Mr. James Walker reports

LITHIUM ENERGY PRODUCTS ACQUIRES IRONMIST VANADIUM PROPERTY

Lithium Energy Products Inc. has signed a definitive agreement for the acquisition of a 100-per-cent interest in the Ironmist vanadium property from Darren Blaney, Carmen Blaney and Brayden Blaney (the vendors). The Ironmist vanadium property consists of 20 mining claims, covering over 5,200 acres, situated 40 minutes by road from Kamloops, B.C.

Under the terms of the agreement, the company will make a $35,000 cash payment and issue 2.25 million common shares to the vendors. The company also intends to raise capital by way of a private placement within 60 days of the signing of the agreement. Upon completion of the financing, the company will make an additional $100,000 in cash payment to the vendors and issue 250,000 common shares, and in any event, these additional considerations will be made no later than 60 days from the signing of the agreement. In addition, the vendors will retain a 1-per-cent net smelter return royalty (NSR) on the property. In the event that the additional considerations are not made within 60 days from the singing of the agreement, the agreement will be terminated. The transaction is subject to regulatory approval, and closing is expected following receipt of approval.

James Walker, chief executive officer of Lithium Energy Products, said: "This is a great find and acquisition. As the market shifted its focus to vanadium, we examined many potential vanadium projects, but none had the surveying, geophysics, data and scope for expansion as this project."

The vanadium spot price has increased almost six times in two years, from $2.50 per pound in 2016 to over $14 per pound today. The use of vanadium in redox batteries, which have many favourable qualities compared with other battery types, has put pressure has put pressure on supply of the element.

A preliminary diamond drill program was completed in November, 2009, drilling at a depth for an aggregate of 658 metres, and identified multiple massive magnetite seams and pods. All drill holes intersected broad intervals of magnetite mineralization with many ending in magnetite-rich mineralized zones. This preliminary drill program not only intersected significant magnetite mineralization at depth, but also indicates that many other additional anomalies identified on the property may have the potential to host vanadium-rich magnetite mineralization.

Initial metallurgical testing of the magnetite/vanadium samples by ALS, Australia, produced concentrate averaging 67 per cent iron (Fe203), 93 per cent magnetite (Fe304) and 0.74 per cent vanadium. These assays also indicate that the magnetite is coarse grained and soft and that silica is not bound in magnetite. Crushing produces a good liberation of silica, resulting in a high-grade magnetite concentrate, even in samples with disseminated magnetite.

The market has also not been slow, recognizing vanadium as a hot commodity. A recent Bloomberg article noted that the vanadium pentoxide price soared more than 130 per cent in 2017, outperforming better-known battery components like cobalt, lithium and nickel. Bank of Montreal published recent research noting that Chinese vanadium pricing would see significant further upside as the market adjusts to lower Chinese shipments due to the upgrade of Chinese rebar standards and the growing adoption of vanadium redox batteries. Fittingly, the vanadium pentoxide price has increased 40 per cent in 2018 to date, with European V2O5 price at $14.10 (U.S.) per pound, surpassing the Chinese V2O5 price of $13.80 (U.S.) per pound, an anomaly not often seen, demonstrating global shortage of vanadium inventories.

The property is a vanadium-rich magnetite mineralization, discovered by an airborne magnetic survey -- conducted by the provincial government -- showing an intense magnetic anomaly in Barriere. Follow-up surface mapping and ground geophysics resulted in well-defined magnetic anomalies and vanadium-rich magnetite mineralization exposed right at surface. Shares are to be issued to both the vendor and groups that organized the purchase.

Raul Sanabria, PGeo, is a qualified person as defined by National Instrument 43-101 and has reviewed and approved the technical contents of this news release. Mr. Sanabria is not independent to the company as he is a shareholder. The property has not been the subject of a National Instrument 43-101 report.

About Lithium Energy Products Ltd.

Lithium Energy Products has two highly prospective properties in Nevada and Arizona:

• Jackpot Lake, Moapa Valley, Nev.:
  • 100 per cent owned -- 2,800 acres -- 140 claims;
  • 35 kilometres northeast of Las Vegas;
  • In 1976, USGS completed 129 core samples; highest lithium value was 550 parts per million, average 175 ppm;
  • Spectrographic and atomic-absorption analyses of 135 stream sediment samples confirmed potential for lithium mineral deposits;
• Wilcox playa, Arizona:
  • 1,400 acres on shore of Wilcox playa -- dry lake bed;
  • In 1976, USGS identified this area as one of the most prospective locations for lithium brines and highly analogous to Clayton Valley;
  • The USGS has identified a 22-square-mile anomaly with high electrical conductivity, interpreted as subsurface brine field with no hydrological outlet.

The company is also the owner of five iron (magnetite) properties in the Red Lake district in the province of Ontario. The Red Lake district is an established mining region where Lithium Energy Products has two near-term development projects: the past-producing Griffith mine and the Karas property.