Mr. Stephen Stares reports

ALSET ENERGY PROVIDES UPDATE ON INITIAL SAMPLING PROGRAMS AT THE WISA LAKE LITHIUM AND CHAMPION GRAPHITE PROJECTS

Alset Energy Corp. is providing updates for the Wisa Lake lithium project and the Champion graphite project.

As part of the company's due diligence, five grab samples were collected from the two historical zones at Wisa Lake. Two grab samples collected from the North zone graded 1.4 per cent and 0.95 per cent Li2O, which are comparable with the grade of the non-National Instrument 43-101-compliant historical resource of 330,000 tonnes grading 1.15 per cent Li2O (Lexindin Gold Mines Ltd., manager's report, 1958 -- referred to in OGS, open-file report 6285, report of activities, 2012). Three additional grab samples were collected in the South zone, located 900 metres south and parallel to the North zone, which graded 1.75 per cent, 1.47 per cent and 1.45 per cent Li2O. Both zones were drilled in the 1950s but very little work has been completed since. Alset has now collected and submitted for assay an additional 56 grab samples from various pegmatites occurring on the property. Of particular interest is a newly discovered spodumene-bearing dike located 100 metres south of the South zone. Once received, these results will help guide the next phase of exploration.

The company has also completed a small prospecting program on the recently acquired Champion graphite project (see company press release dated April 20, 2016). Using a geophysical instrument designed by Geonics Ltd. in 1963 known as the Ronka EM 15, the company identified and confirmed multiple individual conductive zones associated with flake graphite in overburden covered areas. Seven small individual holes dug to bedrock at a depth of approximately one m over a distance of approximately 1.3 kilometres across stratigraphy have identified flake graphite that graded from 1.7 per cent to 8.98 per cent carbon. The company is very encouraged with these initial grab samples and is planning further stripping work to commence as soon as possible. The company cautions all the sampling results above are selected grab samples and may not be reflective of the average grade of any of these identified zones.

With both projects showing encouraging initial results, Alset has applied for exploration permits with the Ministry of Northern Development & Mines (MNDM) to allow for further exploration including trenching and diamond drilling where warranted. Under the Ontario Mining Act, the permits are generally issued within 50 days of written application request. Within this process the company is required to notify and consult with all first nation communities and other stakeholders located within the region of the projects. Alset is committed to working in a responsible and respectful manner, and will ensure the concerns of all neighbouring stakeholders are addressed.

Alset would also like to thank the Northern Ontario Heritage Fund Corp. and the Ontario Prospectors Association for accepting the company's applications to receive a grants for both projects under the junior exploration assistance program.

Alset is well financed with approximately $1-million in cash.

Clinton Barr (PGeo), vice-president of exploration for Alset Energy, is the qualified person responsible for this release.

We seek Safe Harbor.