made in alaska: alaska graphite -- america’s newest ... · made in alaska: alaska graphite...

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POWERING AHEADwww.graphiteoneresources.com

TSX-V:GPH | OTCQX:GPHOF

Made in Alaska:Alaska Graphite --America’s Newest Power Source

SPRING 2017

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www.graphiteoneresources.com TSX-V: GPH | OTCQX: GPHOF

Forward-Looking StatementsThis presentation contains "forward-looking statements” which are made as of the date of this presentation and Graphite OneResources does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-lookingstatements include, but are not limited to, statements with regard to the actual ability to produce spherical graphite, ultimatefurther and final results of additional test-work, progress of TRU Group and the Company during 2016, the timing andsuccessful completion of the PEA, industry projections regarding EVs and power storage devices, results of TRU’s study beingaccurate regarding characteristics of the Graphite Creek Mineralization, the timing, amount and success of future explorationand exploitation activities, and events or developments that the Company expects, the sustainability and environmental effectsof spherical graphite.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actualresults, performance or developments of the Company to be materially different from those in the forward-lookingstatements. Such factors include, among others, results of product development test work may not be indicative of theadvancement of the project as anticipated, or at all, market prices, exploitation and exploration successes, continuity ofmineralization, uncertainties related to the ability to obtain permits, licenses and title delays, changes in government policiesregarding mining and natural resource exploitation, accidents, labour disputes and other risks of the mining industry; ability toget or delays in obtaining financing.

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About Graphite OneGraphite One Resources (TSX-V:GPH | OTCQX:GPHOF) is advancing the Graphite Creek Deposit to become a premier supplier of technology-grade graphite to the booming lithium-ion battery, energy storage, and mobile technology manufacturing sectors.

The Company’s naturally occurring STAX graphite offers a compelling advantage in the creation of technology-grade graphite.

The Graphite Creek Deposit is strategically located in Alaska with direct ocean access to the high-tech American hub and Asian markets.

In January 2017, the Company completed its Preliminary Economic Assessment (PEA) for its Graphite Creek deposit, valuating the Graphite Project at US$1.037B (pre-tax at 10% discount rate) NPV.

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▶ Lithium-ion batteries require 8-10x more graphite than lithium ▶ More power, energy and lifetime than any other battery for the same

mass and volume ▶ Natural graphite required to reduce costs and environmental footprint

▶ Global demand ready to skyrocket for high quality natural graphite▶ Automakers – 1.26M electric cars sold in 20151

▶ Alevo GridBanks – energy storage units, factory in Concord, NC▶ Tesla Powerwall – the next generation of home power ▶ Dyson – building a $1 Billion gigafactory▶ Electronics/technology – all things mobile powered by li-ion batteries

▶ USA is the world’s largest tech-driven graphite consumer – with zero production▶ Current consumption of 60,000 Mtpa and growing▶ Demand expected to increase 200% by 2020 and 300% by 2025

▶ Estimated demand will require 3 new 50,000 Mtpa mines to come online

1 Source: Global EV Outlook 2016 - International Energy Agency

Technology-Grade Graphite Demand Set to Skyrocket

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Lithium is actually 2% of the cell mass.It sounds like it's big because it's called‘Lithium-Ion,’ but really our batteriesshould be called ‘Nickel-Graphite.’

- Tesla constructing world’s largest lithium-ion battery factory inNevada with cell production expected to begin by 2017

- There is 54kg of graphite in the battery anode of each TeslaModel S (85 kWh)

- Graphite, the battery anode, to be largest input raw material- By 2020, Gigafactory expected to dominate lithium-ion

battery market making 500k batteries annually and potentially:- Increasing demand for battery grade graphite by

up to 170% (60Kt in 2014 to 102Kt in 2020)- Reducing cost of lithium-ion batteries by 60%

($250/kWh in 2014 to $100/kWh by 2020).

Source: Benchmark Mineral Intelligence March 2015 Q1Panasonic is Tesla’s sole battery supplier.

WHAT THIS MEANS

USA will be the largest source oflithium-ion batteries in 5 years,strengthening Graphite One’sposition to become the USA’spremium graphite supplier.

“

”– Tesla CEO Elon Musk at Code Conference 2016

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Battery SurgeElectric vehicle lithium-ion battery demand to surpass consumerapplications in 2022

Source: Bloomberg New Energy Finance, Avicenne

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U.S. Graphite DemandThe U.S. is 100% import-dependent for graphite1

1 Source: US Geological Survey 2 United States Geological Survey Mineral Resources Program

Reliance▶ The U.S. imported $45.2MM Natural Graphite in 20132. There was not a single oz. produced in the United

States.

▶ “Right as foreign oil becomes less of a national concern, our foreign mineral dependence has taken its place asinsidious thread to America’s security, growth and competitiveness.” – The American Mineral Security Act of 2015

▶ The European Union has included Natural Graphite on its Critical Raw Materials (CRMs) list. These combinehigh economic importance with a high risk associated with their supply.

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Battery Graphite in China

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2015 output Real capacity

Demand for battery anode material at an all time high1

1 Source: Benchmark Minerals | October 16, 2015

Impurities▶ Preventing fringe producers from entering the market.▶ Drags down capacity utilization rates and makes China’s BTR

New Energy Materials the dominant player.

Demand▶ China produced 110,000 battery-powered vehicles from

January-August 2015 alone.▶ The country is the number one producer of Electric Vehicles

(EVs) as of January 2016 with 233% YOY growth.2

2 Source: hybridcars.com | January 18, 2016

THE SOLUTION

GPH STAX has the potential for exceptionalprocessing, higher yields and higher performance.

With a large resource and consistent quality, GraphiteOne is a major competitor. The company is committedto responsible and sustainable practices.

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Feeding the Energy Storage Beast

Lithium-Ion Batteries▶ 10-30x more graphite than lithium by weight

required to produce these batteries.▶ Market is expected to grow 200% in next 4

years.

Stationary/Energy Storage Batteries▶ Operate continuously to accumulate energy from

sources with unpredictable energy flows, releasingit during peak demands.

▶ Homes & businesses storing solar and windpower generation.

Energy storage revenue is forecasted to exceed $16.5 Billion by 20231

MAJOR PRODUCTS DRIVING UNPRECEDENTED DEMAND – 200% GROWTH IN DEMAND IN NEXT 4 YEARS

Mobile Technology▶ Evolving technology requires battery power for

most modern devices; consumers demand long-lasting battery life.

▶ Global E-Bike sales to reach $24.3B by 2025 dueto falling Lithium prices.

1 Source: Navigant Research

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Electric Vehicles Timeline10

The Roadster was the first production automobile to use lithium-ion battery cells.

Tesla Motors (2008)

The i-MiEV launched in Japan for fleet customers.

Mitsubishi (2009)

The plug-in hybrid Volt represents the evolution of GM technologies.

Chevrolet (2010)The Silicon Valley start-up plans to produce an electric car by 2018.

Atieva (2018)

By 2022 EV’s will cost the same as their internal-

combustion counterparts.1

The FutureSmart, Volvo, & Ford (2011)

1 Source: Bloomberg

11Graphite One has defined America’s largest

high quality graphite deposit

0.741.43

2.14

3.55

5.71

0

1

2

3

4

5

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Northern Graphite (Ontario)

Zenyatta Ventures (Ontario)

Focus Graphite (Quebec)

Alabama Graphite (Alabama)

Graphite One (Alaska)

Graphite One’s inferred resourceeasily surpasses other Americanprojects in size.

Additional Potential: 40-year MineLife based on drill results for only20% of the total deposit.

Indi

cate

d &

Infe

rred

(in

Milli

on To

nnes

)

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Cut-Off Tonnage Graphite In Situ Cg

6% 10.3Mt 7.2% Cg 0.74Mt6% 71.2Mt 7.0% Cg 4.97Mt

NI 43-101PEA February 2, 2017

Indicated Resource

Inferred Resource

Graphite Creek Mineralization SW

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1. Long Life Deposit▶ End users want to ensure a safe, reliable, long life supply of raw materials for quality and

consistency▶ Manufacturers will become vertically integrated to secure and reduce the costs of their raw

materials(See Pure Energy Minerals joint press release with Tesla – Sept 15, 2015)

▶ Graphite Creek has defined America’s LARGEST high-grade graphite deposit

2. High Quality End-Product (STAX Advantage)▶ All Graphite deposits have different characteristics, yet it’s the END product that matters▶ Graphite One’s STAX™ graphite has potential for exceptional processing, higher yields

and higher performance

3. Low Cost Production▶ At surface deposit for potential low cost open pit mining scenario▶ Near tidewater for direct access to west coast technology hub in American / Asian markets

It’s not just the size and grade that matters…3 Key Competitive Advantages

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360 Ah/kg

362 Ah/kg

365 Ah/kg 366 Ah/kg

367.21 Ah/kg

369.69 Ah/kg 370.1 Ah/kg

354

356

358

360

362

364

366

368

370

372

Disc

harg

e C

apac

ity, A

h/kg

Chinese Flake

Top Grade Synthetic

Northern Graphite

Focus Graphite

Alabama Graphite

Syrah Resources

GPHSTAX Coated

SPG

The STAX Quality Advantage▶ Coin cell tests show little change in reversible discharge capacity and

performance between the coated and uncoated SPG▶ Results confirm high performance, repeatability and stability – all indicators of the

exceptional quality of GPH STAX graphite

▶ Potential answer to electric vehicle battery end-users’ quest for high power

SPHERICAL (STAX) GRAPHITE

Spheroidal shapes naturally occurring indeposit (lithium-ion batteries)

Thin flakes (premium alkaline batteries)

Aggregate flakes (lithium-ion batteries)

eXpanded flakes (flame retardant materials)

AVERAGE SUPPLY NORTH AMERICAN DEPOSITS

NEARING PRODUCTION

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Preliminary Economic Assessment (PEA)

- Completed in January 2017, the Graphite Creek deposit is valued at US $1.037B NPV, and 27% IRR

- Consolidated Operating Margin (EBDIT) of 63% on sales

- Payback period of 4 years- Operating Cost Product: US

$1,774 per tonne- Conservative Blend Selling

Price of Products: US$ 5,054 per tonne

FINANCIAL HIGHLIGHTS Sensitivity of Project’s NPV to CSG Price

US $1.037 Billion NPV

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Timeline to Production Decision

2017 2018

PRODUCTION DECISION TARGETED FOR 2020

OngoingMetallurgy

Q1Completed Preliminary Economic Assessment (PEA)

Q2Bankable Feasibility Study (BFS)

2019 2020

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Environmental StewardshipGraphite One is committed to environmental protection best practices, including:▶ Limited footprint for exploration activity footprint▶ Reclamation and revegetation an ongoing process; “progressive reclamation”▶ Spill prevention and water protection measures▶ Minimal impacts to the environment and wildlife▶ Local community involvement in planning and development

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Community Relations Guiding Principles▶ Openness – both in sharing and in listening to the communities▶ Responsiveness▶ Respect▶ Patience▶ Transparency▶ Willingness to work together

We understand long-term relationships do not build themselves and it will take time to earn your trust and friendship.

Our goal is to do things right and work with you as much as possible to align the proposed project with your community’s long-term cultural, social, educational, economic and infrastructure goals.

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Doug Smith, B.Sc., P.Eng. Executive Chairman + Director▶ Over 35 years of experience in the international coal industry as a senior executive and corporate director.▶ General Manager of Xstrata Coal Canada 2011-2013 following Xstrata Coal's purchase of First Coal Corporation in August 2011.▶ President, CEO and Director of First Coal since May 2007; raised over $50M in equity and directed its sale to Xstrata.▶ President and Director of Andalex Resources Inc., a private U.S. coal company, until he successfully directed its sale in 2006.

Anthony Huston, B.Comm President, CEO + Director▶ Successful entrepreneur with a background in business development and finance▶ Served as Managing Partner in both public and private companies; played an integral role in raising in excess of $100M in his career.▶ Has been an advisor for financial and acquisition transactions in many industry sectors, including real estate development, technology,

bio-technology and resource.

Alan Ahlgren, CPA, CA CFO + Corporate Secretary▶ Extensive experience having served as CFO and Corporate Secretary with AQM Copper Inc. and previously with First Coal

Corporation, until its purchase by Xstrata Coal Canada.▶ Recently assisted in the restructuring of a company with operations in Argentina and with a mining company in transition following a

purchase of a mine in the United States.▶ Prior to First Coal, served as VP Finance with Kinross Gold Corporation.

David Hembree, B.Sc., P.Geo. General Manager Operations▶ Over 35 years of experience in the mineral resource industry including experience in exploration, development and production of

both open pit and underground operations.▶ Held the position of VP of Exploration and Qualified Person with Kimber Resources Inc., where he was instrumental in the sale of

their Monterde gold-silver deposit in Mexico.▶ Previously US Exploration Manager and QP for Golden Predator Mines US.▶ Has also worked as Chief Geologist at the open pit operations of Mineral Ridge Resources and Mt. Hamilton Mining Co. as well as US

Exploration manager for Queenstake Resources USA.

MANAGEMENT

Management and BoardSignificant experience in all aspects of project exploration, development,and operations.

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Management and BoardDIRECTORS + ADVISORY BOARD

Jim Currie, P.Eng. Director

Patrick Smith, P.Geo. Director

Brian Budd Director

Robert Cross, P.Eng., MBA Corporate Affairs + Finance

John Robins Geology + Engineering

Scott Koyich Markets + Finance

Rick Van Nieuwenhuyse, MSc. Alaska Advisor

Ronald Sheardown Alaska Advisor

Dan McGroarty Critical Materials Advisor

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Investment Highlights

POWERING AHEAD

▶ America’s largest defined graphite resource for long life supply

▶ Excellent potential for low-cost mining scenario (high-grade, near surface)

▶ Tidewater gives access to America’s high-tech hub and Asia markets

▶ Excellent potential for lower cost, high-quality supply of natural graphite

▶ Proven management team with industry experience

▶ Preliminary Economic Assessment (PEA) valuating the Graphite Project at

US$1.037B

▶ Exceptional shareholder liquidity

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Investment Highlights

POWERING AHEAD

Warrant Trigger

103,954,537 warrants

With average price of $0.152 – would bring in

$15,800,299

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Corporate Structure

Shares Outstanding 239.4MOptions 19.9MWarrants 116.65MBroker Warrants 5.24MFully Diluted 381.19M

Average 30 Day Volume1,425,430

SHARE STRUCTURE(as at Feb 16, 2017)

Graphite One trades on the TSX Venture Exchange under thesymbol GPH and on the OTCQX Market as GPHOF.

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Contact

Anthony Huston, President, CEO + Director

604-889-4251 | [email protected]

600 – 777 Hornby StreetVancouver, BC Canada V6Z 1S4

[email protected]

Graphite One Resources Investor Relations

Kin Communications604-684-6730 | 1-866-684-6730 (toll-free)[email protected]

THANK YOU

made in alaska: alaska graphite -- america’s newest ... · made in alaska: alaska graphite...

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