Mr. Lothar Maruhn reports

NEVADA CLEAN MAGNESIUM SIGNS JOINT VENTURE AGREEMENT WITH SCANMAG AS

Nevada Clean Magnesium Inc. has formally completed its joint venture agreement with ScanMag AS of Norway as per the binding letter of agreement previously announced Dec. 22, 2014.

The terms include:

• ScanMag AS will invest $5-million (U.S.) into Nevada Clean Magnesium (NCM), payable over four years, commencing with the first major payment of $2-million within 12 months, followed by 36 monthly payments of $83,300 (U.S.).
• During NCM receiving monthly payments toward the $5-million (U.S.) investment, ScanMag AS will receive proportionally, a total of up to 12 per cent of the issued common equity shares of NCM calculated as at the date of the signed JV agreement.
• Shares will be issued proportionally to receipt of moneys starting with the initial payment of $2-million (U.S.).
• ScanMag will be entitled to one board seat on the board of directors of NCM for so long as it maintains ownership of at least 12 per cent of the issued and outstanding common shares of NCM.
• NCM will receive a 10-per-cent prefinancing equity stake in ScanMag dilutable down to 2-per-cent undiluted interest.
• ScanMag will receive access to the NCM technical and intellectual assets needed to support and develop a process for its production in Glomfjord, Norway.
• NCM and ScanMag will establish a separate technical development company for the testing of aspects of the magensium processing proof of concept through a jointly owned Norwegian subsidiary based in Glomfjord, Norway. ScanMag AS is to finance an initial contribution for the technical development company, after which each party pays its proportional share. NCM will contibute its 50-per-cent share of budgeted phase work after it has received the initial $2 million (U.S.) payment from ScanMag.
• Both NCM and ScanMag AS will be entitled to 50/50 of the data, findings and intellectual property developed through the joint venture.
• Alpha Omega, a private company owned and controlled by James Sever, PEng, is a party to the joint venture agreement and an integral part of the planned technical development.

Lothar Maruhn, chief executive officer of ScanMag, states: "We are very pleased to have such a highly experienced technical team from NCM to assist us in the development of our facility through to commercialization and production within a short period of time. We are looking forward to our next steps, as the technical experience that NCM provides us is a major requirment to secure our project financing."

Ed Lee, CEO of NCM, says: "It's been long in the making and we are very pleased to have achieved this joint venture with a similar company to ours. The companies are looking to bulid magnesium metal producing operations so this agreement is a monumental milestone for both companies. The technical development done initially for ScanMag should lead the way to lowering the process risk for our Tami Mosi project in Nevada."

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