graphite one corporate presentation
DESCRIPTION
Graphite One Resources Inc. (TSX-V: GPH, OTCQX:GPHOF) is a mineral exploration company focused on the development of the world class Graphite Creek Project located on the Seward Peninsula of Alaska. Graphite Creek has the potential to become the world’s largest known large flake graphite deposit. Graphite One trades on the TSX Venture Exchange under the symbol "GPH" and on the OTCQX under the symbol "GPHOF." More information can be found at www.graphiteoneresources.com.TRANSCRIPT
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Graphite Creek Deposit Developing a peer-leading graphite deposit in Alaska, USA
www.graphiteoneresources.com
TSX-V: GPH | OTCQX:GPHOF
SEPTEMBER 2014
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www.graphiteoneresources.com
TSX-V: GPH | OTCQX: GPHOF
Forward Looking Statement
This presentation contains "forward-looking statements.” These forward-looking statements are
made as of the date of this presentation and Graphite One Resources does not intend, and does
not assume any obligation, to update these forward-looking statements. Forward-looking
statements include, but are not limited to, statements with respect to the timing and amount of
estimated future exploration, success of exploration activities, expenditures, permitting, and
requirements for additional capital and access to data.
Forward-looking statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of the Company to be
materially different from any future results, performance or achievements expressed or implied by
the forward-looking statements. Such factors include, among others, risks related to actual results
of current exploration activities; changes in project parameters as plans continue to be refined; the
ability to enter into joint ventures or to acquire or dispose of property interests; future prices of
mineral resources; accidents, labour disputes and other risks of the mining industry; ability to
obtain financing; and delays in obtaining governmental approvals or financing.
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With just 28 drill holes,
Graphite One has defined
North America’s largest high-grade, large flake
graphite deposit.
Did You Know?
The US imports100%
of it’s graphite.
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A L A S K A
Graphite Creek Deposit
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Corporate Overview
Graphite Creek Deposit Large, world class, scalable, flake graphite deposit in Alaska, a low risk jurisdiction
*NEW* NI 43-101 Inferred Resources: 285Mt @ 4.5% Cg,
including 8.6Mt @ 12.8% Cg and 96Mt @ 7.2% Cg
Abundant large flake (>80 Mesh). Up to 94%
Low waste to ore strip ratio in an open pit scenario
Experienced Management Team
Ongoing demand increases in global graphite
Positioned to become the world’s low cost producer
12.8% at $1750 Graphite
5.6g/t at $1250 Gold 411g/t at $14 Silver 4.4% at $2.75 Copper
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TSX-V: GPH | OTCQX: GPHOF
Board & Management
Management and directors have collectively raised over $250 million for exploration in the
past 10 years with over 25 years of experience in the industry.
Doug Smith, P.Eng. Executive Chairman + Director
Anthony Huston, B.Comm. President, CEO + Director
Dean Besserer, B.Sc., P.Geol. VP Exploration + Director
Dale Hansen, MA, CMA CFO + Director
Jim Currie, P. Eng. Director
Peter Kleespies, M.Sc., P. Geol. Director
Brian Budd Director
Robert Cross, MBA, P. Eng. Advisor
John Robins, P.Geo. Advisor
Scott Koyich Advisor
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TSX-V: GPH | OTCQX: GPHOF
Corporate Structure
Analyst Coverage
Jennings Capital Inc.
Fundamental Research
Corporate Structure
As of August 27, 2014
Shares Outstanding 144.2M
Options 10.7M Stock Options @ avg. exercise price of $0.22
2.7M Agent Options @ weighted avg of $0.13 exp. Mar 2015
13.4M
Warrants 16.8M @ $0.125 expiring Sept 2016
15.6M @ $0.20 until Aug 2016 and $0.25 until Aug 2018
4.3M @ $0.20 till Feb 2015, $0.30 thereafter, exp. Feb 2018
36.7M
Fully Diluted 194.3M
Working Capital $1.85M
Market Cap $20.2M
Stock Chart
TSX-V: GPH OTCQX: GPHOF
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TSX-V: GPH | OTCQX: GPHOF
About Graphite
Graphite is a naturally occurring, low-density
allotrope of the element carbon.
3 different types: Flake, Amorphous, Lump
40% of production is flake graphite
Much higher carbon content (80-98%)
Offers the most diverse application in the market today. i.e. Li ion batteries
Consumption has doubled since 2000
1.2Mt consumed in 2012
USA imports 100% of its graphite with no domestic production
Looming global graphite deficit
China produces over 60% of the world’s graphite (amorphous). Resources are
depleting and exports are declining as costs & taxes rise [36% export tax].
Deemed a “Supply Critical Mineral” in the USA & a “Strategic Mineral” in
European Union
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Growing Applications of Graphite
Lithium-Ion Batteries
10-30x more graphite required to produce a lithium-ion
battery than lithium
Market is expected to grow 25-30% annually over the
next few years.
Aluminum Anodes – a huge NEW market Aluminum anodes are manufactured from petroleum coke and anthracite,
poor conductors with a materially lower melting temperature than the
superior graphite substitute.
13Mtpa global market requirement, 11x the size of the natural graphite
market
Assuming 15% substitution by natural graphite
implies a 1.95Mtpa new natural graphite demand
in a 1.2Mtpa existing market.
Pebble Bed Nuclear Reactors More efficient with the use of heat and fuel. No meltdown by design, lower
capital and operating costs. Over 30 reactors anticipated by 2020.
Fuel Cells 80kg of graphite is used in the average fuel cell.
Steel & Refractories
41%
Carbon Brushes &
Batteries
21%
Automotive Parts
14%
Lubricants
14%
Other 10%
Current Graphite Consumption
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New Tesla Battery Plant [March 2014]
Electric car maker Tesla announced plans to construct
the biggest lithium-ion battery factory in the world
By 2020, Tesla’s “Gigafactory” will dominate the
battery market with 500k batteries produced annually.
The Gigafactory will:
Increase large flake graphite demand by 43%
[150,000tpa]
Aim to reduce the cost of lithium-ion batteries by
30% in 3 years, and 50% by 2020
What this means?
The US will be the largest source of lithium-ion batteries
in the next 5 years, strengthening Graphite One’s
position as the country’s only advanced high-grade
deposit.
Panasonic is Tesla’s
sole battery supplier.
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TSX-V: GPH | OTCQX: GPHOF
Samsung, Nokia, &
Apple
Slimmer batteries, moisture-
resistant electronics, flexible
displays, acoustic transducers
Saab To deice airplane wings
Head Graphene-infused tennis racket
Lockheed Martin To filter salt from seawater
Honda, Toyota, Kia &
Hyundai Graphene in fuel cells, gas sensors,
& to help air batteries breath easier
IBM 3D graphene electronics
Xerox To reduce printing costs
Graphene A thin flake of ordinary carbon, whose discovery won the 2010 Nobel Prize.
It is 200x stronger than steel, thin as an atom, as electrically conductive as copper, and a better heat conductor than all other known materials.
Since it is practically transparent and a good conductor, graphene is suitable for producing transparent touch screens, light panels, and maybe even solar cells. When mixed into plastics, graphene can turn them into conductors of electricity while making them more heat resistant and mechanically robust.
Graphene supercapacitators hold onto the electrons in batteries until they are needed. With their almost indefinite lifespan and ability to recharge in seconds, supercapacitors have tremendous energy-storage potential for everything from portable electronics, to electric vehicles and even large-scale renewable energy plants.
PA
TEN
TS &
APPLIC
AT
ION
S
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10km
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Nome
Port Clarence
Teller
Brevig Mission
Grantley Harbor
S E W A R D P E N I N S U L A N
Potential Future Port
Graphite Creek Deposit Alaska, USA 6,799ha
100% Interest
Graphite Creek has direct ocean access to the
western seaboard and the Pacific Rim, a
significant advantage in developing near term
production facilities and limiting the capital costs
associated with mine construction.
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NEW NI 43-101 Inferred Resource Released January 2014
Cut-Off Tonnage Graphite In Situ Cg
2% 284.71Mt 4.5% Cg 12.76Mt
5% 95.93Mt 7.2% Cg 6.91Mt
7% 37.68Mt 9.2% Cg 3.47Mt
10% 8.63Mt 12.8% Cg 1.1Mt
SW
3D Lode
Interpretation
N
Drill Highlights Include:
54.87m of 10.03% Cg (Hole 12GCH005)
31.77m of 10.14% Cg (Hole 12GCH006)
21.55m of 11% Cg (Hole 12GC010)
10m of 13.07% Cg (Hole 13GCH012)
$5.5M spent to-date [28 DDH]
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Chemical leaching of the rough
concentrates achieved high-
purity concentrates
containing 99.2% and
99.99% graphite,
respectively1
Rough concentrates were
produced from a Surface Mini-
Bulk Sample collected during the
2012 exploration program
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1Activation Laboratories Ltd.
& SGS Canada Inc.
2013 Metallurgy
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Key Objectives 1. Grow the defined resource; updated NI 43-101 in Q1 2014 (COMPLETED)
2. Develop bench scale metallurgy tests; ongoing results throughout 2014
3. Initiate Quality Assurance Program Plan as part of permitting process
4. Advance toward Preliminary Economic Assessment
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TSX-V: GPH | OTCQX: GPHOF
2012 2013 2014 2015
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2
Q
3
Q
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Q
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4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Drill Program
NI 43-101 Resource Update
Continued Engineering Studies
Metallurgical Test Work
Environmental as part of
permitting
Completed Targeted
Graphite One is currently drilling to bring a portion of the
resource from inferred into Indicated and/or Measured category
which in turn will be used in the PEA to be completed in 2015.
A positive PEA will be a large catalyst moving forward both from
a Marketing perspective (and share price) and a Development
perspective.
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TSX-V: GPH | OTCQX: GPHOF
Company Name Share Price Market Cap. Location Total
Resource Grade
(Cg) In Situ Cg
(Mt) Market Cap
($/tonne Cg) Purity
Zenyatta (ZEN) $2.06 $114M Ontario 45.2 Mt 3.1% 1.42 $81 99.9%
Alabama Graphite (ALP) $0.24 $21.2 Alabama, USA 38.1Mt 2.6% 0.99 $21.4 n/a
Syrah Resources (ASX:
SYR) $5.05 $823M Mozambique 1150Mt 10.2% 117.3 $7.02 99.16%
Big North Graphite (NRT)
$0.075 $5.9M Mexico 8.1Mt 3.5% 0.3 $20.81 n/a
Northern Graphite (NGC) $1.13 $55.5M Ontario 70 Mt 1.74% 1.2 $46.6 99.9%
Mason Graphite (LLG) $0.80 $67.7M Quebec 50 Mt 15.6% 7.80 $8.68 99.9%
Focus Graphite (FMS) $0.61 $65.3M Quebec 9.6 Mt 14.8% 1.36 $45.75 98.3%
Flinders (FDR) $1.03 $47.8M Sweden 2.8 Mt 10.7% 0.30 $159.55 94.0%
Energizer (EGZ) $0.16 $43M Madagascar 124 Mt 6.3% 7.88 $5.46 99.9%
Graphite One (GPH) $0.14 $18M Alaska 285 Mt 4.5% 12.76 $1.41 99.9%
Global Graphite Deposits (As at August 28, 2014)
2nd Largest Resource, Lowest Market Cap
@ $43.40/tonne X 12.76MT
= $4.31 /share
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TSX-V: GPH | OTCQX: GPHOF
Insitu Graphite Comparison
0
2
4
6
8
10
12
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Zenyatta Northern
Graphite
Mason
Graphite
Focus Metals Flinders Energizer Graphite One
Graphite One’s new inferred resource
easily surpasses all other projects.
Mill
ions
of T
onnes
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TSX-V: GPH | OTCQX: GPHOF
What sets Graphite One apart?
Graphite Creek is the USA’s only advanced flake graphite deposit with an estimated timeline to production of 3 - 4 years.
Size (World Class). 8.63Mt @ 12.8% on surface. Currently the second largest deposit in the world by having only drilled approx. 28% of the footprint of the deposit.
Highest grade portion of the deposit is at surface and sits along the dip slope with a very low waste to ore strip ratio.
Scalable, in a mining-friendly jurisdiction (Alaska). Near tide water and shipping lanes to major markets and end users
Preliminary Metallurgy demonstrates GPH is able to create:
1. An ultra-high purity concentrate; and
2. Amenable for the development of a suitable spherical graphite product that is competitive on quality.
No sulphide in primary ore.
Potential for a +100 year mine life
Low strip ratio = low cost producer
“Supply Critical Mineral.” Technology driven demand ahead
Potential to be the largest & lowest cost US provider
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Contact
Investor Relations 1-866-684-6730 | [email protected]
Anthony Huston, President, CEO, + Director
604.697.2862 | [email protected]
1280 - 885 West Georgia Street
Vancouver, BC Canada V6C 3E8
www.GraphiteOneResources.com