Mr. Edward Lee reports

NEVADA CLEAN MAGNESIUM ENTERS INTO MEMORANDUM OF UNDERSTANDING WITH BIG BLUE TECHNOLOGIES LLC

Nevada Clean Magnesium Inc. has entered into a binding memorandum of understanding for the purposes of forming a technical joint venture with Big Blue Technologies LLC (BBT) of Broomfield, Colo.

BBT is a closely held limited liability company engaged in developing high-temperature chemical processing solutions to aid in the manufacture of magnesium and other lightweight high performance materials. BBT is collaborating and expanding on research performed at the University of Colorado at Boulder on carbothermic reduction (the BBT process), the subject of two patent applications. BBT has the right to receive a licence to use of these patents and derivative patents on an exclusive basis.

Nevada Clean, primarily through the auspices of James Sever, the company's president and chief operating officer, has acted as a mentor to BBT and its three principals in their efforts to develop the BBT process. Both parties desire to co-operate in the development, testing and improvement of safe, environmentally sound and cost-effective methods for the production of magnesium for their mutual benefit, following which they intend to work together to produce magnesium metal from the resource property owned by Nevada Clean, as set forth in a definitive agreement to be completed on or before Aug. 1, 2017.

Both parties intend to work together to further develop the Nevada Clean process, the BBT process and the alpha condenser, also in accordance with the definitive agreement.

Therefore, both parties have agreed to the following within the MOU:

1. BBT and Nevada Clean's technical teams will collaborate to enhance each other's respective processes in order to try and achieve successful commercialization for earlier cash flow;
2. Nevada Clean will be BBT's industry partner;
3. Nevada Clean to provide BBT board positions and stock options;
4. Nevada Clean will have first right of refusal to exclusivity and licensing of the BBT process;
5. The BBT principals will provide their grant-writing abilities to Nevada Clean for potential research grants and U.S. loan guarantees that are available for new magnesium metal projects within the United States;
6. Nevada Clean, through a revenue share agreement, will grant access of the Tami-Mosi magnesium property to BBT in order to commercialized its process;
7. Nevada Clean will issue 15 per cent of the company's total common shares issued as of Jan. 1, 2017, to BBT, released at increments of 5 per cent per year over a three-year period.

Aaron Palumbo, chief executive officer of BBT, stated: "Nevada Clean Magnesium has exhibited nothing but the highest order of integrity with respect to its pursuit of magnesium production. We are honoured to be a part of a project that aligns with our own vision and values. Together, our intellectual capital will be used to show how the U.S. can be a leader in production of this industrial light metal."

Mr. Sever stated: "The work that BBT has demonstrated is a unique approach to the carbothermic reduction process. Successful implementation will revolutionize the magnesium production industry through a significant reduction in cost. In addition, access to BBT personnel will strengthen NCM by providing access to an ambitious, capable young intellectual reserve. This should keep our company ahead of the curve for many decades."

CEO Edward Lee said: "This is a natural fit for both companies looking to produce magnesium metal within the United States. Our combined talents and assets fit perfectly with America's goal to repatriate industry to the U.S. from overseas.

"Over the past few decades, primary magnesium production in the United States has declined from 65 per cent of world supply to approximately 6 per cent. This exciting partnership between Nevada Clean and BBT will help America achieve its goals."

The MOU is subject to approval from the TSX Venture Exchange.

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

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