Mr. Paul Gill of Lomiko reports

DRILL PERMIT ISSUED FOR LOMIKO'S LA LOUTRE CRYSTALLINE FLAKE GRAPHITE PROPERTY IN QUEBEC

Lomiko Metals Inc. and Canada Strategic Metals Inc. hae received a drilling permit for the La Loutre crystalline-flake graphite property, which allows for up to 29 drill holes. On Sept. 23, 2014, Lomiko optioned a 40-per-cent interest in the La Loutre crystalline-flake graphite property located in Quebec. A full set of results was reported in that news release.

The goal of the exploration program is to identify high-grade, near-surface graphite mineralization suitable for conversion to battery-grade graphite. The graphite industry could see exponential growth based on new demand for lithium-ion batteries, which use 10 to 15 times as much graphite as lithium.

Telsa Motor Cars and Panasonic have announced a new lithium-ion gigafactory in Nevada, which is estimated to double the yearly supply of Li-ion batteries by 2020. Currently, synthetic graphite with consistent carbon purity of 99 per cent or more is used in Li-ion batteries. This effects the graphite market in two ways. One, the price of synthetic graphite is likely to increase based on increased demand for all graphite products. Two, if a natural, cost-effective source of consistently high-carbon-purity graphite is derived from a property, groups such as Telsa could use the material directly in batteries.

Of particular interest to Lomiko was an area of the property that reported grab samples up to 22.04 per cent carbon flake graphite and carbon purity test results reporting up to 100.00-per-cent-carbon purity in the large- and extra-large-flake graphite.

Graphite grab sample assay results derived from a recent sampling and mapping program have confirmed a graphite-bearing structure covering an area approximately seven kilometers by one kilometre, with results of up to 22.04 per cent graphite in multiple parallel zones of 30 metres to 50 metres wide. Another area has also been identified covering approximately two kilometres by one kilometre in multiple parallel zones of 20 metres to 50 metres wide, which includes results of up to 18 per cent graphite. Grab samples are selective by nature and are unlikely to represent the average grade of a deposit. The drilling program is designed to test these areas.

Jean-Sebastien Lavallee (OGQ No. 773), geologist, a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical content of this release.