. Geo • President of Geodem Inc. consulting in corporate financing and evaluation • Assistant syndic and trainer for the Ordre des Geologues du Quebec and previously a director • Involved in corporate governance for 20+ year & receipient of the Quebec Interprofessional Council’s Merit Award Mario Spino • Model validations for National Bank of Canada • Previously principal advisor with KPMG and financial market risk management and derivatives evaluation • Holds a M.Sc. In financial engineering from HEC Page 15 | Geomega & Innord (GMA.V) Rare Earths Recycling for the Permanent Magnet Industry
S HARE S TRUCTURE SHARE STRUCTURE As of May 31, 2018 Issued & Outstanding 90,072,634 Stock Options 4,530,000 Warrants 11,019,416 37.8% Fully‐Diluted 105,622,050 47.6% 11.1% 3.6% Management & Insiders Quebec Inst. Funds Private large positions Retail Page 16 | Geomega & Innord (GMA.V) Rare Earths Recycling for the Permanent Magnet Industry
R ARE E ARTHS R ECYCLING FOR THE P ERMANENT M AGNET I NDUSTRY Kiril Mugerman – President & CEO kmugerman@geomega.ca 450‐641‐5119 #5653 Dr. Pouya Hajiani – CTO phajiani@geomega.ca 450‐641‐5119 #5656 TSX.V: GMA
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