December 27, 2018, Toronto: 
Great Lakes Graphite Inc. doing business as NovoCarbon Corporation (“GLK”, “NovoCarbon” or the “Company
TSX-V:GLK, OTCQB:GLKIF, FWB:8GL) announces today
that the Company has refiled its unaudited interim consolidated financial
statements and the MD&A for the three months ended January 31, 2018 and the
three and six months ended April 30, 2018. 
The Company has also refiled the MD&A for the nine months ended July
31, 2018.

This filing, news release and the MCR have been filed in
connection with a continuous disclosure review conducted by staff of the
Ontario Securities Commission.  The MCR
was not filed within the prescribed timeframe in accordance with the
requirements of Ontario securities law, and it was subsequently filed as a
result of such review. 

The Company has restated its financial statements as at and for the
three months ended January 31, 2018 to consolidate the activity of its
incorporated subsidiary ‘NovoCarbon Inc.’  Activity in this subsidiary commenced in
November 2017.  The adjustments noted
below record the effect of consolidating results of operations during the three
months ended January 31, 2018, its cash balances and the elimination of
applicable intercompany balances. 
Furthermore, Amounts paid to related parties in note 14 has been amended
to include amounts paid by the subsidiary to the Chief Marketing Officer and
the Senior Vice President of Sales $38,103 and $38,103, respectively, or
$76,206 in aggregate.

Additionally, the Company has reclassified its exploration and
evaluation assets to exploration and evaluation assets held-for-sale,
reflective of the Company’s decision to sell its Lochaber property.

The Company has amended and restated the management’s discussion and
analysis for the three months ended January 31, 2018 to include additional
detail on corporate development and administration expense, and additional
detail on financial variances, and additional disclosure with respect to project
activity and their ensuing progress.

The impact of this change on the consolidated financial
statements as at and for the three months ended January 31, 2018 is as follows;

The Company has restated its financial statements as at and for the
three and six months ended April 30, 2018 to correct the presentation in the
three months ended April 30, 2018 column statement of loss and comprehensive
loss to include the results of operations of the Company’s wholly owned
subsidiary.  This change impacts only the
net loss and comprehensive loss for the three months ended April 30, 2018.  There is no change in the net loss and
comprehensive loss for the six months ended 
April 30, 2018.

Additionally, the Company has reclassified its exploration and
evaluation assets to exploration and evaluation assets held-for-sale,
reflective of the Company’s decision to sell its Lochaber property.

The Company has amended and restated the management’s discussion and
analysis for the six months ended April 30, 2018 to include additional detail
on corporate development and administrative expense, and additional detail on
financial variances, and additional disclosure with respect to project activity
and their ensuring progress.

The impact of this change on the consolidated financial statements as at
and for the three months and six months ended April 30, 2018 is as follows;

The Company has amended and restated the management’s discussion and
analysis for the nine months ended July 31, 2018 to include additional detail
on corporate development and administrative expense, and additional detail on
financial variances, and disclosure with respect to project activity and their
ensuing progress.

The Sale of the
Company’s Lochaber Project

Further to the news release of February 22, 2018 to announce the term
sheet to sell the Lochaber Graphite Deposit, located in the Buckingham Region
of Quebec, to Saint Jean Carbon Inc. (“SJC
TSX-V: SJL), the Company indicated that shareholder approval was required for
the definitive sale agreement of the Lochaber Property.  Upon further analysis and discussion with the
Company’s legal counsel, Fogler Rubinoff LLP, it was determined that such
shareholder approval was not required under subsection 184(3) of the Business Corporations Act (Ontario) and
proceeded with the sale of Lochaber in that manner.  The Company announced conditional approval of
the Lochaber transaction on July 5, 2018 and closed the transaction on July 19,
2018.  As previously announced on May 16,
2018, the adoption of our business plan from the conventional junior mining
approach to focus instead on upgrading graphite and distributing that material,
coupled with the sale of Lochaber will constitute a change of business
(Proposed “COB” ) for the Company
within the meaning of the policies of the TSX Venture Exchange (the TSXV Policy 5.2).  The Company will hold a shareholder meeting
to approve this change of business. 
Additional information with respect to the proposed COB and legal
analysis regarding the Lochaber sale will be provided in the management
information circular to be prepared and delivered to shareholders in connection
with the Meeting. The Meeting date has not been determined but will be
communicated once it has been scheduled.

Other

The Company announces that it has filed material change reports on December
27, 2018 (the “MCR”) in respect of
certain developments, such developments consisting of the following;

  1. Debt Financing
    previously announced on November 10, 2017 as a material contract
  2. Articles of
    Incorporation and corresponding By-Laws of the Company
  3. Articles of
    Incorporation of NovoCarbon Inc (100% owned US subsidiary)
  4. Intercompany note
    to NovoCarbon Inc.
  5. To identify the
    change of the Lochaber property in Quebec from a significant asset to an
    insignificant asset of the Company as a result of progress of sales and
    marketing initiatives and developments announced in news releases dating back
    to May 26, 2016.

About NovoCarbon Corporation: NovoCarbon 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, NovoCarbon 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. NovoCarbon 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, NovoCarbon 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 NovoCarbon can be found on the Company’s website at:
www.novocarbon.com 

NovoCarbon trades
as GLKIF on the OTCQB market in the US and as GLK on the TSX Venture Exchange
in Canada.  There are currently 132,656,830
shares outstanding.  The current legal
name of the corporation is Great Lakes Graphite Inc., which is doing business
as NovoCarbon Corporation until final approval by the shareholders and the TSX
Venture Exchange.

For more information, please contact:

Paul Gorman

Chief Executive Officer

Email: pgorman@greatlakesgraphite.com

Susan Murphy

Manager, Administration

Email: smurphy@greatlakesgraphite.com

1-800-754-4510 x101

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.

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