Leading Edge Materials Reports Fiscal 2018 Results

VANCOUVER, Jan. 24, 2019 - Leading Edge Materials Corp. ("Leading Edge Materials" or the "Company") (TSXV: LEM) (Nasdaq First North: LEMSE) (OTCQB: LEMIF) is pleased to announce results for the year ending October 31, 2018.  All references to dollar amounts in this release are in Canadian dollars.

Highlights

During the last financial year, the Company has achieved a range of important milestones:

• Commenced trading on the Nasdaq First North in Stockholm on January 22, 2018;
• Completed numerous graphite purification and spheronisation test programs;
• Established a Romanian exploration joint venture with 51% ownership focused on cobalt and other energy metals;
• Commenced detailed study work on a high purity graphite demonstration plant;
• Produced kg's of spherical high purity graphite sample; and
• Secured the exploration permit for the Norra Kärr REE project;

Blair Way, President and CEO, stated "While 2018 was a challenging year for mining markets, the Company has continued to make good progress on the Woxna graphite project in Sweden and within our new Romanian exploration alliance."

As announced 23^rd January 2019, Mr Blair Way has resigned as CEO, President and Director of Leading Edge Materials effective January 31^st 2019.  Mr Way will continue to be available as a consultant to the Company on an as needs basis.  Mr Mark Saxon, Director, has been named interim CEO and President. 

Selected Financial Data

The following selected financial information is derived from the audited consolidated financial statements of the Company prepared in accordance with IFRS. 

Financial Condition / Capital Resources

During fiscal 2018 the Company recorded a net loss of $4,386,285 and, as at October 31, 2018, the Company had an accumulated deficit of $27,054,324 and working capital of $960,707. The Company maintains its Woxna Graphite Mine on a "production-ready" basis to minimize costs.  The Company currently has no significant budget allocated for the Norra Kärr Project.  Although the Company has sufficient funding to meet anticipated levels of corporate administration and overheads for the ensuing twelve months, it anticipates that it will need additional capital to maintain current levels of research and development, recommence operations at the Woxna Graphite Mine and/or upgrade the plant to produce value added production. There is no assurance such additional capital will be available to the Company on acceptable terms or at all.  In the longer term the recoverability of the carrying value of the Company's long-lived assets is dependent upon the Company's ability to preserve its interest in the underlying mineral property interests, the discovery of economically recoverable reserves, the achievement of profitable operations and the ability of the Company to obtain financing to support its ongoing exploration programs and mining operations. Whether the Company can generate positive cash flow and, ultimately, achieve profitability is uncertain. These uncertainties may cast significant doubt upon the Company's ability to continue as a going concern.

Subsequent to October 31, 2018 the Company completed a private placement financing of 6,027,855 units for gross proceeds of $1,687,800.

Financings

No financings were undertaken during fiscal 2018.  The Company issued 400,000 common shares on the exercise of share options for $156,000.

During fiscal 2017 the Company completed private placement financings of 4,004,222 units at $0.45 per unit and 3,636,364 units at $0.55 per unit for total gross proceeds of $3,801,900.  The net proceeds from these financings were used to conduct testwork toward the production of high-purity graphite at the Woxna graphite project, to further lithium and cobalt exploration activities and for general corporate requirements.  In addition, the Company issued 1,026,916 common shares on the exercise of share options and warrants for $427,491.

Summary and Outlook 

Work undertaken by Leading Edge Materials during fiscal 2018 has been in line with the Board of Directors strategic roadmap to support and benefit from the electrification of transportation in Europe.  Key elements of the Company's ongoing investment strategy include: high value product development work on the Woxna graphite mine; increasing community engagement at the Norra Karr rare earth element project while identifying project improvements that reduce the environmental footprint; ongoing discovery of lithium at the Bergby project and in the surrounding region; and rapidly advancing various opportunities in cobalt across Europe including Finnish and Romanian assets.

At the Woxna graphite production facility, the Company is focused on optimization of the purification and shaping processes required to convert low value graphite into high value lithium ion battery-ready anode material.  Laboratory based work to date has produced battery-ready anode materials by both chemical and thermal purification methods that meet the electrochemical specifications of battery cell manufacturers.  Larger scale test work is ongoing targeting optimization of a purification flow sheet and definition of equipment requirements to produce battery grade materials and other salable by-products.  The research focus is directed towards commercially proven process improvements which can be installed on the Woxna mine site within existing operating permits.

In late April 2018 the Company announced initiation of an exploration alliance focused on lithium ion battery materials in Romania.  The exploration alliance has highlighted cobalt and lithium opportunities, for which secure tenure is now being sought.  Following technical and commercial due diligence, Leading Edge Materials established a local branch company ("LEM Romania") of which it is the majority shareholder with the right to earn a 90% interest.  LEM Romania is owner of the 25.5 sq km (2,550 ha) Bihor Sud Prospecting Permit in central western Romania. 

Qualified Person

The technical content of this release has been reviewed and approved by Mr. Blair Way, B.Sc. (Geology) M.B.A., a Fellow of the Australasian Institute of Mining and Metallurgy, the Company's President and CEO and a Qualified Person as defined by National Instrument 43-101.

On behalf of the Board of Directors,
Leading Edge Materials Corp.

Mr. Blair Way, President and CEO

About Leading Edge Materials

Leading Edge Materials is a Canadian public company focused on production of high value critical raw materials for the European market, with an operating base in the Nordic region, a region well recognized for its promotion and investment in innovation. LEM's flagship asset is the Woxna Graphite production facility located in central Sweden targeting the supply of specialty materials for lithium ion battery production. LEM's assets and research focus are towards the raw materials for Li-ion batteries (graphite, lithium, cobalt); materials for high thermal efficiency building products (graphite, silica, nepheline); and materials that improve the efficiency of energy generation (dysprosium, neodymium, hafnium). Investments are linked to the global shift to low-carbon energy generation and energy storage. Leading Edge Materials currently operate in four divisions, Graphite, Lithium, Rare Earth and Cobalt.  

Additional Information

The Company's consolidated financial statements for the year ended October 31, 2018 and related management's discussion and analysis are available on the Company's website at www.leadingedgematerials.com or under its profile on SEDAR at www.sedar.com

Leading Edge Materials is listed on the TSXV under the symbol "LEM" and Nasdaq First North Stockholm under the symbol " LEMSE".  Mangold Fondkommission AB is the Company's Certified Adviser on Nasdaq First North and may be contacted via email CA@mangold.se or by phone +46 (0) 8 5030 1550.

Reader Advisory

This news release may contain statements which constitute "forward-looking information", including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities and involve risks and uncertainties, and that the Company's future business activities may differ materially from those in the forward-looking statements as a result of various factors, including, but not limited to, fluctuations in market prices, successes of the operations of the Company, continued availability of capital and financing and general economic, market or business conditions. There can be no assurances that such information will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. The Company does not assume any obligation to update any forward-looking information except as required under the applicable securities laws.

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

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SOURCE Leading Edge Materials