Mr. Edward Lee reports

NEVADA CLEAN MAGNESIUM CLOSES FIRST TRANCHE OF CONVERTIBLE NOTE FINANCING

Nevada Clean Magnesium Inc. has closed the second tranche of the non-brokered private placement of unsecured convertible notes announced on Oct. 25, 2016, in the amount of $40,000. No finders' fees were paid in connection with this tranche of the financing.

The principal amount of the convertible note will bear interest at 7.5 per cent per annum, and any accrued but unpaid interest will mature on the date that is one year following the closing date. Each convertible note will be convertible into common shares of the company at a price of five cents per share and any accrued but unpaid interest thereon will be convertible into shares at the price per share which is the greater of (i) five cents and (ii) the market price (as defined in the policies of the TSX Venture Exchange) on the date of a conversion notice.

The securities issued will be subject to a four-month hold period from the date of issue of, as the case may be, the convertible notes, or the shares. The completion of the private placement and payment of any commission and fees remain subject to the receipt of all necessary approvals, including the approval of the exchange. Proceeds of the private placement will be used for working capital.

About Nevada Clean Magnesium Inc.

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 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 Mg 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.

The technical portion of this press release was prepared under the supervision and review of James Sever, PEng, chief operating officer for Nevada Clean Magnesium. Mr. Sever is a non-independent qualified person within the meaning of National Instrument 43-101 standards.

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