Mr. Jared Lazerson of MGX reports

MGX MINERALS ANNOUNCES ASSAYS UP TO 580PPM LITHIUM AT KIBBY BASIN, NEVADA LITHIUM PROJECT

MGX Minerals Inc.'s joint venture partner Belmont Resources Inc. has returned assay samples up to 580 parts per million lithium in the first layer of 125 samples taken to 1,270 feet at the Kibby basin lithium brine project in Nevada. The highest concentration of lithium occurred between 960 and 1,270 feet, including 1,110 to 1,210 feet where overall average was 415 ppm lithium.

The borehole targeted the southern portion of a large robust MT (magnetotelluric) conductor, which may represent saturated sediments containing lithium-rich brines. The hole drilled through lacustrine playa sediments -- dominantly calcareous clays and silts grading to lithified claystone's and siltstones at depth. Sand and gravel zones, which may represent brine-bearing aquifers, were encountered at depths of 150 to 170 feet, 210 to 230 feet, 260 to 300 feet and 900 to 920 feet, where a potentially major aquifer in a cobble gravel was intersected. Analysis suggests that a hard chert-cobble layer at a depth of 90 to 915 feet separates soft red-brown-coloured oxidized mud-silt (minor gravel) playa sediments from underlying grey-green reduced clay-silt (minor sand) sediments and minor volcanic ash layers. The reducing-oxidizing boundary is well defined by a chert-cobble layer and Li values increase significantly in the reduced layer below it.

                             KIBBY BASIN DRILL HOLE NO. 3
From       To   Width                                                         Notes
(ft)     (ft)    (ft)

900       915      15                                            chert-cobble layer
                                                  dark grey-green clay-silt average
970     1,210     240             390 ppm Li (reference ALS certificate RE18197540)
                              numerous sections of grey-green reduced clay-silt and
1,270   1,800     530  intercalated ash tuff layers -- geochemical analysis pending

At deeper layers, thin intervals of altered rhyolite ash and possible hot spring sinter were encountered at 1,411 to 1,412 feet, 1,488 to 1,490 feet and 1,589.5 to 1,590 feet. Operation of a paleo-geothermal system is evidenced by the silicified intervals and fronts of pyrite alteration increasing below a depth of 1,500 feet.

Hole KB-3 was drilled by mud rotary methods to a depth of 1,270 feet. The hole was completed as a core tail to a total depth of 1,798 feet. The hole diameter was reduced to 3-5/8ths inches to drill HQ (2.5-inch diameter) core. Twenty-five samples of representative core were selected for assay from this lower part of the drilling and were delivered to ALS Labs in Reno, Nev., on Aug. 31, 2018, for 41-element ICP (inductively coupled plasma) analysis (including Li). Samples were of ash layers, silicified sediments, and high pyrite and magnetite zones. Ten water samples were collected at various levels from 370 feet through to 1,745 feet. Additionally, one sample of well water and one surface water sample were collected and delivered to ALS Labs on Aug. 31 for ICP analysis and physical properties. Assay results from these drill core and water samples are expected by later this month.

Final compilation, upon receipt of further assays, and scheduling for the second 2018 drill hole (KB-4) at Kibby are being prepared. Drills will be mobilized to the second site as soon as possible.

The Kibby basin shares many characteristics with Clayton Valley, where lithium brines are being exploited, including: closed structural basin, large conductor at depth, lithium anomalies at surface and depth, evidence of a geothermal system, and potential aquifers in porous ash and gravel zones.

About the Kibby basin lithium brine partnership

MGX is partnered with Belmont Resources on the property and currently earning a 50-per-cent interest with the goal of forming a 50/50 joint venture to utilize MGX's rapid lithium extraction technology. Kibby basin is located in the western portion of the Great basin in Nevada. The property covers 2,560 acres located in Esmeralda county, Nevada. Geologic research of the Kibby basin has indicated that proximal rhyolitic flows and tuffs surrounding the basin could be a potential source of Li brine in the Kibby basin playa. In addition, the Kibby basin is located within a geothermal cluster at a basin low setting. Regional geophysical signatures in the area reflect similar anomalies comparative to that of Clayton Valley, approximately 50 kilometres to the south, location of Abermarle's Silver Peak mine, the only North American lithium producer.

Rapid lithium brine extraction technology

MGX has developed a rapid lithium extraction technology eliminating or greatly reducing the physical footprint and investment in large, multiphase, lake-sized, lined evaporation ponds, as well as enhancing the quality of extraction and recovery across a complex range of brines as compared with traditional solar evaporation. This technology is applicable to petrolithium (oil and gas waste water), natural brine, and other brine sources such as lithium-rich mine and industrial plant waste water. The technology was recently chosen as winner of the Base and Specialty Metals Industry leadership award at the 2018 S&P Global Platts Global Metals Awards, held in London in May (see press release dated May 18, 2018).

Qualified person

Andris Kikauka, PGeo, vice-president of exploration for MGX Minerals, has prepared, reviewed and approved the scientific and technical information in this press release. Mr. Kikauka is a non-independent qualified person within the meaning of National Instrument 43-101 standards.

About MGX Minerals Inc.

MGX Minerals is a diversified Canadian resource company with interests in advanced material and energy assets throughout North America.

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