Mr. Kiril Mugerman reports

GEOMEGA SUBSIDIARY INNORD SEPARATES ND AND DY WITH 95% PURITY IN ADDITION TO 99.8% PURITY COBALT FROM INDUSTRIAL RESIDUE

Innord Inc., a private subsidiary controlled by Geomega Resources Inc., has successfully processed an industrial residue; has produced a high-purity rare earth element (REE) concentrate and a high-purity cobalt product; and is advancing separation of neodymium and dysprosium using its proprietary technology based on electrophoresis, which has reached, to date, 95-per-cent purity for each oxide.

Highlights:

• An industrial residue was processed to produce a high-purity REE concentrate (99 per cent total rare earth oxides (TREO)) and 99.8-per-cent-pure cobalt hydroxide.
• Nd and Dy oxides were separated with purity of up to 95 per cent REE and recovery of up to 90 per cent in a single run prior to recirculation and reprocessing.
• The REE concentration per-unit volume was 1,250 times higher than that in 2016.
• The total capacity of prototypes was approximately one kilogram of rare earth oxides per run.

The industrial residue that has been successfully processed, has been identified to date in North America, Europe and Asia, and is running on average, depending on the source, at grades between 40 per cent and 50 per cent TREO and between 1 per cent and 2 per cent cobalt. The residues typically contain up to four different REEs, the main ones being neodymium and dysprosium, which are critical in the production of permanent magnets. The corporation is continuing to search for additional sources of this industrial residue and other residues for continued testing of its technology.

The REE concentrate produced achieved high purities of 99 per cent TREO. Cobalt byproduct was isolated in the form of cobalt hydroxide (Co(OH)2) with a purity of 99.8 per cent -- typical market-grade cobalt material. The corporation will be contacting several end-users to validate whether the cobalt byproduct could be qualified as battery-grade purity.

Separation of Nd and Dy oxides from the REE concentrate and scale-up of the technology have been just as successful. Currently, the grade achieved for each oxide is in the 95-per-cent range with a single-run recovery of up to 90 per cent. Work is continuing to reach 99-per-cent purity, and, ultimately, the corporation hopes to achieve commercial grades in the near future. If commercial grades are achieved, samples will be submitted for validation with end-users that the corporation has been in discussions with. In terms of scale-up, the progress relative to the June 21, 2016, press release has been exponential. The process has been significantly simplified, which management believes will allow for a more cost-effective scaling to pilot size in the future. The concentration of REE per unit volume increased significantly and is now at least 1,250 times higher than that reported in 2016, which may result in further reduction in costs and footprint. All these process modifications resulted in the total capacity of the prototypes reaching approximately one kilogram of rare earth oxides per run.

The process has been tested on commercial mine concentrate containing all the 14 elements (the same concentrate that was used for tests in spring of 2014) for the purpose of initial group separation. Initial trials have been successful, and further tests will be conducted to produce high-purity individual oxides.

The attached table presents the comparison and the progress from 2014 to 2017.

                                             Winter 2014           Summer 2016                Fall 2017

Number of separation units                One in Germany        Three in-house           Three in-house
Total capacity of prototypes, g REO/run              < 1    Almost equal to 10    Almost equal to 1,000
Approximate cost of the prototypes ($)           150,000                15,000                   15,000
Type of sample separated                       Synthetic             Synthetic       Industrial residue*
Purity (%, in solution) of separated REE        94 to 98              85 to 90                 85 to 95
Single-run recovery (%) **                      70 to 90              40 to 55                 60 to 90

* Due to higher capacity, synthetic samples may become expensive and are less representative.
** No recirculation of the output has been considered in this information. Please note that 
the data have been provided for the sake of comparison only and do not reflect the recovery 
or the purity limit of the technology. The recirculation and reprocessing of the unreacted 
material are an important part of many chemical processes to maintain high recovery rates 
and will be used here, if needed, to increase recovery and purity.

"Industrial residues are the ideal feed for developing, calibrating and optimizing our proprietary technology and to prepare it for the mining industry, all the while potentially producing cash flow for the company and helping recycle valuable natural resources which are going today to waste piles. Our technology addresses all the environmental concerns that rare earths separation entails today -- flexible that it can process various rare earth feeds, sustainable and, most importantly, no organic solvents used. Having found rare earth residues that contained an interesting quantity of cobalt was an unexpected yet very welcome bonus. Cobalt is a highly sought-after element today with high demand for lithium-ion batteries which are used together with permanent-magnet AC (PMAC) motors in electric vehicles. Establishing a market presence through a product range of Nd, Dy and Co from industrial residues is a perfect fit for the Montviel project, which will be primarily focused on the Nd market as well.

"Two years ago, we knew what the main challenges were and we tackled them one by one. The high concentration conditions that we operate in today give us an enormous flexibility for scale-up. We used off-the-shelf equipment that we adapted to our process, and, as a result, we have what we believe to be an easily scalable technology that we will be demonstrating one module at a time. Our next objective is to reach 99-per-cent grade for Nd and Dy oxides from this residue and then move on to separation from other residues that are enriched in other REEs, including neighbour elements. All this data will be then used to complete an engineering study for the initial industrial/pilot unit, which will provide reliable capital and operating cost estimates," commented Kiril Mugerman, president and chief executive officer of Geomega and Innord.

All the sample analyses have been performed internally by Innord using ICP-OES.

All the experiments and the technology development have been conducted and supervised by Dr. Pouya Hajiani, chief technology officer of Geomega, and he approves the technical information in this press release.

About Geomega Resources Inc.

Geomega is a mineral exploration and evaluation company focused on the discovery and sustainable development of economic deposits of metals in Quebec.

About Innord Inc.

Innord is a private subsidiary of Geomega, of which Geomega owns 96.1 per cent. The goal of Innord is to develop and optimize the proprietary separation process of rare earth elements based on electrophoresis, for which it holds all the rights.

We seek Safe Harbor.