Great Lakes Graphite Announces Resumption of Trading and Corporate Update

2018-05-17

May 16, 2018, Toronto:  Great Lakes Graphite Inc. (“GLK” or the “Company” TSX-V:GLK, OTCQB:GLKIF, FWB:8GL) is pleased to provide a corporate update and an announcement relating to the resumption in the trading of its shares on the TSX Venture Exchange.

Highlights

Trading of the company’s shares on the TSX Venture Exchange will resume on May 17, 2018.
The Company has signed a Definitive Agreement to sell the Lochaber Graphite Property to Saint Jean Carbon
The Company is rebranding as NovoCarbon and has formed a US subsidiary under that brand.

A special shareholder meeting will be convened to approve a proposed change of business and other matters.

Resumption of Trading

The TSX Venture Exchange has informed the Company that the halt imposed on February 23, 2018 has been lifted and that trading in the shares of the Company will resume on Thursday, May 17. The Company will proceed with actions to resume trading on the OTCQB.

Sale of Lochaber Graphite Property

Great Lakes Graphite has signed a Definitive Agreement with Saint Jean Carbon to sell 100% of the Lochaber Graphite Property in the Buckingham region of Quebec.  The Company will receive the following as consideration;

1. 3,000,000 common shares of Saint Jean Carbon;
2. $425,000.00 cash payable in four yearly installments of $106,250.00 with the first payment due on May 7, 2018 and the following three installments on May 7, 2019, May 7, 2020 and May 7, 2021. The first payment is in trust and will be completed upon close of the transaction.
3. 75% net operational operating cost royalty for 10 years; and
4. Enter into an offtake agreement to provide the Company with a first right of refusal to purchase up to 10,000 metric tons per year for the life of the Lochaber mine.

Completion of the transaction is currently being reviewed and is subject to approval by the TSX Venture Exchange. 

The option to secure an offtake agreement as a condition of the sale provided access to a potential supply of high quality graphite concentrate should the Lochaber property be developed through feasibility and advanced to production. Great Lakes Graphite completed an initial resource estimate on the Lochaber Graphite Property in June 2015 which reported an inferred resource estimate of 4,091,000 tonnes at 4.01% Cg using a cut-off grade of 2.45% Cg.

Name Change to NovoCarbon Corp.

A news release distributed by the Company on February 28, 2018 announced plans to propose a name change to New Energy Metals & Minerals. However, on March 29, 2018, Darien Resource Development Corp. (TSX-V: DRR) announced a planned name change to New Energy Metals Corp., which became effective on April 4, 2018. Due to this development and other considerations, the Company will instead implement a name change to NovoCarbon Corp.

The Company has created a wholly-owned US subsidiary under the same brand name, NovoCarbon Inc., which will provide a means to access resources that are only available to entities domiciled in the United States. These resources include incentives for economic development activities and also resources for small businesses, including those that are designed to prepare companies to bid on government contracts. Branding for the new corporate identity, including new webpage design, is currently in process.