Mr. Edward Lee reports

NEVADA CLEAN MAGNESIUM ANNOUNCES REASON FOR TRADING HALT

Nevada Clean Magnesium Inc. requested that IIROC halt trading in the company's stock on the TSX Venture Exchange as of the open on Aug. 18, 2016, as a result of an offer of a financing package from a firm originating in London, United Kingdom, which would have been material to the company. The terms of the offered financing package appeared on the surface to be acceptable and if accepted, would have materially changed the company.

Upon receipt of the offer, in addition to halting the stock, the company instructed its corporate lawyers to commence due diligence on the offeror and the transaction as a whole on a preliminary basis. Based on the information received, the company came to the conclusion that the offered financing was not likely to be concluded, and the company's negotiations with the offeror have terminated. The company continues to explore various avenues of financing its plans, but is exercising caution to ensure that it doesn't announce a transaction that has little or no hope of closing.

Trading in the shares of the company will resume Aug. 22, 2016.

About Nevada Clean Magnesium

Nevada Clean Magnesium is focused on becoming a major U.S. producer and distributor of primary, high-grade, low-cost magnesium metal extracted from its 100-per-cent-owned Tami-Mosi property located in north-central Nevada. Based on the company's National Instrument 43-101 preliminary economic assessment report published in September, 2011, and amended in July, 2014, the Tami-Mosi project has an inferred resource of 412 million tonnes with an average grade of 12.3 per cent magnesium for a contained metal content of 111 billion pounds of magnesium using a 12-per-cent cut-off grade contained within a high-purity dolomite block.