Refurbishment & Startup of the

Kearney Graphite Mine Presented at: Industrial Minerals 2011 Conference

October 2011

Toronto, Ontario, Canada

Company Overview

History of 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

Kearney Mine Property Location 4

COMPANY OVERVIEW

Kearney Mine

Property

Property Location

Mine Location:

The Mine is located in a politically stable, first-

rate country, and in close proximity to major US

graphite markets, representing dependable and

timely delivery for US 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

Mineral Inventory

Recent NI43-101 Technical Report 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

• The tonnes and grades of mineral inventories above do not include mine dilution or

mining recovery

6

COMPANY OVERVIEW

Mineral Zone Metric Tonnes Carbon Grade (%)

Measured & Indicated Resources

McGuire Zone:

Measured Resources 10,613,339 2.50

Indicated Resources 16,061,706 2.46

Total Measured & Indicated Resources 26,225,045 2.48

Sheehan Zone:

Measured Resources 7,662,505 2.14

Indicated Resources 9,618,875 2.11

Total Measured & Indicated Resources 17,241,379 2.12

Total Property Measured & Indicated Resources 43,466,425 2.34

Inferred Resources

McGuire Zone 9,740,410 2.52

Sheehan Zone 3,176,044 2.14

Total Property Inferred Resources 12,250,454 2.42

Kearney Graphite Mine Site 7

COMPANY OVERVIEW

Graphite Lake

McGuire Lake

Open Pit (now water-filled)

Waste Rock Pile

Minnow Lake

Mill Area

Mine Access Road

Tailings Area in narrow valley below mill

Tailings Pond

Tailings Dam

Cut-Off Trench

Kearney Property Mill Area 8

COMPANY OVERVIEW

The McGuire West Open Pit 9

COMPANY OVERVIEW

The Open Pit is now water-filled

and displays water quality

equivalent to that of nearby lakes

The Tailings Area 10

COMPANY OVERVIEW

The tailings are dry and exhibit a

sandy consistency

The Waste Rock Area 11

COMPANY OVERVIEW

Environmental and Permitting

Agencies and Permits 13

ENVIRONMENTAL AND PERMITTING

Kearney Mine Agencies and Permits 14

ENVIRONMENTAL AND PERMITTING

Ontario Ministry

of Northern

Development,

Mines and

Forestry

(MNDMF)

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

First Nations

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

Tailings dam

structure

approval –

north starter

dam and raise

the existing

south tailing

dam

Species at risk

assessment

(SARA)

Water crossings

and roads

Timber cutting

on Crown land

Health and

Safety

standards and pre-development

review

Environmental

Impact

Assessment

(if project meets

impact triggers)

Building permits

What is Being Proposed After Closure?

Drain tailings pond and polishing pond, lime treat water

as it is discharged

Divert storm water from hillsides above tailings

Place evapotranspiration cover over now fully dry

tailings area and vegetate with local woody vegetation

Build an engineered wetland system below tailings

dam to treat percolating excess water

Open pit becomes a lake

15

ENVIRONMENTAL AND PERMITTING

Engineered Wetland System

Treat excess meteoric water after Closure

• Infiltration into dry, tree-vegetated tailings

Four basins operating passively

• Sedimentation Pond

• Successive alkalinity producing system

• Anaerobic biochemical reactor

• Aerobic wetland

All well-proven technology

16

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.

18

RE-COMMISSION AND PRODUCTION

Mineral Processing Flowchart 19

RE-COMMISSION AND PRODUCTION

Mineral Process Primary Equipment 20

RE-COMMISSION AND PRODUCTION

Area Previous Operations Refurbished Mill Circuit

Crusher 16' x 5' apron feeder Under evaluation

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) 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 - to be selected

Dewatering Wyssmount dryer 24'H x 17'Dia (removed) New dryer - to be selected

Product

Sizing True-Balance sifter screens (removed)

New sifter screens - to be

selected

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

Core Team Members: Management and Advisors 21

RE-COMMISSION AND PRODUCTION

Bobby Cooper Board Chairman 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

Tom Myatt President and CFO 30+ years of senior level

experience in the mining industry with involvement in five start-up and re‐commissioning projects

CFOI Ancash Mining Ltd, base/precious metals (Peru)

President & GM of Rio Tinto Service Inc.

CFO and GM positions in Rio Tinto business units and operations

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

Ellerton Castor

Director of Strategy and

Corporate Development

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

Stantec Consulting Environmental and Permitting Bill Steibel – Senior VP Jim Higgins – Closure Plan specialist Mina McCluskey – Water quality specialist and client rep. Piero Amodeo – Regulatory specialist; ex-MOE (18 years) Becma Engineering Engineering, Procurement, Construction Management Bob Mather – Principal; worked with OGL predecessor in 1990’s Hank Jenkins – Previously Chief Metallurgist at Kearney; very active in Canada Jr. mining co.’s

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 Jeanette Jones – Senior VP, Corporate Practice Leader Sarah McEvoy – Account Director

Kevin Murdock Sales and Marketing Strategy

Private equity investor having sourced, closed and managed various platform deals

McKinsey & Company: Global Business Building and Growth Practice, and Midwest Healthcare Practice

Professor of Strategic Management at Stanford Graduate School of Business

EPCM Process Review 22

RE-COMMISSION AND PRODUCTION

2011 2012

Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

Process Evaluation

Plant Inspection/Evaluation

Plant Process – Mechanical

Plant Process – Civil/Structural

Electrical and Control System

Construction Phase:

Civil

Structural

Mechanical

Electrical/Controls

Significant Competitive Advantages

Pre-production Period: The Mine will be re-commissioned at a low cost

within one year.

Operating History: The Kearney Mine operated successfully in the past, and has always been maintained;

thus the Mine and the majority of its processing facilities have been preserved in good condition.

Large Deposit in First World Location: The Property hosts large amounts of known Measured and

Indicated Mineral Resources conducive to inexpensive open pit mining in an easily accessible location in a

stable, first-world nation. This will help ensure stable and reliable long term delivery of product of consistent

quality to all customers.

Marketing History: Having been at one time a fully operations facility, the Mine enjoys the credibility of

having produced a product that is known and highly regarded in the marketplace.

Attentive and Focused Management: Current ownership and management are keenly aware of what is

needed to efficiently upgrade and re-commission the existing facilities to help ensure early and optimal

future processing operations.

Unencumbered Asset: The Property has no delinquent tax liabilities, environmental, health or pension

issues, and no ongoing litigation, social disputes or other liabilities that could delay start-up.

Uncomplicated Start-up and Operational Plan: The Mine will not require any specialized or prototype

equipment or processes for operations.

Easy Access to Skilled Labour: The Property is in a non-remote location, close to equipment suppliers,

construction services and skilled, experienced construction and operations personnel.

23

RE-COMMISSION AND PRODUCTION

Significant Competitive Advantages

During Production: Full production rates can be reached within one year.

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.

24

RE-COMMISSION AND PRODUCTION