Leading Edge Materials Reports Quarterly Results to January 31, 2022

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Vancouver, March 24, 2022 – Main Edge Supplies Corp. (“Main Edge Supplies” or the “Firm”) (TSXV: LEM) (Nasdaq First North: LEMSE) (OTCQB: LEMIF) (FRA: 7FL) first quarter outcomes for the interval ending January 31, 2022. All references to greenback quantities on this launch are in Canadian {dollars}.

Highlights Throughout and After the Quarter        

In the course of the three months ended January 31, 2022:

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Subsequent to January 31, 2022:
        

Outcomes of Operations

Three Months Ended January 31, 2022 In comparison with Three Months Ended October 31, 2021

In the course of the three months ended January 31, 2022 (“Q1 2022”) the Firm reported a internet lack of $2,094,349 in comparison with a reported internet lack of $554,925 for the three months ended October 31, 2021 (“This autumn 2021”), a rise in lack of $1,539,424, the rise in loss is especially attributable to $1,421,437 of share-based compensation associated to granting of inventory choices beneath the Firm’s inventory choice plan throughout Q1 2022, and market to market lack of $219,208 booked in Q1 2022 in comparison with a mark to market achieve of $122,484 booked in This autumn 2021.

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Three Months Ended January 31, 2022 In comparison with Three Months Ended January 31, 2021

In the course of the three months ended January 31, 2022 (“2022 interval”) the Firm reported a internet lack of $2,094,349 in comparison with a internet lack of $668,278 for the three months ended January 31, 2021 (“2021 interval”), a rise in lack of $1,426,071, the rise in loss is especially attributable to $1,421,437 of share-based compensation associated to granting of inventory choices beneath the Firm’s inventory choice plan through the 2022 interval.

Chosen Monetary Knowledge

The next chosen monetary info is derived from the audited condensed consolidated interim monetary statements of the Firm ready in accordance with IFRS.

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Monetary Situation / Capital Assets

In the course of the three months ended January 31, 2022, the Firm recorded a internet lack of $2,094,349 and, as of January 31, 2022 the Firm had an amassed deficit of $43,198,619 and dealing capital of $3,236,870. The Firm is sustaining its Woxna Graphite Mine on a “production-ready” foundation to reduce prices and is conducting ongoing analysis and growth to provide greater worth specialty merchandise. The Firm can be evaluating a possible restart of manufacturing on the Woxna Graphite Mine. The Firm anticipates that it has enough funding to fulfill anticipated ranges of company administration and overheads for the following twelve months nevertheless, it’ll want extra capital to offer working capital and recommence operations on the Woxna Graphite Mine and/or set up a manufacturing facility for the Anode Mission, to fund future growth of the Norra Karr Property and full the tendering course of and, if profitable, exploration actions in Romania. There isn’t a assurance such extra capital might be accessible to the Firm on acceptable phrases or in any respect. In the long term the recoverability of the carrying worth of the Firm’s long-lived property relies upon the Firm’s means to protect its curiosity within the underlying mineral property pursuits, the invention of economically recoverable reserves, the achievement of worthwhile operations and the power of the Firm to acquire financing to assist its ongoing exploration packages and mining operations. See additionally “COVID-19”.

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In the course of the three months ended January 31, 2022, 200,000 choices and 4,421,428 warrants have been exercised for gross proceeds of $45,000 and $1,620,500 respectively. 3,200,000 share choices have been granted through the three months ended January 31, 2022 at an train worth of $0.62.

In the course of the yr ended October 31, 2021, 493,109 choices and 63,571 warrants have been exercised for gross proceeds of $95,348 and $6,357 respectively.

Outlook        

Regretfully any outlook should begin with the point out of the horrendous and hostile invasion of Ukraine by Russia. Moreover the unfathomable human struggling for the Ukrainian individuals, this growth comes on prime of the COVID pandemic one other tectonic occasion that may form geopolitics and industrial coverage going ahead. One can solely hope for a swift ending to the present scenario in Ukraine, however there is no such thing as a turning again from the conclusion by western governments that vitality and provide chain reliance on authoritarian and autocratic regimes is one thing that needs to be solved urgently. The Versailles Declaration by EU leaders clearly outlines steps to scale back vitality dependency on Russia and addresses strategic dependencies on essential uncooked supplies basically¹. These aren’t new initiatives within the context of EU industrial coverage over the past years, however one will be sure that there’s extra dedication and urgency to ship on the ambitions. For each vitality independence and uncooked materials safety, a key deliverable might be to develop uncooked supplies tasks inside the borders of the EU. The tasks we have now in our portfolio are precisely the kind of tasks which might be wanted now greater than ever earlier than.

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Battery uncooked materials costs have risen sharply over the previous couple of months pushed by continued robust demand and growing manufacturing prices, not least attributable to growing electrical energy prices globally². Graphite costs in Europe, together with spherical purified graphite (being the anode materials feedstock), are just lately reported³ to be up nearly 40-50% in comparison with the identical interval final yr⁴.

4 our Woxna graphite mission, we’re working actively on two parallel and intently associated tasks. One being the analysis of restarting flake graphite manufacturing on the present mine as a result of improved market circumstances. The opposite is the manufacturing of bulk samples of battery grade graphite along with our most well-liked suppliers the place we just lately have concluded thermal purification trials. The produced materials might be additional processed by our proposed JV associate Sicona into lithium-ion anode supplies which might be examined in battery cells and despatched for buyer pre-qualifications. The info of this check program will kind the premise for the subsequent growth steps in the direction of a Swedish anode materials demonstration plant and if agreed, the included JV on the anode mission.

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The identical demand and provide crunch dynamics have supported uncommon earth costs yr thus far. Costs for key magnet uncommon earth oxides akin to neodymium, dysprosium and terbium continued rising initially however have just lately reversed a few of these positive factors after China initiated communication tried at cooling the market⁵. Even with the latest correction, the important thing magnet uncommon earth oxide costs are up between 27 and 150% yr on yr⁶.

We’re persevering with our work on updating the mining lease software for the Norra Karr mission primarily based on the brand new plan for the mission introduced final yr⁷. Not too long ago the Authorities of Sweden authorized the mining lease software for the Kallak iron ore mission in north of Sweden⁸. That is fascinating within the context of that mission having been locked in a identical kind of allowing stalemate as Norra Kärr for shut to 10 years. The Minister of Enterprise emphasised that it was a brand new kind of mining lease approval which might be used as a praxis for future evaluations. The granting was related to a number of circumstances with the target to reduce the battle between competing nationwide pursuits. These kinds of circumstances are usually handled on the environmental allowing stage, the impact basically being that the mission was pushed by way of the mining lease stage so as to open up the chance to deal with the required growth work in the direction of an environmental allow software.

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As we transfer by way of the primary half of the yr we’re working throughout every necessary entrance of our tasks that may allow us to progress them to the subsequent part. In the course of the quarter we have been happy to see persevering with assist from long-term shareholders by way of the train of choices and warrants for proceeds to the Firm of $1,665,500, with many warrants and choices nonetheless excellent with train costs deep within the cash. We’re additionally inspired to see continued growing curiosity within the Firm by Swedish shareholders, earlier this yr Swedish shareholders grew to become the most important shareholder base and buying and selling volumes on our Nasdaq First North itemizing are actually rising. Outdoors of delivering shareholder worth, we have now all the time felt the significance of our tasks in how they’ll assist the local weather transition and Europe’s ambitions to turn out to be extra self-reliant for essential uncooked supplies. This duty is now larger than ever on this new geopolitical setting that emerged this yr.

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Certified Individual
        
The scientific, technical and financial info associated to the Norra Karr mission has been reviewed and authorized by Dr. Rob Bowell of SRK Consulting (UK) Ltd, a chartered chemist of the Royal Society of Chemistry, a chartered geologist of the Geological Society of London, and a Fellow of the Institute of Mining, Metallurgy and Supplies, who’s an unbiased Certified Individual beneath the phrases of NI 43-101 for REE deposits.

The scientific, technical and financial info associated to the Woxna Graphite mission has been reviewed and verified by Christopher Stinton of Zenito Restricted, BSc (Hons), CEng MIMMM, an unbiased Certified Individual as outlined by NI 43-101.

Monetary Info

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The report for the quarter ending April 30, 2022, is anticipated to be printed on or about June 22, 2022.

On behalf of the Board of Administrators,
Main Edge Supplies Corp.

Filip Kozlowski, CEO

For additional info, please contact the Firm at:
information@leadingedgematerials.com
www.leadingedgematerials.com

Observe us
Twitter: https://twitter.com/LeadingEdgeMtls
Linkedin: https://www.linkedin.com/firm/leading-edge-materials-corp/

About Main Edge Supplies

Main Edge Supplies is a Canadian public firm centered on creating a portfolio of essential uncooked materials tasks positioned within the European Union. Vital uncooked supplies are decided as such by the European Union primarily based on their financial significance and provide threat. They’re immediately linked to excessive development applied sciences akin to batteries for electromobility and vitality storage and everlasting magnets for electrical motors and wind energy that underpin the clear vitality transition in the direction of local weather neutrality. The portfolio of tasks consists of the 100% owned Woxna Graphite mine (Sweden), Norra Karr HREE mission (Sweden) and the 51% owned Bihor Sud Nickel Cobalt exploration alliance (Romania).

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Extra Info

The Firm’s unaudited consolidated monetary statements for the three months ended January 31, 2022 and associated administration’s dialogue and evaluation can be found on the Firm’s web site at www.leadingedgematerials.com or beneath its profile on SEDAR at www.sedar.com

The knowledge was submitted for publication by way of the company of the contact particular person set out above, on March 24, 2022, at 1:45 pm Vancouver time.

Main Edge Supplies is listed on the TSXV beneath the image “LEM”, OTCQB beneath the image “LEMIF” and Nasdaq First North Stockholm beneath the image “LEMSE”. Mangold Fondkommission AB is the Firm’s Licensed Adviser on Nasdaq First North and could also be contacted by way of e mail CA@mangold.se or by telephone +46 (0) 8 5030 1550.

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Reader Advisory

Sure info on this information launch could represent forward-looking statements or forward-looking info inside the which means of relevant Canadian securities legal guidelines (collectively, “Ahead-Trying Statements”). All statements, aside from statements of historic truth, addressing actions, occasions or developments that the Firm believes, expects or anticipates will or could happen sooner or later are Ahead-Trying Statements. Ahead-Trying Statements are sometimes, however not all the time, recognized by way of phrases akin to “search,” “anticipate,” “imagine,” “plan,” “estimate,” “anticipate,” and “intend” and statements that an occasion or end result “could,” “will,” “can,” “ought to,” “might,” or “would possibly” happen or be achieved and different related expressions. Ahead-Trying Statements are primarily based upon the opinions and expectations of the Firm primarily based on info at the moment accessible to the Firm. Ahead-Trying Statements are topic to plenty of elements, dangers and uncertainties that will trigger the precise outcomes of the Firm to vary materially from these mentioned within the Ahead-Trying Statements together with, amongst different issues, the Firm has but to generate a revenue from its actions; there will be no assure that the estimates of portions or qualities of minerals disclosed within the Firm’s public file might be economically recoverable; uncertainties regarding the provision and prices of financing wanted sooner or later; competitors with different corporations inside the mining business; the success of the Firm is essentially dependent upon the efficiency of its administrators and officers and the Firm’s means to draw and prepare key personnel; modifications in world metallic markets and fairness markets past the Firm’s management; the opportunity of write-downs and impairments; the dangers related to uninsurable dangers arising through the course of exploration; growth and manufacturing; the dangers related to modifications within the mining regulatory regime governing the Firm; the dangers related to tenure to the Norra Karr property; the dangers related to the varied environmental rules the Firm is topic to; rehabilitation and restitution prices; the Woxna mission has by no means outlined a mineral reserve or a feasibility examine and the related elevated threat of technical and financial failure in case of restarting manufacturing; dangers regarding the preliminary and non-binding nature of the MOU with Sicona. On June 9, 2021, Main Edge introduced the outcomes of an unbiased preliminary financial evaluation for the event of Woxna (the “2021 Woxna PEA”), the total particulars of that are included in a technical report entitled “NI 43-101 Technical Report – Woxna Graphite” ready for Woxna Graphite AB with efficient date June 9, 2021 and subject date July 23, 2021, accessible on Main Edge’s web site www.leadingedgematerials.com and beneath its SEDAR profile www.sedar.ca. The 2021 Woxna PEA is preliminary in nature, it consists of inferred mineral sources which might be thought of too speculative geologically to have the financial concerns utilized to them that may allow them to be categorized as mineral reserves, and there’s no certainty that the preliminary financial evaluation might be realized. Mineral sources that aren’t mineral reserves do not need demonstrated financial viability. On July 22, 2021, Main Edge introduced the outcomes of an unbiased preliminary financial evaluation for the event of Norra Karr (the “2021 Norra Karr PEA”), the total particulars of that are included in a technical report titled “PRELIMINARY ECONOMIC ASSESSMENT OF NORRA KARR RARE EARTH DEPOSIT AND POTENTIAL BY-PRODUCTS, SWEDEN” ready for Main Edge Supplies Corp. with efficient date August 18, 2021 and subject date August 19, 2021, accessible on Main Edge’s web site www.leadingedgematerials.com and beneath its SEDAR profile www.sedar.ca. The 2021 Norra Karr PEA is preliminary in nature, it consists of inferred mineral sources which might be thought of too speculative geologically to have the financial concerns utilized to them that may allow them to be categorized as mineral reserves, and there’s no certainty that the preliminary financial evaluation might be realized. Mineral sources that aren’t mineral reserves do not need demonstrated financial viability. On March 11, 2020, the World Well being Group (“WHO”) declared the novel coronavirus outbreak recognized as “COVID-19”, as a worldwide pandemic. With a view to fight the unfold of COVID-19 governments worldwide have enacted emergency measures together with journey bans, legally enforced or self-imposed quarantine intervals, social distancing and enterprise and group closures. These measures have brought about materials disruptions to companies, governments and different organizations leading to an financial slowdown and elevated volatility in nationwide and world fairness and commodity markets. The Firm has applied security and bodily distancing procedures, together with working from residence the place attainable and ceased all journey, as really useful by the varied governments. The Firm will proceed to watch the influence of the COVID-19 outbreak, the length and influence which is unknown at the moment, as is the efficacy of any intervention. It’s not attainable to reliably estimate the size and severity of those developments and the influence on the monetary outcomes and situation of the Firm and its operations in future intervals.

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¹ https://www.consilium.europa.eu/media/54773/20220311-versailles-declaration-en.pdf
² https://www.fastmarkets.com/insights/battery-ev-producers-grapple-with-record-high-prices-due-to-ongoing-raw-material-supply-crunch
³ https://www.indmin.com/Article/5089795/Graphite/Robust-demand-in-China-tightening-supply-support-graphite-markets.html
⁴ https://www.indmin.com/Article/3978011/Graphite-LatestNews/GLOBAL-GRAPHITE-SNAPSHOT-Costs-stable-but-freight-costs-new-material-sources-add-uncertainty.html
⁵ https://www.reuters.com/enterprise/china-calls-rare-earths-companies-bring-prices-back-reasonable-level-2022-03-04/
⁶ https://treo.substack.com/p/trust-is-no-entitlement-russia-ukraine?s=r
⁷ https://leadingedgematerials.com/wp-content/uploads/2021/08/NorraKarr_PEA_43-101.pdf
⁸ https://www.mining.com/internet/sweden-gives-qualified-go-ahead-for-northern-kallak-iron-ore-mine/

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