Mr. Edward Dickinson reports

SCANDIUM INTERNATIONAL SIGNS LETTER OF INTENT WITH PAB COVENTRY LTD.

Scandium International Mining Corp. has signed a letter of intent (LOI) with PAB Coventry Ltd. to test scandium-containing alloys in aluminum sheet forming applications.

PAB is a privately held manufacturing and prototyping company offering specialty metal parts and design capabilities, serving the automotive, aerospace, defence and HVAC (heating, ventilation and air conditioning) industries. PAB has been a well-known parts and forms supplier to the upper market segment of the British automotive industry for decades.

The LOI calls for the company to contribute various aluminum alloy samples containing scandium, for process testing by PAB, in its testing/manufacturing facilities in Coventry, United Kingdom. PAB intends to report the results of the testing program utilizing the samples, and the company intends to publicly report a summary of the results at the conclusion of the program.

LOI agreement highlights

• LOI defines alloy sample contributions to PAB;
• PAB commits to test the contributed samples with its forming systems;
• Forming results are to be shared, understood, possibly publicly disclosed, recognizing any intellectual property discovery;
• PAB is a recognized leader in various complex aluminum forming technologies, servicing customers in automotive, aerospace and defence applications;
• Successful prototype testing results potentially forms basis of direct customer use of Al-Sc alloys with PAB's clients, or with PAB itself.

Discussion

PAB Coventry is a specialty metals forming company, prototyping parts design and production company, focused on developing lightweight high performance components from steel, metal composites, magnesium and aluminum. PAB offers production runs for customers at its primary Coventry U.K. location, and design support to customers intending to produce on larger scale, with integrated manufacturing platforms.

PAB is recognized as an industry leader in innovation, design and product development. PAB has been involved in a number of leading research and development initiatives focused on the use of hot form quench (HFQ) technology, a patented process directly licensed from Impression Technologies Ltd. (ITL) also located in Coventry, U.K. (please refer to the company's Aug. 15, 2018, news release on ITL).

HFQ technology is a production method for stamping complex-shaped aluminum components from high-strength and ultrahigh-strength alloys, involving heat treatment, forming and in-die quench systems to produce complex, lightweight, high-strength alloy parts in a single pressing operation.

PAB also works with its end-user clients on developing and testing novel ways of cold forming aluminum for niche volume manufacture. Select, current PAB aluminum parts forming initiatives include:

• Prototyping. Design and production of aluminum automotive components, in conjunction with ITL, using HFQ technology;
• Process design. Involvement in continuing production system design programs to manufacture lightweight, high-strength aluminum panel components, for automotive and aerospace applications;
• Production. Active planning to apply the HFQ process to an existing full-scale PAB production line, to service lightweighting parts requirements in mass market automotive;
• Research and development programs. Applying HFQ technology to larger scale aluminum sheet stock, to demonstrate the attractiveness of HFQ in combination with friction stir welding (FSW) for aluminum parts manufacture.

More information on PAB Coventry Ltd. and its capabilities can be found on the PAB website. Further information on HFQ technology is available on the HFQ technology website, and more about Impression Technologies Ltd. (ITL) is available on the ITL website.

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

"We are pleased to add PAB to our list of partners exploring scandium's advantages in aluminum parts manufacturing using HFQ technology. PAB is an established, recognized aluminum alloy solutions-provider to U.K. automotive and U.K./European aerospace customers.

"PAB also represents a pathfinder in the commercial application of HFQ forming technology, developing what is required to meet the tougher demands of large-scale production applications. HFQ shows excellent promise for high-volume commercial application in aluminum formed parts and products, and we believe scandium additions could offer additional benefits, when combined with this process."

About Scandium International Mining Corp.

The company is focused on developing its Nyngan scandium project, located in New South Wales, Australia, into the world's first scandium-only producing mine. The project has received all key approvals, including a mining lease, necessary to proceed with project construction.

The company filed a National Instrument 43-101 technical report in May, 2016, titled "Feasibility Study — Nyngan Scandium Project." That feasibility study delivered an expanded scandium resource, a first reserve figure and an estimated 33.1-per-cent internal rate of return on the project, supported by extensive metallurgical test work and an independent, 10-year global marketing outlook for scandium demand.

Willem Duyvesteyn, MSc, AIME, CIM, a director and chief technical officer of the company, is a qualified person for the purposes of NI 43-101 and has reviewed and approved the technical content of this press release on behalf of the company.

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