Mr. Edward Lee reports

COMPANY FURNACE ASSEMBLY UPDATE

Nevada Clean Magnesium Inc. is providing an update on the progress of constructing the bench-scale pilot furnace being done in Fort St. John, B.C., by Lindon Enterprises Ltd.

After the recent successful completion of the test work from the University of Colorado regarding the use of both the ferrosilicon and the alternativee reductant, a major part required for the proof of concept, the fabrication of the furnace is proceeding on schedule. The refractory base was poured and is currently being baked out to remove all moisture. It is expected that the inner liner will be poured and in bake-out by early next week. All the raw materials needed are mustered at the furnace site. The dolomite was obtained from the drilling rejects stored in Reno, Nev., which originated from the 2007/2008 exploration programs. The company is currently awaiting the arrival of the vacuum pump and completion of the cooling system. These should be complete within two weeks. A picture of the base refractory can be viewed on the company's website.

The company plans to begin the test runs in early January, 2017.

Jim Sever, chief operating officer, stated: "This equipment will provide additional engineering data, while producing a significant quantity of magnesium and co-products to be used as samples for developing the market. A major area of focus will be to define the cycle time and assess the condenser performance."

Ed Lee, chief executive officer, states: "It's exciting to be in a position to finally test proof of concept by utilizing our designed furnace in order to produce an ingot from the Tami-Mosi property. The furnace has been on hold pending the outcome of the test work that was completed at the University of Colorado, which confirmed some of the original benefits identified by the NCM team, so I am glad we held back a bit as the modifications made since has resulted in saving the company time and money."

About Nevada Clean Magnesium

Nevada Clean Magnesium is focused on becoming a major U.S. producer and distributor of primary, high-grade, low-cost magnesium metal extracted from its 100-per-cent-owned Tami-Mosi property located in north-central Nevada. Based on the company's National Instrument 43-101 preliminary economic assessment report published in September, 2011, and amended in July, 2014, the Tami-Mosi project has an inferred resource of 412 million tonnes with an average grade of 12.3 per cent magnesium for a contained metal content of 111 billion pounds of magnesium using a 12-per-cent cut-off grade contained within a high-purity dolomite block.

The technical portion of this press release was prepared under the supervision and review of Mr. Sever, PEng, COO for Nevada Clean Magnesium. Mr. Sever is a non-independent qualified person within the meaning of National Instrument 43-101 standards.

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