NRG Metals Inc. V.NGZ

News Release, July 9th

[Jon1313]

Dear Investors,

On June 30, 2018, the South China Morning Post printed an interesting article about China's lithium demand. I invite you to read the full article.  Below are some snippets.

Adrian Hobkirk
CEO of NRG Metals Inc.

Chinese companies are scouring the world for mineral ores in pursuit of nation’s electric dream - a voracious hunt for resources that is generating an economic boom in exporting lithium countries.

“China is the largest global consumer of lithium, and further down the road, we believe China’s electric vehicle development will drastically tighten the global lithium balance," said Zhao Dongchen, head of raw materials research at ICBC International in Hong Kong.

Part of the reason for the shopping spree is China’s geological disadvantage, which saw the country contributing to a mere 7 per cent of global lithium output last year, even as Chinese reserves are among the world’s largest, said Zhao.

The Chinese government is anxious for the core technology of electric batteries - as well as the most crucial parts of the supply chain - to be in Chinese hands, driven in equal parts by technological nationalism and a pragmatic concern to keep dependence on foreign suppliers to the minimum.

“Grabbing key resource mining assets overseas is key for lowering the prices of raw materials domestically,” said a 2014 report by China’s top think tank the Chinese Academy of Social Sciences.

Chemphys Chengdu Chemical Industry has become the biggest shareholder of Canada’s NRG Metals after a US$1.4 million private placement, whereby the Chinese company committed to an offtake agreement on all potential future production of lithium from the Hombre Muerto North project in Argentina.

Read Published News Article