Mr. Jared Lazerson reports

MGX MINERALS ANNOUNCES MASS PRODUCTION OF ZINC-AIR BATTERY FUEL CELL AND CHARGING COMPONENTS

MGX Minerals Inc.'s wholly owned subsidiary ZincNyx Energy Solutions Inc. has received the first shipment of components for its 20-kilowatt output/120-kilowatt-hour storage zinc-air fuel cell battery. The core regenerator and fuel cell module components were manufactured using high-volume injection moulding. The design for manufacturing of these components was completed at the end of June and transition to tooling and production has proceeded smoothly.

Since both regeneration and fuel cell modules are constructed from a number of identical cells, they constitute ideal candidates for manufacture by volume production methods such as injection moulding, die casting and extrusion. These methods require stringent design rules to be followed to ensure efficient and reliable parts production. ZincNyx has now completed the design and tooling process for the highest volume parts with the active participation of its chosen suppliers.

The regenerator and fuel cell parts form the nucleus of ZincNyx's commercial mass storage system which will provide four times the capacity of earlier models. The expanded range of this system addresses the need for long duration energy storage when coupled with renewable energy sources such as wind and solar. The system may be housed in a shipping container for deployment at remote locations or may be installed in free-standing racks in a warehouse or utility closet-type environment.

Update on spin-off of ZincNyx

The company is also pleased to provide an update on the proposed spinout of its wholly owned subsidiary ZincNyx into a publicly traded company and the dividend payment in kind of ZincNyx shares to MGX shareholders of record. The financial audit of ZincNyx has been completed and filing of the preliminary prospectus is expected shortly. The proposed transaction is being structured of which 66.6 per cent of outstanding shares will be owned by MGX and 33.3 per cent will be paid as a dividend to MGX shareholders of record at June 29, 2018.

Further to the prior release (see press release dated April 3, 2018), MGX intends for ZincNyx to become a stand-alone company following the spinout by way of a dividend in kind of ZincNyx shares by MGX. The proposed distribution is expected to be made by way of ZincNyx filing a prospectus with securities regulatory authorities in the jurisdictions where MGX is a reporting issuer in order to qualify the proposed distribution of ZincNyx shares to MGX shareholders such that the ZincNyx shares to be delivered under the proposed distribution are not expected to be subject to any statutory hold periods. The proposed distribution will not occur unless or until a receipt for the final prospectus is obtained from the securities regulators.

The company has not yet made any application to list the ZincNyx shares for trading on an exchange, no market currently exists for the ZincNyx shares and the prior release is qualified in its entirety by this news release.

The prospectus will constitute a public offering of the ZincNyx shares only in those jurisdictions where they may be lawfully offered for sale and therein only by persons permitted to sell such securities.

For more information on ZincNyx, please refer to the prior release and the company's other news releases, dated Dec. 13, 2017, Dec. 18, 2017, Jan. 9, 2018, Jan. 30, 2018, Feb. 1, 2018, Feb. 7, 2018, and March 12, 2018, available on the company's profile on SEDAR and at its website.

About ZincNyx Energy Solutions

ZincNyx has developed a patented regenerative zinc-air flow battery that efficiently stores energy in the form of zinc particles and contains none of the traditional high-cost battery commodities such as lithium, vanadium or cobalt. The technology allows for low-cost mass storage of energy and can be deployed into a wide range of applications.

Unlike conventional batteries, which have a fixed energy/power ratio, ZincNyx's technology uses a fuel tank system that offers flexible energy/power ratios and scalability. The storage capacity is directly tied to the size of the fuel tank and the quantity of recharged zinc fuel, making scalability a major advantage of the flow battery system.

About MGX Minerals Inc.

MGX Minerals is a diversified Canadian resource company with interests in advanced material and energy assets throughout North America. MGX intends to publicly list ZincNyx and pay a partial share dividend to MGX shareholders of record as of June 29, 2018.

We seek Safe Harbor.