Mr. Jagdip Bal of Umbral reports

UMBRAL ACQUIRES THE GERLACH NEVADA LITHIUM BRINE PROJECT

Umbral Energy Corp. has entered into a property purchase agreement with Zimtu Capital Corp. to acquire a 100-per-cent interest in the Gerlach Nevada lithium brine project. The property is 1,780 acres and is located approximately 125 kilometres northeast of Reno, Nev. Access is by an all-weather road from Gerlach, Nev.

The exploration target is strategically placed in an underexplored closed basin. The basin sits in an area structurally comparable with that of Clayton valley, being bounded by normal faults to the east and west of the property and surrounded by volcanics such as rhyolitic flows and tuffs.

The company plans to immediately execute an exploration program to determine the potential of a mass lithium brine. The exploration program will consist of surface sampling, along with shallow aquifer fluid analysis. The preliminary sampling with be followed by a high-resolution geophysical program to better define potential drill targets.

The Gerlach lithium project is one of the closest lithium brine projects to the construction of Tesla's Gigafactory. The Gelach property is located only 120 kilometres to the north, this would allow feasible transportation of lithium compounds.

The company can earn a 100-per-cent interest in both the previously acquired Tule Valley project and the Gerlach project by completing the following: issuing three million common shares upon regulatory approval, and paying cash considerations totalling $160,000 over the next two years. A 2-per-cent net smelter return royalty has also been granted to the vendors, which half (50 per cent) of the NSR royalty can be purchased by the company at any time for $1-million.

Jag Bal, president of Umbral, commented: "The acquisition of the Gerlach project has quickly moved Umbral into one of the hottest sectors in the resource and energy space. The company believes that, due to growing world demand for lithium, the Gerlach project, located in Nevada near Tesla's Gigafactory, has the potential to deliver strong returns for our shareholders over the short and long term. We look forward to aggressively advancing work on both of our projects."

The company is not proceeding with the Washington State property lease announced on Feb. 5, 2016.

Qualified person

The technical content of this news release has been reviewed and approved by Phil van Angeren, a registered professional geologist with APEGA (Association of Professional Engineers and Geoscientists of Alberta) and a qualified person under the provisions of National Instrument 43-101.

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