44
Woodstock Manganese Project December 2019 Canadian Manganese Company
Woodstock Manganese Project
December 2019
Canadian Manganese Company
Canadian Manganese Company Inc. (“CMC” or the “Company”) has prepared this presentation for informationpurposes only. The information contained herein was prepared by management on a best efforts basis and isbelieved to be accurate. This presentation contains or refers to "forward-looking information" within the meaning ofapplicable Canadian securities legislation. All statements in this release, other than statements of historical fact,which address activities, events or developments that the Company believes, expects or anticipates will or mayoccur in the future are forward-looking information. Wherever possible, words such as "plans", "expects" or "doesnot expect", "budget", "scheduled", "estimates", "forecasts", "anticipates" or "does not anticipate", "believes","intends" and similar expressions or statements that certain actions, events or results "may", "could", " "would","might" or "will" be taken, occur or be achieved, have been used to identify forward-looking information. Inparticular, all statements in this presentation that address estimated resource quantities, grades and containedmetals, possible future mining, and exploration and development activities are forward looking statements.
Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results todiffer materially from expected results. Shareholders and prospective investors are cautioned not to place unduereliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions,inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions,forecasts, projections and various future events will not occur. The Company undertakes no obligation to updatepublicly or otherwise revise any forward-looking information whether as a result of new information, future eventsor other such factors which affect this information, except as required by law.
This presentation may contain certain information derived from official government publications, industry sourcesand third parties. While we believe inclusion of such information is reasonable, such information has not beenindependently verified by us or our advisers, and no representation is given as to its accuracy or completeness.
Forward Looking Statement Disclaimer CMC
2
• CANADA’S LARGEST UNDEVELOPED MANGANESE
RESOURCES
– PROBABLY ONE OF THE LARGEST MANGANESE CARBONATE
(RHODOCHROSITE) RESOURCES OUTSIDE OF CHINA
• LOCATED IN NEW BRUNSWICK, CANADA
– CONSISTENTLY VOTED WITHIN TOP 10 WORLDS MOST MINING
FRIENDLY JURISDICTION BY FRASER INSTITUTE (2018).
• SIGNIFICANT EXPLORATION & MARKET UPSIDE POTENTIAL
• FULL INFRASTRUCTURE, REAGENT & POWER ACCESSABILITY
• POTENTIAL TO BE DEVELOPED INTO ONE OF WORLD’S
LOWEST COST ELECTROLYTIC MANGANESE METAL (EMM) AND
HIGH-PURITY MANGANESE METALS (HPMM) PRODUCERS
• METALLURGICAL STUDIES SUCCESSFUL IN PRODUCING HIGH-
PURITY MANGANESE SOLUTIONS TO PRODUCE HIGH-PURITY
ELECTROLYTIC MANGANESE METAL (HPEMM)
WOODSTOCK SUMMARYWoodstock Manganese Project
St. John’s
200 km
New Brunswick
Woodstock
Manganese
Project
Halifax
Fredericton
CMC
CMC
4
Canadian Manganese Company Inc. (CMC) is a Canadian mineral exploration and development company aiming to become a major supplier of High-Purity Manganese (Mn) products for the Lithium-ion Battery Industry.
WOODSTOCK MANGANESE PROJECT• 100% owned by CMC• Located in New Brunswick, Canada• Contains the Plymouth Deposit which hosts a
NI 43-101 Inferred Resource of 44.8Mt @ 9.98% Mn
• Positive Preliminary Economic Assessment (PEA) completed in 2014
• Approximate 40 Year Mine Life• Existing infrastructure• Low permitting risk• Significant exploration and market potential
WOODSTOCKProject Overview
• Canadian Manganese holds a 100%
interest in the Woodstock manganese
mineral claims
• Location:
• West central New Brunswick, Canada
• 6 km from the township of
Woodstock
• Near the border with Maine, US
• Close to highway 98
• Land position (58 km2)
• 3 main deposits (~80% of district’s
resources)
• best grades & largest deposits
• poorly explored gravity anomaly (20
km trend)
5
CMCWOODSTOCKProperty Location
Woodstock Mn Project
New Brunswick
CANADA
Maine
USA
50 km
Woodstock
Saint John
Fredericton
I-
95TCH
TCH
Geology Legend
Ordovician- Silurian sediments
Silurian sediments
Manganese Deposit/ prospect
• Silurian manganiferous banded iron formations– 1850s-1890’s iron production at Iron Ore Hill
– 1930’s manganese potential recognized (GSC)
– 1954 – Plymouth deposit discovered
– 1957 – Initial mineral resource estimates
– 1959 – Unable to produce concentrate
– 1970-80’s – Limited surveys & drilling
– 2011-2012 – Drilling
– 2013 – Updated Mineral Resource Estimate (43-101)
– 2014 – Preliminary Economic Assessment
– 2015-2019 – Metallurgical research and battery market research
CMCWOODSTOCKResources & Potential
Woodstock Manganese
MA
INE
-U
.S.A
.
NE
W B
RU
NS
WIC
K -
CA
NA
DA
Sain
tR
iver
gravity anomalies
5 km
Geology Legend
Ordovician- Silurian sediments
Silurian sediments
I-
95
R-
95
Woodstockpop. ~5,000
North Hartford (historic)
45 M tonnes - 8% Mn & 12% Fe
South Hartford (historic)
45 M tonnes - 8% Mn & 12% Fe
Plymouth (Inferred-2013)
43.7 M tonnes - 9.98% Mn & 14.29% Fe
(5% Mn cut-off)
Iron Ore Hill (historic-geophysics
based)
23 M tonnes - 10% Mn & 14%
Fe
Moody Hill (historic-geophysics based)
9 M tonnes – 9.5% Mn
Sharpe Farm (historic-
geophysics based)
7 M tonnes – 9% Mn
Manganese X
Energy Claims
Canadian
Manganese
Claims
1 km
Plymouth Deposit
Hartford Deposits
Plymouth Deposit Inferred Resource
(National Instrument 43-101 compliant)
Mn Cut-off
(%)Tonnes
Mn
(%)
Fe
(%)
3 44,790,000 9.84 14.15
3.5 44,770,000 9.85 14.15
4 44,620,000 9.87 14.17
6 41,610,000 10.2 14.55
12 9,100,000 13.19 17.93
Notes:
1. An Mn cut-off value of 3.5% for this resource statement
reflects a reasonable expectation of economic viability
for a deposit of this nature based on market conditions
and open pit mining methods.
2. Mineral resources that are not mineral reserves do not
have demonstrated economic viability.
3. This estimate of mineral resources may be materially
affected by environmental permitting, legal, title,
taxation, sociopolitical, marketing, or other relevant
issues.
…9.72 billion pounds contained Mn at 3.5%
Mn cut-off …
7
CMCWOODSTOCKPlymouth Deposit Inferred Resource
8
CMCWOODSTOCKExploration Potential – Underexplored Magnetic Anomalies
• Significant exploration
potential
• Property largely unexplored
• Correlation between
government airborne
magnetics (GSC,1965) with
historic reconnaissance
gravity surveys (National
Management, 1954)
• Gravity anomalies (22 km
trend)o 4 holes drilled south of
Plymouth
historic gravity anomalies
Airborne Magnetics(GSC historic data)800 m line spacing
U.S
.A.
CA
NA
DA
Sain
tR
iver
5 km
I-
95
R-
95
Plymouth Mn Deposit
Hartford Mn Deposits
Exploration Potential
PL-13-17
PL-13-19
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130
140
110
100
8090
70
120
60
50
50
60
70
110
90
100
130
110
80
CMC 2011 drill hole
historic drill hole (1985-87)
LEGEND
deposit outline(historic data)
100m
1987 Magnetics(total field – gammas)
CMC 2013 drill hole(Inferred resource drilling)
Topographic contours metres above mean sea level
PL-13-11
PL-13-12
PL-13-15
PL-13-13
PL-13-14
PL-13-16
PL-13-18
PL-13-20
PL-13-22A
PL-13-18
PL-13-20
PL-13-22A
PL-13-17
PL-13-19
PL-13-25
9
CMCWOODSTOCKPlymouth Deposit Inferred Resource
CANADIAN MANGANESE COMPANY
Plymouth Deposit - Drill Plan
deposit location & magnetics(magnetics compiled from 1987 data).
10
CMCWOODSTOCKPlymouth Deposit Drill Core Samples
CMCWOODSTOCKPlymouth Deposit - Block Model
12
CMCWOODSTOCKPlymouth Deposit - Mining Plan
Mill Throughput 3,000 t/d ~ 82,000 tonnes of EMM per annum
Period, year
To
nn
ag
e, t
Man
gan
ese G
rad
e, %
Waste
Mn Grade of Pit
resource
Mn Grade of Stockpile
resource
Grey
resource
Red
resource
Mn Grade combined
Resource
From Stockpile
Resource
To Stockpile
13
CMCWOODSTOCKPlymouth Deposit - Mining Schedule
• Manganese predominately occurs as a manganese carbonate(Rhodochrosite) in the Plymouth Deposit:
o Manganese carbonate – a reduced form of manganese (Mn with anoxidation state of II)
o Manganese carbonates are preferred for production of high puritymanganese metal relative to high-grade manganese oxide feedmaterials (i.e. Mn with an oxidation state of III or IV)o Lower operating costs from preferred mineralogy yielding lower power
consumption
o Readily soluble in sulphuric acid, forming a solution containingmanganese sulphates with a minimal amount of heavy metalimpurities
14
CMCWOODSTOCKPlymouth Deposit Mineralogy
Crushing and Grinding
Grind to a P80 of 58 to 62 micron.
Magnetic separation
Mass rejection of 34% for 85.7% recovery & increase in
grade to 15.65% Mn
Sulfuric Acid Leach
Direct leaching manganese carbonate to form manganese
sulfate – over 120 batch tests indicate overall recoveries of
90%. Total circuit recovery after both magnetic separation
& leach of 77%
Goethite Precipitation/ Washing
Multi-stage precipitation of iron / formation of stable iron
complex.
Sulfide Precipitation
Precipitation of heavy metals from solution.
Electrowinning/ Recycle Acid
Electroplating of >99.7% manganese metal and
generation of sulfuric acid.
Grinding
Sulphuric Acid
Leach
Primary Goethite
Precipitation
Electrowinning
Run-of-Mine Ore
Electrolytic Manganese Metal
To End User
Crushing
Sulphide
Precipitation
Ammonium
Sulfide
Metal Sulphide Residue
To Tailings Management
Process Water
Secondary
Goethite
Precipitation
E/W Efficiency Promoting Reagent
Manganese
Precipitation
Spent Electrolyte /
Acid Recycle
Manganese Precipitate Recycle
Goethite II
Residue
Recycle
Spent Electrolyte
Bleed Stream
Misc. Wash Filtrates
Leach and Goethite I Residue To Tailings Management
Ammonium Hydroxide
Makeup
Ammonia
Recovery
Steam
Cooling Water
Process Wastewater
To Tertiary Wastewater Treatment
Recovered
Ammonium
Hydroxide
Vent To
Ammonia
Recovery
Vent To
Ammonia
Recovery
Vent To
Ammonia
Recovery
Vent To
Ammonia
Recovery
Crushing Calcining
Run-of-Mine Limestone
Pulverized
Limestone
Calcined Lime
Grinding
Sulphuric Acid
Plant
H2SO4 Makeup
Elemental Sulphur Process Water
Air
Air
Leaching
Solution Purification
Product Recovery
Comminution
Reagent Management
Grouping of Unit Operations
High Gradient
Magnetic
Separation
Process Water
Iron Ore Product To Market
Magnetic Separation Tailings To Tailings Management
Preconcentration
15
CMCWOODSTOCKHydrometallurgical Flowsheet
What Is Manganese? CMC
16
− Mostly sold as raw ore and semi-processed product, i.e. ferro-manganese
− Essential to iron and steel production, representing 85% - 90% of total demandof manganese
− Also used in the production of aluminum alloys, dry cell battery, ceramic/glass,LED lights, and others
• Ultra High-Purity Manganese products have emerged as a critical cathode material in Li-ion batteries:
− Sold as:
o High-Purity Electrolytic Manganese Metal (HPEMM/99.9% EMM); or
o High-Purity Manganese SulphateMonohydrate (HPMSM/HP MnSO4)
− Application:
o EVs
o Utility storage devices
o Electronics
o Power tools, E-bikes and others.
Manganese is one of the most widely used metals – 5th most mined metal in the world.
HPEMM HPMSM
• Conventional Manganese Products:
Electrolytic Manganese Metal (EMM):
• EMM is primarily consumed in the steel industry as an alloy additive:
– Steel Sector: 74%
– Specialty Mn Alloy: 12%
– Electronic, chemical, and other industries: 14%
• EMM is produced primarily from Mn carbonate deposits that offer lower operating costs than Mn oxide deposits.
High Purity Manganese Metals:
• Li-ion battery market is growing exponentially with increased consumption of electric vehicles.
• High Purity Manganese products are key components used in the cathode structure of lithium-ion batteries with other minerals such as lithium, nickel and/or cobalt, and can be produced in the form of:
− High Purity Electrolytic Manganese Metal (HPEMM); or
− High Purity Manganese Sulfate Monohydrate (HMMSM). 17
CMCWOODSTOCKElectrolytic Manganese Metal &High-Purity Manganese Metal
o High performance, low cost, fast charging, thermal stability, long shelf-life
o Li-ion battery cathodes with Mn content currently are and will continue to be the most dominant types:
➢ Mn demand is estimated togrow at a CAGR of 23% from 2017 to 2027*
➢ The primary cathode chemistry in 2040 will be NMC and LNMO, requiring Mn input of over one million tonnes of Mn metal equivalent – Source: Cairn
ERA.
Manganese Market Opportunity in Li-ion Battery Industry
CMC
18
• High demand for renewable energy sources drives growth of Li-ion Battery Market:o 11.6% CAGR*o from 99 GWh of annual capacity production in 2017 to 2,325 GWh in 2040 – Source: Cairn ERA.
*”Manganese: No Longer Just an Input on Steel”, www.theassay.com/technology-metals-edition-insight/manganese-no-longer-just-an-input-on-steel/
Source: CAIRN ERA
• Manganese is a preferred cathode material for Li-ion batteries:
Manganese in Li-ion Battery Production CMC
19
Manganese is used in the production of NMC and LNMO cathode formulations:
• NMC - there are several major formulations based on the ratio of Nickel to Manganese to Cobalt:
• LNMO (Lithium-Nickel-Manganese Oxide):
− The highest consumer of Mn per 1 kWh of capacity (over 1 kg)
− Will mature commercially after 2025
How much manganese is needed to produce Li-ion battery?
Mn weight required per EV (90kWh battery pack)*:
HPEMM HPMSM
42.57 kg 130.77 kg
36.36 kg 111.69 kg
36.36 kg 111.69 kg
11.43 kg 35.01 kg
88.74 kg 272.79 kg
98.64 kg 303.03 kg
Mn weight required for 1kWh of battery capacity*:
Formulation HPEMM HPMSM
NMC 1-1-1 0.473 kg 1.453 kg
NMC 5-3-2 0.404 kg 1.241 kg
NMC 6-2-2 0.404 kg 1.241 kg
NMC 8-1-1 0.127 kg 0.389 kg
NMC 3-7-0 0.986 kg 3.031 kg
LNMO 1.096 kg 3.367 kg
A 90kWh battery pack contains ~11 kg to 99 kg of Mn*e*Source: Cairn ERA
CMC Strategic Development Plan
• Since completion of PEA, CMC has undertaken and
plan to continue further evaluation work on
Woodstock’s Plymouth Deposit
➢ Further metallurgical test
➢ Battery market research: North America,
Europe and Asia.
• Strategic Partnership Opportunities:
➢ Seeking partnership opportunities with Li-ion
battery industry experts
➢ Further advance development process and
unlock Woodstock’s massive potential
20
CMC
Canadian Manganese Company Inc.
55 University Avenue, Suite 1805
Toronto, Ontario, Canada
M5J 2H7
Tel: +1 (416) 362-8243
Fax: +1 (416) 368-5344
www.CanadianManganese.com
21
Canadian Manganese Company Inc.Contact Us
CMC
FOCUS ON GREEN ANDEUROPEANULTRA HIGH-PURITY MANGANESE PRODUCTS
Corporate Presentation | September 2019
Development PlanHighlights
CLEAR TIMELINETO DEVELOPMENT
STRONG MARKET OUTLOOK FOR MANGANESEPRODUCT
HIGHLY EXPERIENCED MANAGEMENT TEAM
• Extensive metallurgical tests and pilot-plant runscompleted.Confirmedability to convert Chvaletice tailings into ultra
high purity manganeseproducts.
• Preliminary mining permitsecured in April 2018.
• Preliminary Economic Assessment issuedinearly2019.Robust economics.
• Demonstration Plant planned for 2019
to produce bulk finished product for customer testing andqualification.
• Targetingconstructionstartin2021.
• Demandformanganeseproducts for lithium-ion battery production expected to ramp-up very significantly around theworld.
• Stable, growing manganese demand in the high-performance steel and aluminum superalloy production–numerousEuropean,NorthAmericanand international consumers.
• Major investments in European electrical vehicle battery, cathode and precursor plants in close proximitytoProject.NMCcathodechemistryexpected todominate,requiringhigh-puritymanganeseinputs.
• Solid multidisciplinary team with proven corporate and project
development track record,aswellas
extensive operatingexperience.
• Securedaccessto leadinghigh-purity manganese products production expertise andtechnology.
• Company founders have award-
winning track record of excellencein
environmental and socialpractices.
FOCUS ON ULTRA HIGH-PURITY MANGANESEPRODUCTS
23
Appendix A: HIGH-PURITY MANGANESE MARKETFOCUS ON ULTRA HIGH-PURITY MANGANESEPRODUCTS
Manganese Market Challenge:Processing
Source: Cairn Energy Research Advisors©2018
Fifth most mined metal in the world.
• Mostlytradedasraworeandsemi-processed products, suchas ferro-manganese.
• >90% used forsteelmaking.
• Componentofaluminumalloysandagricultural products
Producing Ultra-High-purity manganese products for
energystorage isnotaresourceavailability challenge, it isaprocessing,costandenvironmental challenge.
Ultra-high-puritymanganeseproductshaveemergedasa critical raw material for high-performance, low-cobalt lithium-ionbatterycathodemanufacturing.
High-purity manganese for lithium-ion batteriessold as:
• HighPurityElectrolyticManganeseMetal(“HPEMM”);or
• HighPurityManganeseSulphateMonohydrate(“HPMSM”
-Granulated or liquid form).
Photosshow ultrahigh purity manganese productsmade fromChvaletice ManganeseProject tailings during 2018productdevelopmentand testworkprogram.
FOCUS ON ULTRA HIGH-PURITY MANGANESEPRODUCTS 25
Electric Vehicle Demand forManganese
Source: Cairn Energy Research Advisors©2018
ChevyBolt BMWi3 BAIC EC 200 Jaguar iPace
Battery PackSize: 60kWh Battery PackSize: 42kWh Battery PackSize: 36.8kWh Battery PackSize: 90kWh
BatteryManufacturer: LGChem BatteryManufacturer: SamsungSDI BatteryManufacturer: CATL BatteryManufacturer: LGChem
CathodeMaterial: NMC1-1-1 CathodeMaterial: NMC1-1-1 CathodeMaterial: NMC5-3-2 CathodeMaterial: NMC1-1-1
Mn SulfateContent: 87KG Mn SulfateContent: 61KG Mn SulfateContent: 53KG Mn SulfateContent: 131KG
Mn MetalContent: 28KG Mn MetalContent: 20KG Mn MetalContent: 17KG Mn MetalContent: 43KG
FOCUS ON ULTRA HIGH-PURITY MANGANESEPRODUCTS
26
How much Manganese is needed for oneEV?
Source: Cairn Energy Research Advisors, CPM Group,2019
GrossMnweightrequiredfor1kWhofbatterycapacity:
NMC-111:0.473 kgHPEMM or NMC-532: 0.404 kg
NMC-622: 0.269 kg
NMC-811: 0.127 kg
NMC-370: 0.986 kg
1.453 kgHPMSM1.241 kg
0.828 kg
0.389 kg
3.031 kg
0.473 kg
HPEMM
0.473 kg
HPEMM
1.453 kg
HPMSM
1.453 kg
HPMSM
1.439 kg
HPMSM
1.439 kg
HPMSM
Equivalentto0.445kg HPEMM
Cathode
5%loss
Production
Some new batterychemistries will use up to 2.3 times more manganese than the current NMC-111 chemistry
1kWh=0.13– 1.1kg HPEMM
1 kWhCathode
x90
for a90kWh batterypack
A 90-kwh BATTERY PACKMAY:
Weigh 500kg
Cost$13,000
Contain11kgto99kgofMn(dependingon batterychemistry)
ThecostofMninthepackcanbe0.25%to2.3%ofthecost of thebatterypack*(depending onbattery chemistry)* assuming $3/kg of HPEMM (2018price)
Conversion to
1%loss
MnSO4H2O
FOCUS ON ULTRA HIGH-PURITY MANGANESEPRODUCTS
27
Lithium Ion Battery Market Mn Demand
NMC 5-3-2 and6-2-2
Goingforward,5-3-2and6-2-2will emergein2020and8-1-1in2023. By2026the majoritywill be5-3-2.
NMC 8-1-1
HigherNi-contentispreferable tobuyersduetothelowerproportionofCo,making it cheaper. Additionally, 8-1-1 has a higher energy density. If durability & stability issues can be solved, it will become the cathodechemistryof choice forcarmakers.
NMC 3-7-0
NewchemistryannouncedbyBASFin 2018.Willuse70%Mnin itscathode
LNMO (Lithium-Nickel-ManganeseOxide)
ThehighestconsumerofMnper1kWhofcapacity (1+ kg) will mature commercially after2025, principally inelectronicsandin
certainformulations ofEVbatteries.
All rights reservedCairnEnergyResearchAdvisorsandCPMGroup©2019
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
MW
H
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
LCO NCA NMC-111 NMC-532 NMC-370 NMC-811 LNMO LMO LFP LTO Other
2018
Manganese use in NMC and LNMOcathode formulations
NMC has several major formulations, each expressed as a ratio of Nickel to Manganese to Cobalt:
NMC 1-1-1
Most NMC today is the 1-1-1 formulation, which is themoststableandlong-lasting.
Usin
g H
PE
MM
orH
PM
SM
LFP
NMC-111
NCA
LCO
FOCUS ON ULTRA HIGH-PURITY MANGANESEPRODUCTS
28
HP Manganese MarketOpportunity
MANGANESE USE IN Li-ION BATTERYMARKET
Li-ionbatterymarketdueto increase~24xin thenexttwentyyears,growingfrom99 GigaWattHours(GWh)ofannualcapacity production in2017to2,325 GWh in2040.
Theprimarycathodechemistry in2040will beNMCandLNMO,requiringmanganese inputof theoveronemillion tonnesof manganese metalequivalent.
Li-ion cathode manufacturers and NMC powder producers purchase high-purity manganese sulfate monohydrate (HPMSM) thathasbeenmadefrommanganeseoreorfromelectrolyticmanganesemetal(EMM),orpurchaseHigh-PurityEMMinorder tomaketheirownMnSO4.
Source: Cairn Energy Research Advisors©2017
0
100
200
300
400
500
600
700
800
900
1,000
'000
metr
icto
nsM
nco
nta
ined
HPMSM
Total Mn Demandfrom
battery industry(NMCand LNMObatterychemistries only)
35%HPMSM
HPEMM65% HPEMM
70%HPMSM
30%HPEMM
FOCUS ON ULTRA HIGH-PURITY MANGANESEPRODUCTS
29
DISCLAIMER
Certain statements in this presentation are forward-looking statements which may include, but are not limited
to, statements with respect to the future financial or operating performance of Manganese XEnergy Corp. and
its projects, the market conditions, business strategy, corporate plans, objectives and goals, the estimates of the
timing, cost, nature and results of corporate plans, the strategy for the development of Manganese X Energy’s
property, the completion, timing and expected effects of the proposed reverse takeover transaction and the
benefits anticipated to be received by Manganese XEnergy Corp., Globex and/or the resulting issuer from such
transactions, and regulatory matters. Forward-looking statements involve known and unknown risks,
uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of
Manganese XEnergy Corp., Globex and/or the resulting issuer, as applicable, to be materially different from any
future results, performance or achievements expressed or implied by the forward-looking statements. Forward
looking statements address future events and conditions and therefore involve inherit risks and uncertainties.
Although Manganese XEnergy Corp. believes that such expectations are reasonable, there can be no assurance
that such expectations will prove to be correct, and therefore actual results may differ materially from those
currently anticipated in such statements. You are cautioned not to place undue reliance on any such forward
looking statements, whether made in this presentation or in any question and answer period related to this
presentation.
2
A UNIQUE INVESTMENT OPPORTUNITYUNCOVERED
We have uncovered a unique
investment opportunity to take
advantage of a growing changein
material tothe lithium battery.
MANGANESE
• Not just aboutElectric
Vehicles (EV)anymore
• New utility storagedevices
being launched
• Major commercial interest in
back up and off-grid power
Auto Utility/Energy Technology
WHY MANGANESE (Mn) MATTERS
• Manganese (Mn) is among the most widely used
metals in the world, fourth after iron, aluminum,
and copper.
• Using Mn can significantly bring down the
manufacturing cost of lithium ionbatteries
which is amajor factor in high cost of EV.
• 90% of manganese is now used in the steel
industry.
• Presently, there are no producing manganese
mines in North America.
4
CATALYST – NEW LITHIUM-IONCHEMISTRIES
NMC batteries are becoming the rechargeable battery of
choice for next generation industrial and automotive uses.
NickelManganese Cobalt
(NMC)
6
• Longer to charge
• Short lifespan
• High raw material cost
• Safety Issues
i.e. explosion
• Low raw material cost
• Prolonged lifespan
• Reduced battery chargingtime
Lithium
Cobalt Oxide
Nickel Cobalt
Aluminum
(NCA)
MANGANESE IS MUCH CHEAPER THANCOBALT
• 52% of battery cost is in rawmaterials
• The first generation of lithium batteries
were made from lithium cobalt oxide
(NCA) which are used by Tesla.
“Lowering battery cost via changes to cell chemistryand
Giga factory scale benefits are critical determinants of
Tesla’s ability to sell an affordable Model 3 startingat
$35K. Our analysis details a potential path to a 30% cell-
level cost reduction to ~$88/kWh by using a more efficient
lithium-rich nickel cobalt manganese cathode (vs.NCA)”
Jefferies Equity Research SVP – Dan Dolev
7
• Manganese currently sells for $0.85/lb and provides a cheaper option as
the Tesla battery accounts for 50% of the price of the car.
• If cobalt prices were to reach around $15/lb (they are currently closer to
$14/lb), cobalt-based energy storage systems may not be competitive inthe
medium to longterm.
Argonne National Laboratory
• Argonne’s NMC formulation is significantly cheaper, for instance, than Elon
Musk’s NCAbatteries. NCAcosts $60 per kilowatt hour compared with $45
for Argonne’sNMC.
8
ADVANTAGES OF MANGANESEBATTERIES
MINE TO BATTERY MARKET STRATEGYVALUE ADDED PRODUCTS - HIGHER ROI
Manganese X Energy will focus on Electrolytic Manganese Dioxide(EMD).
Electrolytic Manganese Dioxide is a high value product of manganese
which is utilized within various applications especially for the cathode
material used in Lithium-ion batteries for electric vehicles
- see the Company's press release dated Dec 21, 2016 for moredetails
EMDis also well suited for cathode mix in bulk energy storage & energy
management for portable power and integrating solar and wind
renewable energy.
Kingston Process Metallurgy Inc. to conduct an EMD ConceptStudy.
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Graphite, Lithium & Cobalt TRENDS LEAD THEWAY
More and more battery makers are using manganese into their cathode mix, we believe
manganese miners will catch the next upside trend.
The drive in Li-ion battery demand caused a multi-year surge in junior mining companies
that target the material supplychain.
• 3M has its own patented NMC, based on work done by Dr. Jeff Dahn at DalhousieUniversity.
• LG Chem uses 3M’s formulation of NMC and supplies its NMC-based Li-ion cells to Chevy Volt
and NissanLeaf.
• General Electric has selected the Li-MnO2, system as it offers the best balance ofsafety
and performance.
• BMW i3 also use NMCbatteries.
• Tesla signed 5-year exclusive partnership with Dr. Jeff Dahn, a prominent NMC battery
researcher to explore reducing the costs of its batteries. 11
INDUSTRY TREND – Going toManganese
NORTH AMERICA IS 100% DEPENDENT ON IMPORTED
MANGANESE
• Problems with the deposits in developingcountries
• Environmentally damaging
• Sustainability issues
• Human rights issues
• Political changes leading to mineseizures
• Presently, there are no producing manganese minesin
North America.
• Manganese is listed as a key Strategic Metal for
military hardware according to the US Department
Of Defense.
12
BATTERY HILLPROPERTY
Property
• The Houlton Woodstock property consists of 56
claims totaling 896 hectares located in Carlton
County, New Brunswick. It encompasses all orpart of
four Manganese zones, Iron Ore Hill, Moody Hill,
Sharpe Farm and Maple Hill.
• The Manganese deposits are located approximately 5
km northwest of the town of Woodstock and are
easily accessible from the Trans-Canada highway via
all-weather roads.
Historical Work on Site - Woodstock Manganese
Sidwell,1957
• 71 Million tons 12%Mn
• Still open at 700 Ft. Depth and 5 more richzones to
be explored. 13
NI 43-101 Technical Report
Manganese values in the
chip samples ranged from
0.72% to 25.97% MnOand
iron ranged from 7.74% to
33.37% Fe2O3.
NI 43 – 101 TechnicalReport
14
SUMMARY
• Only pure play EMD company listed in Canada.
• Recent developments in lithium-ion-manganese batteries has opened up
an entirely new technology avenue for its demand andsupply.
• Manganese is designated as a strategic metal in the USA. Currently, Canada and
the USA import 100% of their manganeserequirements.
• Unique opportunity to present to lithium, graphite and cobalt investors.
• North American companies are actively looking to source manganese supplies
outside of China.
• “Giga” factories willsubstantially drive demand for battery materials.
• “Green” companies will source from human and environmentallyconscious
sources to maintain respectablestandards.
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Canadian Manganese Company Inc.
55 University Avenue, Suite 1805
Toronto, Ontario, Canada
M5J 2H7
Tel: +1 (416) 362-8243
Fax: +1 (416) 368-5344
www.CanadianManganese.com
44
Canadian Manganese Company Inc.Contact Us
CMC
