Kearney Mine Processing Facility High Quality, Large Flake, Near-Term Graphite Producer OGL Website Presenta/on v.16-11 Public Presenta.on • OGL Website Public Presentation v.16-11
Disclaimer 2 No representa+on or warranty, expressed or implied, is made as to the accuracy or completeness of the informa+on contained in this presenta+on. Nothing contained herein is, or shall be relied upon as, a promise or representa+on as to the past or the future. This presenta+on may include or incorporate by reference certain “forward-looking statements” within the meaning of applicable securi+es laws. Statements that are predic+ve, that depend upon or refer to future events or condi+ons or that include words such as “expect”, “an+cipate”, “es+mate”, “contemplate”, “target”, “plan”, “con+nue”, “budget”, “schedule”, “may”, “will”, “should”, “intend”, “believe” are forward-looking statements. Forward- looking statements are not guarantees of future results and performance but rather reflect our current views with respect to future events. Results are subject to risks, uncertain+es, assump+ons and other factors, and actual results and future events may differ materially from the conclusions, forecasts, projec+ons or results an+cipated in these forward-looking statements. Because of these risks and uncertain+es, forward-looking statements should not be relied on. All of the forward-looking statements in this presenta+on, express or implied, are qualified by these cau+onary statements. Forward-looking statements are made as of the date of this presenta+on based on available informa+on. Certain assump+ons were applied in drawing conclusions or making forecasts or projec+ons. Although such assump+ons are considered reasonable as at the date of the presenta+on, the forward- looking informa+on is inherently subject to significant business, economic and compe++ve uncertain+es and con+ngencies. Some of the material risks, factors and assump+ons that could cause actual results to differ materially from expecta+ons include, but are not limited to, ability to stake mineral claims prior to compe+ng businesses, staking of mineral claims on land unsuitable for development or land which does not encompass key mineral reserves, inability to raise or allocate sufficient capital to perform intended explora+on and development or to maintain minimum yearly explora+on expenses and consequent loss of mining claims, fluctua+ons in currency markets, fluctua+ons in spot and forward prices of minerals and other commodi+es, changes in na+onal and local government legisla+on, taxa+on, controls, regula+ons and poli+cal or economic developments in Canada and interna+onally, other business opportuni+es that may be presented to or pursued, change in management or control of the company, ac+vi+es of compe+ng businesses, opera+ng or technical difficul+es in connec+on with mining, explora+on or development ac+vi+es, employee rela+ons, availability and costs of mining and explora+on inputs, labour and equipment, risks of obtaining necessary licences and permits, diminishing quan++es or grades of mineral reserves, ability to meet opera+onal expenses, contests over +tle or right to proper+es or mineral claims, conflic+ng aboriginal land claims and aboriginal rights, environmental regula+ons, the risks and hazards associated with mineral explora+on and development, environmental hazards, industrial accidents, unusual or unexpected geological forma+ons or pressures, flooding, inaccessibility of lands, inclement weather condi+ons and the risk of inadequate insurance or inability to obtain insurance. We disclaim any inten+on or obliga+on to withdraw, update or revise any forward-looking statements whether as a result of new informa+on, future events or otherwise, except to the extent required by applicable laws. No part of this presenta/on is intended to be deemed an offering of securi/es to investors. • OGL Website Public Presentation v.16-11
The Ontario Graphite Opportunity 3 Focused on Loca/on Resource People 1 st -Mover High Margin Seeking financing to complete re-commissioning of the world-class Kearney graphite project, centrally located 2.5 hours north of Toronto, with all approvals and majority of infrastructure already in place Largest confirmed graphite resource in North America, and one of the largest in the world − 51.5 Mt of Indicated at average grades of 2.14% Cg, and 46.8 Mt of inferred at average grades of 2.00% Cg Strong leadership team, with average of 30 years experience in graphite and finance Strong future graphite market fundamentals - Kearney is +mely based on increasing supply/demand gap - Demand growing (LED, Li Ba_eries ); supply strained (China shut-downs; limited new sizable projects) ~ 9 month ramp-up ( aPer funding ) to produc/on of 22ktpa, at ~2.2% Cg head grade Substan/al upside poten/al to increase capacity based on demand and faster resource exploita/on • OGL Website Public Presentation v.16-11
Kearney – Excellent Loca/on with Infrastructure in Place 4 ● Poli+cally stable, first-rate country, with close proximity to major US graphite markets = dependable and +mely delivery for US customers ● Ports for shipment to European customers Ø Toronto to site – 270 km of four lane highway, 30 km of paved road, 10 km of all weather logging and mine site road ● Area has strong poli+cal and community support for miners, equipment vendors and available labor ● Transporta+on costs can be kept rela+vely low, with OGL end products delivered directly to end-users Kearney Mine Processing Facility (Infrastructure in Place) Kearney Mine Property (near Huntsville and Parry Sound) Toronto Buffalo • OGL Website Public Presentation v.16-11
Kearney Claim Map – Significant Upside Poten/al 5 ● Current leases are located in two zones Ø The 7 mining leases are comprised of 26 claims; all leases in effect have been renewed (21 year term) ● In addi+on OGL controls 29 addi+onal ac+ve claims Ø 15 are owned free and clear; 14 are subject to royalty agreements with 2 third-party claim holders Zone 2 Zone 2 ● 4 mining leases comprised Unexplored of 4 claims Claim Area Zone 1 Zone 1 ● 3 mining leases comprised of 22 claims • OGL Website Public Presentation v.16-11
Mineral Inventory – Largest Graphite Resource in N. America 6 ● With the current plan to process ~1MM tonnes of ore per year, the property is expected to have more than 50 years of mine life (illustrates a case for a >20 mine life) Golder Associates Block Model (August 2013) Mineral Zone Metric Tonnes Carbon grade (%) Zone 1: Indicated Resources 51,505,894 2.14 Inferred Resources 28,393,361 2.00 Zone 2: Inferred Resources 18,427,547 2.00 Source: Golder Associates, NI 43-101 Technical Report and August 2013 Mineral Resource Es.mate; Kearney Graphite Property Ontario, Canada • OGL Website Public Presentation v.16-11
The Right Leadership Team in Place to Execute on Plan 7 Core Team – Average 30 Years Experience Working for Leading Graphite/Industrial Minerals Players Tom Burkee (CEO) • 37+ years of senior management and sales experience across North America, Europe and Asia in carbon and graphite sectors • Most recently, US VP of Graphite Materials & Systems for SGL Group Ellerton Castor (CFO) • 24+ years of investment banking and principal inves+ng experience including extensive work as an M&A advisor to a variety of companies in the Americas, Europe and Asia • OGL Website Public Presentation v.16-11
All Major Permits in Place 8 ● OGL has all major permits in place and has passed technical reviews, public comment periods, and First Na+ons consulta+ons; with MOUs in place with First Na+ons ● First Na+ons benefit agreements being nego+ated & finalized in-line with MOUs Permit Ministry Issuance Date Approved Northern Closure plan February 2012 Development Temporary PTTW (“Permit to Take Water”) Environment June 2012 Natural Dam design October 2012 Resources Tourism & Archeological study November 2012 Culture Site-wide PTTW Environment May 2013 Site-wide water environmental compliance Environment May 2013 approval Site-wide air/noise environmental compliance approval Environment May 2013 (amended for different generator) • OGL Website Public Presentation v.16-11
Graphite 101 – A Super Metal 9 ● Natural graphite is an industrial mineral with many proper+es of a “Super Metal” Ø Excep+onal heat and electrical conduc+vity proper+es (high mel+ng point of 3,650 o C) Ø As thermally conduc+ve as copper with 1/8 th the density Ø Extremely resistant to strong acids, chemically inert and highly refrac+ve Ø Outstanding lubrica+on proper+es due to the crystalline structure ● Exists naturally in three forms: Vein/Lump Flake (Macrocrystalline) Amorphous (Microcrystalline) (SEM image) • Rare and valuable • Most popular for technical applica+ons • Least valuable but most abundant • True vein mineral (~40% of the graphite market) (~60% of the graphite market) • Best type found in Sri Lanka • Highest market growth poten+al • Carbon range of 70%-75% • Usually high grade deposits • Higher grade – carbon range of 80%-98% • Seam mineral and typically higher in • Flake size ranges from micron size to 2-3m ash because ouen associated with and • Size is important commercial considera+on formed within coal seams • Environmentally unfriendly Source: Natural and Synthe.c Graphite: Global Industry Markets and Outlook; 8th Edi.on, 2012. Roskill • OGL Website Public Presentation v.16-11
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