Mr. Adrian Hobkirk reports

NRG METALS INC. ANNOUNCES PRIVATE PLACEMENT FINANCING AND DEVELOPMENT TIMELINE

NRG Metals Inc. has arranged a private placement of up to 20 million units at a price of 22.5 cents per unit for gross proceeds of up to $4.5-million. Each unit will comprise one share and one transferable common share purchase warrant. Each warrant will allow the holder to purchase one share of the company at a price of 35 cents for a period of five years from closing. The private placement will be open to all existing shareholders of the company and interested parties who can rely upon an exemption from the registration and prospectus requirements of applicable securities laws to participate. The warrants are subject to an expiry acceleration provision whereby if the company's common shares close at or above 50 cents per share for more than 10 consecutive trading days, the holder will have 30 days from that date to exercise the warrant.

Proceeds from the private placement will be used as follows:

1. Completion of a prefeasibility study or feasibility study on the Hombre Muerto North lithium project, as recommended in the upcoming final preliminary economic assessment -- $2-million;
2. Evaluation and development of alternative lithium extraction technology specific to the HMN lithium project -- $750,000;
3. Further project acquisition, property maintenance, corporate advertising and general working capital -- $1.25-million.

A finder's fee of 8-per-cent cash and 8-per-cent warrants may be payable on a portion of the private placement.

On April 29, 2019, NRG published results of a preliminary economic assessment for the HMN lithium project.

HMN lithium project PEA highlights

                                       PEA RESULTS

After-tax net present value 8-per-cent discount rate                        $217-million
After-tax internal rate of return                                                   28.0%
CAPEX capital expenditures                                                 $93.3-million
OPEX cash operating costs (per metric tonne of lithium carbonate)                 $3,112
Average annual production (lithium carbonate) tonnes per year                      5,000
Mine life                                                                       30 years
Payback period (from commencement of production)                   Two years five months

The preliminary economic assessment is preliminary in nature, there is no certainty that the preliminary economic assessment will be realized. The economic analysis is based upon mineral resources that are measured and indicated, but are not mineral reserves and have not demonstrated economic viability. The PEA was prepared by Knight Piesold Consulting and JDS Energy and Mining, both of Vancouver, in accordance with the standards set out in National Instrument 43-101 Standards of Disclosure for Mineral Projects, and Canadian Institute of Mining, Metallurgy and Petroleum's Best Practice Guidelines for Mineral Processing.

Richard Goodwin, PEng, project manager for JDS Energy and Mining, is independent of NRG Metals and a qualified person as defined under NI 43-101. Mr. Goodwin is a mining engineer and study manager with over 30 years of experience managing mining operations and projects in various commodities such as base metals, precious metals, platinum group metals and diamonds in various domestic and international locations. Mr. Goodwin is responsible for the PEA results, participated directly in the production of this press release publishing those results and directly related information in this press release, and approves of the technical and scientific disclosure contained herein.

The company has evaluated the HMN lithium project for 11 months, completing the initial exploration, a resource calculation and releasing PEA numbers within that time frame. The next step of development is anticipated to be completed by the end of 2019. The HMN project is strategically located in the Hombre Muerto salar, an area of active lithium production by FMC at the Fenix lithium mine, some 12 kilometres south of the project area. The project is surrounded by ground now owned by POSCO, a Korean-based lithium producer, as a result of its $280-million (U.S.) purchase of the area from Galaxy Resources Ltd., an Australian-based producer. Galaxy is also moving its portion of the Hombre Muerto salar, the Sal de Vida project, to lithium production.

Trading symbol

Shareholders are advised that the trading symbol for the company on the OTCQB market has been changed back to NRGMF.

We seek Safe Harbor.