Mr. Jared Lazerson reports

MGX MINERALS PREPARING TO CONDUCT DRILL PROGRAM AT FRANCISCO BASIN LITHIUM BRINE PROJECT, CHILE

MGX Minerals Inc. has received notice from the Chilean state agency National Geology and Mining Service (SERNAGEOMIN) that the company will be approved to carry out a six-hole drill program at the Francisco basin lithium project located 30 kilometres south of Salar de Maricunga. MGX has also received a positive response from the environmental assessment service (SEA) and does not expect that an environmental impact assessment will be required in order to carry out these exploration activities on the project.

MGX and its Chilean joint venture partners continue to work with SRK Consulting Inc. (U.S.) to complete a definitive exploration program for the Francisco basin lithium project. The project lease area comprises 12,900 hectares and reconnaissance brine sampling in January, 2018, confirmed the presence of lithium enrichment in surface brines. An electromagnetic geophysical survey was completed in April, 2018, and results indicated strong potential for the presence of two highly conductive brines zones where significant thickness and horizontal coverage may exist. In May, 2018, additional samples were taken near the southern shore of the surface and sent to Servicios Quimicos Ltda. (SERQUIM) in Antofagasta, Chile, for content analysis. Results reported to date are shown in the associated table.

                         FRANCISCO BASIN ASSAY SAMPLES
 
Sample         Na         K        Li        Mg       SO4         B      Dens
            (g/L)     (g/L)     (ppm)     (g/L)     (g/L)     (ppm)    

Northern Lagoon -- January, 2018
LNF 01       75.2      4.59       372      2.00      4.07       799     1.179
LNF 02       72.5      4.34       372      1.92      4.07       832     1.170
LNF 03       69.5      4.06       369      1.85      3.74       767     1.163
LNF 04       74.5      4.32       374      1.75      4.02       832     1.174
LNF 05       80.0      4.40       388      1.78      4.71       961     1.188
LNF 06       67.9      3.98       361      1.73      3.85       821     1.181
LNF 07       79.8      4.66       387      1.74      4.44       864     1.183
LNF 08       73.4      4.31       371      1.86      3.93       842     1.172
LNF 09       76.8      4.39       374      1.70      4.05       864     1.174
LNF 10       80.0      4.56       384      1.86      4.38       896     1.185
Northern Lagoon -- May, 2018
LNF 01      103.0      6.62       694      3.54     28.70         -         -
Southern Lagoon -- January, 2018
LNF 11       2.35      0.19       7.9      0.15      3.07       248     1.007
LNF 12       0.57      0.41       3.0     0.003      1.55       151     1.121
LNF 13       1.27      0.01       0.4      0.07      0.61        65     1.002

The Francisco basin salar resides within a large, fault-bound, alluvium-filled basin to the immediate south of the Copiapo volcano. The basin is closed, drains a large area and the salar appears to be the lowest point within the drainage. The rocks in the drainage surrounding this salar are dominantly volcanic, ranging in age from Eocene to Miocene, juxtaposed with some older rocks. To the west is a Cretaceous sedimentary sequence separated from the volcanic rocks of the Francisco basin area by the Cerro Guerrita fault. To the east, an older Oligocene to Miocene volcanic sequence is overlain by the Copiapo volcanic rocks. The Francisco basin alluvial basin sits at the junction of three catchments. These river systems presumably provide the fill for the basin and are in part, along with the limits of the salar, structurally controlled. The alluvial fill may be covering post-Copiapo-aged faulting.

About MGX's Chilean lithium joint venture

MGX is earning a 50-per-cent interest in Chilean Lithium Salars SpA (CLS). CLS is a wholly owned subsidiary of Chilean Lithium Salars Holdings Ltd. (CLSH) and holds a 100-per-cent interest in three prospective lithium exploration projects located in Chile, including the Francisco basin, Laguna Brava and Laguna Escondida lithium projects. To acquire an undivided 50-per-cent interest in CLS, MGX has agreed to make option payments totalling $1.5-million (U.S.), incur exploration expenditures totalling $2-million (U.S.), and complete a National Instrument 43-101 resource estimate on at least one of the projects within 20 months. MGX is acting as project operator and has appointed Aldo Boitano, current project manager for CLS, as project manager to work alongside Kura Minerals. MGX maintains the right to participate as a service provider of the engineering, construction and/or procurement of a brine processing plant using its rapid lithium extraction technology.

Rapid lithium brine extraction technology

MGX has developed a rapid lithium extraction technology that reduces the capital cost of recovery compared with traditional solar evaporation as it does not require the investment in large, multiphase, lake-sized, lined evaporation ponds, greatly reducing the physical footprint and enhancing the quality of extraction and recovery across a complex range of brines previously considered unprocessable due to complexity or geographical location outside of solar evaporation appropriate zones. This includes 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 earlier this month (see press release dated May 18, 2018).

Qualified person

Andris Kikauka, 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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