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2021-01-27

LEADING EDGE MATERIALS REPORTS FISCAL 2020 RESULTS

Vancouver, January 27, 2020 – Leading Edge Materials Corp. (“Leading Edge Materials” or the “Company”) (TSXV: LEM) (Nasdaq First North: LEMSE) (OTCQB: LEMIF) announces results for the fiscal year ending October 31, 2020. All references to dollar amounts in this release are in Canadian dollars.

Highlights During and After the Quarter      

During the three months ended October 31, 2020 the Company:

  • Completed a non-brokered private placement for proceeds of $3,520,000 by issuing 32,000,000 units at a price of $0.11 per unit.  Each unit consists of one common share, and one common share purchase warrant exercisable into one common share at an exercise price of $0.20 expiring August 7, 2024.
  • Received information that the Bucharest Court of Appeal published a ruling dismissing the appeal against the Agenţia Natională Pentru Resurse Minerale (“NAMR”) by the competing bidder for the Bihor Sud Exploration license in Romania as groundless.  Pending the full ruling being served to the parties of the appeal and a subsequent appeal window, NAMR can reinstate the adjudication process of the competing bids for the Bihor Sud Exploration license.
  • Granted stock options to directors, officers and consultants to purchase an aggregate of 3,500,000 common shares of the Company at an exercise price of $0.155 expiring August 11, 2023.
  • Commissioned SRK Consulting (UK) Limited to produce a preliminary economic assessment study on the Norra Karr heavy rare earth element project to include the additional potential of by-product revenues and associated reduced environmental footprint.
  • Received information that the decision to grant a five-year extension on the Norra Karr nr 1 exploration license had been appealed to the Lulea Administrative Court.
  • The European Commission announced an Action Plan on critical raw materials aimed to develop resilient value chains for European Union industrial ecosystems, reduce dependency on primary critical raw materials, strengthen domestic sourcing of raw materials in the EU and diversify sourcing from third countries and remove distortions to international trade.  The Action Plan included the establishment of a European Raw Materials Alliance to address raw material challenges along industrial ecosystems, provide tailored solutions to industry needs, unlock regulatory bottlenecks and create an investment channel for raw materials projects. The Company has joined ERMA with both the Norra Karr HREE and Woxna Graphite projects.
  • Commissioned Zenito Limited, a UK based engineering consultancy, and a range of sub-consultants to produce a Preliminary Economic Assessment study (the “PEA”) on the Woxna Graphite project.  The PEA will for the first time include previously developed downstream processes utilizing thermal purification that could enable Woxna Graphite to produce a range of ultra-high purity natural graphite products suitable for the lithium-ion battery market.

Subsequent to October 31, 2020 the Company:

  • Appointed Finnish capital markets firm Lago Kapital Oy as liquidity provider for its Nasdaq First North Stockholm listing replacing ABG Sundal Collier ASA.
  • Signed a non-binding Letter of Intent with CSE-listed United Lithium Corp. (“ULTH”) contemplating the potential sale of 100% of the Bergby Lithium project.  The potential sale is subject to, among other matters, a due-diligence review By ULTH and the signing of a binding Definitive Agreement which the Company is working towards finalizing.
  • Commissioned Minviro Ltd., a London based globally recognized life cycle assessment (“LCA”) consultancy, to build an LCA model and deliver an LCA report for the Woxna Graphite project.  The LCA work carried out by Minviro includes a cradle-to-gate life cycle inventory and a life cycle impact assessment for five impact categories of interest.  The results will be delivered to the Company in form of an ISO-Compliant Full Life Cycle Assessment and Report. In addition, Minviro will benchmark the results for Woxna against other functionally equivalent industry LCA data, including a number of both natural and synthetic graphite alternative products for energy storage applications.

Three Months Ended October 31, 2020 Compared to Three Months Ended July 31, 2020
During the three months ended October 31, 2020 (“Q4”) the Company reported a net loss of $554,569 compared to a reported net loss of $442,526 for the three months ended July 31, 2020 (“Q3”), an increase in loss of $112,043.  During Q4 the Company incurred share-based compensation of $350,000 which was partially offset by a $274,329 derecognition of a provision previously made for potential land concession payments.

Year Ended October 31, 2020 Compared to Year Ended October 31, 2019
During the year ended October 31, 2020 (“fiscal 2020”), the Company incurred a net loss of $1,721,821 compared to a net loss of $11,117,407 during the year ended October 31, 2019 (“fiscal 2019”), a decrease in loss of $9,395,586.  The decrease in loss is primarily attributed to the recognition of an $8,800,000 impairment provision to property, plant and equipment in fiscal 2019, a $430,718 decrease in general administrative expenses in fiscal 2020 and the $274,329 derecognition reversal of a provision during fiscal 2020.

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

  Fiscal 2020 Fiscal 2019
Three Months Ended October 31,
2020
$
July 31,
2020
$
April 30,
2020
$
January 31,
2020
$
October 31,
2019
$
July 31,
2019
$
April 30,
2019
$
January 31,
2019
$
Operations                
Expenses
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