Mr. Jared Lazerson reports

MGX MINERALS ANNOUNCES ENGINEERING SUBSIDIARY PURLUCID TREATMENT SOLUTIONS PROCESSES FIRST OILSANDS WASTEWATER

As of last week MGX Minerals Inc.'s engineering partner PurLucid Treatment Solutions had processed the first shipment of 40 cubic metres of waste water brine from an oil sands customer. The five-cubic-metre system treated highly concentrated evaporator blowdown waste water (EBD) and will provide significant cost savings for the customer. The system is currently operating at a third party industrial location and the company is pleased to report that the same steam-assisted gravity drainage (SAGD) operator recently received an operating permit for the equipment from the Alberta Energy Regulator. A new 10 cubic m high-temperature, high-pressure system is near completion and is expected to be deployed on site in January. The current five cubic m system will continue to operate and process water from customers. Additional systems are expected to be deployed approximately every other month through first and second quarter of 2019, with a significant acceleration of deployments thereafter.

When placed within the SAGD operation itself the system will significantly reduce greenhouse gases through energy savings on steam generation. The technology provides superior treatment outcomes when compared with conventional technology which requires offsite trucking and high cost (due to toxicity) disposal. The technology can treat the water in line, under temperature and pressure, without cooling water first and is a paradigm shift advancement in waste water management and oil sands operations. This will result in significantly less energy use for water treatment, reduction in greenhouse gases and also eliminate the single major operational challenge of an SAGD facility, which is heat exchanger fouling.

Lithium extraction

Due to the high concentration effect on contained minerals of EBD waste water, low concentration minerals are significantly increased. Not all oil sands EBD waste water contains significant concentrated lithium. One of two current SAGD operation customers discharges waste water that contains lithium in the 100-part-per-million range. This lithium can be extracted by the technology once the water is cleaned of oil and bitumen as result of the front-end water treatment system processing. Commencement of lithium extraction will occur as this customer comes on line resulting in oil field operation, small-commercial-scale petrolithium extraction in the oil field environment.

"This technology represents a landmark shift in environmental services and, where there are significant concentrations of lithium, a byproduct that, with the rapidly increasing demand for lithium, may now represent to the energy industry, a shift similar to that which resulted from the commercialization of natural gas. There is no doubt that on a daily basis in North America the oil and gas industry generates far more waste water brine feedstock containing lithium (LiCl) then current global commercial lithium brine operations, largely due to the very long time solar evaporation takes, the traditional method of lithium brine extraction. As natural gas was once seen as a hindrance or waste product, to be flared off, there is a similar parallel to waste water treatment and mineral extraction. The potential to offset surging waste water management costs with our technology both in direct processing of water and, where applicable, extraction of lithium, may begin to solve the single biggest ancillary cost in oil and gas today. I am proud to say this technology driven shift began last week."

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 MGX was recently chosen as winner of the Base and Specialty Metals Industry Leadership Award at the 2018 S&P Global Platts Global Metals Awards.

About MGX Minerals Inc.

MGX Minerals is a diversified Canadian resource and technology company with interests in global advanced material, energy and water assets.

We seek Safe Harbor.