Mr. Adriaan Bakker reports

PHASE II VANADIUMCORP-ELECTROCHEM TECHNOLOGY COMMENCES TRIAL PRODUCTION

Vanadiumcorp Resource Inc. has commenced phase II of the VanadiumCorp-Electrochem technology with direct processing of pure vanadium chemicals by Electrochem Technologies & Materials Inc. in Boucherville, Que. Vanadiumcorp is partnered with Electrochem for development of patent-pending and patented technologies to develop high performance vanadium electrolyte for energy storage and solving conventional supply-chain constraints by enabling a wider spectrum of raw materials and several diversified products.

Adriaan Bakker, chief executive officer of Vanadiumcorp, states: "We are applying Vanadiumcorp-Electrochem technology directly to 100-per-cent-owned VTM [vanadiferous titanomagnetite] supply and feedstocks to create high-quality energy storage materials for batteries. Bench-scale testing our VTM concentrate has yielded consistent recoveries of 95 per cent of metal values from VTM concentrate, which includes electrolytic iron, vanadium chemicals as well as titanium residues as opposed to 95-per-cent loss with conventional methods."

Vanadiumcorp-Electrochem technology phase II will highlight multicommodity sample production at a nameplate capacity of 300 kilograms per month scalable to one tonne per month at the end of the campaign by installing additional units. The larger scale will incorporate Electrochem's globally patented technology for electrowinning to produce high-purity vanadium chemicals and electrolytic iron with the purpose to produce enough chemicals for qualification by potential end-users. Phase II testing will utilize equipment similar to those used industrially to demonstrate production capability and process scalability. Commissioning of larger equipment, such as reactors and electrowinning cells, began in April, 2017. A larger facility will also allow Vanadiumcorp to assess the viability of the fully integrated technologies by also processing vanadiferous concentrates and metallurgical byproducts supplied from various industrial partners worldwide. Vanadiumcorp and Electrochem are both confident the disruptive integrated approach will have a profound impact for processing vanadium and iron feedstocks globally with exclusive, environmentally friendly technology developed in Quebec, Canada.

In February, 2017, Vanadiumcorp Resource applied, jointly with Electrochem Technologies & Materials, for a U.S. provisional patent application (U.S. 62/463,411) for a combined metallurgical and chemical process. This direct process technology replaces conventional pyrometallurgical processes that utilize either direct soda ash roasting of the magnetite, followed by water leaching, or the arc smelting and slagging of the magnetite, followed by soda ash roasting of the vanadium-rich slag. Smelting or roasting is capital intensive with high operating costs, technical risks and significant emissions of greenhouse gases that pose serious environmental issues. The Vanadiumcorp-Electrochem technology addresses these key issues and allows the full recovery of vanadium for the production of either a vanadium electrolyte or vanadium chemicals used for preparing vanadium battery electrolyte, as well as the concurrent production of a high-quality and competitive iron co-product.

Electrochem's globally patented electrowinning technology incorporated into the Vanadiumcorp-Electrochem co-developed production flowsheet includes the following patents:

• International patent application WO 2009/124393 (A1), granted -- electrochemical process for the recovery of metallic iron and sulphuric acid values from iron-rich sulphate wastes, mining residues and pickling liquors; the patent describes a novel electrochemical technology for recovering metallic iron and iron-rich alloys and concurrently regenerating sulphuric acid from iron-rich sulphate wastes, such as ferrous sulphate heptahydrate (FeSO4.7H2O), also called copperas in the trade, currently byproduced from the titanium white pigment industry, spent pickling liquors originating from iron and steelmaking plants, and, finally, pregnant leach solutions generated during the acid leaching of ores and concentrates at various minerals and metals processing plants;
• Canadian patent CA 2,717,887 C, granted on June 14, 2016;
• Chinese patent CN 102084034 B, granted on June 6, 2011;
• Japanese patent JP 5469157 B2, granted on Feb. 7, 2014;
• South African patent 2010/07214, granted on Aug. 31, 2011;
• European patent application EP 2268852 A4, pending;
• Brazil patent application BRPI 0911653 A2, pending;
• India patent application 2216/MUMNP/2010, pending.

The Vanadiumcorp plan for Canada includes 100-per-cent-owned, National Instrument 43-101 vanadium-iron-titanium resources, green process technology and global partnerships. Vanadiumcorp electrolyte is 100 per cent reusable, can be recycled by the batteries and represents the main improvement to increase vanadium storage battery lifetime.

Vanadiumcorp's NI 43-101 primary vanadium-iron-titanium resources

100-per-cent-owned Lac Dore vanadium project: The company's flagship VTM flagship project spans over 45 square kilometres and is located in mining-friendly Quebec, Canada, close to the mining centre of Chibougamau. The current NI 43-101 vanadium resource measures 621 million pounds vanadium (V) oxide (V2O5) from VTM concentrate grading 1.08 per cent V2O5. Lac Dore was formerly developed by the Quebec government from the 1960s to the 1980s and subsequently developed jointly by McKenzie Bay Resources and SOQUEM, which piloted production in 2002 of vanadium electrolyte at 99.9 per cent V2O5 at SGS Lakefield in Ontario, Canada, for vanadium batteries in Japan. Lac Dore is uniquely suited for vanadium electrolyte processing with virtually no impurities and exceptional metallurgical recoveries in the VTM. Other advantages include at surface mineralization that is open at depth and along strike as well as proximity to infrastructure such as road, rail, 161-kilovolt power, work force, water and a local airport. The Lac Dore project is also less then one kilometre from mining claims fully permitted for mineral extraction owned by Blackrock Metals, which is also targeting VTM concentration on site.

100-per-cent-owned Iron-T vanadium project: Located adjacent to the mining centre of Matagami, Que., 350 kilometres west of Lac Dore, the current NI 43-101 VTM resource, titled the Genesis zone, measures 14,376,000 tonnes inferred at 0.42 per cent V2O5. VTM mineralization is at surface, open at depth and along strike. Consistent drill results, trench samples and geophysics along the entire 22-kilometre strike length indicate remarkably similar geology to the Lac Dore vanadium project, including virtually no impurities and exceptional metallurgical recoveries.

Rejean Girard, president of IOS Geocientifiques Inc., is a qualified person as defined by NI 43-101, who has read and approved the technical information contained in this news release.