Mr. Edward Lee reports

NEVADA CLEAN MAGNESIUM RENEGOTIATES JOINT VENTURE TERMS WITH SCANMAG AS OF NORWAY

Nevada Clean Magnesium Inc., following further discussions, has revised terms of its originally announced joint venture with ScanMag AS of Norway.

The renegotiated terms are as follows:

• $5-million (U.S.) total contribution from ScanMag AS to Nevada Clean Magnesium;
• $150,000 (U.S.) advance upon signing the JV as operating capital to NCM, while ScanMag completes its financing;
• An additional 2-per-cent undiluted interest of ScanMag AS to NCM for a total of 7 per cent of ScanMag;
• ScanMag's initial interest in the Tami-Mosi project will be 40 per cent;
• Upon NCM receiving the $5-million (U.S.) investment, ScanMag will receive 19 per cent of equity shares of NCM;
• ScanMag will have access to the NCM technical staff by way of the signing of a technical agreement between the two companies for ScanMag's facility development in Glomfjord, Norway.

Nevada Clean will have the right to either agree to an extension or terminate the agreement if the total $5-million (U.S.) payment is not received by Oct. 15, 2014.

As a point of clarification per the binding letter of agreement previously announced, ScanMag AS has agreed not to purchase NCM common stock on the open market until such time as the joint venture agreement has been finalized.

The boards of directors of both companies have approved the new terms of the joint venture terms and the form of agreement is currently under review by ScanMag's attorneys. Notwithstanding any unexpected delays, the final execution of the joint venture agreement is expected to occur in May.

The original joint venture terms were announced in a news release dated Oct. 15, 2013, and can be viewed on the company website.

"We at ScanMag consider it very important to find the right projects and pick the right partners to help us succeed. With our planned Glomfjord magnesium plant project paired with Nevada Clean Magnesium as our partner, we are confident that this JV will allow us to combine and leverage resources, eliminate redundancies and mutually exchange knowledge. This partnership provides us with the strength and support necessary to resolve technical and manufacturing challenges, which in turn allow us to effectively establish the plant, promote job creation, and create economic benefits for the region," stated Lothar Maruhn, chief executive officer of ScanMag AS.

"We have worked very hard to come to terms on the JV agreement, and while the discussions between our two parties have been extensive, it was well worth the work. This partnership provides our technical staff with the platform to develop and operate the process within their facility, which will significantly lower the technical and investment risks associated with the development of the Tami-Mosi project. This will be a very exciting time for not only both companies, but for the shareholders of Nevada Clean Magnesium as well. I look forward to what the future holds for our two companies," commented Edward Lee, CEO of Nevada Clean Magnesium.

The joint venture transaction with ScanMag remains subject to TSX Venture Exchange approval.