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CSE: MDD | FSE:304 | OTCQB: MGPRF
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Stock Symbols:CSE: MDDFrankfurt: 304OTCQB: MGPRF
Corporate PresentationFEBRUARY 2018
Shares outstanding: 44,077,283Reserved for Issuance: 11,796,382(as of Feb 8th, 2018)
CSE: MDD | FSE:304 | OTCQB: MGPRF
FORWARD-LOOKING STATEMENTDisclaimer
Mag One is listed on the CSE with the symbol, “MDD”, the Börse Frankfurt stock exchange (“Frankfurt”) with the ticker symbol “304” and the OTCQB
with ticker symbol "MGPRF". The listings on the Frankfurt and OTCQB exchanges provide the company exposure to the European and U.S. markets
and potential investors. .Certain statements contained in this presentation may constitute "forward–looking statements" or "forward-looking
information" (collectively "forward-looking information") as those terms are used in the Private Securities Litigation Reform Act of 1995 and similar
Canadian laws. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”,
“will”, “projected”, “estimated”, “anticipates” and similar expressions and statements relating to matters that are not historical facts are intended to
identify forward-looking information and are based on the Company’s current belief or assumptions as to the outcome and timing of such future
events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the business of the
Company, the Property, financing and certain corporate changes. The forward-looking information contained in this release is made as of the date
hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events
or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should
not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained
herein. This presentation does not constitute an offer of securities for sale in the United States. CSE has not reviewed this news release and does not
accept responsibility for the adequacy or accuracy of the content of this news release. . For additional risks and uncertainties that could impact the
Company’s forward-looking statements, please see the Companies filings with the CSE and which may be viewed at www.sedar.com.
Gillian Holcroft, Eng., M. Eng. and President of Mag One Products Inc. is a qualified person as defined in National Instrument 43-101 – Standards of
Disclosure for Mineral Projects, and has reviewed and approved all technical information in this presentation.
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CSE: MDD | FSE:304 | OTCQB: MGPRF
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“GAME-CHANGING APPROACH TO LOW-COST,
ENVIRONMENTALLY-FRIENDLY
PRODUCTION OF MAGNESIUM, INCLUDING
BY-PRODUCTS & CO-PRODUCTS”
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HIGHLIGHTS
✓ LOW-COST, GAME-CHANGING TECHNOLOGY
✓ METAL WITH A HIGH GROWTH POTENTIAL
✓ ENVIRONMENTALLY SUSTAINABLE PRODUCTION
✓ A FOCUS ON RAPID COMMERCIALIZATION THROUGH
MODULAR EXPANSION & VERTICAL PRODUCT INTEGRATION
✓ EXPERIENCED MANAGEMENT/SCIENTIFIC TEAM
✓ RAPID PAYBACK OF CAPITAL INVESTED
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WHY MAGNESIUM (Mg)?By 2025, on average, 100 pounds of magnesium will be used in each vehicle, up from 10 lbs in 2016.
“Special Report: Vehicle Lightweighting” Automotive World, Feb. 2016
• Mg is the lightest of all structural metals• 78% lighter than steel• 35% lighter than aluminum (Al)• Mg alloys: Comparable strength-weight ratio as Al• High vibration dampening capacity = Ideal for
high speed applications
• Global Primary Mg Production 1.01M tonnes in 2016, up 4% from 2015 (USGS)
• Global Primary Mg Demand will increase 6.4% annually to reach nearly 1.57M tonnes in 2026. (CM Group)
• Global Demand by Sector, 2016 (CM Group)• 37% Aluminum alloying (automobile, aerospace)• 32% Mg die-casting (automobile)• 15% Iron & Steel (desulfurization)• 10% Titanium production (metal reduction)• 6% Others (ex. specialty chemicals)
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CSE: MDD | FSE:304 | OTCQB: MGPRF
AUTOMOTIVE INDUSTRY
• 10% Vehicle Weight Reduction in gasoline-powered cars = 6-8% Fuel Economy Improvement (US DOE)
• Lightweighting of electric vehicles can improve range or reduce the size and cost of a battery. (US DOE)
• Ban of gasoline-powered cars on the way*• UK (2040)• France (2040)• India (2030)• Norway (2025)• Germany (announced but no target yet)
* http://money.cnn.com/2017/09/11/autos/countries-banning-diesel-gas-cars/index.html
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MAGNESIUM TO REPLACE LITHIUM IN BATTERIES?
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https://www.inverse.com/article/38897-magnesium-batteries-could-be-safer-than-lithium
https://newatlas.com/solid-state-magnesium-battery/52386/
https://naturalnews.com/2017-09-08-magnesium-battery-breakthrough-means-safer-batteries-that-wont-explode.html
CSE: MDD | FSE:304 | OTCQB: MGPRF
MAGNESIUM MARKET LANDSCAPE
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• 85% of the world’s Mg metal supply is produced in China*. Approach is labor intensive & environmentally unfriendly (Large carbon footprint 26 T CO2eq/T Mg metal produced**)
• US-imposed anti-dumping tariffs (>100%) have discouraged the use of Chinese Mg in the U.S. (Price > US$4,000/T)
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* Source: CM Group, IMA Conference May 2017** IMA Webinar, March 2017
CSE: MDD | FSE:304 | OTCQB: MGPRF
WHY Mg IN QUEBEC? No Better Place…
• Access to inexpensive, already mined feedstock
• Access to low cost clean energy & established infrastructure (transportation, utilities, etc.)
• Access to lucrative North American automobile market (100 km to US border via rail & roads)
• Access to region targeted for funding (C$50 million regional fund) and investment by all levels of government• Current Pilot Work leveraged at > 40%
• Access to world-class universities
• Access to skilled labour & business friendly jurisdiction
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INTEGRATED ROAD TO REVENUE
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In negotiation
CSE: MDD | FSE:304 | OTCQB: MGPRF
INEXPENSIVE, ALREADY-MINED TAILINGS
Two Sites Secured in Southern Quebec, Canada• Exclusive access to pre-mined serpentinite
tailings residues for CDN$1.00/tonne, payable only when used.
• Carbon-free source of Mg (ex. vs dolomite)
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Metal Asbestos, QC50M tonnes
(Conceptual Grade/Qty)
Thetford Mines60M tonnes
(Historical Estimate)
Magnesium (Mg) 23.2% 23.0%
Silicon (Si) 17.9% 18%
Iron (Fe) 5.4% 5.75%
Nickel (Ni) 0.24% 0.23%
* Management’s decision to begin permitting efforts, as well as its commitment toprocessing these tailings to recover magnesium, silica and nickel have not been basedon results from a feasibility study of mineral reserves that would demonstrateeconomic and technical viability of the project. Without this study there is increaseduncertainty and increased economic and technical risks. Management does intend toengage an engineering firm to carry out a pre-feasibility study once the pilot planteffort is nearing completion and will use the pilot data as a basis for the study.
CSE: MDD | FSE:304 | OTCQB: MGPRF
OUR FLAGSHIP PROJECT
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COMMERCIAL HIGH PURITY MgO PLANT
FEATURES
• Low cost, novel, chlorine free, virtually zero waste, hydrometallurgical process
• 30,000 tpa high purity MgO
• 33,000 tpa high purity amorphous silica
• 5,200 tpa (dry basis) iron / nickel residue
• No environmental evaluation required
Commercial Plant - Target 2019-2020
• Business Case is viable on a stand-alone basis and does not rely on Mg metal production
STATUS
• Piloting at CIMMS in Asbestos, QC
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Capacity 30,000 tpa HP MgO
CSE: MDD | FSE:304 | OTCQB: MGPRF
HYDROMETALLURGICAL PILOT PLANT
• Phase I: 100 kg/hr Pilot Plant in operation
o Serpentinite to aqueous Mg compound
o High purity amorphous silica produced for qualification & off-take agreements
o Purity exceeds lab tests
• Phase II: Pilot Plant Q1 2018
o Mg compound to high purity MgO for qualification & off-take agreements
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PRODUCTS FROM MgO PLANT
High Value Amorphous Silica
• Selling Price: US$200-$250/tonne
• High surface area – unique properties
• Replacement for silica fume in high performance concrete, polymers & rubber
• Global silica fume market: 1.1M tonnes/year*
• Qualification partners identified early on given timeframe to certify product (ex. 2-3 years for concrete)
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High Purity Magnesium Oxide (HP MgO)
• Selling Price: US$600-900/tonne
• Minimum 98.5% purity
• Offtake partners already identified and awaiting material to qualify from pilot plant
• Market demand confirmed (USGS)
• US 2015 consumption 333,000 tonnes MgO*
• US 2016 imports 183,000 tonnes MgO*
• Applications include: flame retardant in plastics, cables; steel fluxing; additive for rubber, cement, wastewater treatment
* Caustic-calcined or specialized MgO * Santosh et al – 2017
CSE: MDD | FSE:304 | OTCQB: MGPRF
COMMERCIAL PRIMARY Mg PLANT FEATURES• Proprietary pyrometallurgical process
initiated by Dr. James G. Blencoe (CTO)• Aluminothermic reduction of HP MgO• 5,000 tpa Mg metal modules
(repeatable)• 7,000 tpa calcined (alpha) alumina• No environmental evaluation required
under 20,000 tpa metal
STATUS• Bench scale validation Q1 2018• Pilot scale apparatus – second half of
2018• Qualification & offtake agreements• Mg market > 1M tonnes• 2.8M tonnes specialty grade alumina sold
annually worldwide (Source: Alteo)• Alumina markets include: high performance
ceramics: refractories, electrical insulation, armour protection
Capacity 5,000 tpa Mg Metal
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Parameters Pidgeon Electrolysis Mag One
Carbon footprint (T CO2eq/T Mg metal)* 26 18 5-8
* Excluding credits for by-product sale and improvement to raw goods sourcing
• Essentially zero waste• No environmental evaluation required
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ENVIRONMENTALLY SUSTAINABLE
CSE: MDD | FSE:304 | OTCQB: MGPRF
COMPLEMENTARY PROJECTS
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In negotiations
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COMMERCIAL SECONDARY Mg ALLOY RECYCLING
FEATURES
• JV in negotiations with Quebec-based Mg alloy recycling technology company –Expected closing Q1 2018
• Unique, low cost processing technology
• Relationships with Mg scrap suppliers and alloy customers already established
• Strategic acquisition to enter Mg market ahead of primary Mg production
• Operational in Q4 2018 (target)
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COMMERCIAL MgO WALLBOARD ASSEMBLY PLANT
• $1B addressable market in North America
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MAGPOWER FUEL CELL
• MagPower Systems acquired in 2016• Proprietary magnesium-air fuel cell• Target application – emergency
power in remote situations• Lifeboats• Mining• Disaster Relief
• Strategic commercialization partners being identified
• Scale-up to 100W to be initiated –working with industrial design group
• Ready-to-use• Add water• Make electricity• 20-yr shelf life (Dry)• No noxious by-products• Lantern (6W) ready for
commercialisation
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James G. Blencoe, Ph. D. | Chief Technology Officer40 years in advanced chemical productionPublished more than 50 peer-reviewed articles and lead author of 3 patents on magnesium24 years at Oak Ridge National Laboratory
Nelson M. Skalbania, B.Ap.Sc., M.Sc., P.Eng. | Chairman/CEOSerial entrepreneur, professional engineerOwned and operated real estate properties all over North AmericaInvolved in over 100 businesses in technology, mining, manufacturing, oil & gas, etc.
Gillian Holcroft, B.Eng., M.Eng. | President~30 years in advanced mineral, metallurgical and chemical processingLed effort to commercial deployment of new innovations with US DoDLed effort to bringing technology company public
Rod Burylo, CIM | Director~30 years in financial services industryExpert in corporate ethics, compliance and governanceBusiness author, media contributor, teaching internationally for past 15 years
BOARD OF DIRECTORS
CSE: MDD | FSE:304 | OTCQB: MGPRF
David Dreisinger, PhDScientific AdvisorProfessor, University of British Columbia (UBC)Industrial Research Chairholder, Hydrometallurgy
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TEAM
Mirza Rahimani, CAAdvisorExpertise in corporate control and compliancefor public companies
Yu-Mei Han, PhDTechnical Director, CIMMSMetallurgist with background in hydrometallurgy,pyrometallurgy and materials.
Tom Whitton, EngCommercialization LeadChemical engineer & business developmentspecialist, bringing new innovations to market
George Hochwimmer, PhDAdvisorFinancial Advisor for Start-Up/Growing CompaniesFounder, General Research GbmH
Arnold Ross, MEnv, BScEnvironmental ConsultantExpertise in permitting and carbon marketsCurrent Director of Technology for PureSphera
CSE: MDD | FSE:304 | OTCQB: MGPRF
KEY TAKEAWAYS
✓ LOW-COST, GAME-CHANGING TECHNOLOGY
✓ METAL WITH A HIGH GROWTH POTENTIAL
✓ ENVIRONMENTALLY SUSTAINABLE PRODUCTION
✓ A FOCUS ON RAPID COMMERCIALIZATION THROUGH
MODULAR EXPANSION & VERTICAL PRODUCT INTEGRATION
✓ EXPERIENCED MANAGEMENT/SCIENTIFIC TEAM
✓ RAPID PAYBACK OF CAPITAL INVESTED
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CSE: MDD | FSE:304 | OTCQB: MGPRF
MAGBOARDS * MAGNESIUM OXIDE * MAGNESIUM METAL
#145 925 Georgia Street West, Vancouver, B.C. CANADA V6C3L2
T: +1.604.669.4771 F: +1.604.669.4731
[email protected] [email protected]
www.MagOneProducts.com
CSE: MDD FRANKFURT: 304 OTCQB: MGPRF
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