VALUE ADDED PRODUCT PROJECT BECOMES PRIORITY, MINE AND CONCENTRATOR PROJECT PUT ON HOLD

LAVAL, Quebec, April 09, 2020 (GLOBE NEWSWIRE) -- Current market conditions have led Mason Graphite Inc. (“Mason Graphite” or “the Company”) to re-prioritize its projects. Therefore, Mason Graphite announces that the second transformation project (coated spherical graphite) has become the priority of the Company while the first transformation project (mine and concentrator) has been postponed.

Priority to the Value-Added Products Project
Given the greater market demand and superior economics for value-added products of Mason Graphite, (VAP or second transformation), this project has been placed in priority sequence and will be the main focus of the Company’s resources. The high-level technical and economic study completed internally at the beginning of the year has demonstrated that a VAP plant, for the production of coated spherical graphite used for Li-ion batteries, presents sufficient potential to justify further analysis.

Furthermore, cycling tests on coated spherical graphite produced at the pilot scale in 2019 from Lac Guéret concentrate continue (within the limits imposed by the COVID-19 crisis) at three independent laboratories. To date, the results from testing in half coin cells, full coin cells and single-layer pouch cells demonstrate that:

• Specific capacity is higher than 350 mAh/g;
• Capacity retention after 100 cycles is higher than 90%;
• Results in power cycling (accelerated discharge) are conclusive;
• Performances are coherent and reproducible for all three laboratories.

In short, these electrochemical performances are at the same level as commercial references currently available on the market. Tests in multi-layer pouch cells will start as soon as the circumstances allow.

First Transformation Project Postponed
Given the current oversupply of graphite on world markets and the unfavourable capital market conditions for natural resources projects, the Company has decided to postpone, until further notice, the development of the Lac Guéret mine and concentrator (first transformation project). As a result of this decision, Mason Graphite is forced to downsize its team dedicated to the engineering and construction of the first transformation project.

Lac Guéret is one of the highest grade and highest quality known graphite deposits in the world, is located in a highly desirable jurisdiction (Quebec) and remains a key asset for the Company. To this end, all permits, stakeholder relationships and technical studies will be kept current and in good standing for when market conditions return to normal.