Western Magnesium Corp. (MLYF)

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Page 6

Our Business
We have developed proprietary magnesium production technology with the aim of becoming a premier low-cost producer of green primary
magnesium metal. We are in the final stages of construction and commencing test production at a research and development pilot plant in
Metropolitan Vancouver, British Columbia, Canada. Our proprietary technology utilizes a continuous silicothermic process that is expected
to produce high grade magnesium with low labor and energy costs while generating minimal toxic by-products.
Plan of Operations
In order to complete construction and commencing testing at our planned research and development pilot plant, the following are the key
milestones that expect to achieve over the next 12 months following the date of this Annual Report on Form 10-K:
1 Complete construction of the plant;
2 Commission the plant and complete final training of operations staff;
3 Commence metal production under various scenarios to ensure sufficient data is collected;
4 Begin the request for proposal process for commercial engineering, procurement and construction management (“EPCM”) firm;
5 Select EPCM firm;
6 Review all pilot data with chosen EPCM firm and validate proposed required operational scenarios; and
7 Begin geotechnical assessments of proposed full-scale magnesium production facility in Harrison County, Ohio.
We estimate that the costs to complete this work will be approximately $8,000,000. We have commenced production in the pilot reactor in
the last calendar quarter of 2021 with full pilot facility operations expected to commence in the second calendar quarter of 2022 after all
safety testing is complete.
Following completion of our magnesium research and development pilot plant, we intend to construct a full-scale magnesium production
facility with expected capacity to produce 100,000 metric tons per year that will be scalable for greater production levels located on 122
acre property located in Harrison County, Ohio. The proposed plant will be adjacent to the future home of a modern mixed fuels power
plant which is expected to provide power to our planned magnesium production plant. The proposed Harrison County, Ohio location is
close to a dolomite supply and has an infrastructure of rail and highway that is capable of transporting our magnesium finished product to
industries across the United States. Our plans will require a significant amount of additional capital

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