Leading Edge Materials Reports Quarterly Results to July 31, 2020

VANCOUVER, BC, Sept. 22, 2020 /CNW/ - Leading Edge Materials Corp. ("Leading Edge Materials" or the "Company") (TSXV: LEM) (Nasdaq First North: LEMSE) (OTCQB: LEMIF) announces third quarter results for the period ending July 31, 2020. All references to dollar amounts in this release are in Canadian dollars.

Highlights During and After the Quarter

During the three months ended July 31, 2020 the Company:

• Announced changes to board of directors and management.
• Received confirmation of a five year extension on the Norra Karr exploration license.
• Announced the participation of its subsidiary, Woxna Graphite AB, in the newly launched research project "Graphite and Graphene as Battery Electrodes" which is part of the Vinnova funded competence centre Batteries Sweden ("BASE").
• Held its Annual General Meeting with shareholders approving all proposed agenda points.

Subsequent to July 31, 2020 the Company:

• Completed a non-brokered private placement for proceeds of $3,520,000 by issuing 32,000,000 units at a price of $0.11 per unit. Each unit consists of one common share, and one common share purchase warrant exercisable into one common share at an exercise price of $0.20 expiring August 7, 2024.
• Received information that the Bucharest Court of Appeal published a ruling dismissing the appeal against the Agenţia Natională Pentru Resurse Minerale ("NAMR") by the competing bidder for the Bihor Sud Exploration license in Romania as groundless. Pending the full ruling being served to the parties of the appeal and a subsequent appeal window, NAMR can reinstate the adjudication process of the competing bids for the Bihor Sud Exploration license.
• Granted stock options to directors, officers and consultants to purchase an aggregate of 3,500,000 common shares of the Company at an exercise price of $0.155 expiring August 11, 2023.
• Commenced a preliminary economic assessment study on the Norra Karr heavy rare earth element project to include the additional potential of by-product revenues and associated reduced environmental footprint.
• The European Commission announced an Action Plan on critical raw materials aimed to develop resilient value chains for European Union industrial ecosystems, reduce dependency on primary critical raw materials, strengthen domestic sourcing of raw materials in the EU and diversify sourcing from third countries and remove distortions to international trade. The Action Plan includes the establishment of a European Raw Materials Alliance to be launched on September 29, 2020.

Three Months Ended July 31, 2020 Compared to Three Months Ended April 30, 2020
During the three months ended July 31, 2020 ("Q3") the Company reported a net loss of $442,526 compared to a net loss of $317,422 for the three months ended April 30, 2020 ("Q2"), an increase in loss of $125,104 primarily attributed to a foreign exchange gain of $5,324 in Q2 compared to a foreign exchange loss of $33,140 in Q3 and an increase in general administrative expenses from $337,609 in Q2 to $420,959 in Q3.

Nine Months Ended July 31, 2020 Compared to Nine Months Ended July 31, 2019
During the nine months ended July 31, 2020 (the "2020 period") the Company reported a net loss of $1,167,252, compared to a net loss of $1,908,634 for the nine months ended July 31, 2019 (the "2019 period"), a decrease in loss of $741,382. The decrease in loss is primarily attributed to a $849,703 decrease in expenses, from $ 1,984,201 during the 2019 period to $1,134,498 during the 2020 period partially offset by a foreign exchange loss of $64,335 during the 2020 period compared to a gain of $20,853 during the 2019 period and  cost recoveries of $35,873 recorded in the 2019 period.

Selected Financial Data
The following selected financial information is derived from the unaudited condensed consolidated interim financial statements of the Company prepared in accordance with IFRS.

	Fiscal 2020			Fiscal 2019				Fiscal 2018
Three Months Ended	July 31, 2020 $	April 30, 2020 $	January 31, 2020 $	October 31, 2019 $	July 31, 2019 $	April 30, 2019 $	January 31, 2019 $	October 31, 2018 $
Operations
Expenses	(420,959)	(337,609)	(375,930)	(409,297)	(561,771)	(571,749)	(850,681)	(1,151,305)
Other items	(21,567)	20,187	(31,374)	(8,799,476)	27,101	46,864	1,602	39,448
Comprehensive loss	(442,526)	(317,422)	(407,304)	(9,208,773)	(534,670)	(524,885)	(849,079)	(1,111,857)
Basic and diluted loss per share	(0.00)	(0.00)	(0.00)	(0.09)	(0.01)	(0.01)	(0.01)	(0.01)
Financial Position
Working capital	3,354,422	499,883	711,727	132,551	518,129	929,183	1,438,895	960,707
Total assets	27,832,104	24,722,718	24,803,562	24,825,107	34,088,219	35,359,241	35,766,406	35,075,446
Total non-current liabilities	(7,486,123)	7,452,242	(7,154,761)	(7,701,324)	(7,876,382)	(8,637,726)	(8,515,027)	(8,306,212)

Financial Condition / Capital Resources
During the 2020 period the Company recorded a net loss of $1,167,252 and, as at July 31, 2020, the Company had an accumulated deficit of $39,338,983 and working capital of $3,354,422. The Company is maintaining its Woxna Graphite Mine on a "production-ready" basis to minimize costs. The Company anticipates that it has sufficient funding to meet anticipated levels of corporate administration and overheads for the ensuing twelve months however, it will need additional capital to provide working capital and recommence operations at the Woxna Graphite Mine and/or modernize the plant to produce value added production, to fund future development of the Norra Karr Property and complete the tendering process and, if successful, exploration activities in Romania. There is no assurance such additional capital will be available to the Company on acceptable terms or at all. In the longer term the recoverability of the carrying value of the Company's long-lived assets is dependent upon the Company's ability to preserve its interest in the underlying mineral property interests, the discovery of economically recoverable reserves, the achievement of profitable operations and the ability of the Company to obtain financing to support its ongoing exploration programs and mining operations. See also "COVID-19".

On August 7, 2020 the Company completed a non-brokered private placement and issued 32,000,000 units at a price of $0.11 per unit for gross proceeds of $3,520,000 of which $3,286,300 in share subscriptions had been received at July 31, 2020.

Outlook
The Company's projects are linked to disruptive high growth industrial applications such as electromobility, renewable energy and energy storage that underpin the transition to a sustainable society. Although the COVID-19 crisis is ongoing and has impacted industries during the year, electric vehicle sales have gained market share and expectations are for a rebound during the second half of the year and continuing into the next year. This trend is benefiting from measures taken by governments to support strategic industries focused around the green transition of society and developing more resilient regional industrial ecosystems. This is demonstrated by the newly announced European action plan on critical raw materials and associated European Raw Materials Alliance and the proposed action to identify mining and processing projects and investment needs and related financing opportunities for critical raw materials in the European Union. With the recently completed private placement and a portfolio of four critical raw material projects within the borders of the European Union, Leading Edge Materials is well-positioned and will work on developing its projects to support the goals of the European Commission to achieve a more sustainable and resilient supply of critical raw materials for European industrial ecosystems.

COVID-19
During 2020, there was a global outbreak of a novel coronavirus identified as "COVID-19". On March 11, 2020, the World Health Organization ("WHO") declared a global pandemic. In order to combat the spread of COVID-19 governments worldwide have enacted emergency measures including travel bans, legally enforced or self-imposed quarantine periods, social distancing and business and organization closures. These measures have caused material disruptions to businesses, governments and other organizations resulting in an economic slowdown and increased volatility in national and global equity and commodity markets. The Company has implemented safety and physical distancing procedures, including working from home where possible and ceased all travel, as recommended by the various governments. The Company will continue to monitor the impact of the COVID-19 outbreak, the duration and impact which is unknown at this time, as is the efficacy of any intervention. It is not possible to reliably estimate the length and severity of these developments and the impact on the financial results and condition of the Company and its operations in future periods.

Financial Information
The report for the fourth quarter ending October 31, 2020 is expected to be published on or about January 27, 2021.

On behalf of the Board of Directors,
Leading Edge Materials Corp.

Filip Kozlowski, CEO

About Leading Edge Materials

Leading Edge Materials is a Canadian public company focused on developing a portfolio of critical raw material projects located in the European Union. Critical raw materials are determined as such by the European Union based on their economic importance and supply risk. They are directly linked to high growth technologies such as lithium-ion batteries and permanent magnets for electric motors and wind power that underpin the sustainability transition of society. The portfolio of projects includes the 100% owned Woxna Graphite mine (Sweden), Norra Karr HREE project (Sweden), Bergby lithium project (Sweden) and the 51% owned Bihor Sud Nickel Cobalt exploration alliance (Romania).

Additional Information

The Company's unaudited condensed consolidated interim financial statements for the three months ended July 31, 2020 and related management's discussion and analysis are available on the Company's website at www.leadingedgematerials.com or under its profile on SEDAR at www.sedar.com.

The information was submitted for publication through the agency of the contact person set out above, at September 22, 2020 at 1:30 PM Vancouver time.

Leading Edge Materials is listed on the TSXV under the symbol "LEM", OTCQB under the symbol "LEMIF" and Nasdaq First North Stockholm under the symbol "LEMSE". Mangold Fondkommission AB is the Company's Certified Adviser on Nasdaq First North and may be contacted via email [e-mail] or by phone [phone].

Reader Advisory

This news release may contain statements which constitute "forward-looking information", including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities and involve risks and uncertainties, and that the Company's future business activities may differ materially from those in the forward-looking statements as a result of various factors, including, but not limited to, fluctuations in market prices, successes of the operations of the Company, continued availability of capital and financing and general economic, market or business conditions. There can be no assurances that such information will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. The Company does not assume any obligation to update any forward-looking information except as required under the applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this news release.

View original content to download multimedia:http://www.prnewswire.com/news-releases/leading-edge-materials-reports-quarterly-results-to-july-31-2020-301136056.html

SOURCE Leading Edge Materials

Copyright 2020 Canada NewsWire