Mr. Mark Saxon reports

MEDALLION RENEWS STRATEGY FOR US RARE EARTH ELEMENT SUPPLY CHAIN

Medallion Resources Ltd. has provided an update on the company's strategy to develop a secure, 100 per cent domestic supply chain for rare earth elements (REE) within the United States. Medallion is executing on a unique technology-led business model that can deliver the most critical magnet REEs quickly and cost-effectively.

Key points

• Medallion is developing proprietary technology to extract REEs from mineral sand mining byproducts.
• REEs enable high-strength permanent magnets, essential for many emerging and defence technologies.
• Focused on the U.S., aiming to deliver a fully domestic supply chain utilizing U.S. materials and equipment.
• Secure REE access is a key platform of U.S. reindustrialization to reduce dependence on external suppliers.
• Media is identifying the importance of critical raw material security for U.S.
• Chief executive officer to deliver webinar on May 27, 2020, at 4:05 p.m. ET.

The ability to source essential industrial and medical supplies and critical raw materials in a time of crisis is a key test of the robustness of a national supply chain. For many countries including the U.S., the COVID-19 pandemic highlighted that, in crisis, supply chains controlled by non-aligned third parties may be unable or unwilling to adequately deliver access to critical materials, chemicals, pharmaceuticals or key enabling technologies.

While the push to reindustrialize the United States has been a multiyear trend, the devastating impact of the pandemic is now rapidly accelerating this process, driven by both private and public interests. The supply chains that underpin the strength of U.S. defence, health services and industry are being re-evaluated, with secure domestic access now prioritized alongside quality and cost considerations.

Certain critical raw materials are a cornerstone for America's high-tech industries. Rare earth elements alongside lithium, graphite and cobalt are essential for defence applications, renewable energy generation and storage, and electric mobility. REEs enable high-strength permanent magnets -- the technology of choice for electric and hybrid vehicles, larger wind turbines, robotics, and countless other applications. At present, global access to REE magnets is dominated by Chinese interests, due to strong influence of Chinese state-owned companies in REE mining, processing and magnet manufacturing industries.

U.S. reindustrialization has reinforced the business model being applied by Medallion Resources. Medallion is a long-term participant in the REE industry, focused on development of a transferable technology that enables production of REEs entirely within the U.S. Medallion's proprietary process under development can be implemented using a byproduct feedstock from current U.S. mineral sand mining using chemicals and equipment from U.S. suppliers. Medallion is well positioned to play a critical part in completing this value chain through strategic partnerships.

"This is an exciting and pivotal time to take on the role of CEO at Medallion Resources, and I appreciate the opportunity provided by the board," said Mark Saxon. "The momentum in the U.S. for secure domestic REE supply to support industry and defence is now stronger than ever. The Medallion strategy to extract REEs from readily available byproduct feedstock, using a proprietary technology, places the company in an early mover position. As a new mine does not need to be built or permitted, Medallion can execute in a relatively short time frame with low capital requirements."

The Medallion business strategy is focused on extraction of REEs from the mineral monazite. Monazite is used today as a source of REEs in both China and India, where it is considered an attractive feedstock due to its high REE content (up to 65 per cent REE by weight) and the relatively high abundance of the magnet metals neodymium (Nd) and praseodymium (Pr).

While monazite is regularly found in primary REE deposits, as it is both resistive and heavy, it is found enriched within heavy-mineral sand deposits worldwide. At present, the monazite mineral concentrate that is produced from operating mines is stockpiled or sold to Chinese customers. By utilizing low-cost byproduct monazite currently mined or stockpiled within the U.S. with a proprietary flowsheet, Medallion is confident that a secure REE supply chain can be developed.

The focus on secure REE supply for the U.S. has been highlighted by a range of media services. Of note, Defense News in an article dated May 18, 2020, entitled "Pentagon legislation aims to end dependence on China for rare earth minerals" quoted renowned industry analyst Jeffrey Green saying, "To me, this is the biggest thing that has happened to rare earths in a decade," in reference to proposed Pentagon legislation to end U.S. reliance on China for REEs by making targeted investments.

Medallion Resources webinar May 27, 2020

Medallion's newly appointed president and CEO, Mr. Saxon, will deliver a company presentation on May 27, 2020, at 4:05 p.m. ET. Attendees can register for this Amvest Capital live event or see via replay at the Go To Webinar website.

About Medallion Resources Ltd.

Medallion Resources has developed a proprietary process and related business model to achieve low-cost, near-term, rare-earth element (REE) production by exploiting monazite. Monazite is a rare-earth phosphate mineral that is widely available as a byproduct from mineral sand mining operations. REEs are critical inputs to electric and hybrid vehicles, electronics, imaging systems, wind turbines and strategic defence systems.

We seek Safe Harbor.