Mr. Adriaan Bakker reports

ULTRA POWER SYSTEMS PTY LTD EXECUTES SECOND PAYMENT ACCORDING TO THE PATENT OPTION AGREEMENT FOR THE VANADIUMCORP-ELECTROCHEM PROCESSING TECHNOLOGY IN AUSTRALIA

Vanadiumcorp Resource Inc. and Electrochem Technologies & Materials Inc. have both received the second scheduled payment from Ultra Power Systems Pty. Ltd. as specified in the patent option agreement (POA) to purchase an exclusive licence for the jurisdiction of Australia signed by all parties Nov. 23, 2018. Within the next 30 days, Ultra Power Systems will make the last payment enabling the right to finalize the terms of licence within the next six months.

Ultra plans to utilize the Australian licence of Vanadiumcorp-Electrochem processing technology (VEPT) to expedite construction of the world's first dedicated vanadium processing facility. Ultra's core objective is to directly integrate low-cost battery-grade vanadium electrolyte into vanadium redox batteries from virtually any source in a fraction of the time and capital requirements of current vanadium extraction processes. The VEPT dramatically reduces emissions associated with vanadium extraction, as well as substantially offsetting the operating cost of the vanadium precursors used to manufacture electrolyte through the production of valuable byproducts.

The resultant vanadium electrolyte therefore has a lower carbon footprint as well. Additionally, the electrolyte offers an exceedingly long usage life (effectively perpetual reuse), which provides an excellent basis for long-term leasing of this unique non-depreciating product.

Key aspects of the POA, signed May 23, 2018, include the following terms with all financial considerations split evenly between VRB and Electrochem:

• $500,000 (U.S.) total payment completes exercise of the option;
• Non-reimbursable down payment received upon signing the patent option agreement;
• Option to acquire the exclusive licence of VEPT for the jurisdiction of Australia territory;
• Definitive licence terms exercisable in the POA include a minimum annual payment, financing fees and a gross royalty due upon production, applicable to all vanadium products, ferrous sulphate heptahydrate (copperas), titanium products and other byproducts for a project duration of 25 years.

Adriaan Bakker, chief executive officer of Vanadiumcorp, stated: "Ultra Power will soon have the unique and exclusive licence to produce vanadium sustainably and efficiently. Vanadiumcorp continues to benefit with non-dilutive cash flow and a realistic pathway to commercialize vanadium batteries as the superior and sustainable solution over competitive technologies."

Vanadiumcorp Resource is an integrated technology and mining company, focused on developing the exclusive supply chain for vanadium-based energy storage and emerging technologies that utilize vanadium. Vanadiumcorp is focused on commercializing the most efficient and sustainable recovery method to produce vanadium with jointly developed process technology. Vanadiumcorp also holds a significant vanadium-titanium-iron-bearing resource base in mining-friendly Quebec, Canada, including the 100-per-cent-owned Lac Dore project adjacent to Blackrock Metals Inc. and the 100-per-cent-owned Iron-T project near the Glencore Matagami (zinc-copper) mine.