Lomiko Metals Inc. announced that it has been awarded a Department of Defense (?DoD?) Technology Investment Agreement (?TIA?) grant of USD 8.35 million (approximately CAD 11.4 million) where Lomiko will match the funding over a period of 5 years, for a total agreement with the DoD of USD 16.7 million. The grant falls under Title III of the Defense Production Act and is funded through the Inflation Reduction Act to ensure energy security in North America. This grant funding is to strengthen and expand the industrial base for natural flake graphite in North America.

This is one of the first agreements the Department of Defence (?DOD?) is granting in TIA funding to a Canadian management team and asset, at this stage of development. In addition, and concurrent to the grant awarded by the DoD, the Company has also been approved for funding of CAD 4.9 million in a non-repayable contribution agreement from the Critical Mineral Research, Development and Demonstration (CMRDD) program administered by Natural Resources Canada with the total project cost being CAD 6.6 million. The objective of the program is to pilot the proposed graphite upgrading process and convert La Loutre natural flake graphite into battery-grade anode material.

The TIA is designed specifically to support the science-based continued research and development of the La Loutre graphite project in accordance with the vision and values of Lomiko and in accordance with all Canadian and Quebec regulations and processes. The TIA agreement entered into with the DoD is to complete three distinct phases of research and development work with independent experts and consultants over a 5-year period, as follows: Phase 1: Completion of a Pre-Feasibility Study (PFS) and baseline data collection Phase 2: Completion of metallurgical studies and bulk sample Phase 3: Completion of a Definitive Feasibility Study (DFS). Both the U.S. grant and the Canadian contribution support science-based approaches for the responsible development of the La Loutre natural flake graphite in Quebec.

The studies include integrating a decarbonized mine model and community-centered studies such as progressive reclamation. The Lomiko vision is to build a meaningful and inclusive critical minerals company of the future. The CMRDD funding is in the form of a contribution agreement, in which Natural Resources Canada will contribute CA$4.9 million over a three-year period.

Lomiko will collaborate with established Canadian research groups, The objective of this project is to pilot the proposed graphite upgrading process to confirm technologies and conditions that are required to convert flake graphite into battery-grade anode material, achieving high purity levels of graphitic carbon content and low impurity levels. The project will demonstrate Canada?s leadership in processing quality graphite, support the development of Canada?s and Quebec?s domestic battery supply chain, and support employment opportunities for skilled trades in Quebec.