Mr. Paul Matysek reports

LITHIUM X ACQUIRES LARGE, HIGH-GRADE LITHIUM BRINE PROJECT IN ARGENTINA IN JOINT VENTURE WITH ABERDEEN INTERNATIONAL

Lithium X Energy Corp. has entered into a binding letter of agreement with Aberdeen International Inc. to acquire up to 80 per cent of Potasio y Litio de Argentina SA (Plasa), which owns 100 per cent of the Sal de los Angeles lithium-potash brine project, which was previously known as the Diablillos project in Argentina.

The Sal de los Angeles project covers more than 95 per cent of the Salar de Diablillos property located in Salta province at an average elevation of approximately 4,050 metres above sea level. The project includes 32 mining claims covering approximately 8,156 hectares and is located near FMC Corp.'s Salar de Hombre Muerto lithium deposit, one of the world's largest lithium operations.

"The acquisition of Sal de los Angeles is a special opportunity for Lithium X," said the chairman, Paul Matysek. "It is one of the few known lithium brines that is amenable to conventional processing. The project has both near-term development potential and scale. Salta province is a mining-friendly part of Argentina, where we have enjoyed previous successes and maintain good relationships.

"The election of President Mauricio Macri has increased investor optimism and enhanced the business climate in Argentina," Mr. Matysek added.

David Stein, Aberdeen's president and chief executive officer, remarked: "Aberdeen is thrilled to partner with Lithium X to develop the Sal de los Angeles project. In a short period of time, Lithium X has built an exciting company with an impressive team, and we saw the opportunity to benefit from being part of a larger, growing lithium company. We see Sal de los Angeles becoming the flagship asset of a new dynamic, multiproject lithium company with the potential to deliver strong returns for our shareholders over the longer term."

Lithium X will issue eight million common shares to Aberdeen International for a 50-per-cent interest in the project on closing. Lithium X has the option for a 26-month period to acquire an additional 30-per-cent interest by issuing common shares worth $5-million to Aberdeen and fulfilling several terms, including incurring $3-million in exploration and development expenditures over a two-year period and completing a feasibility study on the project. As part of the agreement, Lithium X will be considered the initial operator of the project for as long as the company maintains interest greater than or equal to 50 per cent in the joint venture.

"The acquisition is another milestone as Lithium X moves towards a goal of becoming the world's go-to pure play lithium company," said chief executive officer Brian Paes-Braga.

To exercise the option for an additional 30-per-cent interest, Lithium X must issue common shares to Aberdeen valued at $5-million based on a 10-per-cent discount to the 20-day volume-weighted average price of its common shares at the date of exercise. If Lithium X does not exercise the option, Aberdeen has the right following the option expiry for a 30-day period to acquire a 1-per-cent interest in Plasa back from Lithium X for $166,000 in cash. In the event that Lithium X does not meet the expenditure commitment or complete the feasibility study within two years, Lithium X must transfer 20 per cent of the Plasa shares back to Aberdeen, resulting in Lithium X holding 30 per cent of the outstanding Plasa shares. Lithium X and Aberdeen will enter into a shareholders' agreement governing Plasa following closing that will provide for management of the project, including that Lithium X shall be the operator, and including other standard joint venture terms, including dilution of interest.

A scalable Argentine Salar

Approximately $19-million has been invested in the property by previous operators, including $16.2-million in work completed at Sal de los Angeles between 2010 to 2015. Work included extensive exploration and definition drilling, pump tests, seismic and gravity geophysical surveys, basin and solute transport models, evaporation and metallurgical testing, and running a continuous pilot ponding plant on site.

A preliminary economic assessment for the project prepared by SRK Consulting (U.S.) on Dec. 22, 2011, for Rodinia Lithium Inc. outlined an operation producing 15,000 tonnes of lithium carbonate (LC) per year and approximately 51,000 tonnes of potash (KCl). The PEA projected a 34-per-cent internal rate of return (IRR) pretax and a $561-million (U.S.) pretax net present value (NPV) at an 8-per-cent discount rate. The PEA also outlined an option to increase production to 25,000 tonnes LC and 85,000 tonnes potash per year. This increased production scenario generates a much higher pretax NPV estimate of $964-million (U.S.), along with a pretax IRR of 36 per cent. The PEA does not include an analysis of after-tax economics.

Lithium carbonate pricing of $5,000 (U.S.) a tonne was used in the PEA.

The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.

The latest resource statement for the Sal de los Angeles lithium-potash brine deposit, dated Dec. 22, 2011, estimated an inferred brine resource of 2.8 million tonnes of lithium carbonate equivalent and an inferred brine resource of 11.2 million tonnes of potassium chloride equivalent. The average inferred resource grade was estimated at 556 milligrams per litre lithium and 6,206 milligrams per litre potassium. Higher grades were found in the northern portion of the project, where sufficient land for the construction of well fields and evaporation ponds is 100 per cent owned by Plasa.

Lithium X is treating this mineral resource as historical. This historical estimate also uses descriptions such as in situ inferred resource and recoverable inferred resource that are not recognized terms under the 2014 Canadian Institute of Mining, Metallurgy and Petroleum definition standards on mineral resources and mineral reserves. A qualified person has not done sufficient work to classify this historical estimate as current mineral resources, and the company is not treating the historical estimate as a current mineral resource for the Sal de los Angeles project. Lithium X will be completing an up-to-date mineral resource estimate and technical report done in accordance with current NI 43-101 and CIM standards within 180 days of this press release and will reflect or update the results reported in the PEA.

Pursuant to the agreement, Lithium X has agreed to increase its board of directors to seven members at its next annual general meeting, after which Aberdeen has the right, so long as it owns over 15 per cent of the outstanding shares of Lithium X, to nominate two members to the board for a period of one year. After that, so long as it holds 10 per cent of the outstanding shares of Lithium X, Aberdeen has the right to nominate one member to the board. Aberdeen also has a pro rata right to participate on any future equity financings so long as it holds a minimum of eight million Lithium X common shares and 10 per cent of the outstanding shares.

A finder's fee of up to 400,000 shares will be paid to third parties by Lithium X.

The transaction is subject to the parties entering into a definitive agreement in respect of the acquisition by April 15, 2016, and to the approval of the Toronto Stock Exchange and the TSX Venture Exchange.

The technical information contained in this news release has been reviewed and approved by William Randall, PGeo, who is a qualified person as defined under NI 43-101. As vice-president, project development, of the company, Mr. Randall is not considered independent.

For additional information about Lithium X, please visit the company's website or review the company's documents filed on SEDAR.

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