Mr. Jared Lazerson of MGX Minerals reports

MGX MINERALS ENTERS INTO AGREEMENT TO ACQUIRE KOOT SILICA PROSPECT FROM AMERICAN MANGANESE

MGX Minerals Inc. (MGX) has entered into an acquisition agreement with American Manganese Inc. (AMY) to acquire a 100-per-cent interest in 166 contiguous hectares covering a known high-purity silica prospect (the Koot claims) (Minfile No. 082JSW025).

Exploration conducted on the Koot claims by Cominco (now Teck-Cominco) during the 1980s outlined a mineralized zone spanning approximately 400 metres consisting of high-purity silicon dioxide (SiO2). Whole rock analysis of composite samples in six of seven shallow diamond drill holes returned values ranging between 98.7 per cent and 99.3 per cent SiO2 (assessment report 10160). The zone remains open along strike and at depth to the north, east and west. Cominco also conducted decrepitation testing of rock fragments at 1,000 C of rock fragments from the three quartzite outcrops and noted no decrepitation.

The Koot claims are located in the Golden mining district of southeastern British Columbia, less than four kilometres from the Canadian-Pacific rail line and 2.5 kilometres from Highway 95. The property is accessible by a network of well-maintained logging roads.

"The high-purity nature of the Koot prospect aligns well with the company's business model of acquiring high-grade, quarry-style mining projects," stated company president and chief executive officer Jared Lazerson. "Additionally, the acquisition bolsters the company's exposure to the ferro-silicon market while further strengthening our portfolio of industrial mineral assets." In connection with the acquisition, MGX will issue 100,000 shares to AMY as well as grant a 0.5-per-cent net-smelter-return royalty (NSR) on any future production. Additionally, the Koot claims are subject to a 0.5-per-cent NSR attributable to the company's non-independent qualified person, Andris Kikauka.

About ferro-silicon

Ferro-silicon is an essential alloy in the production of iron and steel. Ferro-silicon is used to remove oxygen, and increase the strength, resistance and elasticity of steel. It can also serve as the basis to manufacture prealloys like magnesium ferro-silicon (FeSiMg). According to leading independent research firm Roskill, demand for ferro-silicon doubled between 2000 and 2013, while projections are forecasting growth of more than 8 per cent annually over the next five years (Roskill, 2014).

Qualified persons

Andris Kikauka, vice-president of exploration for MGX Minerals, a non-independent qualified person as defined by National Instrument 43-101, has reviewed the information contained in this news release and has verified the data.

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