Mr. Larry Reaugh reports

AMERICAN MANGANESE INC.: UNITED STATES PATENT APPLICATION SUBMITTED FOR LITHIUM ION BATTERIES RECYCLING PROCESS AND RECOVERY OF CATHODE MATERIALS

American Manganese Inc. has achieved the following three milestones:

1. The bench scale research program initiated in 2016 to develop intellectual property for recycling lithium-ion battery cathode material has been successfully completed by Kemetco Research.
2. Utilizing the flowsheets developed, 100-per-cent lithium recovery has been achieved with bench scale testing of the process. (This achievement is in addition to the previously announced 100-per-cent recoveries of cobalt, nickel and manganese from LCO, NMC, NCA and LMO cathode chemistries using the company's proprietary technology.)
3. The company filed its non-provisional patent application for recycling lithium-ion battery cathode material with the United States Patent Office on Nov. 7, 2017.

With the filing of the U.S. patent application, the company continues to add to its intellectual property portfolio. The aim is to develop a comprehensive set of patents that will enable the company to exclusively capitalize on its innovative hydrometallurgical technologies.

Lithium-ion battery production continues to be a high-growth industry. Fuelled by the adaptation of electric vehicles, lithium-ion battery production is expected to grow from 90 gigawatt-hours in 2016 to 300 gigawatt-hours in 2025 (source: AVICENNE Energy, 2017 ICBR conference). AMI sees the recycling of cathode materials as a significant opportunity for the following reasons:

• Cathode materials comprise approximately 25 per cent of the value of lithium-ion battery packs.
• There is increasing demand for cathode raw materials with inelastic supply (namely cobalt) and other raw materials such as lithium, nickel, manganese and aluminum.
• Environmental regulation, as well as voluntary environmental stewardship by socially conscious companies, is expected to create demand for the recycling of raw materials in the production of lithium-ion batteries.

In the next phases of work, AMI will be conducting further work on technical opportunities that have been identified during the research program. The goal is to expand and strengthen its intellectual property portfolio and expand market opportunities. The company also intends to initiate a pilot plant study. Kemetco Research will provide budgets for these activities within two weeks.

About American Manganese Inc.

American Manganese is a diversified specialty and critical metal company focused on capitalizing on its patented intellectual property through low-cost production or recovery of electrolytic manganese products throughout the world, and recycling of spent electric vehicle lithium-ion rechargeable batteries.

Interest in the company's patented process has adjusted the focus of American Manganese toward the examination of applying its patented technology for other purposes and materials. American Manganese aims to capitalize on its patented technology and proprietary know-how to become and industry leader in the recycling of spent electric vehicle lithium-ion batteries having cathode chemistries such as: lithium-cobalt, lithium-cobalt-nickel-manganese and lithium-manganese (please see the company's July 27, 2017, press release for further details).

We seek Safe Harbor.