Mr. Brian Stecyk reports

STINA TO EVALUATE ACQUISITION OF KEY TECHNOLOGY COMPANY INVOLVED IN THE DEVELOPMENT OF VANADIUM-BASED ELECTROLYTES FOR GRID-SCALE BATTERIES

Stina Resources Ltd. is expanding its vanadium strategy through signing a letter of intent to consider the acquisition of Pure Vanadium Corp., a technology company involved in development of vanadium electrolytes for vanadium redox flow batteries used in grid-scale energy storage.

The letter of intent is a non-binding agreement providing for a 30-day period during which Stina would conduct due diligence and, if deemed warranted, develop a definitive agreement for the purchase of Pure. It is presently contemplated that Stina would acquire all of the outstanding share capital of Pure in consideration for the issuance of 17 million common shares of Stina to the existing shareholders of Pure and the payment of $250,000, to be used for research and development financing for the continued development and testing of Pure's technology.

Should the transaction proceed, Pure would become a wholly owned subsidiary of Stina, and Stina would assume all obligations owing in connection with Pure's R&D and business operations. Stina would pay a 2.5-per-cent royalty on vanadium electrolyte sales with an option to buy back 1 per cent at any time for five years after the commercialization of the product for the sum of $1-million (U.S.). The letter of intent provides that each party covers its own costs and nothing binds either party to conclude the purchasing arrangement, and any such agreement would be subject to approval by regulatory authorities.

Pure has certain licence agreements with Battelle Memorial Institute to produce, use and sell vanadium electrolytes (VE) developed by the Department of Energy's Pacific Northwest National Laboratory (PNNL).

"We are pursuing this acquisition because grid-scale vanadium redox flow battery installations are increasing globally and access to high-quality vanadium for vanadium electrolyte is a key driver of this technology," said Stina president and chief executive officer Brian Stecyk.

"We believe the Bisoni McKay and the Bisoni Prospect deposits to be of unique value as they are single-product deposits that are not reliant on or tied to other minerals such as in iron-vanadium or uranium-vanadium deposits. This is a definite advantage for vanadium electrolytes," said Dusty McKinnon of Pure Vanadium.

The key factors leading to this decision are:

• Pure Vanadium holds a portfolio of licences for the production and sales of vanadium electrolytes. Pure's licences were granted by the Battelle Memorial Institute, operator of Pacific Northwest National Laboratory, a U.S. Department of Energy National laboratory. The acquisition of Pure supports the long-term objective of the company to become the first North American vertically integrated producer of vanadium electrolytes for the energy storage industry. Bisoni McKay is a single-product vanadium deposit (refer to page 5 of the Bisoni McKay 2016 National Instrument 43-101 report).
• Pure Vanadium is a private research and development company involved in advancing the clean energy sector. Pure's chief technology officer, Dr. Alex Starosud, holds a dozen patents and has published over 100 papers. He was given the title of captain and worked on several strategic technologies during his time in Russia, including waterflood and fracture-leach processes. Pure is investigating the possibility of utilizing these processes with new chemical formulations for the economical and less evasive method of in-situ vanadium electrolyte production.
• Pure's research and development activities involve the production of vanadium electrolyte (VE) formulations for the rapidly expanding vanadium redox flow battery (VRB) technologies that are employed in grid-scale electrical storage. Dr. Starusud's patented process (No. 6,736,976) for reducing the level of a chemical compound in a fluid could be essential for reducing electrolyte contaminants in vanadium-based electrolytes.

"We believe the potential of adding research capability to Stina's vanadium focus will add to shareholder value. Pure's R&D team will be a valuable addition to Stina's roster, particularly when considered in combination with director and resident geologist and mining engineer, Tony Hammond. Tony is recognized as an international vanadium expert having presented a variety of technical papers and written about the metal for mining journals and conferences," said Mr. Stecyk.

Pure biographies

Dusty McKinnon, chief executive officer

Pure is managed by Dusty McKinnon, BCom, Royal Roads, and EMBA Global Energy Management, Haskayne (on hold). Mr. McKinnon is an entrepreneur who specializes in brand management and communication. Essentially, he works with technical experts to solve industrial challenges and presents solutions to a non-technical audience.

Mr. McKinnon has developed several technologies in the oil and gas waste water treatment space and has been able to leverage equity capital with substantial government grants. He has been a speaker at several conferences, sat on panels and in committees, and is accredited with sourcing, financing and demonstrating several technological innovations.

Mr. McKinnon's ability to select and lead teams has enabled him to license vanadium electrolyte technology from PNNL and surround himself with industry experts and leaders in their fields.

Dr. Alex Starosud, PhD, chemistry, chief technology officer

Pure's research efforts are led by Dr. Starosud, an expert on in situ leaching and aqueous chemistries. Born in Siberia, Dr. Starosud graduated at the top of his class and was admitted into the department of chemistry at Kazan State University. Upon graduation, he was recruited to a research institution and was involved in developing a new technology to produce gunpowder by applying water solutions of some acids and salts. At the same time, Dr. Starosud worked on his PhD thesis to investigate the molecular structure of some concentrated water solutions that were related to his job. Following, Dr. Starosud worked at the Oil Research Institute as the head of the lab and developed some (patented) methods for oil recovery by applying waterflood.

Arriving in Canada, Dr. Starosud worked as a senior scientist in the chemistry department of the University of Calgary, was involved in developing various methods for water treatment and was responsible for liaison with the oil industry. Dr. Starosud has been awarded 12 patents and has over 100 publications.

Pure's advisory board includes Dr. Edward Roberts, an internationally recognized expert and innovator in the field of electrochemical technology, and Dr. Miroslav Kraus, chemical engineer and expert in nanotechnology science.

Dr. Edward Roberts, PhD, PEng, CEng, FIChemE, adviser

Dr. Roberts is the holder of 22 granted patents, has a further 20 patent applications pending and has published more than 75 papers in international journals. His work has been recognized through several international awards for innovation (the IChemE Water Innovation Award, the IET Innovation Award and the ACES European Academic Enterprise Award).

Dr. Roberts completed his BA (1987), MEng (1988) and PhD (1992) at Cambridge University. Prior to moving to Calgary in 2012, he was a professor at the University of Manchester in the United Kingdom, and he is a founder of a successful spinout company, Arvia Technology Ltd.

Dr. Roberts's research group is exploring the use of new large-scale energy storage technologies. The group is aiming to develop low-cost flow battery systems that are able to operate efficiently at high current densities, improving the economic viability of the technology. These systems are being developed for large-scale energy storage and the integration of renewable electricity generation.

Dr. Miroslav (Mirek) Kraus, PhD, chemical engineer, adviser

Dr. Kraus graduated with a master in chemistry and a PhD in chemical technology from the Technical University of Prague, Czech Republic, and the International University -- Technologitscheskij Institute of St. Petersburg, Russia. Dr. Kraus also has a diploma from the company Kaiser Management in Dusseldorf, Germany.

Dr. Kraus managed the Scientific Institute for the production of poly- and co-polymers, foam and high-impact polystrol, synthetic latex, and natural rubber in the Czech Republic. Dr. Kraus is an author of multiple technical publications on self-developed methods for digoxin, pepsin, pentobarbital, prolin, magnesium in physiological liquids, and single dragees.

Dr. Kraus developed analyses and methods for hospital diagnostics, the food industry and the U.S. car analysis industry, working for the U.S. Company Technicon (New York) and as the manager of the development department for Technicon in Frankfurt. Dr. Kraus gained additional experience in the development and modernization of formulas for cleaning and care products, particularly in the last 20 years in the area of nanotechnology. Currently, Dr. Kraus is tasked with the development of vanadium-oxide carbon nanotubes for use in lithium-ion batteries.