Mr. George Putnam reports

EARLY ASSAY RESULTS OF RESOURCE IN-FILL DRILLING AT NYNGAN SCANDIUM PROJECT

Scandium International Mining Corp. has received assay results on four holes which are a part of a 14-hole resource drilling program at the Nyngan scandium project in New South Wales (NSW), Australia, conducted in October, 2014. The program successfully completed 14 new holes, totalling 657 metres, in the existing resource area and attempted two additional exploration holes, which were abandoned due to difficult drilling conditions. Assay work has been completed on four holes, totalling 178 m, with results as presented in the table.

Four-hole drill scandium assay result highlights:

• Average scandium grade of 387 parts per million over 74 m (200 ppm cut-off);
• Average scandium grade of 510 ppm over 43 m (300 ppm cut-off);
• Best results: four m at 795 ppm, seven m at 730 ppm and 12 m at 580 ppm;
• Best individual one m assay was 843 ppm;
• Lithium borate fusion (fusion) assay preparation demonstrated superior result to the traditional four-acid method, as used on the resource estimate in 2010;
• These new assay results strongly support the average grade and location selected and included in the recently released preliminary economic assessment on the Nyngan project.

Discussion

The company conducted and completed a 14-hole drill program in October, focused on a high-grade section of the Nyngan property, selected from within the area of the measured and indicated (M&I) resource disclosed in the National Instrument 43-101 technical report filed on SEDAR in March of 2010. This high-grade zone of mostly indicated resource was the basis of a 20-year mine plan and scandium grade assumptions used in the recently released PEA on the Nyngan project. This latest drill program was designed to infill certain areas to 50 m centres (from 100 m centres) and to provide better information on pit limits as defined in the PEA. The program was conducted using a conventional rotary air core drill rig, which captured over five tonnes of chip sample material, for assay, and for fresh resource material to support continuing metallurgical testwork programs. Holes were vertically drilled, so interval widths in the results table represent true widths.

The company assayed these four new holes with both four-acid digestion and also by fusion digestion techniques, followed in each case by ICP-AES metal assays. Scandium assay results on these four holes are presented in this press release. The remaining 10 new holes from the October program are awaiting assay results which will be announced when available.

The company notes that fusion digestion results generally deliver higher scandium assays than the four-acid digestion method, traditionally used in nickel and cobalt assay work. The company believes the fusion technique generates a truer assay result and intends to rely on and utilize fusion digestion techniques going forward to support its mine planning and advanced economic and development studies.

                                DRILL RESULTS

Hole                              Interval     Assay result (200 ppm c/o)

                             From-to    Total  Four acid/ICP  Fusion/ICP
                                  (m)      (m)            (%)         (%)

EMCG001                        16-27       11            178         216
                               32-44       12            407         580
including                                   7            502         730
EMCG009                        15-24        9            373         435
including                                   7            348         483
EMCG010                        15-31       16            370         495
including                                  11            415         568
EMCG016                        11-26       15            209         316
including                                   6            278         416
                               33-44       11            206         249
Total metres reported                      74
Weighted average assay result                            291         387

Interval widths represent true widths.

The assay results presented in the table are based on a 200 ppm scandium cut-off value. This assumption on scandium grade minimum is based on the Nyngan project PEA economics and represents an economic cut-off value to apply to resource to be mined. Assay results were taken over each metre of drilling material, and all individual interval results within the continuous intervals have been included in the summary table. Reported assay results correspond to limonite resource only; a saprolite resource underlays the limonite, is generally lower in grade, requires somewhat different processing techniques than limonite for optimal recovery, and is not planned for early extraction and processing by the company.

George Putnam, chief executive officer of Scandium International Mining, commented:

"This drill result, while only partially reported based on available assays, confirms the head grade assumptions integral to the recently released PEA on the Nyngan project. The drill results validate considerable uninterrupted resource widths at these grades, continuity of resource and good volumes at our 200 ppm cut-off assumption. These results also demonstrate clearly that the Nyngan resource is very comparable to other scandium resources in the NSW lateritic belt regarding scandium grade."

Quality assurance/quality control standards

The company employed an independent local geological consulting and drill supervisory team, Rangott Mineral Exploration Pty. Ltd., of Orange NSW, Australia, to manage the drill work on-site. Bulk samples of drill returns were collected at one m intervals from a trailer-mounted cyclone and splitter for one reported hole, EMCG-01, and a separate (RME) three-tier riffle splitter was used on-site for holes EMCG-09, EMCG-10 and EMCG-16, due to moisture. Assay samples ranged from 0.4 to 4.7 kilograms in weight. Individual sample identifiers were cross checked during the process. The individual assay samples were double-bagged and held in RME's possession while in the field, prior to transport and storage at RME's office in Orange. RME personnel checked/validated the sequence of sample numbers and submitted the samples to Australian Laboratory Services' laboratory in Orange, NSW. The remainder of bulk samples were sealed in the field in heavy polyethylene bags and transported by RME to a secure site at Orange for long-term storage or further use in metallurgical testwork.

ALS/Orange dried and weighed the received assay samples, and pulverized the entire sample to 85 per cent passing 75 microns or better (technique PUL-21). Fifty-gram bags of the pulps were then split off and sent to the ALS laboratory at Stafford in Brisbane, Queensland, for analysis. ALS/Brisbane analyzed the pulps for scandium, nickel, cobalt, chromium, iron, magnesium, manganese, aluminum and calcium, using inductively coupled plasma-atomic emission spectroscopy (ICP-AES) after a four-acid digestion (technique ME-ICP61). The four-hole results were also repeat tested, only for scandium, using a lithium borate fusion digestion technique, followed by similar ICP-AES assay. The lower detection limit for scandium using either technique is one ppm. RME included one commercial standard sample and three high-grade scandium pulps from previously analyzed batches, for quality control, and also included one duplicate sample from each hole in the batch. For internal quality control, ALS/Brisbane added additional standard samples (for repeat analyses), blank samples and duplicate samples to the batch.

Qualified persons

Willem Duyvesteyn, director and chief technology officer of Scandium International Mining, a qualified person as defined by NI 43-101, and John Thompson, vice-president of project development for Scandium International Mining, a qualified person as defined by NI 43-101, are both company qualified persons and have reviewed this press release.

We seek Safe Harbor.