Mr. Jared Lazerson reports

MGX MINERALS TO PROCEED WITH HYDROGEN GASIFICATION AND BATTERY METALS EXTRACTION FROM PETROLEUM COKE; RECEIVES INITIAL VANADIUM NICKEL COBALT ASSAY RESULTS

MGX Minerals Inc. has chosen to proceed with its previously announced partnership with Highbury Energy Inc. to develop a detailed thermochemical gasification process to extract metals such as nickel, vanadium, cobalt and hydrogen from petroleum coke (petcoke).

Petcoke samples were obtained from Alberta oil sands (sample No. 1) and refinery (sample No. 2) sales stockpiles of available petcoke. Samples were analyzed by Acme Labs of Vancouver, B.C., using standard ICP analyses. Results were as shown in the table.

Sample          Vanadium (ppm)     Cobalt (ppm)     Nickel (ppm)

Sample No. 1              421              4.8             76.8
Sample No. 2              458              1.3             53.4

Further analysis of concentrate postgasification ash samples is now under way with ash amounting to 3 per cent of oil sands petcoke by weight and less than 1 per cent of the refinery petcoke sample. It is expected that the concentrations of metals will directly correspond with the reduction in material, approximately 30 times and over 100 times, respectively. Analyses of the ash concentrate are expected shortly.

A phase II study is currently being completed by Highbury and will include analyses of potential site locations, inclusion of pilot scale gasification, advanced metals extraction process design and initial plant design parameters.

Background

Petcoke is a carbon material byproduct of the oil and gas industry that forms during the oil refining process. As refineries have become more efficient at processing extra heavy crude oils (bitumen) over the last two decades, output of petcoke globally has risen significantly. Because petcoke originates from heavier petroleum fractions, its denser impurities such as metals and sulphur compounds are concentrate in it.

The majority of Canadian petcoke output occurs in close proximity to oil sand producing regions, where bitumen is upgraded into synthetic crude oil. Specifically, the province of Alberta is known to host vast stockpiles of petcoke. According to the Alberta Energy Regulator, petcoke inventories are estimated to have reached 106 million tonnes in 2016.

Qualified persons

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.

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.