Mr. Mike England reports

ALIX AND LITHIUM AUSTRALIA ANNOUNCES DEFINITIVE AGREEMENT, WORK PROGRAM COMMENCING ON THE ELECTRA LITHIUM PROJECT AND ALIX INTEREST IN DEVELOPING LITHIUM EXTRACTION TECHNOLOGY

Alix Resources Corp. and Lithium Australia NL have made significant progress related to the joint exploration and development on the Electra project, Sonora, Mexico, including:

• Signing of a definitive agreement between AIX and LIT to explore and develop the Electra project whereby LIT will earn a 49-per-cent interest in the Electra project through the issuance to AIX of one million fully paid ordinary LIT shares, one million partly paid LIT contributing shares paid to 0.001 Australian cent each (24.99 Australian cents unpaid) and expenditures of $400,000. LIT has a further option to increase its interest in the Electra project to 65 per cent through the issuance to AIX of 1.5 million fully paid ordinary LIT shares, expenditures of $1.5-million and a cash payment of $250,000;
• An exploration budget for the Electra project has been approved by LIT, securing the financing for the upcoming phase 1 Electra work program, with work to begin in early May;
• Also included in the definitive agreement is the right for AIX to be granted a 10-per-cent interest in any novel lithium-extraction technologies (LET) used or developed in relation to the project properties (Tecolote and Tule concessions) and/or the Sonora project currently owned by Bacanora Minerals Ltd. and REM, whether patented or not patented.

The Electra project consists of two exploration concession applications covering 22,625 hectares, with the Tecolote concession adjoining BCN-REM's Sonora lithium project to the north and the Tule concession being contiguous to the south. The phase 1 program will follow up on lithium anomalous clays discovered in December, 2015 (see AIX news release dated Jan. 6, 2016). Exploration on the large (18,125 hectares) Tule concession will focus on sedimentary beds discovered in December. These are similar to, on trend and correlate with geological units which host BCN-REM's La Ventana lithium deposit.

Drilling and exploration work have established the BCN-REM Sonora project National Instrument 43-101 indicated mineral resource of 1.12 million tonnes lithium carbonate equivalent (LCE) contained in 95 million tonnes of clay at a lithium grade of 2,200 parts per million and an inferred mineral resource of 6.3 million tonnes LCE contained in 500 million tonnes of clay at a lithium grade of 2,300 ppm.

Alix is also pleased to announce its involvement in the technology space by way of LIT granting a 10-per-cent interest in any novel lithium-extraction technologies (LET) used or developed in relation to the properties (Tecolote and Tule concessions) and/or the Sonora project currently owned by Bacanora Minerals and REM, whether patented or not patented. The lithium clay deposits present a significant metallurgy challenge and the application of the best available technology will be key to commercialize the ore. The application of advanced exploration techniques will accelerate resource assessment. Adoption of mineral-separation technology from other industries may allow the production of a beneficiated product, to reduce capital and operating costs.

"Commencing work in Mexico as well as now having an interest in potential new technology for lithium extraction mark an exciting time for Alix and its shareholders," stated Alix chief executive officer Mike England.

Alix and LIT will harness the expertise of both companies and their strategic partners to advance the Electra project. Kappes Cassiday and Associates (Nevada) will provide valuable processing expertise. In-field lithium assaying capability will be provided by SciAps.

The technical contents of this release were approved by Dr. Michel Boily, PhD, PGeo, a qualified person as defined by National Instrument 43-101. The properties have not been the subject of a National Instrument 43-101 report.

We seek Safe Harbor.