Ms. Gillian Holcroft reports

MAG ONE IDENTIFIES MAGPOWER STRATEGIC PARTNERS AND ROBUST FUEL CELL DESIGN

Mag One Products Inc. has provide an update on its wholly owned subsidiary, MagPower, a global supplier of magnesium-air fuel cells. Over the past six months, Mag One's strategic adviser, Blue Coast Systems LLC, managed by Joe Swider, has identified several potential Canadian, U.S. and international strategic partners and customers requiring on-demand, emergency and environmentally sustainable power solutions.

Specifically, MagPower has identified several underserved markets that require the performance and logistical appeal of magnesium-air fuel cells. These target markets are immediately accessible, of notable size and are international in scale. Also, several international or publically traded strategic partners have been identified and preliminary discussions have commenced related to a large-scale commercialization program. MagPower expects to have an agreement in place with at least one strategic partner in Q4 2017 to efficiently commercialize the magnesium-air fuel cell in several of the targeted market verticals.

Recognizing that a scaled-up power solution needs to be user friendly, robust and manufactured for the lowest cost possible, Mag One has partnered with INEDI, a Quebec-based college technology transfer centre that which specializes in industrial design. INEDI has submitted to Mag One a plan (scheduled to initiate this fall) for commercializing the enhanced magnesium-air fuel cell as well as recommendations for leveraging government funding to further refine the product's performance and expand market scale.

Acquired by Mag One in 2016, MagPower has worked over a decade developing its innovative magnesium-air fuel cell technology -- a powerful, reliable, portable and environmentally friendly, emergency power source that generates electricity by combining magnesium, water and air. The magnesium-air fuel cells have a virtually unlimited shelf life (over 20 years) and can produce power in seconds with the simple addition of water. No noxious byproducts are generated by the fuel cell's operation. Exhaustive work has gone into identifying the appropriate cell design, materials, catalyst and additives to maximize the power output and longevity of the fuel cell. Several prototypes have been built and patents are pending.

"Joe has been careful and meticulous in his approach to identify market pull for this product on behalf of Mag One," said Gillian Holcroft, president of Mag One.

Mr. Swider stated, "The market discovery engagements have borne fruit, confirming the need for an emergency power product of this nature in specific niche yet potentially lucrative markets."

"In the coming months, Mag One intends to implement the commercialization plan, which may include a local Quebec manufacturing facility for the product," added Ms. Holcroft.

"As mentioned recently with our Magboard Products project, the magnesium-air fuel cell contributes to Mag One's vertical integration from mine tailings to marketable products," said Ms. Holcroft. "Given our vision for Mag One to become the dominant North American player in magnesium metal and magnesium-based products, the magnesium-air fuel cell offers an environmentally friendly and safe alternative to other fuel cell and battery technologies that have safety and environmental concerns," added Ms. Holcroft.

According to Global Market Insights, the fuel cell market is expected to reach $25.5-billion (U.S.) by 2024. The portable fuel cell market share (15 per cent to 20 per cent of the overall market) is set to grow by nearly 23 per cent over this same period.

Mag One Products is a company that aims to be the diamond standard in the magnesium market by concentrating on four projects at its manufacturing plant sites in Southern Quebec, Canada:

1. Production of high-purity magnesium oxide, silica and other saleable co-products, byproducts and compounds;
2. Production of 99.9-per-cent-pure magnesium ingots;
3. Assembly and sale of Magboards (magnesium oxide-based structural insulated sheathing panels);
4. MagPower's magnesium-air fuel cell for emergency power on sea and land.

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