Mr. Doug Fulcher reports

ONE WORLD MINERALS SIGNS LETTER OF INTENT TO PURCHASE 100% OF THE CC CLAIM GROUP, CLAYTON VALLEY, NEVADA

One World Minerals Inc. has signed a letter of intent with GeoXplor Corp. to purchase a 100-per-cent property interest subject to a 3-per-cent royalty in the CC claim group that adjoins Albemarle's producing Silver Peak property to the south and Pure Energy Minerals' exploration property to the east (which formerly belonged to Lithium X).

Property geology

The U.S. Geological Survey in 1977 drilled a hole on the property to 395 feet. The hole cut mostly potential aquifer sands and conglomerates with some limestones and clays. Spot sampling returned analyses of up to 36 parts per million lithium in the fluids and 209 ppm lithium in the sediments. Those results are of historical interest only as the sampling and analytical methods are not known.

An earlier gravity survey shows the 1,380-acre property lies over a gravity low interpreted to represent valley sediments up to 1,800 feet thick. That gravity low is continuous across the northern valley to the area to where Lithium X exploration drilling about a mile east reportedly shows a very porous unit interpreted to represent a landslide mass from the east which is about 300 feet thick and analyzes up to 60 to 65 ppm lithium in brines.

The property is a logical exploration target for testing both the results from the U.S. Geological Survey historical drilling in the upper section and the presence of other aquifers and the very porous unit which exists at depth to the east.

Initial programs

The goal of the initial round of drilling will be to test the presence of a potentially economic thickness and grade of lithium brines on the property. Because salty brine waters are good conductors, they could give a good response when subjected to an electromagnetic field. Exploration will begin with a ground CSMT/MT survey to identify conductivity peaks. A drill hole will be located at the conductivity peak. The drill hole is projected to a 2,000-foot depth based on the known gravity survey. The initial program is budgeted at $250,000 (U.S.).

Second program

Success will trigger the second phase of drilling with the goal of providing the data to calculate an inferred resource. A second hole will be drilled and both holes cased for pump tests. The second program is budgeted at $500,000 with a targeted completion of Sept. 30, 2017.

Recent events at Clayton Valley

Four significant events have brought attention to Clayton Valley:

1. Albemarle Corp. purchased Rockwood's lithium assets including the Silver Peak mine operations for $6.2-billion (U.S.).
2. Pure Energy Minerals (PE) reported on July 29, 2015, an inferred resource of 816,000 metric tonnes of lithium carbonate equivalent grading 37 to 370 milligrams per litre. In addition, as announced on May 9, 2017, there are positive indications of higher lithium concentrations in deeper sampling.
3. Several aggressive exploration and development programs are under way by other companies.
4. Further consolidation occurred with Lithium X (LIX) buying 19.99 per cent of Pure Energy (PE).

Terms of the letter of intent with GeoXplor

• To make an initial payment of $108,500 (U.S.) and then on each anniversary date for four years a payment of $100,000 (U.S.);
• To complete a minimum work program of $2.1-million (U.S.) over four years;
• To complete a prefeasibility survey before the fourth anniversary date;
• To make a payment of $500,000 (U.S.) in either cash or shares on completing an inferred resource;
• To make a payment of $1-million (U.S.) in cash or shares on completing a preliminary economic assessment (PEA);
• To issue a total of seven million shares (subject to Canadian Securities Exchange approval) over four years with the initial issuance of one million shares on closing;
• To have GeoXplor retain a 3-per-cent royalty with a buy-down to 1.5 per cent for $3-million (U.S.);
• To pay to GeoXplor and advance royalty payment of $250,000 (U.S.) on the fifth and sixth anniversaries and $500,000 on the seventh, eighth and ninth anniversary dates which are credited back to OWM from 30 per cent of actual production;
• To be in commercial production within 10 years;
• To engage GeoXplor as the operator.

Doug Fulcher, the company's chief executive officer and president, noted that, "The agreement with GeoXplor, the most experienced explorer in the region, is a strategic step for OWM as the Clayton Valley will receive more world attention over the next several years and the results of the CC exploration will be reviewed in that light."

William Feyerabend, CPG, a qualified person as defined by National Instrument 43-101, has approved the technical disclosure as stated in this news release.

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