Mr. Jared Lazerson reports

MGX MINERALS ANNOUNCES PRODUCT LINEUP FOR NEXT GENERATION ZINC AIR FUEL CELL SYSTEMS

MGX Minerals Inc.'s wholly owned subsidiary ZincNyx Energy Solutions Inc. has released preliminary data sheet specifications for its product line of next-generation zinc-air energy storage systems. Details are as follows:

ZincNyx energy storage system

The ZincNyx ESS is a modular energy storage system designed to deliver backup power in the range five to 100 kilowatts over extended periods of time. With the advantage of rechargeable zinc-air fuel cell technology, the system can be configured to support a wide range of discharge power, recharge power and duty cycle requirements. Since the energy storage capacity of the system (kilowatt-hours) is determined only by the size of the fuel tank, a very cost-effective solution is available for long-duration applications such as renewables firming and emergency backup. An independent battery management system enables the system to be configured for any AC/DC (alternating current/direct current), load/source environment.

Technology

The ZincNyx ESS is based upon ZincNyx's unique and patented zinc-air fuel cell technology. Energy is stored in the form of zinc particles, similar in size to grains of sand. When the system is delivering power, the zinc particles are combined with oxygen drawn from the surrounding air. When the system is recharging, the zinc particles are regenerated and the oxygen is returned to the surrounding air.

Applications

The flexibility of the ZincNyx ESS enables it to service a wide range of applications. Typical examples include:

• Firming renewable energy sources such as wind, solar and tidal;
• Enabling optimum operation of diesel generator sets servicing fluctuating loads;
• Replacing diesel generators for emergency backup services;
• Providing long-duration backup for telecommunication sites;
• Smoothing the load presented by vehicle charging systems.

Architecture

The ZincNyx ESS is designed according to a modular architecture that enables a wide variety of system configurations to be created from a small number of common subsystems. Each subsystem implements a single element of the technology:

• The zinc regeneration subsystem (ZRS) provides the recharging function.
• The fuel storage subsystem (FSS) provides the energy storage function.
• The power generation subsystem (PGS) provides the discharging function.

PGM-5000 power generation module

The ZincNyx PGM-5000 is a power generation module that combines oxygen from the atmosphere with zinc particles drawn from a storage tank to generate electricity. It is composed of 24 bipolar plates connected in series to produce a nominal 24-volt output. The unit is constructed of Noryl plastic and is fitted with SurLok connectors for quick electrical installation. Optional instrumentation includes an embedded microprocessor control system and associated voltage, temperature and pressure sensors.

Technology

The PGM-5000 is a key component of ZincNyx's unique and patented zinc-air energy storage system. In this system, energy is stored in the form of zinc particles, similar in size to grains of sand. When the system is delivering power, the zinc particles are combined with oxygen drawn from the surrounding air in the power generation module (PGM).

ZRM-4500 zinc regeneration module

The ZincNyx ZRM-4500 is a zinc regeneration module that uses electricity to extract zinc particles from a potassium zincate solution. It is composed of up to 18 bipolar plates connected in series and driven from a nominal 60-volt input. The unit is constructed of Noryl plastic and magnesium alloy and is fitted with SurLok connectors for quick electrical installation. Optional instrumentation includes an embedded microprocessor control system and associated voltage sensors.

Technology

The ZRM-4500 is a key component of ZincNyx's unique and patented zinc-air energy storage system. In this system, energy is stored in the form of zinc particles, similar in size to grains of sand. When the system is recharging, the zinc particles are regenerated and the evolved oxygen is returned to the surrounding air by the zinc regeneration module (ZRM).

Update on spinoff of ZincNyx

The company is also pleased to provide an update on the proposed spinout of ZincNyx into a publicly traded company. An additional dividend date will be set shortly in which MGX shareholders of record will receive an additional 7 per cent of payment in kind of ZincNyx shares, modifying the total amount whereas 60 per cent of outstanding shares will be owned by MGX and 40 per cent will be paid as a dividend to MGX shareholders. The prospectus is expected to be filed this month and ZincNyx is now planning on going public by way of initial public offering.

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.

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 lithium, magnesium and silicon assets throughout North America.

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