February 16, 2016, Toronto: Great Lakes Graphite Inc. (“Great Lakes”, “GLK” or the “Company” TSX-V:GLK, OTC:GLKIF, FWB:8GL)
is pleased to announce it has received two purchase orders from a large, Texas-based industrial company whose initial requirement consists of 40 tonnes of various micronized graphite products. These purchase orders are the first ever to be received by Great Lakes and originate from a customer who, through this relationship, expects to source a significant volume of micronized graphite on an ongoing basis.
Senior Vice President of Sales Mike Coscia commented “These initial orders represent an important outcome of a process that has been ongoing for several months now. In this case, we worked closely with a customer who is developing a solution with particular performance requirements. Identifying the right product for their application required an iterative process of testing various products and blends and working collaboratively to find the right solution. We believe this model works well for us and enables customers to benefit from our substantial experience with graphite and other industrial minerals.”
Great Lakes CEO Paul Gorman added, “The focused efforts of our team working together with our valued partners have enabled us to achieve this critical milestone. Commissioning of the facility is underway and with our first purchase orders in hand, we are now executing the next phase of our business plan.”
Product Qualification Progress Update
Over the past several months, Great Lakes Graphite has been working with prospective customers to qualify graphite products for a range of applications in specific markets. By working in parallel with a limited number of select prospects, Great Lakes has made significant progress in demonstrating the suitability of GLK’s micronized graphite products and qualifying them for use in the following product areas:
- Lubricants – greases and lubricating fluids and sprays
- Friction Products – automotive brake pads
- Batteries/Energy Storage – anode material for lead-acid batteries and LiOH batteries
- Conduction – thermal and electrical conductors for chemical manufacturing
The length of time required and the complexity of the qualification process varies by application. Generally, applications with less stringent performance requirements can often be qualified in a few months. Conversely, applications with demanding requirements for a variety of performance characteristics often require graphite of very high purity and substantially more time to complete qualification, due to the variety and complexity of testing as well as the testing iterations that are typically performed.
Sr. Vice President of Sales Mike Coscia said “We are in the process of qualifying several products. Our first priority is the micronized graphite products we are preparing to deliver in quantity in the near term and on applications that have relatively shorter qualification periods. We are complementing that effort with a sampling program for prospects that require high purity micronized graphite. The long qualification times required for the high purity markets require us to begin working with prospective customers now. Feedback obtained during this process will inform decisions we need to make regarding the production of high purity micronized graphite. Working with a representative sample of our targeted customer base has been enormously helpful and provides insight into what customers are seeking that you simply cannot get any other way. When we collaborate with our customers to solve their challenges, we are providing real value, earning credibility and firmly establishing our brand in the market.”
About Great Lakes Graphite: Great Lakes Graphite Inc. is an industrial minerals company focussed on bringing value-added carbon products to a well-defined market.
The Company’s Innovation Division has entered into long-term agreements for use of the Matheson Micronization Facility and for supply of high quality natural graphite concentrate (see news release dated 03/23/15) which are positioning Great Lakes Graphite to become an emerging domestic manufacturer and supplier of micronized products to a growing regional customer base where pricing and demand continue to rise.
Further information regarding Great Lakes can be found on the Company’s website at: www.GreatLakesGraphite.com.
Great Lakes Graphite trades with symbol GLK on the TSX Venture Exchange and currently has 101,227,645 shares outstanding (145,354,238 fully diluted).
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