Mr. Edward Lee reports

SCANMAG AS REQUESTS ADDITIONAL TIME EXTENSION

ScanMag AS of Norway has requested a six-month extension of the technical joint venture agreement to raise the funds needed to fulfill its investment obligation to Nevada Clean Magnesium Inc.

Upon receiving the request, the NCM board of directors met and unanimously agreed to grant ScanMag the extension with the the condition that ScanMag make monthly payments over the period of the extension. These payments will be due the end of each month starting Jan. 30, 2017. These payments are independent of ScanMag's initial $2-million (U.S.) commitment. ScanMag has scheduled a board meeting for after the first week of February to discuss and will respond thereafter.

The previous extensions were at the request of ScanMag in order to look at ways of reducing its operating expenses. After discussions with NCM's technical group, ScanMag offered to pay for Nevada Clean's advanced testing on the alternative reductant. This work was finished and the results were very successful.

Edward Lee, chief executive officer, stated: "We expect that ScanMag will be able to fullfill their financial obligations to NCM, keep in mind that ScanMag searched out NCM to avail themselves of NCM's process and technical data as a critical component of ScanMag's project in Norway. The onus is on ScanMag to get their moneys to NCM in order to proceed. NCM will not be sharing any further technical information with ScanMag, until they meet their financial commitments to NCM."

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.

This press release was prepared under the supervision and review of James Sever, PEng, president and 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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