Mr. Adriaan Bakker reports

ULTRA POWER SYSTEMS PTY LTD COMPLETES FINAL PAYMENT TO PURCHASE THE EXCLUSIVE LICENSE FOR AUSTRALIA FOR VANADIUMCORP-ELECTROCHEM PROCESSING TECHNOLOGY ("VEPT")

Vanadiumcorp Resource Inc. and Electrochem Technologies & Materials Inc. have both received the final payment from Ultra Power Systems Pty. Ltd. as specified in the patent option agreement to purchase the exclusive licence for the jurisdiction of Australia executed Nov. 23, 2018. With the final payment made, the parties will now proceed to finalize the terms of licence. Ultra intends to commence final licence discussions immediately.

Brad Appleyard, managing director of Ultra, states: "Ultra Power now has the exclusive right to secure the most efficient and sustainable technology to produce vanadium in Australia. This cost reduction applies to the largest single cost component of our future vanadium redox battery. VEPT will be a powerful driver in Ultra realizing its vision of becoming a leader in the emerging global renewable energy industry through providing advanced energy storage solutions. Utilizing its strong intellectual property portfolio, of which the VEPT is an important part, UPS intends to establish a number of joint ventures in various related markets. UPS is also in the process of becoming a key member of the Future Battery Industries Cooperative Research Centre which is establishing a $135-million battery research hub supported by government, industry and research partners. These stakeholders have joined together to imagine a future Australia: a nation that has harnessed the power of its natural resources to become a leader in the manufacture of next-generation battery energy storage systems. The FBICRC will position Australia as a world leader in innovative energy minerals extraction, processing and upstream battery storage technologies as well as how batteries are used in cities and regions. Thus, the CRC will help create future battery industries through facilitating their market via both supply and demand."

Mr. Appleyard added, "We are extremely pleased to be working in conjunction with world leaders in this space, such as Electrochem, Vanadiumcorp, Australian Vanadium and the CRC, to build a global battery industry."

Adriaan Bakker, chief executive officer of Vanadiumcorp, states: "Ultra Power understands the profound global impact of enabling sustainable and low-cost production of vanadium. The world requires low-cost and sustainable energy storage for its electric future. Changing how vanadium is produced and mass-commercializing vanadium batteries with clean vanadium electrolyte could play a key role in decarbonizing our planet."

Ultra plans to utilize the Australian licence of Vanadiumcorp-Electrochem processing technology to expedite construction of the world's first dedicated vanadium processing facility. Ultra's core objective is to directly integrate low-cost battery-grade vanadium electrolyte into vanadium redox batteries from virtually any source in a fraction of the time and capital requirements of current vanadium extraction processes. The VEPT will dramatically reduce emissions associated with vanadium extraction as well as substantially offsetting the operating cost of the vanadium precursors used to manufacture electrolyte through the production of valuable byproducts. The resultant vanadium electrolyte is 100 per cent reusable and does not degrade which enables the unique cost-reduction option of leasing or renting.

Key aspects of the signed patent option agreement signed Nov. 23, 2018, include the following terms with all financial considerations split evenly between Vanadiumcorp and Electrochem:

• Total payment of $500,000 (U.S.) is now complete allowing full exercise of the option any time before Nov. 23, 2019.
• The option allows the acquisition of the exclusive licence of VEPT for the jurisdiction of Australia.
• Definitive terms outlined in the option include a minimum annual payment, financing fees and a gross royalty due upon production, applicable to all vanadium products, ferrous sulphate heptahydrate (copperas), titanium products and other byproducts for a project duration of 25 years.

About Vanadiumcorp Resource Inc.

Vanadiumcorp is an integrated technology and mining company focused on developing the exclusive supply chain for vanadium-based energy storage and emerging technologies that utilize vanadium. Vanadiumcorp is focused on commercializing the most efficient and sustainable recovery method to produce vanadium with jointly developed process technology. Vanadiumcorp also holds a significant vanadium-titanium-iron-bearing resource base in mining-friendly Quebec, including the 100-per-cent-owned Lac Dore project adjacent to Blackrock Metals Inc. and the 100-per-cent-owned Iron-T project near the Glencore Matagami zinc-copper mine.

About Ultra Power Systems Pty. Ltd.

Ultra Power is an Australian privately owned and financed company that is fundamentally an intellectual property licensing company. It is committed to creating cutting-edge technology that will continually add value to its licensees.

About Electrochem Technologies & Materials Inc.

Electrochem is a private Canadian corporation that currently owns 24 patents worldwide on proprietary chemical, metallurgical and electrochemical technologies that are innovative and sustainable.

Vanadiumcorp-Electrochem process technology

The jointly owned VEPT describes a novel chemical process invented by Dr. Francois Cardarelli that addresses the recovery of vanadium, iron, titanium and silica feedstocks such as vanadiferous titano-magnetite, iron ores and concentrates such as magnetite and hematite, vanadium containing wastes such as BOF-slags, calcine, and other industrial byproducts also containing vanadium.

Vanadium redox flow batteries

VRBs are containerized, long duration, non-flammable, compact, reusable over infinite cycles and last more than 20 years. Most batteries use two chemicals that change valence (or charge or redox state) and cross contaminate, and thus degrade over time. VRBs utilize multiple valence states of vanadium as a single element to store and release charge.