Mr. Jared Lazerson reports

MGX MINERALS ANNOUNCES COMPLETION OF 3,000 METRE DRILL PROGRAM AT CASE LAKE LITHIUM; 8,000 METRE SPRING DRILL PROGRAM PLANNED

MGX Minerals Inc.'s joint venture partner Power Metals Corp. has completed a 30-hole, 3,000-metre diamond drill program on the Northeast dike at its Case Lake property near Cochrane, Ont. Drilling successfully intersected multiple course-grain pale green spodumene zones at shallow depths and over good intervals. All drill core has been shipped to SGS Canada Inc. for assay.

Planning for the spring/early summer exploration program on the Case Lake property, Cochrane, Ont., is under way and will consist of:

• 8,000 metres of drilling over three targets (see attached table);
• Geological mapping.

       2018 PROPOSED DRILLING AT CASE LAKE
 
Spring targets Area                         Metreage

1              Between Main and South dikes  3,000 m  
2              Between Main and NE dikes     3,000 m  
3              West side of Main dike        2,000 m  
               Total                         8,000 m  
                                                  
Fall targets  Area                        Metreage

4             East dike                    2,000 m  
5             Down dip of Main dike        3,000 m  
6             Domes                            TBA     

Proposed drilling

The proposed 8,000 m drilling for the spring/early summer drill program will target the new spodumene pegmatite dikes located between the Main dike and the South dike. These new spodumene dikes were discovered at the end of the 2017 Main dike drill program (Power Metals press release dated Nov. 27, 2017). One of the new dikes was intersected in drill hole PWM-17-49 with 1.61 per cent lithium dioxide and 143.8 parts per million tantalum over 3.0 m (see press release dated Jan. 24, 2018).

The spring/early summer drill program will also target the area between the Main dike and the Northeast dikes. Coarse-grained spodumene pegmatite was intersected in the 5,400 m drill program on the Main and North dikes and in the 3,020 m drill program on the Northeast dike. The Northeast dike is located 900 m northeast along strike of the North and Main dikes and is within the same tonalite dome as the North and Main dikes. Since the Northeast, North and the Main dikes are along the same strike and within the same dome, this indicates that they were emplaced along the same deep-seated structure. The drill program between the Main and Northeast dikes will test the presence of the spodumene mineralization along strike.

A drill program will test spodumene mineralization identified during the mapping program on granitic outcrops west of the Main dike.

Additional targets will be drilled in fall 2018 including the East dike, down-dip extension of Main dike and dome targets identified during the spring mapping program.

Proposed mapping

Power Metals identified that the Main, North, South, East and Northeast pegmatite dikes are not hosted by the Case batholith as previously thought, but by a single laccolith (Power Metals press release dated Nov. 6, 2017). A laccolith is a dome-shaped igneous body with a flat bottom which is an offshoot of a batholith. A laccolith looks similar to a water drop on a table. The Case batholith is a 50 by 85 km ovoid granitic complex characterized by a gravity low. Power Metals has identified that the batholith has multiple domes along its margins.

The domes are visible in Google Earth images as white outcrops and are topographic highs. These domes have no historic exploration work on them and they have the potential to host spodumene pegmatites similar to the Main and the Northeast dikes. A total of nine domes have been identified on the Case Lake property and will be mapped and sampled:

• Three domes along the Translimit Road;
• Three domes near the intersection of the Translimit Road and the Crossover Road;
• A dome bisected by the Tomlinson Road;
• The Henry dome which hosts the Main, North, South, East and Northeast dikes;
• A dome near Kabika Lake.

Exploration on the domes will consist of traverses along GPS grid lines within each dome to map the lithology and collect grab samples to evaluate the lithium content of the tonalite/granodiorite and pegmatite dikes. Pegmatite dikes will be stripped, trenched and power washed to expand their exposure. Spodumene pegmatite dikes will be channel sampled and assayed. Each dome will be evaluated as a potential drill target.

Case Lake

The Case Lake property is located in Steele and Case townships, 80 km east of Cochrane, Northeastern Ontario, close to the Ontario-Quebec border. The Case Lake pegmatite swarm consists of five dikes: North, Main, South, East and Northeast dikes. The Northeast dike contains very coarse-grained spodumene. MGX currently has a paidup 20-per-cent working interest in Case Lake and four other lithium hard-rock properties in Ontario controlled by Power Metals as well as any additional properties acquired prior to August, 2020. The company has the right to acquire an additional 15-per-cent working interest, for a total of 35 per cent, in Case Lake lithium and the other lithium properties by making a one-time payment of $10-million prior to August, 2020. The company holds an option to acquire 10 million shares of Power Metals at 65 cents (see press release dated Aug. 2, 2017).

Qualified person

The technical portions of this press release were reviewed by Andris Kikauka (PGeo), vice-president of exploration for MGX Minerals. Mr. Kikauka is a non-independent qualified person within the meaning of National Instrument 43-101 standards.

About MGX Minerals Inc.

MGX Minerals is a diversified Canadian resource company with interests in advanced material and energy assets throughout North America.

We seek Safe Harbor.