Great Lakes Graphite Inc.
TSX VENTURE : GLK
OTC PINK : GLKIF
FRANKFURT : 8GL

Great Lakes Graphite Inc.

June 25, 2015 15:59 ET

Great Lakes Graphite Secures Financing for Micronization Plant

Clarification of June 25, 2015 News Release

TORONTO, ONTARIO--(Marketwired - June 25, 2015) - Great Lakes Graphite Inc. ("GLK" or the "Company") (TSX VENTURE:GLK)(OTC PINK:GLKIF)(FRANKFURT:8GL) announced today that the Company has entered into an agreement with F2 Capital of Lincoln, Massachusetts to provide project funding for the recommissioning of the Matheson Graphite Micronization Facility. The financing has been structured as a debenture (the "Note") that provides the Company with debt financing of $750,000.

CEO Paul Gorman said, "This facility addresses the immediate capital requirements of the Matheson Micronization Facility through the commissioning stage. The terms of the financing provide GLK with maximum flexibility to complete the work required in Matheson without an onerous debt load and with minimal dilution. Our top priority is to achieve cash flow from micronization as soon as possible. Identifying the right financing partners who understand this focus has helped expedite the process."

Terms of the Note with F2 Capital are: an interest rate of 8.5% per annum; a 4% Gross Overriding Royalty on the first 30,000 tonnes produced from the micronization plant; the option of either the Company or the lender to convert the principal amount under the Note into common shares of GLK at a conversion price of $0.10. In addition, the lender has also been issued 1,875,000 warrants, with each warrant exercisable into a common share of the Company at an exercise price of $0.10 per share for a period of four years.

Closing of the Note financing is subject to approval of the TSX Venture Exchange.

About Great Lakes Graphite: Great Lakes Graphite Inc. is an industrial minerals company focussed on bringing value-added carbon products to a well-defined market.

The Company's Innovation Division has entered into long-term agreements for use of the Matheson Micronization Facility and for supply of high quality natural graphite concentrate which are positioning Great Lakes Graphite to become an emerging domestic manufacturer and supplier of micronized products to a growing regional customer base where pricing and demand continue to rise. The Company is not sourcing graphite feed for its Matheson Micronization Facility from its mineral projects.

The Company is currently preparing the Ontario-based Matheson Micronization Facility for commissioning in late 2015, to achieve the following objectives:

  • Establish a position in the upgraded graphite products market with North American customers.
  • Create a competitive and disruptive advantage by leveraging existing assets.
  • Pursue an accelerated timeline to cash flow and revenue by micronizing and upgrading flake graphite, enabled by supply agreements with current graphite producers.

Further information regarding Great Lakes can be found on the Company's website at www.GreatLakesGraphite.com.

Great Lakes Graphite trades with symbol GLK on the TSX Venture Exchange and currently has 95,304,075 shares outstanding (139,012,966 fully diluted).

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