TSX-V: SHG

Commodities for the New Economy

MARCH 2014

Graphite!Great Lakes!

President’s  Message    A  Year  in  Review:  2007    

Paul A. Gorman CEO & Director

While the past year continued to be a challenging time for the mining industry, I am highly encouraged by what we have been able to achieve in just a few short months. We have made important progress in repositioning the company and preparing it for the transformative changes that are the first items on the agenda for 2014. Last year we laid the foundation that is now ready to support significant and rapid growth. Global markets continue to show an enormous appetite for resource based commodities, as increasing numbers in emerging economies achieve a higher standard of living. On this side of the ocean, North American investors have become aware of the critical requirement to build domestic sources of supply of graphite and other strategic minerals through discovery, exploration and consolidation. What does this mean for Great Lakes Graphite?

Simply put, it means strategic growth and investment opportunity. Our vision is to build an emerging mid-tier graphite company producing flake graphite and carbon products for regional customers and their specific applications from assets located in the the world’s best graphite jurisdictions. We were recently very fortunate to enter agreements to acquire two highly prospective and advanced projects that are enabling us to rapidly execute important elements of our strategy. We signed a definitive agreement with RockTech Lithium to acquire the Lochaber property. Together with our existing portfolio of properties in the Buckingham and Lochaber Townships, this acquisition will position us as the dominant player in the region, which has a significant history of graphite production. We have also been very fortunate to attract some incredibly talented and experienced mining professionals to join our team. With great properties and people we are now in a position where we will attract the financial partners that are the final component required to execute our plan. To all of Great Lakes’ Shareholders, I thank you for your undivided support and shared vision. I believe the next few years will be challenging but not without rewards as we position Great Lakes Graphite to be another great Canadian mining success. Best regards, Paul A. Gorman Chief Executive Officer, Great Lakes Graphite

Chief Executive’s Message !A Year in Review: 2013 !

2014!Looking Ahead!

“Tesla battery plant will need 6 new flake graphite mines” Industrial Minerals

“Graphite Investors Should Look for Large Flakes, Small Resources” Kiril Mugerman 3/4/14

The Lochaber acquisition is an important step in the execution of our business plan: acquire mature graphite flake deposits to complete vertically integrated multi-plant production and purification facility build-outs in attractive jurisdictions. The Corporation will focus on providing customers with

reliable, cost effective supply of natural crystalline flake. The graphite from this area is renowned for its high quality and flake size. Proximity to infrastructure will facilitate development and marketing.

Expectations about the long-term balance of graphite supply and demand were challenged recently when Tesla announced their intention to build a battery “Gigafactory” in the US. While graphite demand from conventional

applications continues to grow steadily, emerging new applications such as Tesla’s battery plant show the potential for nonlinear increases in demand coming from new sources.

Property High quality flake

graphite Favorable jurisdiction

Infrastructure Advanced project

Plant Low Capex ($18-25MM)

Modular Lean Mining

Small Footprint

Team Engineering Marketing Finance

   TSX-­‐V:  SHG  

Statements in this annual report, other than purely historical information, including statements relating to the Company’s future plans and objectives or expected results, constitute forward-looking statements. Such statements are based on numerous assumptions and are subject to all the risks and uncertainties inherent in the Company’s business, including risks related to mineral exploration and development. Consequently, actual results may vary materially from those described in the forward-looking statements.!

20 Adelaide Street, Suite 301!Toronto, ON M5C 2T6!

www.greatlakesgraphite.com !

Commodities for the New Economy

TSX-V: SHG