Lomiko Metals Inc.

Lomiko Metals Inc.

March 15, 2013 12:45 ET

Lomiko Characterization Results Show Good Crystalinne Flake Graphite Distribution With 100% Carbon Purity Confirmed in Multiple Samples

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 15, 2013) - LOMIKO METALS INC. (TSX VENTURE:LMR)(PINKSHEETS:LMRMF)(FRANKFURT:DH8B) (the "Company") is pleased to report graphite characterization testing based on composites of seven (7) graphite drill samples from the Quatre Milles East property has reported 75.3% of material tested was >200 mesh and classified as graphite flake with 38.36% in the >80 mesh, large flake category. 85.3% of test results were higher than the 94% carbon purity considered high carbon content, with the median test result being 98.35%.

The highlight of testing was the nine (9) sieve samples which captured flakes of varying sizes which tested 100% carbon. In addition, two (2) tests of -200 fine material also tested 100% carbon content. Both fine and flake material may be amenable to graphene conversion by Lomiko Metals Inc. partner Graphene Laboratories (see February 12, 2013 news). Lomiko will be forwarding samples for graphite to graphene conversion testing by Graphene Labs as soon as possible.

This characterization testing provides a clear indication of the size distribution of the graphite flakes present in the samples. Complete metallurgical studies are warranted upon completion of a resource on the property. The company had submitted 7 composites for testing to Global Mineral Resources (GMR) Laboratories of Vancouver for this evaluation. The composites provide a non-representative yet wide-ranging sample of the property's graphite distribution by mesh size, industry classification and carbon purity.

"Graphite characterization test results indicate Quatre Milles graphite material has significant potential as a near surface, open pit mining project aimed at fulfilling industrial graphite demand in the future. More importantly, it is an excellent candidate for graphite to graphene conversion testing under our previously announced Strategic Alliance with Graphene Labs," stated A. Paul Gill, CEO, Lomiko Metals Inc.

US Mesh Sieve Size Sample #1 6.09% Cg Size class Purity
-200 21.91% Fine 99.30
200 - 100 mesh 31.30% Small 100.00
100-80 mesh 5.18% Medium or greater 100.00
80-50 mesh 21.55% Large or greater 98.88
>50 mesh 20.05% Extra Large 98.94
Total (+200) 78.09% Average Grade 99.39
US Mesh Sieve Size Sample #2 7.91% Cg Size class Purity
-200 30.42% Fine 100.00
200 - 100 mesh 31.22% Small 100.00
100-80 mesh 5.68% Medium or greater 100.00
80-50 mesh 17.14% Large or greater 100.00
>50 mesh 15.54% Extra Large 95.19
Total (+200) 69.58% Average Grade 99.25
US Mesh Sieve Size Sample #3 6.26% Cg Size class Purity
-200 17.80% Fine 99.29
200 - 100 mesh 29.08% Small 97.55
100-80 mesh 6.91% Medium or greater 100.00
80-50 mesh 21.99% Large or greater 98.35
>50 mesh 24.21% Extra Large 93.63
Total (+200) 82.20% Average Grade 97.26
US Mesh Sieve Size Sample #4 5.92% Cg Size class Purity
-200 27.24% Fine 100.00
200 - 100 mesh 28.25% Small 98.70
100-80 mesh 7.18% Medium or greater 98.75
80-50 mesh 18.30% Large or greater 100.00
>50 mesh 19.03% Extra Large 97.30
Total (+200) 72.76% Average Grade 99.03
US Mesh Sieve Size Sample #5 10.51% Cg Size class Purity
-200 13.92% Fine 97.37
200 - 100 mesh 25.64% Small 98.36
100-80 mesh 10.69% Medium or greater 97.14
80-50 mesh 17.73% Large or greater 100.00
>50 mesh 32.02% Extra Large 98.28
Total (+200) 86.08% Average Grade 98.36
US Mesh Sieve Size Sample #6 5.36% Cg Size class Purity
-200 33.38% Fine 99.18
200 - 100 mesh 30.23% Small 99.30
100-80 mesh 5.11% Medium or greater 96.30
80-50 mesh 16.81% Large or greater 100.00
>50 mesh 14.47% Extra Large 98.40
Total (+200) 66.62% Average Grade 99.09
US Mesh Sieve Size Sample #7 2.66% Cg Size class Purity
-200 28.14% Fine 86.84
200 - 100 mesh 36.27% Small 87.39
100-80 mesh 5.88% Medium or greater 84.85
80-50 mesh 17.42% Large or greater 92.86
>50 mesh 12.28% Extra Large 92.16
Total (+200) 71.86% Average Grade 88.62
Method: HCI leach at 90 degrees C followed by NaOH fusion at 400 degrees C
Test Conditions: Screen graphite flakes at different sieves

Lomiko's Quatre Milles East Graphite Property

The Quatre Milles East Property is road accessible and is located approximately 175 km northwest of Montreal and 17 km due north of the village of Sainte-Veronique, Quebec. The property consists of 28 contiguous claims totaling approximately 1,600 hectares.

The property was originally staked and explored by Graphicor in the summer of 1989 based on the results of a regional helicopter-borne EM survey. The underlying geology consists of intercalated biotite gneiss, biotite feldspar gneiss, marble, quartzite and calc-silicate lithologies of the Central Metasedimentary Belt of the Grenville Province.

Near Surface & High Grade Drill Hole Highlights (Announced November 13, 2012)

QM 12-10 4.50 m to 47.42 m 42.92meters of 2.47 Cg%
Including 5.46 meters of 8.02 Cg%
QM 12-16 31.48 m to 51.00 m 19.52 meters of 6.23 Cg%
QM 12-20 4.30 m to 44.75 m 40.45 meters of 2.83 Cg%
Including 3.45 meters of 10.01 Cg%
QM 12-21 1.35 m to 39.50 m 38.15 meters of 3.43 Cg%
Including 4.77 meters of 10.80 Cg%
QM 12-22 11.20m to 51.00 m 39.80 meters of 3.71 Cg%
Including 9.90 meters of 8.81 Cg%
QM 12-23 6.90 m to 50.10 m 43.20 meters of 3.71 Cg%
  • Drill hole intervals reported herein are not true widths but reported along core.
  • Drill hole intervals are weight-averaged based on the sample width.
  • No internal cut-off grades were used in the reported intervals.

The previous drilling by Graphicor at Quatre Milles East indicated a near-surface, road-accessible target, which was intersected by multiple drill holes during historic drilling. The available information has been complied into a NI 43-101 report, which will be the template for describing a resource if the drilling program is successful. It is available at: http://www.lomiko.com/properties/quatre.html

"Quatre Milles is a viable mining prospect based on current results. Multiple drill holes with significant results bodes well for the concept of a near-surface, open pit scenario," stated A. Paul Gill, CEO, Lomiko Metals Inc.

Graphite Facts

  • Natural graphite comes in several forms: flake, vein, amorphous and lump.
  • Southwestern Quebec is host to some of the most favourable geological terrain for graphite exploration in Canada and is known to host graphite resources, including the nearby Lac Des Iles Mine operated by Timcal.
  • Graphite has many important new applications such as lithium-ion batteries, fuel cells, and nuclear and solar power that have the potential to create significant incremental demand growth.
  • There is roughly 20 times more graphite by weight needed to produce a lithium-ion battery than there is lithium.
  • Of the 1.2 million tonnes of graphite produced annually, approximately 40 per cent is of the most desirable flake type.

High-growth, high-value graphite applications require large-flake and high-purity graphite, which is the prime exploration and development target at the Quatre Milles East Property.

Graphite Market

  • The price for flake graphite is $ 2000-$3000 per tonne depending on flake size and grade.
  • Graphite prices have been increasing prices for large flake, high purity graphite (+80 mesh, 94-97%C).
  • Graphite prices have almost tripled since 2005 due to the ongoing industrialization of China, India and other emerging economies and resultant strong demand from traditional steel and automotive markets.
  • Demand for graphite is expected to rise as electric vehicles and lithium battery technology are adopted, nuclear reactors are built in China, and if fuel cells and graphene patents become products.
  • China, which produces about 70 per cent of the world's graphite, is seeing production and export growth leveling, and export taxes and a licensing system have been instituted.
  • Europe and the USA have both indicated graphite is of economic importance and has a supply risk (Critical Raw Materials for the EU, July 2010).

Jean-Sebastien Lavallée (OGQ #773), geologist, a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical content of this release.

On Behalf of the Board

A. Paul Gill, Chief Executive Officer

We seek safe harbor.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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