Lomiko Metals Completes the Previously Announced Arrangement With Global Battery Materials

Lomiko Metals Inc. announced the completion of its previously announced plan of arrangement under the Business Corporations Act (British Columbia) with Global Battery Materials Corp. ("GBM"). GBM acquired 100% of Lomiko's outstanding shares for a cash consideration of C$0.13 per share.

GBM acquired 80,040,395 shares, representing 100% of the issued and outstanding shares, for an aggregate consideration of C$10,405,251.35, excluding any post-closing dissent procedures. Immediately before closing, GBM owned 0% of Lomiko. Lomiko is now a wholly-owned subsidiary of GBM.

Consideration has been remitted to Olympia Trust Company as depositary. Registered shareholders and in-the-money warrantholders must return a properly completed letter of transmittal; the depositary will pay "as soon as reasonably practicable" thereafter.

Shares will be de-listed from the TSX Venture Exchange on or about the close of business on October 7, 2026. Lomiko has applied to cease to be a reporting issuer in Alberta, British Columbia and Ontario.

Regarding the loan facility entered into in connection with the Arrangement, the facility previously contained a contingent conversion feature exercisable only if the arrangement agreement were terminated in specified circumstances relating to GBM's financing obligations. Because the Arrangement closed, the facility is no longer convertible, and neither outstanding principal nor accrued interest may be converted into shares.

GBM will file an early warning report under NI 62-104 / NI 62-103. Contact for further information is Eric Miller, CEO of GBM.

No new economics, no revised price, no new assets or financing terms are disclosed in this release. The C$0.13 consideration is identical to the price announced on July 28, 2026.

The release's "About Lomiko" and forward-looking sections are boilerplate; the forward-looking risk list itself flags "the possibility of litigation relating to the Arrangement."

Lomiko Metals Inc. (LMR) has completed the closing of its previously announced arrangement, confirming terms first disclosed in a definitive agreement on July 28, 2026. The transaction was reaffirmed through an interim court order and circular on August 26, 2026, followed by support from proxy advisers ISS and Glass Lewis on September 8, 2026. Securityholder approval was secured on September 23, 2026, and the final court order was issued on September 28, 2026, which included two separate releases.

The deal addressed a collapse in the company’s standalone equity story. Lomiko’s stock fell from a 52-week high of C$0.17 on February 10, 2026, to C$0.06 on May 8, 2026, losing roughly two-thirds of its value. This decline occurred after the release and filing of a positive Preliminary Feasibility Study (PFS) on March 24 and May 8, 2026, respectively. The PFS indicated an after-tax net present value (NPV) of C$617.4 million against an initial capital cost of C$504.6 million. The company, which held cash of C$692,701 as of April 30, 2026, and faced a working capital deficit of C$234,831, could not meet this funding requirement, as noted in the Q3-2026 financials and MD&A.

Proxy advisers characterized the transaction as a means to provide certainty and liquidity. ISS cited the "certainty of value and immediate liquidity provided by the premium cash consideration," while Glass Lewis highlighted the elimination of "significant financing, dilution, and project execution risks associated with continuing to advance the La Loutre Project independently." The absence of a competing superior proposal during the go-shop and go-vote periods suggests that C$0.13 represented the best available outcome.

Under the terms of the deal, equity consideration totaled C$10.4 million against the headline after-tax NPV of C$617.4 million, representing approximately 1.7% of the NPV. This valuation reflects market sentiment regarding an unfunded, pre-construction, single-asset graphite project with a 28-year mine life and a US$1,524 per tonne graphite price assumption.

The last traded price was C$0.12 on October 5, 2026, leaving a residual discount of approximately 8% against the C$0.13 cash consideration. This gap is consistent with settlement and processing friction, as price data was recorded before the October 6 confirmation. The transaction offers a 71% premium to the 20-day volume-weighted average price (VWAP) as stated on July 28, relative to the pre-deal trading level of C$0.07.

Lomiko Metals Inc. (TSXV: LMR; OTC: LMRMF; Frankfurt: DH8C), a Vancouver-based critical minerals explorer and developer, is being acquired by Global Battery Materials Corp., a privately held entity focused on building a vertically integrated North American battery supply chain. As the acquirer, Global Battery Materials Corp. did not hold any shares in Lomiko prior to the transaction’s closing.

The company’s flagship asset is the 100%-owned La Loutre Graphite Project in southern Québec, located 180 km northwest of Montreal within Kitigan Zibi Anishinabeg (KZA) First Nation territory. The project comprises a single block of 76 mineral exploration rights covering 4,528 hectares (45.3 km²). No royalties were disclosed in the provided materials.

A Pre-Feasibility Study (PFS), released on March 24, 2026, and accompanied by an NI 43-101 technical report filed on SEDAR on May 8, 2026, outlines the project’s economic parameters. The study reports a pre-tax net present value (NPV) of C$797.5 million and an after-tax NPV of C$617.4 million, both discounted at 8%. Internal rates of return are 30.3% pre-tax and 24.7% after-tax, with a payback period of 3.1 years pre-tax and 3.2 years after-tax. Capital requirements include C$504.6 million in initial capital, C$252.1 million in sustaining capital, and C$35.7 million in closure costs.

Probable mineral reserves stand at 46.8 million tonnes grading 4.79% total carbon (Cg), containing 2.24 million tonnes of in-situ graphite. The mine plan assumes a 28-year life of mine with an average strip ratio of 2.4:1 and a mill recovery rate of 93.0% Cg. Life-of-mine concentrate production totals 2,149 kilotonnes grading 97.0% Cg. The production profile delivers approximately 97 kilotonnes per year of concentrate for the first 20 years, stepping down to roughly 39 kilotonnes per year thereafter. Operating costs are estimated at C$26.47 per tonne milled, based on a base-case graphite price of US$1,524 per tonne and an exchange rate of C$1.00 = US$0.70.

In downstream processing, a bulk sample of approximately 200 tonnes (193 tonnes per the March 2026 investor presentation) was extracted and processed at the Corem Research Center in Quebec City starting in January 2026. Testing includes flotation, micronization, spheroidisation, purification, and coating to produce battery-grade anode material. In February 2026, Lomiko engaged Dorfner Anzaplan for anode testwork and a NI 43-101-compliant preliminary economic assessment for a proposed value-add anode plant in Québec.

The company also holds seven early-stage graphite projects in Québec—Ruisseau, Tremblant, Meloche, Boyd, Dieppe, North Low, and Carmin—spanning 328 exploration rights over 18,622 hectares. Reported grades at the Ruisseau property reach up to 27.9% Cg. Additionally, Lomiko holds an option on the Yellow Fox property in central Newfoundland, approximately 10 km southwest of Glenwood. This early-stage antimony-gold-silver-REE prospect has yielded historic grab samples up to 59.43 g/t Au and 11.10% Sb, with rare earth element soil anomalies reported in January and April 2026.

Government support includes a US$8.35 million award under Title III of the U.S. Defense Production Act for Phases 1–3, a C$4.9 million contribution from the Canadian Mining Research and Development Fund (CMRDD), and up to C$96,118 in 2026 Newfoundland Joint Exploration Agreement rebates for the Yellow Fox project.