Mr. Adrian Hobkirk reports

AGREEMENT TO ACQUIRE THE HOMBRE MUERTO NORTH LITHIUM PROJECT ADJACENT TO LITHIUM PRODUCTION

NRG Metals Inc. has entered into an option agreement to purchase the Hombre Muerto North lithium project, located in Salta and Catamarca provinces, Argentina. The property package of 3,287 hectares comprises the Alba Sabrina, Tramo, Natalia Maria, Gaston Enrique, Viamonte and Norma Edit concessions, all located in the Salar del Hombre Muerto in northwestern Argentina.

Highlights of the Hombre Muerto north lithium project include:

• Twenty surface samples collected in 2016/2017 range from 48 to 1,064 milligrams per litre lithium, averaging 587 mg/l Li, with seven samples over 800 mg Li.
• Magnesium to lithium ratios range from 1.1:1 to 10.2:1, averaging 4.6:1, which are low by industry standards.
• Geophysical data indicate zones of low resistivity, interpreted to be potential lithium-bearing zones that are open at depth.
• Adjacent to Galaxy Resources' Sal de Vida lithium development project and FMC Corp.'s long-time producing Fenix lithium brine operations.

The location of the project and the concessions is shown on a map on the company's website. The western part of the Salar del Hombre Muerto is host to FMC's Fenix mine (about 20 kilometres south of the Hombre Muerto North property), which has been producing lithium for over 20 years, and Galaxy Resources is developing its Sal de Vida lithium project in the eastern part of the salar.

Adrian Hobkirk, chief executive officer of NRG Metals, commented: "We are very excited to be able to lock up this project in the pre-eminent lithium brine production and development area in Argentina. NRG has a highly qualified, Argentina-based team of professionals experienced with lithium exploration, development, through to lithium production."

Recent sampling and csamt geophysical results

In October, 2016, and January, 2017 (January was a rainy season month), a total of 20 surface geochemical samples were collected under the supervision of Nivaldo Rojas, who is an independent qualified person (as defined in National Instrument 43-101). The samples range from 48 to 1,064 mg/l Li and averaged 587 mg/L Li. The average mg/Li ratio is 4.63:1.

                   HOMBRE MUERTO NORTH LITHIUM PROJECT SAMPLE RESULTS
      
                        Li        Mg      B         K    Density   Conductivity
Sample        Type  (mg/l)    (mg/l) (mg/l)    (mg/l)     (g/ml)        (ms/cm)   mg/Li

NS-001       brine     864     2,515    311     5,866       1.18            229    2.91
NS-002       brine   1,064     4,385    216     6,727       1.18            237    4.12
NS-003       brine     322     1,537    212     2,451       1.13            188    4.77
NS-004       brine     958     2,038    589     7,314        1.2            227    2.13
NS-005       brine   1,021     1,549    646     7,758       1.21            240    1.52
NS-006       brine     568     1,112    503     4,912       1.22            242    1.96
NS-007       brine     543     3,432    381     3,758       1.19            225    6.32
NS-008       brine     347     3,087    248     2,559       1.16            208     8.9
NS-009       brine     415       861    432     3,391       1.22            230    2.07
NS-010       brine   1,013     1,155    438     8,593        1.2            193    1.14
NS-015       brine      48       490     14       427       1.03             40   10.21
NS-016       brine     537     3,952     69     4,644       1.19            187    7.36
NS-017       brine     298     2,008     97     1,486       1.17            184    6.74
NS-018       brine     824     2,666     67     7,057       1.19            193    3.24
NS-019       brine     544     1,856     67     4,276       1.16            176    3.41
NS-020       brine     582     1,932     76     4,803       1.15            173    3.32
NS-022       brine     440     2,098     55     3,142       1.12            150    4.77
NS-023       brine     958     1,441    129     9,288       1.21            184     1.5
NS-024       brine     223     1,794     50     2,106        1.1            123    8.04
NS-25        brine     162     1,317     38     1,400       1.08             97    8.13

Sample results indicate that the near-surface brines contain high lithium and potassium values with relatively low magnesium values. Surface samples were collected from pits excavated by hand and then drilled to up to 2.4 metres below surface with a manual auger. All assays were analyzed by Alex Stewart Assayers, an ISO-certified laboratory located in Mendoza, Argentina.

In January, 2017, a controlled-source audio magnetotelluric survey (CSAMT) was completed by Geophysical and Exploration Consultants SA of Mendoza, Argentina. CSAMT is a geophysical investigative method for obtaining information about subsurface resistivity. Low resistivity results are interpreted to represent potential lithium brine zones. Two CSAMT lines were run covering the Alba Sabrina, Natalia Maria and Tramo concessions. The east-west line that extends from the Alba Sabrina concession through Natalia Maria and the Tramo concessions is approximately 9,600 metres long. The results for this line show a long, low resistivity anomaly from Natalia Maria to the eastern border of the Tramo concession. There is a 60-to-70-metre-thick upper horizon with low resistivity values that range from 0.2 to 1.3 ohms per metre. The low resistivity zone extends to a depth of at least 250 metres in the Tramo concession, and the anomaly is open at depth. The northeast-southwest line located on the Alba Sabrina concession is approximately 7,800 metres long. The results for this line indicate the presence of a near-surface, low resistivity layer up to a depth of 60 metres with resistivity values of 0.01 to 10 ohms per metre. Toward the southwest, the low resistivity layer appears to increase to a thickness of 150 to 250 metres.

Salar del Hombre Muerto -- area information

The Salar del Hombre Muerto has been extensively evaluated by both FMC and Galaxy Resources. Galaxy Resources acquired the Sal de Vida project when it merged with Lithium One. In a National Instrument 43-101 technical report dated March 7, 2012, Lithium One provided a detailed log of diamond drill hole SVH11-21 with assay values that ranged from a low of 564 mg/l Li to a high of 895 mg/l Li over the 95 m length of the hole. That hole is located 750 m south of the Tramo concession. In a press release dated April 10, 2017, Galaxy Resources announced the initiation of production well drilling at Sal de Vida, approximately two km south of the Tramo concession.

Given robust exploration, development and mining activity in the area, access to key infrastructure is excellent. Provincial Route 17 passes within 10 km of the project, a 600-megawatt power line between Salta and Mejillones, Chile, is 160 km to the north, and a natural gas pipeline connecting mining operations in the Puna region is within 10 km. A railway line between Salta and the Chilean sea port of Antofagasta that is being reactivated is 100 km north of the Hombre Muerto North property. Company technical management is currently reviewing all available data and will be providing further details in the immediate future.

Terms of the option to purchase agreement

The project is being acquired through a purchase option agreement from a private borate producer from Salta, Argentina, named Jorge Moreno. Mr. Moreno is a well-known businessman in the region, with interests in mining and agriculture. He has been involved in the production and exportation of borates for more than 20 years, and he is also involved in the provision of logistical and mining services for remote projects. In 2016, he was one of the vendors of the Pastos Grandes project to Millennial Lithium.

Terms of the acquisition are $5.65-million (U.S.) in cash payments and 10 million NRG Metals common shares staged over a 54-month period. The payment schedule is as follows:

1. It will pay $50,000 (U.S.) on signing for a 90-day due diligence period and for the completion of an NI 43-101 technical report on the project. The due diligence period may be extended to 120 days, if necessary.
2. Upon acceptance of the NI 43-101 report by the Toronto Stock Exchange, NRG will pay Mr. Moreno $100,000 (U.S.) and issue one million common shares of NRG common stock. At that time, Mr. Moreno will join the board of NRG Metals' Argentine subsidiary.
3. At six months from item 2, NRG will pay $250,000 (U.S.) and one million common shares of NRG.
4. At 12 months from item 2, NRG will pay $250,000 (U.S.) and one million common shares of NRG.
5. At 18 months from item 2, NRG will pay $1-million (U.S.) and one million common shares of NRG.
6. At 30 months from item 2, NRG will pay $1-million (U.S.) and two million common shares of NRG.
7. At 42 months from item 2, NRG will pay $1-million (U.S.) and two million common shares of NRG.
8. At 54 months from item 2, NRG will pay $2-million (U.S.) and two million common shares of NRG.
9. The project will be subject to a 3-per-cent net production royalty, of which 50 per cent may be purchased for $3-million (U.S.) within 36 months of item 2.

About NRG Metals Inc.

The company is an exploration-stage company focused on the advancement of lithium projects in Argentina. Company management are highly qualified in the exploration and development to production, of lithium brine projects. In addition to the Hombre Muerto North lithium project, the company is evaluating the 29,000-hectare Carachi Pampa lithium project in the province of Catamarca, which is in the final stage of drill permitting.

Technical disclosure

The technical and scientific disclosure contained in this press release is approved by Nivaldo Rojas, BSc, mining engineering (Universidad de Atacama, Copiapo, Chile) of Rojas & Associados, Mining Consultants of Mendoza, Argentina. Mr. Rojas is a qualified person as defined under National Instrument 43-101, and is a fellow of the Australasian Institute of Mining and Metallurgy. He is independent of NRG Metals and the vendor, Mr. Moreno, within the meaning of Canadian National Instrument 43-101. Mr. Rojas visited the site Oct. 3 to Oct. 5, 2016, when he was contracted by Mr. Moreno to supervise collection of surface geochemical samples. Mr. Rojas supervised the preparation of this press release and approves the scientific and technical disclosure contained herein.

We seek Safe Harbor.