DNI Metals has signed a non-binding Letter of Intent, to purchase a company that vertically integrates DNI’s developing graphite business. This acquisition when completed, DNI’s graphite trading business, and a gold royalty will give DNI three sources of cashflow. This cashflow will assist DNI in developing its fully permitted Madagascar graphite project, and other potential projects.

More than 62 Canadian and US patents and technologies have been developed at this facility. With this acquisition DNI will own a number of these patents and technologies. All the equipment needed to operate Pilot Plants and Laboratories, that are used to complete metallurgical, clean technology, and environmental testing will now be owned by DNI upon completion of the transaction.

The facility and equipment will allow DNI to drive multiple revenue streams:

1.DNI will continue to develop technologies

2.DNI plans to increase the revenue from the labs and the pilot plants

3.DNI can use this fully permitted facility to develop and implement various technologies to upgrade graphite, thus increasing the sale value of every tonne of graphite being sold.

Developing a large-flake graphite project, requires a significant amount of money being spent at laboratories. Drilling assays, and pilot plant/metallurgical work must be done. Having its own lab will allow DNI to fast track the development of its fully permitted graphite project and potentially save DNI and its shareholders thousands of dollars.

Every producing graphite mine must certify its products for carbon content, ash content, moisture content, particle size, and impurities. Having its own Laboratory, experts and training facility, allows DNI to provide its graphite buyers with a secure, reliable, and consistent supply of graphite.