Mr. Larry Reaugh reports

AMERICAN MANGANESE INC. COMMENCES NEXT PHASE OF TESTING AMIDST GROWING INTEREST FROM INDUSTRY PLAYERS

Phase 1A of American Manganese Inc.'s intellectual property development program has been completed by Kemetco Research Inc. The following was achieved in this phase of work:

• Reagent usage was optimized for recycling LCO cathode chemistries.
• Proof of concept was achieved on an innovative method to increase lithium recovery (demonstrating an initial increase of lithium precipitate recovery from 60 per cent to 87 per cent).
• Proof of concept was achieved on extracting (dissolving into solution) 100 per cent of the lithium, nickel, manganese and cobalt from NMC chemistries.

Phase 1B testing has commenced and consists of comprehensive testing to obtain all data required to complete the portion of the patent application applicable to recycling LCO chemistries. This will include maximizing recoveries of lithium and cobalt and obtaining data on reagent and solution streams for each consecutive unit operation at steady state to finalize the overall commercial flowsheet.

Phases 2 and 3 will follow, with phase 2 focusing on reagent optimization on recycling NMC, LMO and NCA chemistries. Phase 3 will focus on obtaining all data required to complete the final patent application including recycling NMC, LMO and NCA chemistries. This work is required to prepare and submit the final U.S. patent application by November, 2017.

In a recent article, Jason Savarc from Clean Energy Reviews looks at the New Tesla Powerwall and comments that, "a recent breakthrough by American Manganese Inc or 'AMI' has shown very good results in extracting the raw materials from Lithium NMC batteries for re-use."

Over the past few months, the company has been contacted by national and international companies expressing interest in completing due diligence on the AMI lithium-ion battery recycling process. Several non-disclosure agreements have been signed or are in the process of being signed with end-users, governments and commercial firms that are exploring opportunities with AMI. (The company is not able to disclose the identity of these at the request of the interested parties.)

Interest continues to increase since:

1. The proof of concept was successfully completed.
2. Recoveries of cathode material have been disclosed.
3. Filing for U.S. provisional patent on AMI's proprietary process has been made.
4. Cobalt's prominence and shortage are beginning to look critical with the price up 150 per cent to $25 per pound ($55,000 per tonne).

About American Manganese Inc.

American Manganese is a diversified specialty and critical metal company focused on capitalizing on its patented intellectual property through low-cost production or recovery of electrolytic manganese products throughout the world, and recycling of spent electric vehicle lithium-ion rechargeable batteries.

Interest in the company's patented process has adjusted the focus of American Manganese toward the examination of applying its patented technology for other purposes and materials. American Manganese aims to capitalize on its patented technology and proprietary know-how to become and industry leader in the recycling of spent electric vehicle lithium-ion batteries having cathode chemistries such as: lithium-cobalt, lithium-cobalt-nickel-manganese and lithium-manganese (please see the company's Jan. 19, 2017, press release for further details).

We seek Safe Harbor.