Mr. Donald Lay reports

MEDALLION PROVIDES RARE EARTH PRODUCT SAMPLES TO INDUSTRY

Medallion Resources Ltd. is now providing product specification sheets and samples of its high-purity rare-earth-concentrate product to rare-earth separators and other interested parties under confidentiality agreements.

Medallion's mixed rare-earth-concentrate sample was extracted from byproduct monazite sand, provided by a major heavy mineral sands producer, during the company's recent bench-scale metallurgical tests. Medallion's high-purity concentrate is expected to be suitable for input into standard commercial rare-earth refineries or separation plants, which separate the concentrate into individual rare-earth oxides and other rare-earth products.

"Most people are aware that we're currently in a depressed market for rare-earth elements. However, our model of using monazite sand, a byproduct mineral feed that provides for low-cost near-term production, is attracting industry attention," said Don Lay, Medallion president and chief executive officer. "We aim to deliver quality rare-earth concentrates to solvent extraction-based refineries. We're also speaking to groups with alternative approaches that look to drive down rare-earth separation costs versus Chinese producers. We're adapting and open to a variety of business relationships."

The magnet-related elements (Nd, Pr, Dy, Tb) dominate the value of the company's sample concentrate product, representing 86 per cent of the total using standard Chinese FOB prices for separated rare-earth oxides (source: Asian Metal, August, 2015). Medallion believes that additional metallurgical adjustments can increase the value of the concentrate produced in Medallion's process by optimizing recoveries of the most valuable individual rare earths, based on market pricing and feedback.

Medallion has held initial discussions with jurisdictions in North America and is establishing criteria for site selection of its potential rare-earth processing plant.

Dr. William Bird, PhD, PGeo, the company's chief technical adviser and a qualified person pursuant to National Instrument 43-101, has reviewed and approved the technical information contained in this news release.

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