1 Made in Alaska: Alaska Graphite -- America s Newest Power Source POWERING AHEAD SPRING 2017 TSX-V:GPH OTCQX:GPHOF
2 Forward-Looking Statements This presentation contains "forward-looking statements which 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 regard to the actual ability to produce spherical graphite, ultimate further and final results of additional test-work, progress of TRU Group and the Company during 2016, the timing and successful completion of the PEA, industry projections regarding EVs and power storage devices, results of TRU s study being accurate regarding characteristics of the Graphite Creek Mineralization, the timing, amount and success of future exploration and exploitation activities, and events or developments that the Company expects, the sustainability and environmental effects of spherical graphite. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or developments of the Company to be materially different from those in the forward-looking statements. Such factors include, among others, results of product development test work may not be indicative of the advancement of the project as anticipated, or at all, market prices, exploitation and exploration successes, continuity of mineralization, uncertainties related to the ability to obtain permits, licenses and title delays, changes in government policies regarding mining and natural resource exploitation, accidents, labour disputes and other risks of the mining industry; ability to get or delays in obtaining financing. TSX-V: GPH OTCQX: GPHOF
3 About Graphite One Graphite One Resources (TSX-V:GPH OTCQX:GPHOF) is advancing the Graphite Creek Deposit to become a premier supplier of technologygrade 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. TSX-V: GPH OTCQX: GPHOF
Technology-Grade Graphite Demand Set to Skyrocket 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 4 Automakers 1.26M electric cars sold in 2015 1 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 TSX-V: GPH OTCQX: GPHOF 1 Source: Global EV Outlook 2016 - International Energy Agency
5 Lithium is actually 2% of the cell mass. It sounds like it's big because it's called Lithium-Ion, but really our batteries should be called Nickel-Graphite. Tesla CEO Elon Musk at Code Conference 2016 - Tesla constructing world s largest lithium-ion battery factory in Nevada with cell production expected to begin by 2017 - There is 54kg of graphite in the battery anode of each Tesla Model 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 Q1 WHAT THIS MEANS USA will be the largest source of lithium-ion batteries in 5 years, strengthening Graphite One s position to become the USA s premium graphite supplier. Panasonic is Tesla s sole battery supplier.
6 Battery Surge Electric vehicle lithium-ion battery demand to surpass consumer applications in 2022 Source: Bloomberg New Energy Finance, Avicenne
7 U.S. Graphite Demand The U.S. is 100% import-dependent for graphite 1 Reliance The U.S. imported $45.2MM Natural Graphite in 2013 2. 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 as insidious 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 combine high economic importance with a high risk associated with their supply. 1 Source: US Geological Survey 2 United States Geological Survey Mineral Resources Program
8 Battery Graphite in China Demand for battery anode material at an all time high 1 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 THE SOLUTION GPH STAX has the potential for exceptional processing, higher yields and higher performance. 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2015 output Real capacity With a large resource and consistent quality, Graphite One is a major competitor. The company is committed to responsible and sustainable practices. TSX-V: 1 GPH OTCQX: GPHOF Source: Benchmark Minerals October 16, 2015 2 Source: hybridcars.com January 18, 2016
9 Feeding the Energy Storage Beast Energy storage revenue is forecasted to exceed $16.5 Billion by 2023 1 MAJOR PRODUCTS DRIVING UNPRECEDENTED DEMAND 200% GROWTH IN DEMAND IN NEXT 4 YEARS 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, releasing it during peak demands. Homes & businesses storing solar and wind power generation. Mobile Technology Evolving technology requires battery power for most modern devices; consumers demand longlasting battery life. Global E-Bike sales to reach $24.3B by 2025 due to falling Lithium prices. 1 Source: Navigant Research
10 Electric Vehicles Timeline Tesla Motors (2008) The Roadster was the first production automobile to use lithium-ion battery cells. Chevrolet (2010) The plug-in hybrid Volt represents the evolution of GM technologies. Atieva (2018) The Silicon Valley start-up plans to produce an electric car by 2018. Mitsubishi (2009) The i-miev launched in Japan for fleet customers. Smart, Volvo, & Ford (2011) The Future By 2022 EV s will cost the same as their internalcombustion counterparts. 1 1 Source: Bloomberg
Graphite One has defined 11 America s largest high quality graphite deposit 6 5 Graphite One s inferred resource easily surpasses other American projects in size. Indicated & Inferred (in Million Tonnes) 4 3 2 1 0 0.74 Northern Graphite (Ontario) Additional Potential: 40-year Mine Life based on drill results for only 20% of the total deposit. 1.43 Zenyatta Ventures (Ontario) 2.14 Focus Graphite (Quebec) 3.55 Alabama Graphite (Alabama) 5.71 Graphite One (Alaska)
12 Graphite Creek Mineralization SW NI 43-101 Cut-Off Tonnage Graphite In Situ Cg Indicated Resource 6% 10.3Mt 7.2% Cg 0.74Mt Inferred Resource 6% 71.2Mt 7.0% Cg 4.97Mt PEA February 2, 2017
3 Key Competitive Advantages It s not just the size and grade that matters 13 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 TSX-V: GPH OTCQX: GPHOF
14 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 372 370 370.1 Ah/kg 369.69 Ah/kg SPHERICAL (STAX) GRAPHITE 368 366 365 Ah/kg 366 Ah/kg 367.21 Ah/kg Spheroidal shapes naturally occurring in deposit (lithium-ion batteries) Discharge Capacity, Ah/kg 364 362 360 358 356 354 360 Ah/kg Chinese Flake 362 Ah/kg Top Grade Synthetic Northern Graphite Focus Graphite Alabama Graphite Syrah Resources GPHSTAX Coated SPG Thin flakes (premium alkaline batteries) Aggregate flakes (lithium-ion batteries) expanded flakes (flame retardant materials) AVERAGE SUPPLY NORTH AMERICAN DEPOSITS NEARING PRODUCTION
15 Preliminary Economic Assessment (PEA) US $1.037 Billion NPV FINANCIAL HIGHLIGHTS Sensitivity of Project s NPV to CSG Price - 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 TSX-V: GPH OTCQX: GPHOF
16 Timeline to Production Decision Ongoing Metallurgy PRODUCTION DECISION TARGETED FOR 2020 2017 2018 Q1 Completed Preliminary Economic Assessment (PEA) 2019 2020 Q2 Bankable Feasibility Study (BFS) TSX-V: GPH OTCQX: GPHOF
17 Environmental Stewardship Graphite 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
18 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. TSX-V: GPH OTCQX: GPHOF
19 AIDEA MOU - Highlights February 2017 Highlights of the MOU include: AIDEA s purpose is to promote, develop, and advance the general prosperity and economic welfare of the people of Alaska. One of the ways AIDEA fulfills this purpose is by supporting development of natural resources in Alaska. AIDEA has the statutory authority to finance, develop and own and operate facilities and improvements, including roads intended for use in connection with the extraction, production, and transportation of minerals and materials. Exploration of opportunities to maximize job creation and economic development via the Graphite One Project. Facilitation of project permitting and development of a framework for community and stakeholder dialogue. Options and opportunities for AIDEA to participate in infrastructure funding of project facilities related to the Graphite One Project. TSX-V: GPH OTCQX: GPHOF
20 AIDEA MOU - Refinery February 2017 Advanced Materials Graphite Refinery Under the MOU, Graphite One has commenced discussions with State of Alaska officials from the Department of Commerce, Community and Economic Development (DCCED), AIDEA and the Alaska Department of Natural Resources (DNR) to begin evaluating potential sites for an advanced materials graphite refinery. TSX-V: GPH OTCQX: GPHOF
Management and Board Significant experience in all aspects of project exploration, development, and operations. 21 MANAGEMENT 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 Mr. Huston is a successful entrepreneur with a background in tech sector business development and finance, who has played an integral role in raising more than $100 million in his career. Having served as Managing Partner in both public and private companies, he has advised on financial and acquisition transactions in industries ranging from the resource sector and real estate development to bio-technology and information technology. In his C-level engagements in the tech sector, Mr. Huston has demonstrated an ability to translate business objectives into integrated and cost-effective technology strategies, providing a clear vision to drive business growth combined with a passion for helping to develop strategic plans with his management team. Mr. Huston holds a Bachelor of Commerce Degree from the University of British Columbia. 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.
22 Management and Board DIRECTORS + ADVISORY BOARD Jim Currie, P.Eng. Patrick Smith, P.Geo. Brian Budd Director Director Director Robert Cross, P.Eng., MBA John Robins Scott Koyich Rick Van Nieuwenhuyse, MSc. Ronald Sheardown Dan McGroarty Corporate Affairs + Finance Geology + Engineering Markets + Finance Alaska Advisor Alaska Advisor Critical Materials Advisor TSX-V: GPH OTCQX: GPHOF
23 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
24 Investment Highlights POWERING AHEAD Warrant Trigger 103,954,537 warrants With average price of $0.152 would bring in $15,800,299
25 Corporate Structure Graphite One trades on the TSX Venture Exchange under the symbol GPH and on the OTCQX Market as GPHOF. Shares Outstanding 239.4M Options 19.9M Warrants 116.65M Broker Warrants 5.24M Fully Diluted 381.19M Average 30 Day Volume 1,425,430 SHARE STRUCTURE (as at Feb 16, 2017) TSX-V: GPH OTCQX: GPHOF
26 Contact Graphite One Resources Anthony Huston, President, CEO + Director 604-889-4251 AnthonyH@GraphiteOneResources.com 600 777 Hornby Street Vancouver, BC Canada V6Z 1S4 www.graphiteoneresources.com Info@GraphiteOneResources.com Kin Communications 604-684-6730 1-866-684-6730 (toll-free) GPH@kincommunications.com THANK YOU Investor Relations TSX-V: GPH OTCQX: GPHOF