Corporate Presentation March 2020
TSXV:ZEN OTCQB:ZENYF
Forward Looking Statements This presentation contains "forward-looking information" within the meaning of applicable Canadian securities legislation and United States federal securities laws. Forward-looking statements include, but are not limited to, estimates and statements with respect to ZEN Graphene Solution Inc. future exploration and development plans, objectives or goals, to the effect that ZEN Graphene Solution Inc. or management expects a stated condition or result to occur, including the PEA, expected timing for release of sample analyses and a resource estimate, the expected uses for graphite in the future, and the future uses of the graphite from ZEN Graphene Solution Inc. Albany deposit, the adequacy of ZEN Graphene Solution Inc. financial resources, business plans and strategy, and other events or conditions that may occur in the future. Generally, forward-looking information can be identified by the use of forward- looking terminology such as “potential”, "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". The following table outlines certain significant forward-looking information contained on this website provides the material assumptions used to develop such forward-looking statements and material risk factors that could cause actual results to differ materially from the forward looking statements.
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About ZEN Graphene
Albany Graphite Deposit – A Significant Advantage in the Graphene Market
Graphene – The New Wonder Material - Where is the market going?
ZEN Graphene – Positioning to be the Global Leader in Graphene Production 03
Albany Graphite Deposit Dr. Andrew G. Conly and Lindsay C. Moore Stated*: •
•
The Albany deposit is a unique type of igneous-hosted, fluid-derived graphite mineralization. The defining characteristic of the Albany deposit is the occurrence of the crystalline, fine-grained graphite within two large breccia pipe *
British Columbia Geological Survey 2015-3 pp. 173-185
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ALBANY GRAPHITE PROJECT
An emerging graphene production company with a unique pre-cursor graphene resource • 100% control of the Albany Project - a unique microcrystalline graphite deposit • Albany Project yields a significant advantage in the graphene market • Strategically located near infrastructure – railway, road, and ports
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Albany Graphite Deposit – Graphene Precursor Material Tonnes (Mt)
Grade (% Cg)
Contained Graphitic Carbon (t)
24.3
3.98
968,000
5.4
2.58
138,000
–
–
–
Inferred
11.5
2.67
307,000
Total Indicated
24.3
3.98
968,000
Total inferred
16.9
2.64
445,000
Above Sill Mineralization Indicated Inferred Below Sill Mineralization Indicated
Updated PEA based on Graphene will be based on: • Higher pricing for Graphene and Graphene Oxide • Increased recoveries from 75% to 90% • Simplified, lower cost process flowsheet
Deposit Open at Depth: • PEA estimates an open pit mine life of 22 years and the production of 30,000 tonnes of purified graphite per year
*
Per RPA 2015 PEA Report (This does not include mineralization below the sill) RPA Inc. Mineral Resource Estimate – June 1, 2015 (see July 9, 2015 PEA report at https://zengraphene.com/)
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Economics of Albany Graphite* Highlights of 2015 Preliminary Economic Assessment
After tax NPV of $600M at a 10% discount rate
Metallurgy had a 75% yield
Based on selling 30k tons of graphite at $7.50 USD per kg and cost of $2.00 USD per kg
Capex set at $408M
Per RPA 2015 PEA Report (This does not include mineralization below the sill) RPA Inc. Mineral Resource Estimate – June 1, 2015 (see July 9, 2015 PEA report at https://zengraphene.com/)
*
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Independent Validation
In the past, the low yields and lack of homogenous graphene from other sources resulted in insufficient concentration of graphene and required further processing with a centrifuge. Recent results with ZEN Graphene Solution Inc. Albany graphite demonstrated superior homogenous graphene production with high yields thus allowing production of conductive liquid suspensions directly. Dr. Alan Dalton, Professor of Experimental Physics at Sussex
We believe that this is a high value special material with unique characteristics that could make Albany graphite the preferred material for conversion to valuable graphene applications. Comments from Dr. Oren Regev, and Dr. Ilan Pribar of the Department of Chemical Engineering at BGU
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Graphene History
Discovered in 2004 by Andre Geim and KonstantineNovosolov
They were awarded the Nobel Prize in Physics in 2010 for their discovery
First stable 2D material
By 2017, 53,644 patents were filed
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Graphene What is it?
Graphene opens the door to the next generation of advanced composite materials that are stronger, ultra-light, more flexible and higher thermal or electrical conductivity
A carbon nanomaterial with extraordinary properties
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Current Commercial Pricing Approximate offer prices for various product types based on these variables is summarized as follows (listed in the hunt price: USD per Kg): • Pricing is largely dependent on order size but also on the material grade of the product • Other parameters that could effect prices include flake size (lateral dimensions), degree of functionalization purity and structural (intrinsic) defects - it is not yet clear how the market values these qualities
Order Size (kgs)
GNP
MLG
FLG
vFLG
1
$100
$150
$200
$1,750$2,000
10
$60
$100
$150
$1,250$1,500
100
$40
$60
$120
$1000
1000
$30
$40
$90
$750
Source – Graphene Council, April 2019
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Albany Graphene Value Proposition A high value growth industry over the next decade • The 2019 Canaccord UK* research report estimates worldwide graphene sales are likely to take off over the next few years reaching $4.8B USD by 2030 • Graphene’s commercial potential lies in its ability to enhance and improve existing materials at a very low load factor making it a viable solution in the cost/benefit calculation for commercial applications • Markets in which graphene is already competing with other additives amount to more than $150B in value • Canaccord’s central case implies a Compound Annual Growth Rate (CAGR) of 45% in revenue over a decade 2030E from current levels 12
Graphene Enhanced Composites - a high value growth industry over the next decade
•
FORD Motors is using graphene-reinforced parts in Mustang and F-150
•
Ford’s research of graphene-reinforced foam covers for noisy components such as the fuel rail, pumps, and belt-driven pulleys or chain-driven gears on the front of engines resulted in parts that are 17 percent quieter, 20 percent stronger, and 30 percent more heat-resistant. (https://www.thedrive.com/tech/24126/ford-will-usegraphene-reinforced-parts-in-production-cars)
•
The market for polymer nanocomposites is expected to reach over $5.1B by 2020 Source https://www.marketsandmarkets.com/PressReleases/polymer-nanocomposites.asp
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Opportunities in Coatings and Lubricants Graphene enhanced coatings and lubricants: a performance additive in marine, aerospace and industrial applications
• Important commercially due to market demand for stronger, more durable and environmentally friendly solutions • Lubricant additives market estimated to be worth $16.2 billion in 2019 • Graphene-based anti-corrosion paints are being developed to protect against corrosion in ships’ hulls below the water line as well as equipment used in the construction, petrochemical and transport sectors • Testing shows Improved wear resistance, extend engine life, increase fuel efficiency, and increase engine power in vehicles •
https://grapheneindustry.org.au/2019/07/graphene-enhanced-lubricants-engine-oil/
Dispersions in oils of 0.075% functionalised graphene platelets have been shown to improve load-carrying capacity, wear reduction and coefficient of friction in base oil, with performance comparing favourably against graphite
• This makes graphene commercially viable at $300-$400/kg
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Battery development at UBC and The German Aerospace Center (DLR)
Graphene has been found to significantly improve the performance of cathodes in lithium-ion (Li-ion) batteries, and as an electrode material in supercapacitors, transistors, light-emitting diodes, solar cells and flexible devices The market for batteries is large and is growing rapidly Canaccord* estimates over $20bn annually just in lithium-ion, supplying more than 130 GWh capacity battery in 2019E *Canaccord Genuity UK Equity Research
6 March 2019
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High strength concrete using graphene enhanced admixtures Work at University of Toronto • Increased Compressive Strength by 39% with a low loading of 0.02% Graphene • Increased Flexural Strength by 81% with a low loading of 0.02% Graphene Oxide Work at Ben-Gurion • Faster curing time - from 28 to 8 days • Use 25% less cement therefore reduce CO₂ by same amount • Increased compressive strength by 34% and tensile strength by 62% • Applications work on Albany tailings as a partial cement replacement and filler material for the concrete industry • Currently seeking industrial partnerships focusing initially on large volume markets for graphene 16
Graphene enhanced desalination membranes:
Addressing the global problem of access to clean drinking water • Around 71% of the Earth’s surface is covered by water, of which 96.5% is contained in saltwater oceans • Desalination technologies could bring fresh water to everyone, but are currently very costly • Graphene oxide membranes could be used for the desalination and purifications of water
A graphene membrane with subnanometer pores as an RO membrane. In this process, the salt water (left), subjected to a high pressure, is divided into two parts: water molecules (red and white) passing through the membrane (right) and salt ions (golden spheres) that are blocked. (Reprinted with permission from Wang and Karnik.87 Copyright 2016 Nature Publishing Group.) 17
New Management Accomplishments New Board and management as of May 11th, 2018
ZEN had over $200k of debt at May 11th, 2018. Now has $0.9M in the bank
Directors purchased over $1M of shares including $355k in last Private Placement
Completed Metallurgy with strong results including 90% recovery
Completed a bulk sample winter 2019 and recovered 110 tons with a 6% grade
Established significant research with Canadian Universities and Industrial partners
Received a $1M reimbursement grant for graphene and concrete R&D
Establishing new graphene research and development facility in Guelph
Started Environmental Baseline Work Q2 2019
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New Guelph facility - next phase of development & scale up
• Grand Opening March 3, 2020 • Access to 2,000 Square Foot Lab Space • Small-scale graphite purification & graphene production facilities • E-commerce Store Launch February 27, 2020 • Graphene products available for R&D and commercial use
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ZEN is positioning to be a global leader in graphene production GO – Graphene Oxide rGO – reduced Graphene Oxide GNP – Graphene Nanoplatelets
GO
GNP
Exclusive Option with Guelph University – Grams per day
Fully licensed production process – Kilograms per day
rGO
GQD
Exclusive Option with Guelph University – Grams per day
IP Template – Grams per day
GQD – Graphene Quantum Dots
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Strong Management with a focus on business development Management and Board Dr. Francis Dubé OD, BSc
CEO & Chairman
Peter Wood MSc, P.Eng., P.Geo.
President
Brian Bosse CFA CFO,
Director
James Jordan BSc, P.Eng.
COO
Greg Fenton CFA,
CSO & Director
Frank Klees
Director
Eric Wallman CPA, CA
Director
Dr. Colin van der Kuur BSc, D.Min
Head of Research
Monique Manaigre R.Ac
Senior Government Relations & Account Manager
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Capital Structure TSXV: ZEN OTCQB: ZENYF Shared Issued Warrants
As at December 31, 2019
80,358,569 655,848
@ $0.80
Warrants
750,000
@ $0.50
Options
4,440,000
@ avg. weighted price $0.69
Options
1,100,000
@ avg. weighted price $0.40
Fully Diluted
87,304,417
Expiry June 22, 2020 Expiry September 13, 2021
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Thank you Corporate Presentation March 2020
TSXV:ZEN OTCQB:ZENYF