October 31, 2017, Toronto: Great Lakes Graphite Inc. (“GLK” or the “Company” TSX-V:GLK, OTC-PINK:GLKIF, FWB:8GL) announces today that the Company has received a large initial purchase order for 50,000 pounds of micronized natural flake graphite from a new customer. The customer, who is unnamed for reasons of commercial confidentiality, is a Fortune 500 corporation.
- Great Lakes Graphite has successfully completed rigorous product qualification testing and vendor approval process with a new customer.
- The customer has ordered an initial 50,000 pounds of material for delivery by mid-December and has indicated a requirement for 280,000 pounds in 2018 for delivery in monthly installments.
- The customer anticipates that their demand for this product will increase steadily over a three year period, requiring 1,500 tons per year by 2020.
- Product qualification work by GLK continues to expand the sales pipeline in drilling and battery markets.
Great Lakes Graphite was recently notified of their approval as a vendor by a new customer and that the Company has been established in their purchasing system, the final steps required before purchase orders can be generated. Sr. VP of Sales Michael Coscia said, “Obtaining vendor approval and large volume purchase orders are the result of lengthy and often complex product qualification processes. In this case, there were twenty-six months between first contact and final qualification.”
The customer intends to perform final field trials over the balance of the year, which will require 50,000 pounds (or 25 tons) of material in the fourth quarter of this year. Deliveries for the first full year requirement of 280,000 pounds are expected to begin in the first quarter of 2018 and continue through the year. Volume requirements are expected to increase to between 500 and 1000 tons for the second year and then 1500 tons for the third year.
Great Lakes Graphite CEO Paul Gorman added, “Diligent effort over the past few years has resulted in these initial successes. Consistently high quality and the ability to deliver product, sourced from Brazil, to a customer’s specifications are the keys. We have built a robust supply chain that embraces and promotes environmental sustainability and corporate social responsibility.”
Product Qualification Work Continues to Expand the Sales Pipeline in Drilling and Battery Markets
In addition to the customer that is the subject of this announcement, the company recently qualified graphite products with two other prospects in the oilfield drilling services and lubricants industries.
A fourth prospective customer, one of the largest manufacturers of lead-acid batteries in North America, has indicated that their two-and-a-half year product qualification effort is expected to conclude at the end of the year. All results to date have met or exceeded the requirements of this prospective customer for this application.
About Great Lakes Graphite: Great Lakes Graphite is a Clean Technology Minerals Processing Company supplying customers with innovative, high quality value-added carbon products.
There is no significant graphite production in North America now. As pricing and demand continue to rise, Great Lakes Graphite is one of the first new domestic suppliers to a growing regional customer base. We continually work to deliver products of the best quality with outstanding customer service.
The Company is party to an agreement for long-term supply of high quality natural graphite concentrate from Brazil (see news release dated 03/23/15). Great Lakes Graphite is presently working with an established US-based processor for toll micronization services. The Company has partnered with Ashland Advanced Materials for commercial-scale purification operations at Ashland’s 110,000 square foot purification facility located in Niagara, New York.
Through our partner relationships, Great Lakes Graphite began selling micronized synthetic graphite beginning in 2016 and now supplies micronized and high purity micronized natural flake graphite products to a growing customer base.
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 125,656,830 shares outstanding.
For more information, please contact:
Chief Marketing Officer
Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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.