Corporate Presentation MAY 2018 Shares outstanding: 44,077,283 - - PowerPoint PPT Presentation

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Corporate Presentation MAY 2018 Shares outstanding: 44,077,283 - - PowerPoint PPT Presentation

CSE: MDD | FSE:304 | OTCQB: MGPRF Stock Symbols: CSE: MDD Frankfurt: 304 OTCQB: MGPRF Corporate Presentation MAY 2018 Shares outstanding: 44,077,283 Reserved for Issuance: 11,796,382 (as of April 30th, 2018) 1 CSE: MDD | FSE:304 | OTCQB:


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CSE: MDD | FSE:304 | OTCQB: MGPRF

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Stock Symbols: CSE: MDD Frankfurt: 304 OTCQB: MGPRF

Corporate Presentation

MAY 2018

Shares outstanding: 44,077,283 Reserved for Issuance: 11,796,382

(as of April 30th, 2018)

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CSE: MDD | FSE:304 | OTCQB: MGPRF

FORWARD-LOOKING STATEMENT Disclaimer

Mag One is listed on the CSE with the symbol, “MDD”, the Börse Frankfurt stock exchange (“Frankfurt”) with the ticker symbol “304” and the OTCQB with ticker symbol "MGPRF". The listings on the Frankfurt and OTCQB exchanges provide the company exposure to the European and U.S. markets and potential investors. .Certain statements contained in this presentation may constitute "forward–looking statements" or "forward-looking information" (collectively "forward-looking information") as those terms are used in the Private Securities Litigation Reform Act of 1995 and similar Canadian laws. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated”, “anticipates” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company’s current belief or assumptions as to the outcome and timing of such future

  • events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the business of the

Company, the Property, financing and certain corporate changes. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events

  • r otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should

not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained

  • herein. This presentation does not constitute an offer of securities for sale in the United States. CSE has not reviewed this news release and does not

accept responsibility for the adequacy or accuracy of the content of this news release. . For additional risks and uncertainties that could impact the Company’s forward-looking statements, please see the Companies filings with the CSE and which may be viewed at www.sedar.com. Gillian Holcroft, Eng., M. Eng. and President of Mag One Products Inc. is a qualified person as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects, and has reviewed and approved all technical information in this presentation.

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CSE: MDD | FSE:304 | OTCQB: MGPRF

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“GAME-CHANGING APPROACH TO LOW-COST, ENVIRONMENTALLY-FRIENDLY PRODUCTION OF MAGNESIUM, INCLUDING BY-PRODUCTS & CO-PRODUCTS”

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CSE: MDD | FSE:304 | OTCQB: MGPRF

HIGHLIGHTS

✓ LOW-COST, GAME-CHANGING TECHNOLOGY ✓ METAL WITH A HIGH GROWTH POTENTIAL ✓ ENVIRONMENTALLY SUSTAINABLE PRODUCTION ✓ A FOCUS ON RAPID COMMERCIALIZATION THROUGH MODULAR EXPANSION & VERTICAL PRODUCT INTEGRATION ✓ EXPERIENCED MANAGEMENT/SCIENTIFIC TEAM ✓ RAPID PAYBACK OF CAPITAL INVESTED

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CSE: MDD | FSE:304 | OTCQB: MGPRF

WHY MAGNESIUM (Mg)?

By 2025, on average,

100 pounds of magnesium will be used in each vehicle, up from 10 lbs in 2016.

“Special Report: Vehicle Lightweighting” Automotive World, Feb. 2016

  • Mg is the lightest of all structural metals
  • 78% lighter than steel
  • 35% lighter than aluminum (Al)
  • Mg alloys: Comparable strength-weight ratio as Al
  • High vibration dampening capacity = Ideal for

high speed applications

  • Global Primary Mg Production 1.01M tonnes in 2016,

up 4% from 2015 (USGS)

  • Global Primary Mg Demand will increase 6.4% annually

to reach nearly 1.57M tonnes in 2026. (CM Group)

  • Global Demand by Sector, 2016 (CM Group)
  • 37% Aluminum alloying (automobile, aerospace)
  • 32% Mg die-casting (automobile)
  • 15% Iron & Steel (desulfurization)
  • 10% Titanium production (metal reduction)
  • 6% Others (ex. specialty chemicals)

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CSE: MDD | FSE:304 | OTCQB: MGPRF

AUTOMOTIVE INDUSTRY

  • 10% Vehicle Weight Reduction in gasoline-powered cars

= 6-8% Fuel Economy Improvement (US DOE)

  • Lightweighting of electric vehicles can improve range or

reduce the size and cost of a battery. (US DOE)

  • Ban of gasoline-powered cars on the way*
  • UK (2040)
  • France (2040)
  • India (2030)
  • Norway (2025)
  • Germany (announced but no target yet)

* http://money.cnn.com/2017/09/11/autos/countries-banning-diesel-gas-cars/index.html

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MAGNESIUM TO REPLACE LITHIUM IN BATTERIES?

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https://www.inverse.com/article/38897-magnesium-batteries-could-be- safer-than-lithium https://newatlas.com/solid-state-magnesium- battery/52386/ https://naturalnews.com/2017-09-08-magnesium-battery-breakthrough-means- safer-batteries-that-wont-explode.html

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MAGNESIUM MARKET LANDSCAPE

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  • 85% of the world’s Mg metal supply is

produced in China*. Approach is labor intensive & environmentally unfriendly (Large carbon footprint  26 T CO2eq/T Mg metal produced**)

  • US-imposed anti-dumping tariffs (>100%)

have discouraged the use of Chinese Mg in the U.S. (Price > US$4,000/T)

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* Source: CM Group, IMA Conference May 2017 ** IMA Webinar, March 2017

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CSE: MDD | FSE:304 | OTCQB: MGPRF

WHY Mg IN QUEBEC? No Better Place…

  • Access to inexpensive, already mined feedstock
  • Access to low cost clean energy & established

infrastructure (transportation, utilities, etc.)

  • Access to lucrative North American automobile

market (100 km to US border via rail & roads)

  • Access to region targeted for funding (C$50

million regional fund) and investment by all levels of government

  • Current Pilot Work leveraged at > 40%
  • Access to world-class universities
  • Access to skilled labour & business friendly

jurisdiction

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INTEGRATED ROAD TO REVENUE

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In negotiation

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INEXPENSIVE, ALREADY-MINED TAILINGS

Two Sites Secured in Southern Quebec, Canada

  • Exclusive access to pre-mined serpentinite

tailings residues for CDN$1.00/tonne, payable

  • nly when used.
  • Carbon-free source of Mg (ex. vs dolomite)

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Metal Asbestos, QC 50M tonnes

(Conceptual Grade/Qty)

Thetford Mines 60M tonnes

(Historical Estimate)

Magnesium (Mg) 23.2% 23.0% Silicon (Si) 17.9% 18% Iron (Fe) 5.4% 5.75% Nickel (Ni) 0.24% 0.23%

* Management’s decision to begin permitting efforts, as well as its commitment to processing these tailings to recover magnesium, silica and nickel have not been based

  • n results from a feasibility study of mineral reserves that would demonstrate

economic and technical viability of the project. Without this study there is increased uncertainty and increased economic and technical risks. Management does intend to engage an engineering firm to carry out a pre-feasibility study once the pilot plant effort is nearing completion and will use the pilot data as a basis for the study.

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OUR FLAGSHIP PROJECT

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CSE: MDD | FSE:304 | OTCQB: MGPRF

COMMERCIAL HIGH PURITY MgO PLANT

FEATURES

  • Low cost, novel, chlorine free, virtually zero

waste, hydrometallurgical process

  • 30,000 tpa high purity MgO
  • 33,000 tpa high purity amorphous silica
  • 5,200 tpa (dry basis) iron / nickel residue
  • No environmental evaluation required

Commercial Plant - Target 2019-2020

  • Business Case is viable on a stand-alone

basis and does not rely on Mg metal production STATUS

  • Piloting at CIMMS in Asbestos, QC

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Capacity 30,000 tpa HP MgO

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HYDROMETALLURGICAL PILOT PLANT

  • Phase I: 100 kg/hr Pilot Plant in operation
  • Serpentinite to aqueous Mg compound
  • High purity amorphous silica produced

for qualification & off-take agreements

  • Purity exceeds lab tests
  • Phase II: Pilot Plant → Q1 2018
  • Mg compound to high purity MgO for

qualification & off-take agreements

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PRODUCTS FROM MgO PLANT

High Value Amorphous Silica

  • Selling Price: US$200-$250/tonne
  • High surface area – unique properties
  • Replacement for silica fume in high

performance concrete, polymers & rubber

  • Global silica fume market: 1.1M tonnes/year*
  • Qualification partners identified early on given

timeframe to certify product (ex. 2-3 years for concrete)

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High Purity Magnesium Oxide (HP MgO)

  • Selling Price: US$600-900/tonne
  • Minimum 98.5% purity
  • Offtake partners already identified and

awaiting material to qualify from pilot plant

  • Market demand confirmed (USGS)
  • US 2015 consumption

333,000 tonnes MgO*

  • US 2016 imports

183,000 tonnes MgO*

  • Applications include: flame retardant in

plastics, cables; steel fluxing; additive for rubber, cement, wastewater treatment

* Caustic-calcined or specialized MgO * Santosh et al – 2017

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CSE: MDD | FSE:304 | OTCQB: MGPRF

COMMERCIAL PRIMARY Mg PLANT

FEATURES

  • Proprietary pyrometallurgical process

initiated by Dr. James G. Blencoe (CTO)

  • Aluminothermic reduction of HP MgO
  • 5,000 tpa Mg metal modules

(repeatable)

  • No environmental evaluation required

under 20,000 tpa metal STATUS

  • Bench scale validation 2018
  • Pilot scale apparatus – 2018-2019
  • Qualification & offtake agreements
  • Mg market > 1M tonnes

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Parameters Pidgeon Electrolysis Mag One Carbon footprint (T CO2eq/T Mg metal)* 26 18 5-8

* Excluding credits for by-product sale and improvement to raw goods sourcing

  • Essentially zero waste
  • No environmental evaluation required

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ENVIRONMENTALLY SUSTAINABLE

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CSE: MDD | FSE:304 | OTCQB: MGPRF

COMPLEMENTARY PROJECTS

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In negotiations

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COMMERCIAL SECONDARY Mg ALLOY RECYCLING

FEATURES

  • JV in negotiations with Quebec-based Mg

alloy recycling technology company – Expected closing Early 2018

  • Unique, low cost processing technology
  • Relationships with Mg scrap suppliers and

alloy customers already established

  • Strategic acquisition to enter Mg market

ahead of primary Mg production

  • Operational in Q4 2018-Q1 2019 (target)

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CSE: MDD | FSE:304 | OTCQB: MGPRF

COMMERCIAL MgO WALLBOARD ASSEMBLY PLANT

  • $1B addressable market

in North America

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CSE: MDD | FSE:304 | OTCQB: MGPRF

MAGPOWER FUEL CELL

  • MagPower Systems acquired in 2016
  • Proprietary magnesium-air fuel cell
  • Target application – emergency

power in remote situations

  • Lifeboats
  • Mining
  • Disaster Relief
  • Strategic commercialization partners

being identified

  • Scale-up to 100W to be initiated –

working with industrial design group

  • Ready-to-use
  • Add water
  • Make electricity
  • 20-yr shelf life (Dry)
  • No noxious by-products
  • Lantern (6W) ready for

commercialisation

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CSE: MDD | FSE:304 | OTCQB: MGPRF

James G. Blencoe, Ph. D. | Chief Technology Officer

40 years in advanced chemical production Published more than 50 peer-reviewed articles and lead author of 3 patents on magnesium 24 years at Oak Ridge National Laboratory

Nelson M. Skalbania, B.Ap.Sc., M.Sc., P.Eng. | Chairman/CEO

Serial entrepreneur, professional engineer Owned and operated real estate properties all over North America Involved in over 100 businesses in technology, mining, manufacturing, oil & gas, etc.

Gillian Holcroft, B.Eng., M.Eng. | President

~30 years in advanced mineral, metallurgical and chemical processing Led effort to commercial deployment of new innovations with US DoD Led effort to bringing technology company public

Rod Burylo, CIM | Director

~30 years in financial services industry Expert in corporate ethics, compliance and governance Business author, media contributor, teaching internationally for past 15 years

BOARD OF DIRECTORS

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David Dreisinger, PhD Scientific Advisor

Professor, University of British Columbia (UBC) Industrial Research Chairholder, Hydrometallurgy 23

TEAM

Mirza Rahimani, CA Advisor

Expertise in corporate control and compliance for public companies

Yu-Mei Han, PhD Technical Director, CIMMS

Metallurgist with background in hydrometallurgy, pyrometallurgy and materials.

Tom Whitton, Eng Commercialization Lead

Chemical engineer & business development specialist, bringing new innovations to market

George Hochwimmer, PhD Advisor

Financial Advisor for Start-Up/Growing Companies Founder, General Research GbmH

Arnold Ross, MEnv, BSc Environmental Consultant

Expertise in permitting and carbon markets Current Director of Technology for PureSphera

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CSE: MDD | FSE:304 | OTCQB: MGPRF

KEY TAKEAWAYS

✓ LOW-COST, GAME-CHANGING TECHNOLOGY ✓ METAL WITH A HIGH GROWTH POTENTIAL ✓ ENVIRONMENTALLY SUSTAINABLE PRODUCTION ✓ A FOCUS ON RAPID COMMERCIALIZATION THROUGH MODULAR EXPANSION & VERTICAL PRODUCT INTEGRATION ✓ EXPERIENCED MANAGEMENT/SCIENTIFIC TEAM ✓ RAPID PAYBACK OF CAPITAL INVESTED

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CSE: MDD | FSE:304 | OTCQB: MGPRF

MAGBOARDS * MAGNESIUM OXIDE * MAGNESIUM METAL #145 925 Georgia Street West, Vancouver, B.C. CANADA V6C3L2 T: +1.604.669.4771 F: +1.604.669.4731 E: Info@MagOneProducts.com IR@MagOneProducts.com IR-Europe@MagOneProducts.com

www.MagOneProducts.com CSE: MDD FRANKFURT: 304 OTCQB: MGPRF

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