February 22, 2016, Toronto: Great Lakes Graphite Inc. (“GLK” or the “Company” TSX-V:GLK, OTC PINK:GLKIF, FWB:8GL) today announces that, on February 19, 2016, the Ontario Superior Court of Justice (the “Court”) released its decision regarding certain injunctive relief that had been requested by Ontario Graphite Ltd. (“OGL”) in its legal action against Mike Coscia, Jerry Janik and GLK. The legal claim was brought by Ontario Graphite based on, among other things, non-compete agreements that existed with Mike Coscia and Jerry Janik when they were employed in management positions with OGL. In its decision, the Court found that GLK and OGL are competitors and thus granted certain injunctive relief.
Specifically, the Court ordered that Mike Coscia, the Senior Vice President of Sales of GLK’s Innovations division, not work for GLK for six (6) months and that Jerry Janik, the COO of GLK’s Innovations division, not work for GLK for one (1) year. The Court did not grant an injunction being requested by OGL to prevent GLK from continuing to operate the Matheson Micronization facility and the Company is therefore continuing all of its activities at the Matheson Micronization Facility. This is a provisional order only, and not finally decisive of the case. The Company continues to vigorously defend the action of which the order is part.
The fact sheet on the OGL website states: “Ontario Graphite is committed to the responsible re-commissioning and operation of the Kearney Graphite Mine and Milling Facility, which is slated to resume production in 2014. When reactivated, it is estimated the Kearney Mine will process approximately one million tonnes of ore per year while producing 20,000 tonnes of natural, large flake, high carbon graphite concentrate.” There is no reference to value-added graphite products, and Great Lakes is not aware of OGL operating, nor being licensed or permitted to operate, a micronization facility. As such, it remains the view of GLK that GLK and OGL are not competitors.
Great Lakes Graphite Inc. is an industrial minerals company focused on bringing value-added carbon products to a well-defined market. GLK’s Innovations division has entered into long-term agreements for use of the Matheson Micronization Facility and for supply of high quality natural graphite concentrate which have positioned 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.
Great Lakes Graphite CEO Paul Gorman said: “Although disappointed by the Court’s decision, our Board of Directors will convene to discuss next steps on this issue including the appeal process. The positive news is that the Matheson plant is in the late stages of full commissioning and we have the finances and human resources to bring the facility into full operation. The GLK team has the experience and capability to move forward with all aspects of micronization operations at the Facility. Our North American sales team has a contingency plan to address the temporary restrictions on Mike Coscia. Our marketing efforts will continue uninterrupted, including product testing with our North American customers. We currently have over 3 dozen qualification processes well underway and we have the team in place to manage these opportunities.”
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 have positioned 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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Caution Regarding Forward Looking Information: Certain statements in this press release may constitute “forward looking information” which involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking information. When used in this press release, such forward looking information may use such words as “may”, “will”, “expect”, “believe”, “plan” and other similar terminology. Forward looking information is provided for the purpose of presenting information about management’s current expectations relating to the future events and the operating performance of the Company, and readers are cautioned that such information may not be appropriate for other purposes. The forward looking statements involve a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, the ability of the Company to fulfill the orders and future orders, regulatory requirements, general economic, market or business conditions and future developments in the sectors of the economy in which the business of Great Lakes operates. The foregoing list of factors is not exhaustive. Please see the Company’s financial statements, MD&A and other documents available on www.sedar.com , for a more detailed description of the risk factors. The Company undertakes no obligation to update publicly or revise any forward looking information, whether a result of new information, future results or otherwise, except as required by law.