Mr. Jared Lazerson reports

MGX MINERALS RECEIVES 50-HOLE DRILL PERMIT FOR DRIFTWOOD CREEK MAGNESIUM OXIDE

MGX Minerals Inc. has received an exploration permit from the B.C. Ministry of Energy and Mines for up to 50 sites at its Driftwood Creek magnesium oxide project located in southeastern British Columbia.

The objective of the exploration program is to complete comprehensive infill and extension drilling at Driftwood as part of the larger, continuing work program to prepare a National Instrument 43-101 prefeasibility study (PFS). The PFS will build on the positive NI 43-101 preliminary economic assessment (PEA) completed in March, 2018 (see press release dated March 6, 2018). That PEA study was independently prepared for MGX by AKF Mining Services Inc., Tuun Consulting Inc. and Samuel Engineering Inc. in accordance with CIM (Canadian Institute of Mining, Metallurgy and Petroleum) guidelines and National Instrument 43-101 Standards of Disclosure for Mineral Projects. Highlights included:

• Life-of-mine pretax cash flow during production of $1,051-million;
• Pretax NPV5 (net present value at a 5-per-cent discount) of $529.8-million, IRR (internal rate of return) of 24.5 per cent with a 3.5-year payback;
• Posttax NPV5 of $316.7-million, IRR of 19.3 per cent with a four-year payback;
• Initial capital costs of $235.9-million (total life of mine (LOM) -- $239.8 includes sustaining/closure costs of $3.9-million and contingency costs of $40.0-million);
• Conventional quarry pit mine with a 1,200-tonne-per-day (tpd) process plant using conventional crushing, grinding, flotation upgrading, calcination and sintering to produce a saleable DBM product;
• Average annual MgO (magnesium oxide) production of 169,700 tonnes during a 19-year mine life;
• LOM average head grades of 43.27 per cent MgO;
• LOM MgO recoveries of 90 per cent;
• LOM strip ratio of 2.4:1 of rock to mineralized material.

The tonnage and grades of the Driftwood Creek project mineral resource at a 42.5-per-cent MgO cut-off are shown in the associated table.

Class             Tonnes           MgO         Al2O3           CaO         Fe2O3          SiO2           LOI
                   (000)           (%)           (%)           (%)           (%)           (%)           (%)

Measured         4,702.7         43.31          1.01          0.95          1.29          5.06         47.83
Indicated        3,144.4         43.22          1.00          1.05          1.42          4.67         47.99
M&I              7,847.1         43.27          1.00          0.99          1.35          4.90         47.89
Inferred            55.8         42.95          0.93          0.66          1.43          6.07         47.46

Notes and assumptions:
Mineral resources are not mineral reserves and do not have 
demonstrated economic viability. There is no certainty that 
all or any part of the mineral resources estimated will be 
converted into mineral reserves.
The Lerchs-Grossman (LG) constrained shell economics used a 
mining cost of $8.82 (U.S.)/t, processing plus general and
administrative costs of $106 (U.S.)/t, and a commodity price 
of $600 (U.S.)/t 95 per cent MgO DBM.
Mineral resources are reported within the constrained shell, 
using a cut-off grade of 42.5 per cent MgO (based on a 20-year LOM) 
to determine reasonable prospects for eventual economic 
extraction.
Mineral resources are reported as undiluted.
Mineral resources were developed in accordance with CIM 
(2010) guidelines.
Tonnages are reported to the nearest kilotonne (kt), and 
grades are rounded to the nearest two decimal places.
Rounding as required by reporting guidelines may result 
in apparent summation differences between tonnes, grade 
and contained metal.
M&I: measured and indicated.

About MgO

Magnesium oxide (magnesia) is a widely used industrial mineral that comes in various forms including dead burned magnesia (DBM) and fused magnesia (FM). End-uses include fertilizer, animal feed and environmental water treatment as well as industrial applications primarily as a refractory material in the steel industry. The majority of refractory grade MgO used in the United States and Canada is imported from China. MGX aims to provide a stable, secure, long-term supply of MgO to the North American market with quality MgO products of consistent grade and purity.

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 and technology company with interests in global advanced material, energy and water assets.

We seek Safe Harbor.