Mr. Edward Lee reports

NEVADA CLEAN MAGNESIUM FORMALIZES PROCESS LICENSE AND ROYALTIES AGREEMENT

Nevada Clean Magnesium Inc. has signed a licence and royalty agreement with its director, James Sever, PEng, to use Mr. Sever's unique knowledge and concepts on the company's Tami Mosi and other properties for the commercial production of magnesium.

Mr. Sever has developed concepts regarding the design and use of a condenser that will enable the commercial production of magnesium by direct reduction of carbon. He has also developed and continues to develop other technologies, potential applications and development strategies for the commercial production and use of magnesium. Under the licence and royalty agreement, the company gets use of these concepts and know-how to develop its properties. Mr. Sever will also provide technical assistance to the company with regard to the process and any changes or refinements to the process at the request of the company, for a fee to be agreed. In addition, the company can sublicense the knowledge and concepts to third parties, provided the third parties pay royalties to Mr. Sever.

In consideration for the licence, the company will pay to Mr. Sever a royalty in the amount of three-10ths of one cent (0.3 U.S. cent) per pound (0.661 U.S. cent per kilogram) of magnesium produced and sold by the company where the condenser concept has been utilized and 15-100ths of one cent (0.15 U.S. cent) per pound of magnesium produced and sold from its properties without using the condenser concept. The initial term of the agreement ends on Dec. 31, 2040, and is renewable.

Edward Lee, chief executive officer of Nevada Clean, stated: "James Sever is known to be one of the world's foremost experts on production techniques for magnesium, and we are delighted to know that his unique knowledge and concepts will help us when we have positioned ourselves to start buiding production facilities. Having Jim on board as a director and now as a guaranteed supplier of state-of-the-art know-how gives us credibility in the marketplace we could not have earned without him. This licence also puts Nevada Clean in the position where it can help develop other magnesium deposits worldwide and earn an interest for our know-how, like the arrangement we announced with ScanMag AG of Norway."

The licence and royalty agreement is being filed by the company on SEDAR.

This news release was reviewed by James Sever, PEng, a qualified person recognized under National Instrument 43-101.

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