CEO Replace to Shareholders | Monetary Put up

Article content material

CEO UPDATE TO SHAREHOLDERS

Article content material

Article content material

Vancouver, December 15, 2024 – Main Edge Supplies Corp. (“Main Edge Supplies” or the “Firm”) (TSXV: LEM) (Nasdaq First North: LEMSE) (OTCQB: LEMIF) offers an replace from the CEO to shareholders.

Kurt Budge, Chief Government Officer, writes:

“Once I joined the Firm in Could, the Norra Kärr Heavy Uncommon Earth (“HREE”) Mission was the precedence. In August this 12 months, the Firm submitted an utility for Strategic Mission standing beneath the European Union’s Important Uncooked Supplies Act (“CRMA”) and, final week, we submitted a brand new utility for an Exploitation Concession (“Bearbetningskoncession”) 25-year mining lease to the Mining Inspectorate of Sweden (“Bergsstaten”).

Article content material

The Norra Okayärr journey began way back, with its discovery by the Geological Survey of Sweden (“SGU”) within the early 1900s. In newer instances, July 2011, SGU designated Norra Kärr a mineral deposit of nationwide curiosity linked to its potential for offering a provide of uncommon earth components (“REE”) to Sweden and Europe. Norra Kärr is the one NI 43-101 compliant REE useful resource in mainland Europe.

Norra Kärr represents the EU’s first step in direction of major manufacturing and institution of a safe, sustainable, and resilient provide chain for HREEs. With EU demand for uncommon earth metals anticipated to extend six-fold by 2030, wars, uncertainty round geopolitics and world commerce insurance policies imply that safety of provide of essential uncooked supplies is of paramount significance.

The 2014 report by The European Uncommon Earths Competency Community (“ERECON”) titled Strengthening ‘The European Uncommon Earths Provide-Chain’, said that ‘The event of recent sources of heavy uncommon earths exterior of China and higher recycling should [therefore] stay an pressing precedence…’.

In 2023, the EU imported 18,300 tonnes of uncommon earth components, with imports break up between China 39%, Malaysia 33%, and Russia 22%. Clearly, provide disruption from anybody of those sources can be damaging for the EU. The geopolitical danger is self-evident. Within the present design, Norra Kärr is estimated to provide 5,341 tonnes of uncommon earth oxides over a manufacturing lifetime of 26 years, with solely a 3rd of the outlined useful resource being exploited. The essential significance of the deposit to the EU can’t be underestimated.

Article content material

The CRMA, adopted by the European Council on 18 March this 12 months is on the forefront of the EU’s efforts to cut back dependency on China, and to construct safe and sustainable regional provide chains for essential uncooked supplies. The CRMA represents a possible game-changer for the Firm’s portfolio.

Trying forward, 2025 is shaping as much as be a transformational 12 months for Norra Kärr, with a choice anticipated on Strategic Mission standing within the first quarter, and thereafter the Bearbetningskoncession. The Firm can be planning for the beginning of Pre-feasibility within the second quarter.

The Firm believes that the decoupling of extraction and downstream processing, with a quarry at Norra Kärr producing two invaluable merchandise, a HREE magnetic focus and the commercial mineral nepheline syenite, and an industrial plant conceptually situated at Luleå, may expedite allowing timelines.

The scope of the downstream is being thought of, with one choice being to create a uncommon earths processing hub that might import concentrates in addition to course of Norra Kärr materials. This might not solely seize the worth chain in Sweden, but additionally enhance the importance of the general venture, because the Firm is in impact creating two strategically essential companies as an alternative of 1.

Article content material

Article content material

When the financials have been modelled for the Preliminary Financial Evaluation in 2021, the Mission had a pre-tax NPV₁₀   of over US$1B. Whereas the numbers can be up to date in PFS, we now have a sturdy venture, and the Firm is already mapping the funding choices that could possibly be accessible as we progress.

The urgency to again growth and appeal to funding will not be misplaced on President-elect Donald Trump who posted final week that “Any individual or firm investing ONE BILLION DOLLARS, OR MORE, in the USA of America, will obtain totally expedited approvals and permits, together with, however by no means restricted to, all Environmental approvals. GET READY TO ROCK!!!”.

Whereas the substance could also be missing for now, the intent is evident, and new insurance policies may see an acceleration of investments already being made by the U.S. Worldwide Improvement Finance Company (“DFC”) in essential uncooked supplies initiatives.

The EU is mobilizing funding alternatives, with, on 3 December, the European Fee and the European Funding Financial institution (“EIB”) saying a brand new partnership to help investments within the EU’s battery manufacturing sector, an additional €1.8 billion dedicated to investments within the wider battery worth chain, as a part of €3 billion of public help in complete for the event of a aggressive and sustainable European battery business.

Article content material

As the one constructed and permitted pure flake graphite mine in Europe, Woxna Graphite is well-positioned to play a big function within the manufacturing of a ‘headline information’ essential uncooked materials, pure graphite, as feedstock to the European anode worth chain or industrial graphite markets.

China’s affect on graphite is evident. In October 2023, China’s Ministry of Commerce and the Normal Administration of Customs introduced that efficient December 2023, export permits can be imposed on key lithium-ion battery anode uncooked supplies. The affected merchandise have been excessive purity artificial graphite and its merchandise, and pure flake graphite and its merchandise, together with spherical and expanded graphite.   The export controls have been imposed by China on the grounds of safeguarding home pursuits.

With regards to world commerce, in June, the US introduced 25% tariffs on imports of pure and artificial graphite anodes from China, following the earlier announcement of 25% tariffs on pure graphite imports starting in 2026. Fastmarkets analyst Georgi Georgiev has mentioned “graphite has emerged as Washington’s ‘Achilles Heel’ in its commerce confrontation with Beijing”.

Article content material

The case for regional major uncooked materials provide is additional strengthened when a serious pure graphite producer Syrah Sources declares ‘drive majeure’ for its Balama operations in Mozambique, attributable to post-general election civil unrest and violent protests throughout the nation’s main cities.   Syrah is without doubt one of the few established graphite producers exterior of China however has been unable to provide at Balama all through October-December. Syrah studies it’s engaged on restoring operations “as fast as potential” however has acknowledged that can be a prolonged course of.

Whereas graphite could have been the forgotten a part of the lithium-ion battery till now, it’s changing into more durable to disregard, and if we’re to have a profitable vitality transition, then e-mobility and renewables technology are key, and for these end-uses you want a number of graphite for manufacturing anodes. Steady jurisdictions, such because the Nordics, can contribute to delivering the important uncooked supplies wanted to help the European battery business. The EU presently imports roughly 100,000 tonnes per 12 months of pure graphite.

Article content material

Woxna has had its challenges through the years, however the broader context could be very totally different now, the adoption of the CRMA, unsure geopolitics and commerce flows, growing the strategic significance of pure graphite to Sweden and the European Union, and by extension new alternatives to lift finance for exploration and growth.

The Firm continues to evaluation choices for Woxna, which embrace the potential of contracting with a long-term companion prepared to pay for safe pure graphite produced to the very best ESG and sustainability requirements. The Firm believes that the market should worth and pay for these attributes, and that transparency initiatives will create a barrier to entry for non-compliant uncooked supplies and be a driver for his or her improved efficiency.

The EU’s help for essential uncooked supplies exploration and growth has additionally seen, in July, the European Financial institution for Reconstruction and Improvement (“EBRD”) and the EU launched a joint facility aimed toward offering fairness investments of as much as €100 million for the exploration of essential and strategic uncooked supplies. The EBRD has dedicated €25 million to the power, which can be matched by the EU’s Horizon Europe Programme beneath the InvestEU umbrella, with the aim of mobilizing a further €50 million in investments.   This initiative may gain advantage the Firm’s work at Bihor Sud, as nations like Romania are very a lot in consideration as funding locations.

Article content material

Drilling at Bihor Sud was initially delayed over the summer season, because of the late arrival of the rig and the necessity to implement sturdy well being and security protocols and eventually began on the finish of September. Since then, regular progress has been made because the group working the Firm’s rig has been coaching ‘on the job’ and is presently drilling in gallery G7.

To speed up the programme, the Firm is hiring 4 new geologists and can be signing up a brand new drill contractor to start out drilling gallery G2. The driller is predicted to be on website on the finish of January.

Bihor Sud stays a really thrilling brownfield exploration venture. It’s a historic mining space with tens of kilometers of underground galleries, or tunnels, developed within the licence space. Between the 1960-90s the accountable division of the Romanian State solely focused what was then referred to as ‘strategic metals’, principally uranium, and explored for nothing else.

The Firm’s goal at Bihor Sud, is to outline a large-scale, mineable mineral useful resource. Initially, we’re following-up on the work completed in gallery G7 final 12 months, and the in depth Cobalt-Nickel-Gold mineralized zone that was recognized, and within the new 12 months beginning to drill in gallery G2 which has proven its potential for in depth Zinc-Lead-Copper-Silver mineralization. We’re inspired by the findings thus far, which spotlight the sturdy potential for locating a big polymetallic deposit.

Article content material

To wrap-up, the Firm has made good progress this 12 months, however with a fundraising beneath our belt, 2025 is shaping as much as be even higher, with key milestones to be handed on Norra Kärr as that venture grows in recognition, a brand new plan for Woxna, and we hope exploration success at Bihor Sud.

I and the Board of Administrators of Main Edge Supplies ship our because of the Firm’s shareholders, our workers and stakeholders for his or her help in 2024 and we want everybody a really Merry Christmas and a Pleased New 12 months.

Norra Kärr – Preliminary Financial Evaluation 2021 (PEA)

PEA 2021 information launch: https://leadingedgematerials.com/leading-edge-materials-announces-positive-preliminary-economic-assessment-results-for-its-norra-karr-ree-project-with-us1026m-pre-tax-npv10-and-30-8-pre-tax-irr/

On behalf of the Board of Administrators,
Main Edge Supplies Corp.

Kurt Budge, CEO

For additional data, please contact the Firm at:
1.778-373-6727
data@leadingedgematerials.com
www.leadingedgematerials.com

About Main Edge Supplies

Main Edge Supplies is a Canadian public firm targeted on growing a portfolio of essential uncooked materials initiatives situated within the European Union. Important uncooked supplies are decided as such by the European Union primarily based on their financial significance and provide danger. They’re straight linked to excessive development applied sciences akin to lithium-ion batteries and everlasting magnets for electrical motors and wind energy that underpin the sustainability transition of society. The portfolio of initiatives contains the 100% owned Woxna Graphite mine (Sweden), Norra Kärr Heavy Uncommon Earth Aspect venture (Sweden), and the 51% owned Bihor Sud Nickel Cobalt exploration alliance (Romania).

Article content material

Extra Info

The data was submitted for publication by the company of the contact individual set out above, on December 15, 2024, at 11:30 PM Vancouver time.

Main Edge Supplies is listed on the TSXV beneath the image “LEM”, OTCQB beneath the image “LEMIF” and Nasdaq First North Stockholm beneath the image “LEMSE”. Mangold Fondkommission AB is the Firm’s Licensed Adviser on Nasdaq First North and could also be contacted by way of electronic mail CA@mangold.se or by cellphone +46 (0) 8 5030 1550.

Reader Advisory

This information launch could include statements which represent “forward-looking data”, together with statements concerning the plans, intentions, beliefs and present expectations of the Firm, its administrators, or its officers with respect to the longer term enterprise actions of the Firm. The phrases “could”, “would”, “may”, “will”, “intend”, “plan”, “anticipate”, “consider”, “estimate”, “anticipate” and related expressions, as they relate to the Firm, or its administration, are meant to establish such forward-looking statements. Buyers are cautioned that any such forward-looking statements will not be ensures of future enterprise actions and contain dangers and uncertainties, and that the Firm’s future enterprise actions could differ materially from these within the forward-looking statements on account of numerous elements, together with, however not restricted to, fluctuations in market costs, modifications within the Firm’s meant use of proceeds from the Non-public Placement, successes of the operations of the Firm, continued availability of capital and financing and normal financial, market or enterprise circumstances. There might be no assurances that such data will show correct and, due to this fact, readers are suggested to depend on their very own analysis of such uncertainties. The Firm doesn’t assume any obligation to replace any forward-looking data besides as required beneath the relevant securities legal guidelines.

Neither the TSX Enterprise Change nor its Regulation Providers Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Change) settle for duty for the adequacy or accuracy of this information launch.

Attachment

Article content material