Mr. Peter Secker reports

BACANORA PROVIDES CLARIFICATION STATEMENT

At the request of the Investment Industry Regulatory Organization of Canada, Bacanora Minerals Ltd. is providing this clarification statement in connection with its press release dated Aug. 27, 2015, wherein it announced the entering into of a supply agreement among Bacanora, Rare Earth Minerals PLC (REM) and Tesla Motors Inc. (the maker of electric vehicles and energy storage solutions). In that earlier release, the company referred to the design and construction of a mine and processing facility with an initial estimated production capacity of 35,000 tonnes of lithium compounds, with the scaling potential of up to 50,000 tonnes per year. It should be noted that the foregoing estimates are internal company estimates that have not yet been determined through a preliminary economic assessment, prefeasibility or feasibility study prepared in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects, as is required prior to the disclosure of a project's production potential. The Aug. 27, 2015, press release also referred to development work being carried out for the prefeasibility study for the Sonora lithium project. For details regarding the work being conducted and the estimated timing of the prefeasibility study, investors are referred to the company's news release dated July 7, 2015, wherein this development work is described in further detail. Lastly, investors are cautioned that without a prefeasibility or feasibility study prepared in accordance with NI 43-101, there can be no assurance that the supply agreement will result in an actual producing lithium mine.

We seek Safe Harbor.