La Loutre Community Updates

The objectives of the environmental baseline studies for 2022 were to:

• Obtain additional information on the natural environment and baseline conditions in the study area through a combination of desktop review and field verification where necessary.
• Identify and provide details on environmental sensitivities in support of the EIA process.
• Provide reports on the scope of works carried out with intention to build the foundation of baseline reports for the EIA process.

Baseline studies for 2022 comprised what have been identified as Valued Components, namely: ecosystems (ecological assessment, terrestrial and aquatic habitat), fish habitat, birds and amphibians, hydrology, water quality and noise. The results of these studies for 2022 are presented in this final baseline report, which is an independent report. This is the continuation of the 2021 Early Baseline Studies, the results for which have also been included.

A combined terrestrial and aquatics baseline study was conducted for the development of Lomiko’s La Loutre project, where an Ecological Land Classification exercise was undertaken, in parallel with a desk-top assessment of potential occurrences of species at risk in the study area. An aquatic habitat characterization was conducted to understand the status of the natural aquatic environment and to provide an overview of the existing conditions within the study of the proposed graphite flake mine. Furthermore, benthic invertebrate community and fisheries studies were conducted in watercourses that are in close proximity to the proposed mine footprint. Hydrometric data such as water level, flow velocity, and river profile data at eight (8) hydrometric stations were measured monthly starting in April 2022; these data were collected to characterize hydrological variation of the streams and lakes within the study area. A total of eleven water quality sampling locations have been used to collect monthly surface water samples since May 2022. Finally, baseline noise measurements were conducted in the study area using a Larson Davis 831, Class I sound level meter.

All work has been conducted in compliance with the various applicable Quebec directives, regulations, and protocols. The conclusions and recommendations contained in this report are based upon the applicable guidelines, regulations, and legislation existing at the time the report was produced.

Key Results

Noise

Situated in remote rural Quebec, the project site is largely unpopulated, consisting primarily of forested land uses. Sensitive receptors in the project area  are rural residences west of the La Loutre property. During three separate baseline noise monitoring surveys, daytime noise levels ranged from 38.0 to 45.5 dBA while nighttime levels ranged from 22.5 to 45.8 dBA. Existing noise levels are typical for a remote rural area and reflects the influence of local wildlife and weather. Based on provincial guidance, appropriate assessment sound levels for the cottage community on the western shore of Lac Dore would be 45 and 40 dBA for day and nighttime, respectively. While the appropriate assessment sound levels for the Pourvoirie Club Des Douze would be 50 and 45 dBA for day and nighttime, respectively.

Water Quality

A total of eight (8) hydrometric stations are installed at the project site (shown below) along with 11 water quality sampling stations which have been identified to collect samples and data in 2022. An additional station was added in summer to reflect the point where part of the Project site catchment flows into Lac Doré. Water quality monitoring was conducted according to the Guide d’échantillonnage à des fins d’analyses environnementales (MELCC, 2008), Guide de caractérisation physicochimique de l’état initial du milieu aquatique avant l’implantation d’un projet industriel (MELCC, 2017), Directive 2019 sur l’Industrie Minière (2012); as well as other federal and provincial guidelines.

Although there are no criteria for many of the conventional parameters of surface water quality, the results show that the concentrations fall in low ranges. For the parameters that have limiting criteria (such as alkalinity, chloride, fluoride, nitrate, ammonia nitrogen, total suspended solids, turbidity and total phosphorous), the concentrations at all stations during the monitoring period were below criteria, except for the Total alkalinity in almost all the stations and events. However, both temporal and spatial variations in concentrations of this parameter were observed during the monitoring period and would be related to background conditions. Variations of the concentrations in August, September and December could be indicative of temporally varying effect of sources throughout the year. Therefore, the water quality monitoring operations need to be continued at least over one year period and also to be investigated with further geochemical studies.

Flora and Fauna

The focus of this study was to characterize the forest environment and to identify potential species at risk (SAR) habitats through desktop review of existing data and focused field studies to fill in knowledge gaps. Ausenco ecologists conducted avian point counts at fourteen survey stations from June 7 to June 11, 2022, while Kilgour & Associates LTD biologists conducted avian point count surveys at ten stations from July 25 to July 29, 2022. A total of 51 bird species were observed and heard during the avian point count surveys. The study documented two small, forest-dwelling at-risk bird species (Canada Warbler and Olive-sided Flycatcher) within or in the vicinity of the proposed mine footprint. While there are subtle differences in the finer details of optimal nest-site location for each of the species, both species could nest within any of the adjacent forest ecosites.

Fish community assessments were conducted via electrofishing and minnow trapping during the fall of 2022 in the three watercourses sampled for benthic invertebrates where fish communities had not been previously surveyed in 2021. The fish community assessments found no invasive fish species, sport fish, nor fish species that are currently listed under the liste des espèces fauniques menacées ou vulnérables (Gouvernement du Québec, 2022) or the Species at Risk Act (Government of Canada, 2022). All fish captured are common baitfish to the Outaouais region and are all tolerant to warm waters. Furthermore, all fish caught in 2022 were the same fish species caught during the 2021 baseline studies conducted by Hemmera. The most captured fish species in the watercourses on the La Loutre Property were Northern Red Belly Dace, Fathead Minnow, and Finescale Dace, all of which are common baitfish.

Lomiko hired Hemmera Envirochem Inc. to perform baseline studies of the La Loutre Graphite Project area. The study started in August 2021 and will run for four seasons or until the fall of 2022. Early baseline studies provide a broad overview of the existing conditions in the area where Lomiko proposes to develop a graphite mine.

The early studies help to understand the current status of the natural environment and to identify potential concerns and/or risks to be addressed with further studies as part of the environmental and social impact assessment (ESIA) process.

The baseline studies assessed current and historical conditions using a combination of publicly available data and documentation, field work, and laboratory tests. The studies included in 2021 report are based on the data collected from August until the end of December 2021:

• Geochemistry – properties of the waste rock and low-grade ore
• Hydrology – how surface water flows and changes over time
• Wetland and Hydric Environments – characterization and ecology of wetlands
• Aquatic Species and Fish Habitat – characterization of the watercourses and surveys of fish species inhabiting surface water

In addition, a review of environmental information such as geographic location, rainfall, snowfall, temperature, and elevation was completed.

Figure 1: Wetland Area

• • Water level, flow and velocity of river profile data were collected over four months in 2021 at the site. To supplement this information and obtain a better understanding of long-term historical trends, data from publicly available sources were acquired and reviewed.
  • The La Loutre Project area has many wetlands with high ecological value.
  • Publicly available data for groundwater and flood flows for different drainage areas reviewed. Further on-site measuring and monitoring of water levels will be needed to have a robust understanding of the groundwater flow.
  • A groundwater characterization program is planned for 2022. Potential groundwater monitoring wells have been identified and will be used to collect groundwater samples.
  • Waste rock and low-grade ore samples were taken from the La Loutre deposit and sent to a lab for geochemical analysis. Results showed that the rock is expected to remain in relatively stable geochemical condition in the short-term, however further sampling and testing is required to confirm the materials’ reactivity over time.

Figure 2: Location of Water Sampling Station WQ_L7

• Ten (10) surface water samples were collected monthly from August to December 2021. Surface water quality was found to be within the acceptable concentration range for most parameters with some notes for consideration:
  • One sample (WQ_L7), taken from an unnamed lake south of the proposed mine, in December exceeded acceptable phosphorus levels. Total phosphorous levels can increase if fertilizer runs off into surface water with heavy rains or if there is a septic system leak. Although the exceedance only occurred once, it means that more monitoring and sampling is needed to determine the sources.
  • Concentrations of Mercury (WQ_S3) were higher than acceptable levels in the August sample but returned to normal for all other samples taken in the fall. Occasional exceedance of Mercury concentration levels may be caused by disturbances in settled material or summer changes in inverted water levels. High concentration is a concern for the long-term protection of terrestrial wildlife and aquatic life. However, it should be noted that the long-term acute aquatic life protection criteria are considerably higher. More monitoring and sampling over 12 months will be undertaken to further document natural changes in the water quality of the lakes and watercourses.
  • Concentrations of Iron (WQ_S3), Manganese (WQ_S3), Aluminium (WQ_S7), and Lead (WQ_L1 and WQ_L7) above the acceptable range for long-term aquatic life protection were also detected at respective stations in December despite low flows. The concentration of these minerals may vary depending on the surface conditions and sedimentation following storm events.
  • Concentrations of iron and manganese were also detected at one location but pose no concern.

More detailed and localized baseline studies will take place in 2022. Baseline studies information will be used to document seasonal variation in the natural environment where La Loutre project is located.

The data obtained during the four seasons of the studies will be used in the ESIA process as well as the site design of the mine to inform how the proposed mine can be built and operated in a way that avoids or reduces potential impacts on the environment and surrounding community.

Summary of questions: Concern over the operations of an open pit mine and achieving social acceptability.

We are very proud as a leadership team to take on the challenge of developing a graphite project that can be part of the solution in Quebec and Canada for reducing our greenhouse gas emissions on an absolute basis – as we plan to be carbon neutral and even look at carbon negative (meaning we will remove extra carbon from the environment through innovative programs with the community on our concession). We ask that all stakeholders be open to see all the work that will be done in collecting data in designing the project and in reaching social acceptability. The project will be designed to limit the industrial activity to its footprint and to ensure strong environmental stewardship in all that we do!

We truly believe that the la Loutre project can be an amazing project that the surrounding communities of Lac-des-Plages and Duhamel will be proud of. We also need to be aware that the La Loutre project has a high potential of a rare mineral that will be used to reduce the carbon footprint for generations to come.

Our core values are at the very heart of the creation and development of the La Loutre project: respect for the people we work with, personal integrity and performance.   They are the keys to creating corporate performance and ingenuity so that we can remember our need to be creative thinkers and problem solvers. The La Loutre project can create amazing value that everyone in the community can be proud of. La Loutre can also become an active contributor to solutions for reducing greenhouse gases in Canada. This project can enable new jobs and will be done with the utmost respect for the environment. We firmly believe that we can co-exist with all the activities of the area currently taking place and add value with new services, improvements to certain infrastructure, and working together on climate change solutions.

Very early in the project development, Lomiko opted for the more costly option of storing tailings choosing a CDSF thus demonstrating our good environmental stewardship. We are planning to install expensive equipment to dry and comingle rejects from the processing facility with mine waste rock. Finally, as we move forward to prepare the EIA and permitting requirements, we are always conscious of the concerns of the surrounding population:

The site footprint will be minimized by using open pits for backfilling waste rock and mixed rejects from the processing facility. We are conducting extensive baseline work to understand site conditions so that we can be sure that one day when the mining is completed the area is left in equal or better condition than prior to the start of the works.

We like to hear from you are open to your questions and comments. We are open to hearing all of your concerns which we will work hard to resolve; we do ask for the opportunity to explain our vision and values, with a focus on how we feel about climate change and finding solutions created by Canadians and Quebecois, for Canadians and Quebecois. We at Lomiko are proud to champion a project such as La Loutre and create shared value with all of our neighbours. Lomiko remains open to suggestions from the residents, on how to improve its value offering to the local communities. It is open to innovative and creative ideas.

We look forward to taking the next steps together.

Summary of questions: Impact of the La Loutre project on the value of the properties surrounding the proposed project footprint, as well as occupants living conditions.

Yes we understand the importance of property values and your quality of living. We absolutely believe we can create an amazing project of which we can all be proud. We firmly believe that it is critical that we see more critical minerals projects in development in Quebec and Canada because climate change is affecting all of us. Climate change over time will also cause a much greater impact on property values over time as the risk of droughts, flooding, and severe and extreme weather patterns become the norm.

We will respect and work with the community in the area to understand property values. As the project evolves through the various stages, Lomiko will define the impact of the development of the project on the value of the surrounding occupants’ properties, as well as the impact on their lifestyles. This will be done through a property evaluator/assessor once more is known about the impacts of the project. This component will also be included in the required EIA we have discussed above. There are places where lucrative industrial projects have brought more demand for residences and increased property values. It is possible to mitigate impacts such as noise, air quality and visuals in a way that will not affect property values. All guidelines and regulations with respect to noise and vibration based on distance from residences will be respected! It is also possible that Lomiko Metals will consider purchasing a number of properties to accommodate mine and plant management employees.

Of importance is also the fact that industrial projects are known to bring in significant tax revenue over time which improves the local area’s economic eco-system.

Lomiko and its team are proud of our ambitions and goals for the La Loutre project and want to ensure this will be a project we are all proud of in the evolution towards a new energy society and producing critical minerals from Canadian soil by Canadians for Canadian use. This project has the potential to create interesting and sustainable employment opportunities in the area, and the multiplier effect of such an industrial project in the community will not only produce indirect jobs but also provide tax revenue as a key component of the new energy economy. It is the Lomiko new team’s firm intention to create value for all stakeholders with the development of the La Loutre project.

For more information, an example worth mentioning is the Nouveau Monde Graphite Matawinie Project in Lanaudière: where a local integration plan was prepared by the owners as part of the EIA process, to ensure that the mine was properly integrated in the broader community. See: Matawinie Project.

Summary of questions: General concerns around environmental impacts, infrastructure and buildings, including impact on forestry, flora and fauna, use of chemicals and contaminants during the processing operations. What are the current plans for restoration and remediation of the site of La Loutre?

We understand that all forms of industrial activity impact the environment. Our new leadership Team at Lomiko is made up of creative thinkers and shares the very same values of environmental stewardship as those expressed by each one of the people within the surrounding communities. Through climate change (global warming) studies we have seen the hard evidence of agriculture, chemical and industrial projects such as mines and their significant harm to the environment in terms of greenhouse gas emissions. However, Lomiko and its Team are an organization that wants to improve our climate change footprint by creating a carbon-neutral critical minerals project that we can all be proud of and supply Canadians with critical minerals from our own country while being part of a new job market for this sector. La Loutre will support Québec and Canada’s decarbonization plans as it will provide the ingredients to build a better future for all of us and most importantly, for our future generations.

Our team has direct experience at managing and implementing closure and reclamation projects and we see this as equally important to our stakeholders as the operations of the project and economic impact. Concerning our closure and reclamation plan for the La Loutre project, this is not only a mandatory legal requirement at the permitting phase prior to beginning construction, it is key to ensure that our footprint is not only small but at the end of the day, that we achieve net carbon-zero and we are also now considering, at early days on how we can be carbon negative with the support of our community. At La Loutre, there will be progressive closure and reclamation of the site throughout operations and final closure is estimated at 2045 unless we can expand the total project economic life which would then expand the economic value in terms of jobs, tax revenue and community partnerships as well in a new and exciting industry. The closure and reclamation plan would be fully funded by the Company, and a closure guarantee will also be provided by the Company.

We refer you to the examples of the Matawinie Integration project, or the Eden project, referred to in Themes 2 and 4 above, as excellent illustrations of what is achievable, albeit on a smaller scale, for La Loutre.

All environmental impacts and mitigation measures will be studied and understood as we progress with our studies. At this point in time, we do know that there is no overlapping of the project with any lakes directly. However, we will run a water quality model to ensure that it also does not affect any other water areas or lakes/rivers/watersheds in 2022. At the end of the day, Lomiko will ensure that there will be no uncertainty in the environmental process in developing the La Loutre project.

Lomikos’ current plans for restoration and remediation of the site of La Loutre are briefly outlined in Section 20 of the PEA. We will work together with the communities to incorporate their input into the closure and reclamation plans as our intention is that we restore the site in a way that will benefit local residents. We are also preparing a 3D animation video that will showcase the project and proposed closure and reclamation plan. This video will be uploaded to the Lomiko website and possibly other social media channels where the resident would be able to review the plan. We are open to all feedback from the community regarding the site closure and reclamation. We will do our best to incorporate all the feedback in the final closure and reclamation plan.

The preliminary closure concept is are further detailed in section 20 of the PEA which you can find here:

https://lomiko.com/wp-content/uploads/2021/09/PEA-La-Loutre-2021-09-10.pdf

Summary of questions: Concerns around maintaining the quality of the water sources surrounding the communities, including the lakes, rivers, and water tables. Maintaining the quality of drinking water. Protection of all the surrounding wetlands. Control of run-off water and over-flowing of rainwater and ice-melt. Use of water on the site, during construction, and operations.

The preservation of our water resources is a key value for us. We understand the importance of preserving our water resources, and monitoring impacts on the water as an industrial project. We are committed to undertaking all required studies to ensure we protect all of the area’s water resources, including lakes, rivers, wetlands, and water tables, without exception, and for the duration of the project lifecycle including exploration, development, construction, operations, closure and reclamation.

We are keen to develop and study a full closed loop water treatment system: The water management efforts currently being proposed include the recycling of plant water within the process plant footprint.  This water doesn’t have contact with the environment as it is never released, thus it is said to be in a “closed loop” but may need to be “topped up” on occasion as some water is lost over time due to evaporation and some is tied up in our filtered tailings.  This “make-up” water is pumped from water collection ponds to the process plant.

The water collection ponds will not receive process water; they receive water that is pumped from pit bottoms (groundwater from pit walls) and/or precipitation.  This is called contact water and it is discharged to the environment once meeting specifications for suspended solids and other possible contaminants. Lomiko has included in its capital and operating costs, a water treatment plant should further test work indicate that treatment is necessary.

Lastly, the project manages “non-contact” water which is water that is directed away from entering the site through a series of ditches.

We are also looking at a predictive water quality model that will be implemented at the Environmental Impact Assessment (”EIA“) stage to ensure that the Project does not affect surrounding water quality. Moreover, there will be a groundwater model as well, to ensure that groundwater quantity and quality surrounding the project is not affected.  A site water balance will ultimately be developed.

The models will also look to potential contributions, if any, from the waste co-disposal facility (CDSF). The co-disposal waste facility will contain limited water. The contact water (run-off from the CDSF) will report to water collection ponds where it will be treated (if needed) prior to release.

As an example, and consistent with innovative mining projects, the La Loutre project will not have any conventional tailings storage facilities. We have developed an environmentally focused solution in a co-disposal waste system for both mill tailings and mine waste rock. For more information on these systems please visit:

https://lomiko.com/wp-content/uploads/2021/09/PEA-La-Loutre-2021-09-10.pdf

This approach, though more costly for Lomiko from an operating perspective, will minimize the project footprint and reduce the risks of any mine waste making it’s way to the surrounding water bodies or environment.

For more information on the protection and maintenance of the wetlands:  “directive 019” in Québec details the design parameters for waste and contact water collection pond:  https://www.environnement.gouv.qc.ca/milieu_ind/directive019/.

Mine closure and reclamation is very important. Our team has direct experience in managing these projects and we will make sure that all stakeholders will be consulted and invited to participate in determining the post-closure land use that would be appropriate for their needs. Finally, as part of the closure and reclamation plan that will be produced, a final concept will be developed that will strive to provide a closure and reclamation land use comparable to the initial use.

For more information and examples of closed and reclaimed mines some examples are found here:

Please see: https://www.edenproject.com/

Also see: https://www.youtube.com/watch?v=T6V2bKPNqOI

And: https://www.teck.com/operations/canada/legacy/sullivan-mine/

Further details for the water management for the Project can also be located at sections 18.7.1 and 20.2 of the PEA available here:

https://lomiko.com/wp-content/uploads/2021/09/PEA-La-Loutre-2021-09-10.pdf

Summary of questions: Concerns about the hours of operation, the amount of truck and vehicle traffic, dust created by the operations as well as concerns on visual “pollution” caused by the physical site, particularly at Lac Doré and the Duhamel municipality. Noise level of the operations, from construction through to operations, including blasting activities.

We care about your quality of life! Precautions will be taken to ensure that noise, dust, air and visual concerns are limited to the lowest level possible. We want to be a good neighbour and co-exist with you. Legal and regulatory requirements will be part of our baseline studies, and wherever possible, we will seek to go beyond. We are aware of the concerns and understand the legitimacy of these concerns. As the la Loutre project evolves, a full Environmental Impact Assessment (EIA) will be prepared, as required by law, to address all these issues. However, we will continue to communicate with you directly on how the project will evolve and what impacts are of most concern to you.

Noise and dust modeling will take place in the EIA and additional abatement measures will be added, wherever required. On site, noise levels and protection measures are further subject to occupational health and safety guidelines. Off-site, noise levels are subject to zoning and use (i.e., residential levels in residential zones should be maintained). Also, the noise and vibrations guidelines detailed in Directive 019 will be respected. Furthermore, our team has worked on projects like this before, which are situated in a community setting, and understand the need for constant vigilance on these issues and a way to address concerns clearly and transparently on a regular basis.

We are seeking to identify and implement innovative technologies that will be introduced to reduce the amount of noise and dust. We will design our site layout and use equipment that will reduce noise and dust. In particular, the use of an electric mining fleet will minimize not only noise but also diesel exhaust! Dust migration is an area we will be looking at, and the project will study how much dust could be generated, where it will go, and how to mitigate it in the best way.  While we are aware that the mine will produce dust, we will also have a water system in place to reduce the dust and effectively migrate any impact. This is a very common occurrence for any construction site or industrial site and mitigation measures are well-developed.

There are also several visual mitigation measures that will be identified and addressed in the EIA, to ensure that the impacts remain at their lowest possible level. The mine will be planned in such a way that all the mine structures are out of the view of the local residents at Lac Doré and that the pits will eventually be backfilled with waste rock or water either before or during closure and reclamation to ensure that the remediated landscape fully integrates into the area. We are also keen to work with the community and show the community how the project will look at its complete closure and reclamation.

For more information: please see the following readings, issued by the Québec Department of the Environment:

http://www.environnement.gouv.qc.ca/air/atmosphere/guide-mod-dispersion.pdf

http://www.environnement.gouv.qc.ca/air/atmosphere/guide-mod-dispersion.pdf

http://www.environnement.gouv.qc.ca/air/criteres/secteur_minier.pdf

http://www.environnement.gouv.qc.ca/air/criteres/Formulaire-Devis-de-modelisation.doc

2022 Noise Monitoring and Future Commitments

Background on Study and Noise Level Regulations

Between September 7-12, 2022, Lomiko Metals conducted a multi-point noise monitoring survey at their La Loutre property in the Outaouais region of southern Quebec. The purpose of this survey was to evaluate the potential impact of noise produced from exploratory infill drilling on the nearby cottager community at Lac-Doré. One noise monitoring station was installed at the project site where a single VD5000 drill was in operation. The second monitoring station was installed at a resident’s cottage at Lac-Doré. Lomiko mandated Soft dB to analyze and review the measurements and sound monitoring practices carried out by Lomiko and to provide recommendations for future noise monitoring activities.

The table below presents a scale of the subjective perception of noise levels as issued and referred in the regulations. This scale is used to better represent the sound levels presented in this study.

The MELCCFP NI98-01 sets the maximum noise level according to the zoning category. These maximum allowable noise levels are presented in the table below.

Results

The table below presents the recorded noise levels from both installed noise monitoring devices (Larson Davis 831Cs) for the duration of the study period. The raw (unprocessed) sound levels are calculated on an hourly basis.

Observations

• For most of the measured periods, both day and night, the levels are well below the NI98-01 targets. This means that the background noise in the area is generally low.
• For most sound recordings at the residences, sound sources are identified to be human activities – road traffic, electrical equipment, wildlife and aircraft noise. The background noise is higher in the residential sector; it is possible to hear electrical noise (tonal hum).
• For most of the drill recordings, the sources are associated with wildlife or what seems to be trucking.
• Drill demobilization was completed on September 11th, 2022. On September 12th , background noise levels are back to lower levels. For such low measured levels, it is possible that the background noise threshold of the microphones is reached. However, this behavior is not observable at the residence level (slight fluctuations in levels).

Recommendations and Commitments for Future Work

Any future monitoring should be accompanied by continuous audio soundtrack recording to allow listening to the environmental sounds and evaluate the impact of noise produced by activities at the project site. In future work, it is also recommended that continuous noise monitoring be carried out in the community. Noise impact modeling should also be conducted to produce sound maps that illustrate how sound propagates through the local topography and environment to identify the most at-risk receptors. This will promote optimal placement for sound monitoring stations. As the background noise in the area is very low, it is possible the actual environmental noise levels are below the lowest detection limit of the sound meter used. It is recommended to utilize a more sensitive noise meter for future studies, equipped with a weather station. Finally, a follow-up plan should be established to ensure that any noise complaints are monitored and mitigated appropriately.

Summary of questions: Impact of the project on those groups and/or associations currently “active” and using/sharing the same surface rights as those Lomiko holds for La Loutre.

Shared use of the surface rights is a key value proposition for us and we see this as an amazing opportunity! Lomiko is committed to sharing and being a good neighbour. We are very keen to better understand and get acquainted with all of the community members, associations and groups that are currently carrying out activities in the area. We ourselves are outdoors people and love hiking, walking, skiing and we want to understand how this project will impact these groups, so that we can have an approach where these activities can be maintained during the project life with the exclusion of the imminent mining area.

Our goal is to work with local groups and, over time, depending on the use of the property enhance those activities as we want to see a net positive impact of our project on the communities. We will work with all interest groups, regardless of their interest or activities. We will work with local groups and outfitters to accommodate all their activities outside of the direct mining areas (in full respect of health and safety of course). In fact, there are several locations in Quebec and elsewhere in Canada where mining, trapping, and outfitting are taking place, and “co-exist”, always prioritizing health and safety.

Summary of questions: Will the current footprint of the La Loutre project expand from where it sits currently.

We will look at our entire concession area to determine where there is economic ore which could lead to the possibility of a longer mine life for the project, meaning more economic value to the community and job stability. At this point in time we have no plans to expand this footprint.  We are planning to do exploration work on the existing claims in accordance with the deposits already identified. In any event, any such expansion would require engagement with the surrounding communities.

Summary of the questions: What impact will the operations have, including the graphite extraction process used by the La Loutre project, on the environment, the grounds and more generally on the surrounding communities?

It is our clear objective to remove economic ore safely and with the least disturbance to the topography as possible. The resulting landscape may look a little different, but not dramatically according to our initial studies and review of what the fully restored site will look like. It is our intention to restore the site as closely as possible to its original state, and according to the conditions set by the permit as well as with the input and engagement of the community.

Our project will be operated with the safety of people and the environment at top of mind. We will install fencing around the property, at the appropriate time, to ensure residents and wildlife are safe at all times.  Proper signage will be posted to inform the public of the mining activities being carried out behind the fence. Access to the mine site will be limited and directed through a gate, which will be operated by our staff. We will also review all animal migration and habitat patterns. This is also required by law and is a fundamental piece of information to us so that we can operate safely.

In terms of processing the graphite ore into a saleable graphite concentrate, the flotation process is the best technical method, as well as the best environmental option.

Diesel fuel oil (DFO), methyl isobutyl carbinol (MIBC) and flocculant are added as collectors and frother and in during graphite processing, respectively and there are no other reagents used.  Their combined consumption is 10 g/t of mill feed and the MIBC is organic and biodegradable.

The MIBC (methyl isobutyl carbinol), which has no impact on the environment is organic and biodegradable.

As we have mentioned previously, there will not be any tailings ponds as we are using a co-disposal facility (CDSF) to store dry tailings as well as backfilling our pits with waste where practical. Except for the effluent from the water collection ponds, no effluent will be released into the environment. The entire process and agents used for processing are further detailed in section 17.3 of the PEA which you can find here:

https://lomiko.com/wp-content/uploads/2021/09/PEA-La-Loutre-2021-09-10.pdf

The lowest carbon impact approach for both the transportation of the graphite concentrates as well as the operations fleet is another aspect of this new critical minerals industrial project being developed by the Lomiko management Team as we look at developing a carbon neutral project and one we can all be proud of. Our priority is to do this right and be good stewards of the environment while we process a key critical mineral in high demand in North America for our new energy transition to electric vehicles and ensure the community has benefited from this such as jobs for a long period of time.

Summary of questions: What are the types and numbers of jobs created by the Project, what qualifications will be required. Impact of the project on existing businesses and on current recreation and tourist eco-friendly activities.

We are very excited about the potential to work with the community to provide more job opportunities and to hire local businesses for things such as catering, maintenance, consulting, and other types of work. We are also open to the training local workforce. We think the construction phase which, will begin once the study phase is complete, will offer many employment opportunities. We will require administration people and tradespeople (electricians, carpenters, millwrights, welders, heavy-duty mechanics, light-duty mechanics, civil and mechanical engineers) onsite. Following construction, the operations phase will also require heavy-duty equipment operators, crusher operators, assayers, and plant operators.

We know that most of these positions can be sourced locally, as well as from within the province as needs get more clearly defined on what it means to operate a carbon neutral plant in our community. Specific positions like metallurgists, geologists, environmental scientists, health and safety specialists, and mining engineers will most probably need to be sourced from outside of the area, but within the province of Québec, for the most part.  However, the company will look at establishing scholarships and bursaries to assist local students in getting an education in these areas.

It is our clear intent to support local businesses in all that we do. This includes local restaurants, lodges for overnight accommodations, rental of halls for events, participation in schools to discuss climate change and how our project is directly working to reduce greenhouse gas emissions in Canada, etc. As we are in critical minerals development, we also foresee the need for new kinds of skills for some jobs, as an example – working with an all-electric fleet of vehicles which, will require different skills for vehicle maintenance and charging.

We would like to highlight that our purpose as a company, in all projects that we operate, that the impact will be a positive one, and that more services will become available that were previously inexistent, and that would support recreation and tourism activities, as well as additional indirect and related employment opportunities. In fact, for every direct job (we estimate 140 approximately), it is forecasted that two indirect jobs will be produced to support the operation including supply of motor rebuilds, truck body and box rebuilds, pump rebuilds, and the supply of various other materials and machine components to the project and that these are jobs of the future as critical minerals are the absolute key to Canadian and Quebec economic growth and transition to renewable energy.

Lomiko closure and reclamation plan envision using a reclaimed site for hiking, biking, fishing, and hunting. Lomiko is considering building of bike trails on the top of the reclaimed waste co-disposal facility and intends to turn northern pits into wetlands while the southern pits will become ponds that could be used for recreational purposes or fishing.

Summary of the questions: Ensuring that all information resulting from Lomiko’s studies and reports are made available to the public.

We believe that any critical minerals business today will function best with clear and transparent communication and engagement processes. This is how we will build respect and trust with all of our stakeholders and solve problems as and when they arise. We will have our reports in both French and English languages, and as per the government’s requirements, all will be made public. We will reach out to residents of the local communities throughout the development of the project and our leadership team will take the time to ensure they meet with members of the local communities on a more personal basis. Furthermore, at any time, any of the stakeholders can reach out directly to any one of the members of the team and ask for a specific issue to be addressed. As we further develop the project we will formalize the community issue resolution process as well.

For more information, please reach out to the Lomiko team at info@lomiko.com.

Summary of questions: Ability of the Lomiko team to develop, operate and finance the La Loutre graphite project. Longevity of the organization and operations. Lobbying activities. Compatibility of developing renewable energy with Québec critical minerals and protecting the environment and the “green eco-system”.

Lomiko Metals is here for the long-term with a Canadian leadership team and commitment to developing the minerals we need to reduce the impacts of global warming. Lomiko is on a journey to become a high-growth, dynamic and modern critical minerals company with an experienced, energetic and motivated team of leaders and changemakers. Our shared values of respect, integrity, personal performance, and ingenuity are at the forefront. Our team has extensive experience in growing businesses large and small, in mine construction and operations, and we have respect for communities where we operate. At Lomiko, we want to do things differently and become an operator and provider of choice for the critical minerals needed for our new energy economy. In doing so we will work with your communities and First Nations so that people come first in all that we do.

Keeping records of the Lobbying activities. All companies are required to document all the meetings with elected officials and government agencies. Lomiko is following this protocol and is reporting all the meetings with officials via appropriate government channels.

We came together as a team with a purpose: A people-first company where we can create a new energy future in Canada for Canadians. We want to grow the critical minerals workforce, become a valued partner and neighbour with the communities in which we operate, and provide a secure and responsibly sourced supply of critical minerals. Lomiko is looking to play a significant role in Canada’s decarbonization path. In order to develop this path to the reduction in the global warming of 2º Celsius, Our goal is to secure the entire North American electric vehicle supply chain with critical minerals and processing technology, which will enable a reduction in Greenhouse Gas (GHG) emissions by 2040 and net-zero by 2050. Right now, we are on a path that demonstrates significant climate change and we need everyone to understand the importance that our communities in Quebec and Canada can play to supply the critical minerals needed for renewable energy and electric vehicles for our future generations.

Lomiko will continue to engage and communicate openly and transparently with the surrounding communities. We would like to have a community survey to ensure we understand the needs of various communities and how we can be a good neighbour. Strong and positive environmental stewardship practices, water management and the impacts and solutions to climate change are our priorities, and we will continue to focus on them as we develop our relationships with the local communities.

Lomiko is seeking long-term investments for the La Loutre project to manifest the vision of an exceptional minerals project. We are currently engaging with many investors in Quebec, Canada and North America to support our vision of an abundance of renewable energy through Canadian critical minerals.