Mr. Graham Harris reports

DRILLING CONFIRMS LITHIUM GRADES AND FAVOURABLE BRINE CHEMISTRY EXTEND TO DEPTH AT PASTOS GRANDES

Millennial Lithium Corp. has released positive analytical results from its first two complete exploration wells at the Pastos Grandes project in Salta, Argentina. Exploration holes PGMW1601 and PGMW1602, drilled vertically to depths of 355 and 400 metres, respectively, in the northern portion of the salar, ended in brine-bearing formations and confirm that the salar's brine-carrying capacity extends to much greater depths than encountered in previous exploration.

As previously reported, exploration holes PGMW1601 and PGMW1602 were collared over 1.5 kilometres apart, and both encountered thick sequences of loose, brine-bearing sediments. Both holes were terminated in brine-bearing formations at depths greater than anticipated.

Depth-specific brine samples were collected at various intervals from both holes using drive-point and packer systems designed to isolate sample intervals. Nine brine samples collected from exploration hole PGMW1601, from surface to 355 metres, contain an average lithium grade of 395 milligrams per litre and an average magnesium-to-lithium ratio of 6.2. Individual lithium grades from the hole range from a low of 297 mg per litre to a high of 471 mg per litre. Ten brine samples collected from exploration hole PGMW1602, from 71 to 400 metres, contain an average lithium grade of 389 mg per litre and an average magnesium/lithium ratio of 6.1. Individual samples from this hole range from 339 mg per litre to 399 mg per litre lithium. Average grades of these first two holes in the northern section are significantly higher than the results reported in historical drilling. Eramine SA reported results from historical drilling, which averaged a lithium grade of 331 mg per litre to a depth of 125 metres (see technical report on the Pastos Grandes project, Salta province, Argentina, Rojas y Associados, Sept. 14, 2016).

Phase 1 drilling has been confined to the northern portion of the salar while property negotiations to expand the southern land package were in progress (see Millennial news release dated Dec. 20, 2016). Future drilling will include the southern end of the salar, where lithium values are expected to be higher. Two historical holes drilled by Eramine in 2011, in the southern portion of Pastos Grandes, returned average lithium grades of 558 mg per litre and 566 mg per litre, significantly higher than Eramine drill holes in the northern portion (see technical report on the Pastos Grandes project, Salta province, Argentina, Rojas y Associados, Sept. 14, 2016).

Preliminary tests indicate a capacity for high flow rates. Field crews constructed and developed a production-scale well, PGPW1601. Pretesting of the well, comprising pumping at rates of up to the maximum rate for the pump used, 23 litres per second, resulted in a drawdown of just 11 metres below the static level. While preliminary, at a specific drawdown of only 0.5 metre per litre per second, this is a very positive indication of the pumping capacity for wells at Pastos Grandes. In addition to results from the pumping well, PGPW1601, flow testing during packer testing of all but one zone in the exploration wells resulted in brine flows exceeding 0.5 L/s.

Results indicate that brine impurities improve with depth as confirmed by a decreasing magnesium-to-lithium ratio. Near-surface chemistry in the 6- to 8-to-1 range (Mg to Li) decreases to below 6 to 1 at depth (Mg to Li). Observations and preliminary analysis from Millennial's technical advisory board indicate that the sulphate content is well matched to counter calcium and magnesium in the brine and that a majority of these impurities can be reduced in an evaporation process. Conventional processing, as envisioned for Pastos Grandes, will also recover potash.

Iain Scarr, AIPG, CPG, vice-president, development and exploration, commented: "We are very pleased that our work has improved on historical results and has significantly increased the potential we see at Pastos Grandes. I would personally like to thank and congratulate our expert team, and look forward to advancing this project in 2017."

Pumping tests and drilling, currently on hold due to the onset of summer rains, will resume in early March.

Sampling was conducted in accordance with Canadian Institute of Mining, Metallurgy and Petroleum guidelines for brine-resource evaluation, with an appropriate quality assurance/quality control program for ensuring accuracy and repeatability of the analytical results. Alex Stewart Laboratories of Mendoza, Argentina, and partner laboratory, Norlab SRL of Palpala, Jujuy, are the primary analytical providers. The laboratories have extensive experience with lithium-brine analyses and are certified under ISO 17025 and, in Alex Stewart's case, specifically for determination of lithium and potassium in liquid brines by use of ICP-OES.

The company has given notice of forced exercise to the holders of 3.75 million warrants issued July 7, 2016. Under the terms of the warrants, the company has the right to force exercise of those warrants on 14 days notice provided the trading price of the company's common shares has closed at or above $1 for a period of at least 20 consecutive trading days prior. Exercise of the warrants can be made by completing the notice of exercise attached to the warrants and by providing payment in the form specified in the notice of exercise (bank draft or certified cheque). Those warrants held by insiders of the company, being approximately 50 per cent of the warrants, have all been exercised.

This news release has been reviewed by Mr. Scarr, vice-president, development and exploration, of the company, a qualified person as that term is defined in National Instrument 43-101.

We seek Safe Harbor.