Mr. Jared Lazerson reports

MGX ANNOUNCES DRILLING AT KIBBY BASIN, NEVADA LITHIUM BRINE PROJECT

Drilling has commenced at MGX Minerals Inc.'s Kibby basin, Nevada, lithium brine property. The drill program is being conducted by Harris Exploration Drilling & Associates Inc. Harris has extensive experience drilling Clayton Valley lithium brines. Clayton Valley is the home of Abermarle's Silver Peak mine, the only U.S. lithium producer and is located 50 kilometres to the south of the Kibby basin. Eight drill targets were generated based on results from a Quantec MT (magnetotelluric) geophysical survey completed in January. The proposed drill holes are designed to test a large MT conductor which may represent aquifers containing lithium brines. The drill holes have been designed to intercept the MT anomaly starting at depths of 325 metres (1,065 feet) and continue to as deep as 760 m (2,500 feet). The objective is to determine the nature of the conductor, collect sediment samples for lithium analyses, identify aquifers and sample water and any brines encountered.

About the Kibby basin lithium brine partnership

MGX is partnered with Belmont Resources on the property and is currently earning a 50-per-cent interest with the goal of forming a 50/50 joint venture to utilize MGX's rapid lithium extraction technology. Kibby basin is located in the western portion of the Great basin in Nevada. The property covers 2,560 acres located in Esmeralda county, Nevada. Kibby Flat is a dry playa and no springs or water sources occur on the property. Geothermal research by the Nevada Bureau of Mines and Geology (NvBMG) identified three wells and springs in the region. All three sources indicated near-surface water. Nevada has abundant geothermal resources and NvBMG compilation has outlined areas with potential heat flow, based on surface temperatures of springs, drill hole water temperatures, geothermal-related geochemical signatures, and associated geologic settings. These areas suggest zones of potential elevated heat flow.

Geologic research of the Kibby basin has indicated that proximal rhyolitic flows and tuffs surrounding the basin could be a potential source of lithium brine in the Kibby basin playa. In addition, the Kibby basin is located within a geothermal cluster at a basin low setting. Regional geophysical signatures in the area reflect similar anomalies comparative with that of Clayton Valley, approximately 50 km to the south, the location of Abermarle's Silver peak mine, the only North American lithium producer.

Rapid lithium brine extraction technology

MGX has developed a rapid lithium extraction technology eliminating or greatly reducing the physical footprint and investment in large, multiphase, lake-sized, lined evaporation ponds, as well as enhancing the quality of extraction and recovery across a complex range of brines as compared with traditional solar evaporation. This technology is applicable to petrolithium (oil and gas waste water), natural brine, and other brine sources such as lithium-rich mine and industrial plant waste water. The technology was recently chosen as winner of the Base and Specialty Metals Industry Leadership award at the 2018 S&P Global Platts Global Metals Awards, held in London in May (see press release dated May 18, 2018).

About the Kibby basin lithium joint venture

MGX will acquire a 25-per-cent interest in the project by spending $300,000 on exploration and 50 per cent by incurring an additional $300,000 in exploration expense at which time the project will become a 50/50 joint venture. Upon formation of a joint venture, MGX will become the project operator and can elect to conduct additional exploration drilling, well testing operations and extraction plant installation. Additionally, MGX will provide access to its rapid lithium extraction technology (see press release dated July 13, 2018).

Qualified person

Andris Kikauk, PGeo, vice-president of exploration for MGX Minerals, has prepared, reviewed and approved the scientific and technical information in this press release. 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.

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