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NRG Metals Inc
Symbol NGZ
Shares Issued 131,395,635
Close 2018-05-07 C$ 0.285
Market Cap C$ 37,447,756
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NRG Metals' drilling at 400 m depth at Salar Escondido

2018-05-08 10:52 ET - News Release

Mr. Adrian Hobkirk reports

DRILLING AT THE SALAR ESCONDIDO LITHIUM PROJECT REACHES 400 METER TARGET DEPTH

NRG Metals Inc.'s drilling at the Salar Escondido lithium project has progressed ahead of schedule, and an 8.5-inch rotary hole has been completed to the target depth of 400 metres. The hole will now be reamed to a diameter of 12.25 inches so that perforated casing can be installed in preparation for sampling.

As expected, the hole intersected fine-to-coarse-grained clastic sediments with occasional intercalated clay layers to a depth of 370 metres. The sediments are interpreted to represent alternating dunes, alluvial fans and valley sediments. From 370 to 400 metres, the hole intersected an unaltered basalt that may be the bottom of the basin.

After the casing is installed, the hole will be given time to stabilize before sampling by a ProHydro Inc. SNAP passive sampler and custom packer equipment William Feyerabend, a qualified person under National Instrument 43-101, will be on site to provide senior supervision beginning in mid-May.

Adrian Hobkirk, chief executive officer of NRG Metals, commented: "We are extremely enthusiastic about the progress of this drill hole and the results we are seeing. We were able to successfully complete the initial rotary hole to the target depth of 400 metres in only 12 days, and the sediments we intersected may represent a buried brine deposit. We look forward to initiating the sampling phase as soon as the hole is reamed out and the perforated casing is installed."

During 2017, NRG's drilling confirmed the presence of a buried brine zone beneath the alluvial cover on the surface of the basin. Brine was intersected at a depth of 140 m, and as reported in the company's press release dated Dec. 7, 2017, sampling from 183 to 198 metres returned an average grade of 229 milligrams of lithium/litre in a porous, weakly consolidated sandstone horizon. A vertical electrical sounding geophysical survey conducted by the company suggests that the brine zone occurs at an even shallower depth where the current exploration is being conducted.

The Salar Escondido project is located approximately 280 kilometres northwest of Catamarca, Argentina. Further details are available at the company website and a National Instrument 43-101 technical report was filed on SEDAR in December, 2016.

About NRG Metals Inc.

NRG Metals is an exploration-stage company focused on the advancement of lithium brine projects in Argentina. In addition to the Hombre Muerto Norte project, the company is evaluating its 29,000-hectare Salar Escondido project in Catamarca province where the company recently completed a drill hole that confirmed the company's conceptual model of a buried lithium brine target. The company will report further exploration news regarding the Salar Escondido project in the immediate future.

Technical disclosure

The preparation of this press release was supervised by William Feyerabend, a certified professional geologist and a qualified person under National Instrument 43-101. Mr. Feyerabend approves of the technical and scientific disclosure contained in this press release.

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