Re-commission and Production –

The Kearney Graphite Mine

As of August 2013

Company Overview

History of the Kearney Graphite Mine 3

COMPANY OVERVIEW

Timeline

Graphite First Reported in Area

Prospecting & Mapping

Reserves Proved Up

Mill & Open Pit Construction

Operations by Cal Graphite

Cal Graphite Becomes Applied Carbon Technology

International Graphite Buys Mine

iCarbon Takes Over

iCarbon Becomes Ontario Graphite

Ontario Graphite Leading Reactivation Process

1979

1979 - 1981

1985-1986

1988

1989-1994

1993

1999

2006

2008

2011

2012 MNDM Approval of Mine Closure Plan

All Required Permits Received 2013

Kearney Mine Property Location 4

COMPANY OVERVIEW

Kearney Mine

Property

Property Location

The Mine is located in a politically stable, first-

world rate country, and in close proximity to

major North American graphite markets,

representing dependable and timely delivery

for customers and close proximity to ports for

shipment to European customers

The property is located 300 km north of Toronto,

Canada and is accessible through the Town of

Kearney via Highway 11 and east on Highway 518.

From Toronto, there are approximately 270 km of four-

lane highway, 30 km of paved municipal road, 10 km

of all-weather logging and mine site road.

The surrounding area has significant mining industry

support, with mining and process equipment vendors,

as well as readily available skilled and unskilled

labour.

Transportation costs are kept relatively low, and

product can be delivered directly to end-use

customers.

5

COMPANY OVERVIEW

Positive Impact 6

COMPANY OVERVIEW

The Kearney Graphite Mine site is the largest confirmed mineral resource of any North American graphite deposit, and is one of the largest individual flake graphite deposits outside of China and North Korea The reactivation of the Kearney Graphite Mine will:

Enhance the environmental integrity of the site and surrounding area (improved tailings dam; larger polishing pond).

Create 80 direct full-time jobs, with three times that number in spin-off positions in the community.

Provide a significant economic stimulus to the region and help in the rejuvenation of the Kearney community.

Put the province on the world stage when it comes to graphite production.

Mineral Inventory

An NI43-101 Technical Report from January 2010 indicates a mineral inventory on the Kearney Mine property of 43.5 million tonnes of Measured and Indicated Resources at average grade of 2.34% Cg, plus 12.3 million tonnes of Inferred Resources at average grade of 2.42% Cg, based on a cut-off ore grade of 1.5% Cg

• At current mining plan throughput rate, the property has more than 31 years of production

7

COMPANY OVERVIEW

Hawkins 43-101 Golder Associates Block Model

Mineral Zone Metric Tonnes Carbon grade (%) Metric Tonnes Carbon grade (%)

McGuire Zone

Measured Resources 10,613,339 2.50

Indicated Resources 16,061,706 2.46 25,560,000 2.26

Inferred Resources 9,740,410 2.52 36,085,000 2.15

Total Measured, Indicated, & Inferred Resources 36,415,455 2.48 61,645,000 2.20

Sheehan Zone:

Measured Resources 7,662,505 2.14 TBD TBD

Indicated Resources 9,618,875 2.11 TBD TBD

Inferred Resources 3,176,044 2.14 TBD TBD

Total Measured, Indicated, & Inferred Resources 20,475,424 2.34 TBD TBD

Kearney Graphite Mine Site 8

COMPANY OVERVIEW

Waste Rock Pile

Graphite Lake

Polishing Pond

Open Pit

Kearney Property Mill Area 9

COMPANY OVERVIEW

Environmental and Permitting

Kearney Mine Agencies and Permits 11

ENVIRONMENTAL AND PERMITTING

Ontario Ministry

of Northern

Development and

Mines (MNDM)

Ontario Ministry

of Environment

(MOE)

Ontario Ministry

of Natural

Resources (MNR)

Ontario Ministry

of Labour (MOL)

Environment

Canada Town of Kearney

Closure Plan and Financial Assurance

Aboriginal and Public Consultation

Mining tenure – leases

Certificates of Approval for emissions and discharges of water, dust, exhaust and noise

Permit to take water for dewatering pit and operational make-up from Graphite Lake

Plant septic system

Aboriginal and Public Consultation

Tailings dam structure approval – north starter dam and raise the existing south tailing dam as well as polishing pond raise

Polishing Pond dam repair and raise

Species at risk assessment (SARA)

Water crossings and roads

Timber cutting on Crown land

Aboriginal and Public Consultation

Health and Safety standards and pre-development review

Environmental Impact Assessment

Aboriginal and Public Consultation

Municipal permits

Environment

The Ministry of the Environment approved all final operating permits for the re-commissioning of the Kearney Graphite Mine in May 2013.

The mine has been maintained since its shutdown and is currently in compliance with all environmental and regulatory requirements.

Ontario Graphite received permits for construction on the Polishing Pond, North and South Tailings dams from the Ministry of Natural Resources in 2012.

The polishing pond is the final stage of water treatment in the sewage works, which produces water suitable for discharge into the environment.

Upon completion of the polishing pond dam raise, the pond will be 4.5 times larger than before, greatly increasing storage capacity thereby reducing the need for fresh water from surrounding lakes

The increased storage capacity of the polishing pond will extend the retention time of the water from 5 days to 20 days, producing a better quality of water at the discharge

12

ENVIRONMENTAL AND PERMITTING

Environment

Water Quality – Provincial Standards on Water Quality

Ontario Graphite is also required to monitor the water quality downstream to ensure

that predicted concentrations are maintained.

13

ENVIRONMENTAL AND PERMITTING

ECA

Previous Standards

ECA

Today’s Standards

Total Suspended Solids, mg/L 15 15

Oils and Greases (total), mg/L 15 5

Phenols, mg/L 0.02 0.01

Total Concentration

Nickel, mg/L

Copper, mg/L

Zinc, mg/L

Lead, mg/L

0.25 0.25 0.25 0.25

0.1

0.05

0.1

0.05

Cumulative Concentration of Pb, Cu, Zn and Ni, mg/L 0.5 0.25

Total Iron, mg/L 1 1

Cadmium, mg/L 0.001 0.001

Ammonia (NH3-N), mg/L 10 2

Arsenic, mg/L 0.5 0.05

pH 6.5-8.5 6.5-8.5

Environmental Sustainability

Ontario Graphite is committed to the environmental sustainability of the Kearney Graphite Mine site.

Waste rock generated while mining may be reused as a source of aggregate for ongoing construction projects

Two additional mine heat sources will be reused:

Radiated heat from generators will be re-directed into the mill building to supply heat for the employees and equipment during winter operation

Exhaust heat will be re-directed and reused in the important graphite drying process

85 per cent of the water used is recycled in the milling stage, reducing the need to use clean (untouched) water from the surrounding lakes

14

ENVIRONMENTAL AND PERMITTING

Re-commission and Production

Previous Production

Mining and mineral processing operations were undertaken on the property

from May 1990 through May 1994

The planned mine production and raw ore throughput rate of 3,000 tonnes (3,300 tons)

per day, or one million tonnes per year, was never attained due to a number of design and

operational bottlenecks in processing facilities.

These bottlenecks are known and well understood by the Company, and the start-up

capital and pre-production plan for the processing plant specifically target these

bottlenecks for correction and elimination in order to improve future plant efficiencies.

At the time that it was closed in May 1994, the Mine had achieved an annual run-rate of

10,000 tonnes per year at a weighted average of 94.6% Cg.

Based on test work and historical production records from 1994 operations, the Company

anticipates a Cg recovery in the concentrate of 85% during the first two years and 90%

thereafter, with a 94-97% Cg content in all fractions of the graphite mineral concentrate

product.

16

RE-COMMISSION AND PRODUCTION

Kearney Mine Project Ontario Graphite Ltd

PROCESS FLOW DIAGRAM

Jaw Crusher

Primary Screen

SAG Mill

Rougher Flotation

Ball Mill

Secondary Screen

1st Cleaner Flotation

2nd Cleaner Flotation

Concentrate Thickener

Belt Filter

Torbed Dryer

Dryer Bagfilter

Sifter Screens

(-150µm) (-180µm +150µm) (-300µm +180µm) (+300µm)

Concentrate Baggers

Tailings Pond

Mineral Process Primary Equipment 18

RE-COMMISSION AND PRODUCTION

Area Previous Operations Refurbished Mill Circuit

Crusher 16' x 5' apron feeder Substituted with ramp

Crusher Allis Chalmer's 60"/48" jaw crusher Same - refurbished

SAG Mill 2 - vibrating syntron feeders 2 - Telsmith 36” x 15' apron

feeders

SAG Mill 18' x 9' Koppers SAG mill (removed) New 18' x 9' Bateman SAG mill

SAG Mill 5' x 16' Tyler Ty-level wet screen (removed) 3 - New Derrick screens

Flotation 2 - 144 cu ft rougher column cells Same – refurbished

Flotation 1 - 144 cu ft cleaner column & 1 36 cu ft cleaner

column Same – refurbished

Flotation 8' x 12' regrind ball mill Same – refurbished

Flotation 2 - 4' x 12' Derrick wet screens 3 - 4' x 12' Derrick wet screens

Dewatering Thickener tank - width 26' height 14' Same - refurbished rakes

Dewatering Vacuum pump filter (removed) New filter – Belt filter

Dewatering Wyssmount dryer 24'H x 17'Dia (removed) New dryer – Torbed Dryer System

Product

Sizing True-Balance sifter screens (removed)

New sifter screens – Great

Western Manufacturing Sifter

Screens

Packaging Paper and bulk baggers (removed) Bulk bagger - to be selected

Core Team Members: Management and Advisors 19

RE-COMMISSION AND PRODUCTION

Bobby Cooper Director Mining industry executive with

40+ years of diversified multi‐site experience with open pit and underground mines involving base metals, precious metals, coal, diamonds and uranium, worldwide

President & CEO Kennecott Corporation

Rio Tinto Global Mining Executive Various senior positions with

ARCO Minerals, Kennecott Corp., Arch Minerals and Kerr McGee Coal Corporation

Jerry Janik

General Manager

20+ years industrial experience

including 7 years as GM of

industrial mineral operations

Area Operational Manager,

Carmeuse Industrial Sands

Plant Manager, UNUMIN

Canada’s Nepheline Syenite

Operations

Plant Superintendent and

Supervisory positions plus Quality

Control Supervisor for industrial

minerals plants

Duel degree in Geology and

Mineral Engineering

Stantec Consulting Closure Plan and Environmental Permitting Bill Steibel – Senior VP Sheldon Smith – Senior Hydrologist Piero Amodeo – Regulatory specialist; ex-MOE (18 years) Greg Crooks – Principal, Environmental Services Miller Thompson Canadian Legal Counsel Dan Rothberg – Partner; mining industry specialist Sandra Gogal – Leading expert on First Nations consultation John Tidball – Certified specialist on environmental law

Edelman Canada Public Relations Cameron Summers –VP, Public Affairs Sarah McEvoy – Senior Account Director Melissa Zanette – Senior Account Manager

Mike Coscia

Senior Vice President, Sales

and Marketing

20+ years of industrial minerals

marketing experience to Ontario

Graphite.

Sales Director America's at SGL

Carbon and has also worked

with

Cabot Corporation, H.C. Starck

and Exxon Chemical

Corporation

Master's of Science degree in

Chemical Engineering from

Northeastern University.

Ellerton Castor

CFO and Chief Administrative

Officer

15+ years in investment banking

and M&A advisor to variety of

companies in the U.S., Canada,

Europe and S.A.

Founder and Managing Director

Panterra Partners, LLC

Managing Director, Latin

America M&A and Merchant

Banking Banc of America

Securities

Senior Associate Corporate

Finance & M&A Morgan Stanley

Significant Competitive Advantages

During Production

High Quality and Full Service Capability: Based on past operations, sales records and laboratory

testing, the Kearney Mine will produce large flake, high quality, low impurity, commercially attractive

graphite product. In addition, the Company will be one of only two producers of natural flake graphite in

North America.

Direct Marketing to End-Users: Because of product quality, the Company will have the ability and

intends to sell directly to end-user customers rather than through blenders or brokers, thus allowing

better response to customers’ needs, stronger customer relations and higher margins.

Limited Direct Competition: There is no current natural graphite production in the U.S. and none in

foreseeable future. Currently, there is minimal production from two existing producers in Canada, both

nearing depletion of reserves. Two recently announced graphite projects in Canada are both still in pre-

feasibility stage and have not yet fully proven out their resource.

Competitive Operating Cost: Production costs will be very competitive with alternative producers’

delivered cost and the Mine will be better able to withstand price fluctuations in marketplace.

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RE-COMMISSION AND PRODUCTION