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Leading Edge Materials Reports Quarterly Results to January 31, 2018

VANCOUVER, April 4, 2018 /CNW/ - Leading Edge Materials Corp. ("Leading Edge Materials") or (the "Company") (TSXV: LEM) (OTCQB: LEMIF) (Nasdaq First North: LEMSE) announces first quarter results for the period ending Jan 31, 2018. All amounts in this release are in Canadian dollars.

Leading Edge Materials (CNW Group/Leading Edge Materials)

Leading Edge Materials achieved two milestones during the first quarter of 2018. In December 2017 the Company completed an application to dual list on the Nasdaq First North in Stockholm, where trading commenced January 22, 2018.

Furthermore, the Company was a raw material industry representative within the EU Battery Alliance, a forum comprised of more than 50 of Europe's strongest corporate voices within the emerging lithium ion battery sector, plus numerous support and government agencies. This culminated in February 2018 with the delivery of an action plan to the European Commission to support then creation of a competitive and sustainable battery cell manufacturing in Europe and a full EU-based value chain.

Selected Financial Data

The following selected financial information is derived from the unaudited condensed consolidated interim financial statements of the Company prepared in accordance with IFRS.






Fiscal 2018

Fiscal 2017

Fiscal 2016

Three Months Ended

January 31,

2018

$

October 31,

2017

$

July 31,

2017

$

April 30,

2017

$

January 31,

2017

$

October 31,

2016

$

July 31,

2016

$

April 30,

2016

$

Operations









Expenses

(1,979,241)

(843,952)

(598,339)

(661,022)

(669,396)

(2,060,555)

(454,144)

(460,150)

Other items

42,816

75,938

(85,392)

(59,749)

(78,116)

63,761

19,661

10,467

Net loss

(1,936,425)

(768,014)

(683,731)

(720,771)

(747,512)

(1,996,794)

(434,483)

(449,683)

Basic and diluted
loss per share

(0.02)

(0.00)

(0.01)

(0.01)

(0.01)

(0.04)

(0.01)

(0.01)

Dividends per share

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Financial Position









Working capital

2,698,150

3,490,760

4,430,469

3,980,145

3,582,767

2,436,641

1,947,010

2,314,419

Total assets

36,902,593

37,915,728

39,267,743

38,320,958

36,893,309

36,037,751

19,632,405

18,808,738

Total non-current liabilities

(8,204,190)

(8,330,321)

(9,557,984)

(8,967,308)

(7,942,687)

(8,072,937)

(8,272,979)

(7,057,850)

Results of Operations

Three Months Ended January 31, 2018 Compared to Three Months Ended October 31, 2017

During the three months ended January 31, 2018 ("Q1/2018") the Company reported a net loss of $1,936,425 compared to a net loss of $768,014 for the prior three months ended October 31, 2017 ("Q4/2017"), for an increase in loss of $1,168,411. The increase in loss was primarily attributed to the recognition of share-based compensation of $1,168,525 on the granting of stock options in Q1/2018. No stock options were granted or vested in Q4/2017.

Financial Condition / Capital Resources

During the Q1/2018 period the Company recorded a net loss of $1,936,425 and, as at January 31, 2018, had an accumulated deficit of $24,604,464 and working capital of $2,698,150. The Company is maintaining its Woxna Graphite Mine on a "production-ready" basis to minimize costs. The Company currently has no significant budget allocated for the Norra Kärr rare earth element ("REE") project. Although the Company has sufficient funding to meet anticipated levels of corporate administration and overheads for the ensuing twelve months it anticipates that it may need additional capital to recommence operations at the Woxna Graphite Mine and/or upgrade the plant to produce value added production. There is no assurance such additional capital will be available to the Company on acceptable terms or at all. In the longer term the recoverability of the carrying value of the Company's long-lived assets is dependent upon the Company's ability to preserve its interest in the underlying mineral property interests, the discovery of economically recoverable reserves, the achievement of profitable operations and the ability of the Company to obtain financing to support its ongoing exploration programs and mining operations. Whether the Company can generate positive cash flow and, ultimately, achieve profitability is uncertain. These uncertainties may cast significant doubt upon the Company's ability to continue as a going concern.

Financings

During fiscal 2017 the Company completed private placement financings of 4,004,222 units at $0.45 per unit and 3,636,364 units at $0.55 per unit for total gross proceeds of $3,801,900. In addition, the Company issued 1,026,916 common shares on the exercise of share options and warrants for $427,491.

Summary and Outlook

Leading Edge Materials had a successful 2017 and anticipates progress on many fronts during the coming year. The Company progressed value adding research on the Woxna graphite project which will be further advanced in 2018. The drill program on the Company's Bergby lithium project revealed encouraging results which will be followed up. Research and development work on the Nora Kärr REE project achieved significant milestones and it is anticipated further optimization work shall be undertaken during 2018.

The Company maintains the Woxna plant in an operation ready status, running it on an as needs basis to provide feedstock product for value added test work. Leading Edge Materials is working with potential customers to identify products that can be supplied from Woxna. The Company continues to work towards establishing a position as a supplier of choice in terms of price, supply security and quality to the European graphite market. The production model being researched aims to displace synthetic graphite with high purity natural graphite products.

Process development research on Norra Kärr completed under the European Commission funded EURARE project achieved significant technical milestones. Research culminated with the production of approximately 25 kg of mixed REE carbonate produced from a eudialyte concentrate, using a new and optimized hydrometallurgical flowsheet. This process flow sheet development work will be progressed in 2018 to better understand potential commercial byproduct streams.

With regard to tenure at Norra Kärr the Company's Mining Lease is under review by the Swedish Mining Inspectorate ("Bergsstaten"). In mid-January 2018 the Company submitted to Bergsstaten all requested information arising from this review. The Company continues to hold exclusive rights to the Norra Kärr project through the Mining Lease application process. The Norra Kärr Mining Lease is surrounded by an Exploration License ("EL") which was first granted to Tasman on August 31, 2009 until August 31 2015. Since that date the company has filed for extensions to the EL, and on March 19 2018 the Company was advised by the Bergsstaten that the EL had been extended until August 31 2019. This decision is open to appeal until April 9 2018. The Company believes that it will continue to be successful in defending its tenure over the Norra Kärr Property.

The Bergby lithium project remains a new lithium discovery at a very shallow depth, and it is anticipated that the project will be advanced with metallurgical testwork utilizing core material retained during the drill program.

The Company continues to seek out prospective battery material projects in Europe and will provide updates as information becomes available.

Qualified Person

The qualified person for the Company's project, Mr. Blair Way B.S. (Geology) M.B.A., a Fellow of the Australasian Institute of Mining and Metallurgy, the Company's President and CEO, has reviewed and verified the contents of this document.

Additional information

The Company's condensed consolidated interim financial statements for the period January 31, 2018 and related management's discussion and analysis are available on the Company's website at www.leadingedgematerials.com or under its profile on SEDAR at www.sedar.com

This is information that Leading Edge Materials Corp. is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on April 4, 2018 at 2:45 am Vancouver time.

On behalf of the Board,

"Blair Way"
Blair Way, President & CEO

About Leading Edge Materials

Leading Edge Materials was formed with our sights firmly focused on the material demands of a once-in-a-generation revolution, as the world shifts to the efficient production, storage and preservation of low carbon energy. From the lithium batteries in our electric vehicles to our ability to generate energy from the sun, wind and waves LEM is focused on the green energy markets. With a focus on Europe and assets in innovation-rich Scandinavia, Leading Edge Materials is ideally placed to play a pivotal role in the sustainable supply of critical technology materials. Remium Nordic AB is the Company's Certified Adviser ("CA") as part of the listing requirements for Nasdaq First North.

About Nasdaq First North

Nasdaq First North is regulated as a multilateral trading facility, operated by the different exchanges within Nasdaq Nordic (Nasdaq First North Denmark is regulated as an alternative marketplace). It does not have the legal status as an EU-regulated market. Companies at Nasdaq First North are subject to the rules of Nasdaq First North and not the legal requirements for admission to trading on a regulated market. The risk in such an investment may be higher than on the main market.

Important information

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this news release.

Forward-Looking Information. This news release may contain forward-looking statements and information based on current expectations. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Such statements include but are not limited to, the Company's expectations regarding the benefits of the listing on the Nasdaq First North; the Company's ability to fulfil the customary conditions set out in the conditional acceptance letter from Nasdaq Stockholm AB; unexpected geological conditions; the Company's expectations regarding exploration activities to advance critical material projects for energy storage markets, delays in obtaining or failure to obtain necessary permits and approvals from government authorities. Although such statements are based on management's reasonable assumptions, there are risk factors which could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.

SOURCE Leading Edge Materials

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