Next Round of Encouraging Lithium Drill Results from Nevada

Full size / Geologist inspecting freshly cut core from drill hole KB-3, with the first batch of results reported today.

After market close on Friday, Belmont Resources Inc. reported the next round of lab results from drilling the first hole of 2018 (KB-3) at Kibby Basin in Nevada, a joint venture with MGX Minerals Inc. As per MGX´s news-release, the results are – once again – encouraging in the sense that near-by aquifers may also host lithium-enriched brine:

"20 of 25 samples exceeded greater than 100 ppm lithium, with seven samples containing greater than 300 ppm lithium, and the highest sample containing 580 ppm lithium."

Today’s assays are from the bottom of the hole (428-546 m; 1,403-1,791.50 ft). Core splitting and sampling is now being completed on the entire core section of the hole to give complete assay results for hole KB-3, hence further assays are expected to be announced shortly.

The first section of the hole was drilled by mud rotary method, with similar encouraging assays reported on September 12. The second, lower section of the hole was completed with a core drill starting at 387 m (1,270 ft) until the bottom of the hole at 548 m (1,798 ft).

Today’s results, in combination with similar results reported 2 weeks ago, are a great indication that the Kibby Basin may also host lithium-enriched brines, as explained in the news-release:

"Ash layers accounted for four of the five low lithium samples, suggesting that initial lithium content may have been leached from the porous ash layers and transported to brines elsewhere in the basin. The boreholes targeting the southern portion of a large MT conductor still offer potential to identify saturated sediments containing lithium-rich brines.

Based on Quantec MT geophysics, the proposed second hole (KB-4, AKA 2018-2) would likely mimic hole 3 with redox boundary (and aquifer) at 900-1000 ft. depth, and reduced clays with high Li content below 1,000 ft."

With further drill results from KB-3 expected shortly and the next hole (KB-4) already being planned in detail, MGX and Belmont are right on track for a possibly stellar discovery of lithium-enriched brines at Kibby Basin in Nevada.

Full size / Map showing the location of MGX-Belmont’s Kibby Basin, Tesla’s Gigafactory and Albemarle’s Silver Peak Lithium Mine (see map here).

In light of the encouraging lithium concentrations thus far observed in sediments both in the upper and lower section of the hole, the next few weeks are awaited with great excitement for the potential discovery of lithium-rich brines as MGX may then consider to deploy its award-winning rapid lithium brine extraction technology at Kibby Basin, 50 km north of Albemarle’s lithium evaporation ponds at Clayton Valley (currently North America’s only lithium brine operation) and 230 km south of Tesla’s Gigafactory near Sparks, Nevada.

The importance of a potential discovery by MGX and Belmont in Nevada, combined with MGX’s rapid lithium extraction technology, cannot be understated. The US needs new lithium production as lithium is on the list of strategic commodities deemed critical to economic and national security. MGX’s new way to extract lithium without solar evaporation would be all the more welcome as the US currently produces only about 4% of global lithium supply, all of it coming from Albemarle’s evaporation ponds at the Silver Peak Mine located 50 km south of Kibby Basin.

While companies are fighting over water rights in the "overappropriated" Clayton Valley, Belmont has already filed for water rights at Kibby Basin. Another advantage for MGX-Belmont is that they control almost the entire Kibby Basin, making an entry for other companies all the more difficult, especially if drilling encounters lithium-rich brine.

Click above or here to watch how North America, and especially the location of the Kibby Basin in Nevada, was flooded by the ocean multiple times over the last 600 million years.

The above animation illustrates the geological formation of North America from the latest Precambrian (600 Ma) to the present. In our case, focus on Nevada (and the location of the Kibby Basin) being repeatedly below and above sea level during its geologic history. Over several periods of time, the ocean there was trapped in a giant pan, similar to a salar or a salt flat.

About the Kibby Basin Lithium Brine Partnership

MGX Minerals Inc. (CSE: XMG) is partnered with Belmont Resources Inc. (TSX-V: BEA) on the 2,056 hectares (5,080 acres) Property and currently earning a 50% interest with the goal of forming a 50/50 Joint Venture (the “Joint Venture”) to utilize MGX’s rapid lithium extraction technology. Kibby Basin is located in the western portion of the Great Basin in Nevada. Geologic research of the Kibby Basin has indicated that proximal rhyolitic flows and tuffs surrounding the basin could be a potential source of Li brine in the Kibby Basis Playa. In addition, the Kibby Basin is located within a geothermal cluster at a basin low setting. Regional geophysical signatures in the area reflect similar anomalies comparative to that of Clayton Valley, approximately 50km to the South, location of Albemarle’s Silver Peak Mine, the only North American lithium producer.

Rapid Lithium Brine Extraction Technology

MGX has developed a rapid lithium extraction technology eliminating or greatly reducing the physical footprint and investment in large, multi-phase, lake sized, lined evaporation ponds, as well as enhancing the quality of extraction and recovery across a complex range of brines as compared with traditional solar evaporation. This technology is applicable to petrolithium (oil and gas wastewater), natural brine, and other brine sources such as lithium-rich mine and industrial plant wastewater. The technology was recently chosen as winner of the Base and Specialty Metals Industry Leadership Award at the 2018 S&P Global Platts Global Metals Awards, held in London in May ( see MGX press release dated May 18, 2018).

Company Details

MGX Minerals Inc.

#303 - 1080 Howe Street

Vancouver, BC, Canada V6C 2T1

Phone: +1 604 681 7735

Email: jared@mgxminerals.com

Shares Issued & Outstanding: 124,365,827

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Canadian Symbol (CSE): XMG

Current Price: $0.61 CAD (09/28/2018)

Market Capitalization: $76 Million CAD

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German Symbol / WKN (Tradegate): 1MG / A12E3P

Current Price: €0.407 EUR (09/28/2018)

Previous Coverage

Report #79 “MGX-Belmont sample up to 580 ppm lithium in sediments at Kibby Basin Nevada Joint Venture"

Report #78 “MGX Identifies Large Geophysical Anomaly at Salinitas Lithium Project, Salinas Grandes, Argentina"

Report #77 “MGX-PurLucid Achieve 99.7% Lithium Recovery Along With Breakthrough in Component Costs"

Report #76 “MGX-Belmont Drilling Finds Multiple Brine Prospective Zones at Kibby Basin Lithium Joint Venture in Nevada"

Report #75 “MGX engages one of the world‘s most respected lithium upgrading and commercial scale-up experts"

Report #74 “MGX-ZincNyx start product certification for the mass market"

Report #73 “MGX-ZincNyx Announce Mass Production of Zinc-Air Battery Fuel Cell and Charging Components"

Report #72 “MGX Moves to the Big Time, Acquires Chilean Lithium Brine Projects"

Report #71 “MGX provides Update on Deployment of Several Plants for Rapid Lithium Extraction and Wastewater Treatment in Alberta“

Report #70 “The Drills are Turning at MGX-Belmont‘s Kibby Basin Lithium Joint Venture in Nevada“

Report #69 “MGX Engages Hatch Engineering for Scale-Up of its Rapid Lithium Extraction Plant in the Western United States“

Report #68 “MGX and Belmont to Start Drilling at Kibby Basin Lithium Project in Nevada on Saturday“

Report #67 “MGX Expands to Argentina, Home to One of the Largest and Richest Lithium Resources in the World“

Report #66 “MGX and Belmont Form Nevada Lithium Joint Venture at Kibby Basin“

Report #65 “MGX-Highbury Expand Work to Gasify Petcoke into a Synthetic Crude Oil Equivalent“

Report #64 “MGX Delivers Update on Commercial Deployment of its Wastewater Treatment and Lithium Extraction Systems“

Report #63 “MGX is Drilling for Solar Grade Silicon Metal in British Columbia“

Report #62 “MGX-ZincNyx Now Ready To Start Commercialization Of Battery Systems For Mass Storage Of Energy“

Report #61 “MGX Minerals Raises $15,5 Million in an Oversubscribed Financing to Speed Up Lithium and Advanced Material Projects“

Report #60 “Sneak Preview of Big Oil Entering the Business of Big Batteries“

Report #59 “MGX Wins Industry Leadership Award from S&P Global Platts“

Report #58 “MGX Nears Commercial Deployment of 4 Petrolithium and Water Treatment Systems in Alberta“

Report #57 “MGX Announces Quadrupling of Power Output of Zinc-Air Fuel Cell Battery“

Report #56 “MGX Sets The Record Date For Its First Dividend“

Report #55 “The First ZincNyx Energy Storage Plant to be Deployed in New York City“

Report #54 “MGX in Final Stages of Commercial Deployment, Second Petrolithium Contract Already in the Making“

Report #53 “MGX-Highbury Accomplish Almost Complete Gasification of Petcoke, Produce High-Grade Vanadium Concentrate“

Report #52 “MGX Set to Alter Lithium Landscape, Partners with Investment Bank Heavyweight Capstone Headwaters“

Report #51 “Congratulations! MGX Nominated in 2 Categories as a Finalist for the S&P Global Platts Metals Awards“

Report #50 “MGX Gets Serious About Magnesium, Engages Hatch for Magnesium Metal Scoping Study“

Report #49 “MGX to Acquire and Commercialize Clean Technology for Extraction of Lithium and Aluminum from Spodumene“

Report #48 “MGX Minerals Issues PEA for a World-Class Magnesium Project in British Columbia“

Report #47 “High-Grade Battery Metals From Dirty Petcoke“

Report #46 “Big Times Ahead For Several Joint Ventures from MGX Minerals“

Report #45 “MGX Partner Broadcasting on US Television“

Report #44 “The Big Rethinking Begins: Multiple Lithium Projects in Chile Test the Rapid Lithium Extraction Technology from MGX“

Report #43 “Global Lithium Dominance? MGX Doubles Performance of Lithium Extraction Filters“

Report #42 “Scores of Tail Winds for MGX becoming a Leader in the New Energy Economy“

Report #41 “MGX Goes Big, Develops Utility-Scale Battery Storage System“

Report #40 “Positioned to Profit from Transition to New Energy Economy“

Report #39 “MGX Assembles Dream Team For California Lithium Strategy“

Report #38 “MGX: The Next GreenTech Energy Giant“

Report #37 “MGX Partners with Highbury Energy to make Petroleum Coke more Clean“

Report #36 “Technological Breakthrough in the Mass Energy Storage Industry“

Report #35 “Eureka! MGX Starts Developing Silica Projects after Acquisition of Mass Storage Battery Technology“

Report #34 “MGX Going Big on Petrolithium: The first large-scale integrated petroleum and lithium project ever developed“

Report #33 “Driving into the Realms of Tesla & Co: MGX Acquires Mass Storage Battery Technology from Teck Resources“

Report #32 “Backed by Private and Institutional Heavyweights: MGX cashes up for Lithium Extraction and Exploration“

Report #31 “MGX Revolutionizes the Lithium World - Commissions First Rapid Lithium Extraction System“

Report #30 “Full Steam Ahead: MGX Engages Senator Polanco (Ret.) to Head California Lithium Brine Strategy“

Report #29 “MGX to Target Geothermal Market for Extraction of Lithium and Gold“

Report #28 “MGX Minerals Commences Development of the World‘s First Petrolithium Field“

Report #27 “Canadian Government Backs MGX Minerals‘ Petrolithium Cleantech“

Report #26 “MGX Minerals Solves the Magnesium Problem of the Lithium Industry“

Report #25 “Hard-Rock Lithium Exposure for MGX“

Report #24 “One of the Largest Initial Oil Estimates in US History“

Report #23 “MGX starts Petrolithium pilot plant to deliver hard facts for strategic partners“

Report #22 “Time to bet: Sprott takes a position in MGX“

Report #21 “Petrolithium: First Come First Served“

Report #20 “Successful Independent Verification of the MGX Lithium Extraction Technology“

Report #19 “MGX to Drill the World‘s First PetroLithium Well in Utah“

Report #18 “MGX Reports Upgrading of Lithium Brine from 67 to 1600 ppm Lithium“

Report #17 “MGX technology nominated for prestigious Katerva Award, the Nobel Prize of Sustainability“

Report #16 “Unconventional oil play legend Marc Bruner to take MGX and PetroLithium to the next level“

Report #15 “Total Conviction: MGX forms PetroLithium Corp. to expand into the US oilfield brine markets“

Report #14: “MGX Extracts Lithium from Oil Wastewater - Begins Monumental Integration with Big Oil“

Report #13 "MGX Partners with Oil Major on Lithium Brine, New Energy Industry Facing Fundamental Shift“

Report #12 "Game Changing Potential: MGX Minerals‘ Pilot Plant for Rapid Production of Lithium Nears Completion“

Report #11 "MGX assays 34 g/t gold from surface sampling in British Columbia“

Report #10 “Official: MGX owns magnesium worth multi-billions of dollars and starts pilot plant shortly“

Report #9 “One of the world‘s largest lithium resources on the horizon?“

Report #8 “Ready for significant lithium brine work in Alberta“

Report #7 “At the forefront of Alberta‘s lithium brine riches“

Report #6 “Pioneering Lithium in Alberta: MGX Minerals Teams Up“

Report #5 “Time to Put a Lithium Production Process in Place“

Report #4 “MGX Minerals Taps Into Canada‘s Potentially Largest High-Grade Lithium Resources“

Report #3 “MGX Minerals Receives Mining Lease for 20 years (in British Columbia!)“

Report #2 “MGX Minerals Accelerates Towards Production“

Report #1 “MGX Minerals Plans To Enter The Magnesium Market“

Company Details

Belmont Resources Inc.

Suite 600 - 625 Howe Street

Vancouver, BC, V6C2T6 Canada

Phone: +1 604 683 6648

Email: gmusil@belmontresources.com

Shares Issued & Outstanding: 85,465,620

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Canadian Symbol (TSX.V): BEA

Current Price: $0.085 CAD (09/28/2018)

Market Capitalization: $7 Million CAD

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German Symbol / WKN (Frankfurt): L3L1 / A1JNZE

Current Price: €0.056 EUR (09/28/2018)

Previous Coverage

Report #16 “MGX-Belmont sample up to 580 ppm lithium in sediments at Kibby Basin Nevada Joint Venture"

Report #15 “MGX-Belmont Drilling Finds Multiple Brine Prospective Zones at Kibby Basin Lithium Joint Venture in Nevada"

Report #14 “The Drills are Turning at MGX-Belmont‘s Kibby Basin Lithium Joint Venture in Nevada”

Report #13 “MGX and Belmont to Start Drilling at Kibby Basin Lithium Project in Nevada on Saturday”

Report #12 “MGX and Belmont Form Nevada Lithium Joint Venture at Kibby Basin”

Report #11 “Ohm-m! The Divine Sounding of Resistivity”

Report #10 “Belmont Resources (BEA.V): Cheapest US lithium play may just be what others promised”

Report #9 “It‘s Time For Belmont To Shine In Nevada”

Report #8 “Bingo! Belmont finds striking drill targets for lithium brine deposits at Kibby Basin in Nevada”

Report #7 “The Missing Puzzle Piece to Discover Lithium Aquifers in the Kibby Basin of Nevada?”

Report #6 “Belmont on track to eclipse the Clayton Valley”

Report #5 “Belmont getting ready to drill for untapped lithium brines at Kibby Basin in Nevada”

Report #4 “The perfect lithium basin?”

Report #3 “Prominent gravity low identified on Kibby Basin Lithium Brine Property in Nevada”

Report #2 “Dark clouds over Clayton Valley and green lights for Belmonts Kibby Basin Project”

Report #1 “Early Report on Belmont Resources”

Disclaimer: This report contains forward-looking information or forward-looking statements (collectively "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "potentially" and similar expressions, or are those, which, by their nature, refer to future events. Rockstone Research and MGX Minerals Inc. cautions investors that any forward-looking information provided herein is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to the MGX´s public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the MGX´s profile on SEDAR at www.sedar.com. Please read the full disclaimers for both featured companies within the full research reports as a PDF (here and here) as fundamental risks and conflicts of interest exist. The author, Stephan Bogner, holds a long position in MGX Minerals Inc. and Belmont Resources Inc. and is being paid a monthly retainer from Zimtu Capital Corp., which company also holds a long position in MGX Minerals Inc. and Belmont Resources Inc. Note that neither MGX Minerals Inc., Belmont Resources Inc. nor Zimtu Capital Corp. have reviewed all of the content prior to publication and may not agree with statememts made herein.