Mr. Edward Lee reports

TESTING PROGRAM COMPLETED AT UNIVERSITY OF COLORADO USING ALTERNATE REDUCTANT SHOWS POSITIVE RESULTS

Nevada Clean Magnesium Inc.'s test program was completed last week at the University of Colorado to assess the effectiveness of an alternative reductant (other than ferrosilicon) to produce magnesium using dolomite from Granasen, Norway. As both companies have dolomite deposits, this work was done for the benefit of ScanMag AS and Nevada Clean, under the direct supervision of James Sever, PEng.

Mr. Sever, chief operating officer and director, stated: "This program supports the viability of the alternate reductant, which should result in a significant impact on the production cost of magnesium produced via the silicothermic process. The identified alternate reductant may result in up to a 60-per-cent savings in cost per tonne of reductant as compared to the current ferrosilicon cost per tonne. A separate testing program is scheduled at the University of Colorado to replicate the key test runs and to test the Tami Mosi dolomite with both reductants for verification purposes."

The test program was performed under contract with Scan Mag AS as part of the July 19, 2016, announcement for an extension agreement of the original R&D (research and development) agreement with Nevada Clean, and it was agreed that the joint venture operator under the R&D agreement, Meloy Innovation and Technology Centre AS (MITC), would be responsible to pay for the new reductant testing program completed by the research lab at the University of Colorado, for the salary and travel costs of Mr. Sever to directly oversee that testing, and contribute $20,000 toward the fabrication of Nevada Clean's bench-scale furnace. The extension agreement also allows ScanMag AS sufficient time to submit financing grant applications to Enova As (a development bank in Norway) for 400 million Norwegian krones (approximately $45-million (U.S.)) to construct full-scale pilot furnaces to be operated and commercialized at ScanMag's facility in Norway; the parties have agreed to extend the time for the R&D agreement and initial payment to Nevada Clean until Dec. 18, 2016.

Edward Lee, chief executive officer, states: "The testwork completed at the University of Colorado for the alternate reductant now creates additional new opportunities for both companies to advance their projects toward producing magnesium metal within their respective countries. Both the alternate reductant and the base case ferrosilicon will be tested during the operation of the bench-scale pilot furnace to produce magnesium metal and secure proof of concept."

About Nevada Clean Magnesium Inc.

Nevada Clean 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 NI 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.

This press release was prepared under the supervision and review of Mr. Sever. Mr. Sever is a non-independent qualified person within the meaning of National Instrument 43-101 standards.

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