20. April 2016

Research #6Lithium in Alberta Magnesium in British Columbia

Lithium-Pioniere in AlbertaAm Montag gab MGX Minerals Inc. (CSE: XMG) die Namen der Hauptinvestoren einer strategischen Finanzierung zu $0,10 bekannt, einschliesslich dem bekannten kanadischen Investor Robert Hirschberg, dem legendären Minenveteran Dr. Sethu Raman und Sam Sahota. Daraufhin handelte MGX in den letzten beiden Tagen >2,5 Mio. Stücke und die Aktie stieg seit Freitag bei $0,11 um 36% an. Letzte Woche Donnerstag berichtete MGX über den Erhalt einer ersten Prozessdesign- und Scoping-Studie über die Produktion von Lithiumcarbonat auf dem Alberta Lithium Projekt von MGX. Eine Ingenieursfirma wurde engagiert, um die Extraktion von Mineralen aus der stark mineralisierten Sole (“brine”) auf den unternehmenseigenen Grundstücken in den Gegenden Fox Creek und Swan Hills zu analysieren. Laut MGX “liefert die Studie eine positive Basis, um voranzuschreiten.” Ebenfalls am Donnerstag letzte Woche gab das Unternehmen bekannt, zusätzliche 160.000 Hektar an Grundstücken akquiriert zu haben, die höffig für lithiumreiche Solen sind, sodass MGX mittlerweile über 300.000 Hektar in Alberta kontrolliert.

Unternehmensdetails

MGX Minerals Inc.#303 - 1080 Howe StreetVancouver, BC, Canada V6C 2T1Phone: +1 604 681 7735 Email: jared@mgxminerals.comwww.mgxminerals.com

Aktien im Markt: 31`239`685

Kanada Symbol (CSE): XMGAktueller Kurs: $0,15 CAD (19.04.2016)Marktkapitalisierung: $5 Mio. CAD

Deutschland Kürzel / WKN: 1MG / A12E3PAktueller Kurs: €0,12 EUR (19.04.2016)Marktkapitalisierung: €4 Mio. EUR

Chart Kanada (CSE)

Chart Deutschland (Frankfurt)

“Die Energiewirtschaft von West-Kanada hat abertausende Jobs

verloren und es gibt keine Aussicht auf sofortige Erholung.“

(Saskatchewan‘s Ministerpräsident Brad Wall im November 2015)

2 Research #6 | MGX Minerals Inc.

Laut Pressemitteilung (14. April 2016):

“Die neu akquirierten Grundstücke umfassen bekannte historische ho-chgradige Lithiumwerte (>100 mg/L), gemäss Berichten in der Minerald-atenbank der Provinz Alberta. MGX kontrolliert nun einen signifikanten Anteil der lithiumhaltigen Gegenden in der ganzen Provinz Alberta. Dies beinhaltet grosse strategische Land-blöcke, die sich im Mackenzie Coun-ty im Nordwesten von Alberta nahe historischen Ölfeldern befinden. Die lithiumhaltige Landposition von MGX überdeckt mittlerweile über 300.000 Hektar (3.000 km2) mit signifikanten Positionen in den geologisch gün-stigen Gegenden Mackenzie, Fox Creek und Red Deer.

Bedeutende exististierende

Infrastruktur wie Förderquellen

(“wells”), Strassen und Elektrizität sind

auf den Grund-stücken von MGX verfügbar, sowie

die Unterstützung von nahegelegenen

Ölfeld-Dienstleis-tungen.

MGX fokussiert sich weiterhin auf die wirksam Einsetzng von existier-ender Infrastruktur in Kooperation mit Öl- und Gas-Betreibern sowie allen Ebenen der Regierung mit dem ausdrücklichen Ziel der sofortigen Testproduktion und Testverarbeitung der Lithiumsole. Alberta bietet den einzigartigen Vorteil im globalen Lith-iumrennen, massive existierende Infrastruktur zu besitzen, die in Bezi-ehung zu lithiumhaltigen Gegenden und grossen existierenden historis-chen Datenbanken, sodass im Prinzip in diesen Gegenden die Notwendig-keit für konventionelle Explorations-bohrungen eliminiert werden.

In Zusammenhang mit der Vereinbarung [mit dem Brookes Heyman Lithium Syn-dicate] hat sich MGX bereit erklärt, 1 Mio. Unternehmensaktien auszugeben, wobei 333.000 Aktien nach Vertragsab-schluss und weitere 333.000 Aktien zum 1. und 2. Jahrestag fällig sind. Das Un-ternehmen wird auch Barüberweisung über insgesamt $60.000 CAD machen, wobei $20.000 CAD bei Vertragsab-schluss und weitere $20.000 CAD zum 1. und 2. Jahrestag fällig sind. MGX hat zudem eine 2% Netto-Royaltygebühr (“Net Smelter Royalty”) and das Syn-dikat gewährt, wobei hiervon 1% für eine Einmalzahlung in Höhe von $1 Mio. CAD jederzeit gekauft werden kann.”

3 Research #6 | MGX Minerals Inc.

Am gleichen Tag gab MGX gesondert bekannt, eine erste Prozessdesign- und Scoping Studie erhalten zu haben (14. April 2016):

“Die Studie beinhaltet Flowsheet-Emp-fehlungen und Kalkulationen zu den Produktionskosten (OPEX; “operational expenditures”), um 20.000 Barrel pro Tag an lithiumhaltiger Sole in einer kom-merziellen Anlage zu verarbeiten. Der Prozess verspricht, die Verarbeitungszeit signifikant im Vergleich mit der Sonn-en-Verdunstung (“solar evaporation”; bis zu 18 Monate) zu reduzieren. Der Prozess wurde konzipiert, um Solen-minerale schnell zu separieren, um di-verse Zusammensetzungen zu produz-ieren, einschliesslich Lithium Carbonat, Natriumchlorid und Calciumchlorid. Die Implementierung von mehreren Pro-duktlinien wurde berücksichtigt, um potentielle Einnahmen zu maximieren und die LCE- (“Lithium Carbonate Equiva-lent”) Produktionskosten zu reduzieren. Unter Anwendung von signifikanter Lit-eratur, Solubilitäts-/Löslichkeits-Mod-ellen und unternehmenseigener Sol-en-Expertise, konnte die Cementation AG einen betriebsfähigen Prozess en-twickeln. Ebenso wurden entwickelt: Ein Flowsheet, nicht-iterativer Massenaus-gleicher, Evaporator/Verdunster und eine Zubehörliste basierend auf Wasser-analysen von historischen Förderquellen auf dem Fox Creek Grundstück von MGX. ‘Der vorgeschlagene Prozess, der von Ce-mentation AG entwickelt wurde, bietet ein modernes Industrieverfahren, das

die Evaporationsdauer reduzieren würde und eine Reihe von Produktlinien biet-en, um potentielle Kosten zu minimieren und potentielle langfristige Gewinne zu erhöhen”, sagte der Präsident & CEO von MGX, Herr Jared Lazerson.

Die Cementation AG besitzt Expertise im Bereich Handling und Verarbeitung von Industrie- und Energieminer-alen, angefangen von Scoping Stud-ien bishin zur Konstruktion, Betrieb und Instandhaltung. Das Lithiuman-lagen-Ingenieursteam wird von Proz-essingenieuren der Cementation AG geleitet, die umfangreiche Erfahrung mit dem Prozessdesign, Metallurgie und Be-trieb haben. Die Prozessingenieure der Cementation haben Projekte mit Suncor, Intrepid Potash, Copper Mountain, Rio Tinto, Phelps Dodge, HudBay Minerals und anderen unterstützt. Cementation ist eine vollständig im Besitz befindliche Tochtergesellschaft von Murray & Rob-erts; ein führendes Ingenieurs- und Kon-struktionsdienstleistungsunternehmen mit Hauptsitz in Johannesburg, Süd-Af-rika, und ist an der JSE-Börse notiert. Die Firma unterhält Büros in Süd-Afrika, Namibia, Botswana, Mozambique, Zam-bia und Ghana, die Vereinigten Arabis-che Emirate, Australien und Süd-Korea, Schottland, Kanada, USA und Chile. Die Cementation AG wurde gegründet, um die Cementation Underground Group zu vervollständigen und anderes Gross-material-Handlings- und Mineralver-arbeitungs-Opportunitäten weltweit wahrzunehmen.”

SCHLUSSFOLGERUNG

Die am Montag bekannt gemachte strategische Investition mit dem kana-dischen Entrepreneur Robert Hirsch-berg und der Minenlegende Dr. Sethu Raman (siehe Hintergrundinformation-en auf den folgenden Seiten) dürfte den Startschuss für eine schnelle Entwick-lung der Alberta Projekte von MGX zu aufblühenden Lithiumcarbonat-Produk-tionszentren signalisieren.

Im Februar engagierte MGX den Öl- und Gas-Veteran Dr. Larry Marks, der 30 Jahre lang in gehobenen Positionen für Shell Canada tätig war und Strategien für den Verkauf und Transport von Energie und Beiprodukten im Wert von mehr als $3 Mrd. jährlich implementierte. Seine Lamar Corporation of Calgary leitet die Entwicklungsstrategie für die von MGX akquirierten Grundstücken nahe Fox Creek im kanadischen Alberta.

Auf bemerkenswerte Weise konnte MGX zuletzt starke Partner anzie-hen, sowohl finanziell als auch erfahrungsmäßig gesehen. Dies alles kann unterstützend wirken, um Alberta als bedeutendes Förderquellen-Dre-hkreuz zurück zu bringen, dieses Mal auch pumpend für Nord-Amerikas Grüne Energierevolution. Anpassung ist der Schlüssel zum Überleben – Alberta hat die Solen, um dies zu schaf-fen, während MGX einen Pionierarbeit leistenden Kopf mitbringt.

4 Research #6 | MGX Minerals Inc.

By Larry Macdonald on March 4, 2016, special to The Globe and Mail

Robert Hirschberg

OccupationOwner/manufacturer of promotion-al-clothing company.

The portfolioMore than a dozen junior re-source companies, including Lith-ium X Energy Corp., Pure Gold Mining Inc. and NRG Metals Inc.

The investorThe book Reminiscences of a Stock Operator describes how the legendary Jesse Livermore made and lost fortunes in the stock market. Toronto resident Robert Hirschberg has a similar story. And the trading slips to go with it, as he told Me and My Money.

His market adventure first came to light in a 2015 interview by CEO.ca. There was also a mention in the investment book, Market Masters (ECW Press, 2016). Here is a timeline for Robert Hirschberg’s story.

Beginning in 1981, a commodities boom sweeps his $20,000 in junior-min-ing stocks to a value of $850,000 in five years. But this is zapped by a margin call during the market plunge in Octo-ber, 1987. (The value of his stocks fell below the loan value so the brokerage that had lent him money asked him to put in more or it would do a forced sale – which it did, at a loss to him).

In 2001, he put $20,000 of his wife’s money into Noront Resources Ltd. and Waseco Resources Inc. They, and some other trades, surge to $1.1-million by 2007 – thanks to another commodities bull market.The crash of 2008 slash-es the portfolio to $350,000. He takes $200,000 out and leaves the rest in the

market because there are no bid-ask quotations for the remaining stocks. The market roars back and by 2011, the “worthless $150,000 portfolio” has skyrocketed to a “magical” $15-million. Then a correction drives the portfolio down 70 per cent by 2014.

Currently, he is biding his time, waiting for the next upswing.

How he investsMr. Hirschberg looks for four things in a company: 1) executives with suc-cessful track records building up junior companies; 2) good assets; 3) access to funding; and 4) lots of upside (“blue sky potential”).

Lithium X Energy is headed by Paul Matysek, a geologist with a solid track record of developing junior miners over the past 30 years; lithium demand is rising due to new technologies such as electric cars.

Pure Gold Mining has properties close to a large, proven deposit; several mil-lion dollars are in the bank.NRG Metals has property near a graph-ite producer, and small-scale produc-tion on a Guyana gold property with a potential for expansion.

Mr. Hirschberg monitors newsletters and websites (his favourite is CEO.ca). He also talks on the phone several times a day with people in the industry. And he attends industry conventions, such as the one run by the Prospectors & Developers Association of Canada.

Best moveIt was getting in early on discoveries made by junior resource companies, such as when Diamond Fields Resour-ces Inc. found the Voisey Bay nickel de-posit.

Worst move“Not getting out at the height of bull resource markets.”

Advice“Play with money you can afford to lose.”

Want to be in Me and My Money? Con-tact Larry MacDonald at mccolumn@yahoo.com or his website.

ME AND MY MONEY:Investor in junior resource stocks rides commodity market‘s swings

Dr. Sethu Raman has pion-eered many new exploration concepts and strategies which have led to the dis-covery of eleven significant gold, silver, copper, zinc, phosphate and uranium de-posits located near established mining camps, seven of which went on to be-come producing gold mines in Canada.

From 1986 to 2004, Dr. Raman, as Presi-dent and CEO of Holmer Gold Mines Ltd., was particularly instrumental in the resurgence of the West Timmins camp where he discovered the Timmins Gold Deposit for which he later negotiated a business combination with Lake Shore Gold Corp. (LSG:TSX). He remains a sig-nificant shareholder and an advisor to Lake Shore Gold Corp. Dr. Raman pre-viously spent 13 years with Campbell Chibougamau Mines/Campbell Resour-ces and the Royex Gold Mining Group of companies (now Barrick Gold Corpora-tion) in various management positions, including Vice President (1980 to 1986), where he played a key role in the discov-ery and development of six gold mines in Quebec, Ontario and NWT and sever-al major acquisitions. He holds a Ph.D. in Geology from Carleton University, Ottawa and a UNESCO Post-Graduate Diploma from the University of Vienna, Austria. He is the founder and chairman of Holmer Gold Mines Ltd., a private company currently developing the Loma Hierro silver mine in Cuba.

According to Bloomberg:

“Dr. K. Sethu Raman, Ph.D., FGAC, is the Founder of Holmer Gold Mines Limited and serves as its Chairman. Dr. Raman has been an Advisor at Comstock Met-als Ltd., since April 2016. He served as a Strategic Advisor of Golden Share Mining Corporation since January 19, 2011. Dr. Raman has over 46 years of international experience in all phases of exploration and mine development, acquisitions and operations including financial and legal areas. He has pioneered many new ex-ploration concepts and strategies which have led to the discovery of 11 signifi-cant gold, silver, copper, zinc, phosphate and uranium deposits located near es-tablished mining camps, seven of which went on to become producing gold mines in Canada. He has held senior executive positions in several public mining com-panies. He served as the Chief Execu-tive Officer and President of Holmer Gold Mines Limited from 1986 to 2004.

Dr. Raman was instrumental in the re-surgence of the West Timmins camp where he discovered the Timmins Gold Deposit for which he later negotiated a business combination with Lake Shore Gold Corp. He served as Advisor to Lake Shore Gold Corp from 2004 to 2016. He spent 13 years with Campbell Chi-bougamau Mines, Campbell Resources and Royex Gold Group of companies in various management positions including Vice President from 1980 to 1986 where he played a key role in gold discovery and development in six operating gold mines and major acquisitions including Hemlo Gold Mine and Nickel Plate Gold Mine. Dr. Raman has been the driving force behind the discovery and develop-ment of the Timmins West Gold mine in a previously unknown faulted extension of the Timmins Mining Camp. He joined as a Research Geologist and held various management positions including Vice President from 1980 to 1986. Here he played a key role in the discovery and de-velopment of six gold mines in Quebec, Ontario and the Canadian Arctic increas-ing the market cap from $25M to $1B. Subsequently these companies were sold to Home Stake Mining (now Barrick Gold) and Patino Mining Corp. Dr. Raman has been an Independent Director of North-ern Graphite Corporation since Septem-ber 7, 2010. He has been an Independent Non Executive Director of Red Crescent Resources Ltd. since August 2009. He has been a Director of CBD MED Research Corp. since May 27, 2014 and Holmer Gold Mines Limited since 1986. He has been an Independent Director of SGX Resources Inc. since August 8, 2012. He serves as an Independent Non-Executive Director for Red Crescent Resources Hold-ing A.S. He has been a Director of Zara Resources Inc since August, 2013. He has been a Director at Exchequer Resource Corp. since May 27, 2014. He served as a Member of Advisory Board at Golden Share Mining Corporation since January 19, 2011. He served as a Director of Altai Resources Inc. from September 4, 2001 to June 3, 2013. He served as a Director of Moneta Porcupine Mines Inc. since January 5, 2010. He served as a Director of Lake Shore Gold Corp. from Decem-ber 31, 2004 to May 12, 2010 and Nico Mining Limited since August 20, 2009. He is a Exploration Geologist. Dr. Raman holds a Ph.D. degree in Geology from Carleton University, Ottawa in 1970 and a UNESCO Post-Graduate Diploma from the University of Vienna, Austria in 1965.”

Über MGX Minerals Inc.

MGX Minerals Inc. is a diversified Canadian mining company engaged in the acquisition and development of industrial mineral deposits that offer near-term production potential, minimal barriers to entry and low initial capital expenditures. MGX‘s flagship property is the Driftwood Creek Magnesium Deposit, which is being rapidly advanced towards production. MGX has also consolidated key mining claims throughout the Driftwood district and now controls the majority of known magnesite occurrences in British Columbia, Canada.• Located in historic Brisco-Driftwood Mining District of southeastern BC;• Excellent infrastructure including access to rails, road, labor and electricity;• Potentially amenable to low-cost, open pit mining methods.The Driftwood Creek project is hosted by the Precambrian-aged Mount Nelson Formation. This sedimentary formation is approximately 1,300 meters thick and intruded by younger felsic and mafic igneous dykes. Magnesite mineralization occurs in the upper half of the formation and is well exposed at surface along as an isolated topographic ridge. Mineralization is stratigraphically associated with red to purple dolomites, cherty dolomites, stromatolitic dolomites, dissolution breccias and other sedimentary rock units containing dolomite pseudomorphs. Stromatolitic textures are preserved locally within magnesite-bearing rocks.

Research Übersicht:

Research #5 “Es ist Zeit für einen Lithium-Produktionsprozess“

Research #4 “MGX Minerals will Kanadas womöglich grösste hochgradige Lithium-Ressource anzapfen“

Research #3 “MGX Minerals Inc. erhält Minen-Pacht für 20 Jahre (in British Columbia!)“

Research #2 “MGX Minerals beschleunigt in Richtung Produktion“

Research #1 “MGX Minerals plant für 2016 den Magnesium-Markteintritt“

5 Research #6 | MGX Minerals Inc.

6 Research #6 | MGX Minerals Inc.

By Kal Kotecha on April 14, 2016, for the Junior Gold Report

According to Business Insider: Lith-ium is a critical component of the lith-ium-ion batteries made by Tesla used to power its high-performance elec-tric cars and the Powerwall, its home power storage unit. Lithium has been one of the few commodities for which prices have been sustained over re-cent months in the global commodities rout. Australian fund manager Paragon estimates that demand will continue to increase by around 10% a year.

The truth is that Tesla will not be a sig-nificant user of lithium compared to other major procurers, such as China. Of course this is comparing one com-pany against the largest populous country in the world -- A David versus Goliath scenario and we know who won that battle. But it demonstrates the fact that lithium is an increasing-ly desirable commodity for business-es and nations across the globe. This trend will greatly increase the demand for junior mining companies that work toward developing lithium properties - such as MGX Minerals Inc.

Jared Lazerson continues his brilliant quest of acquiring properties poised for production. His latest coup was to purchase lithium properties. As per the recent news release: MGX previ-ously entered into a purchase agree-ment for a 100-per-cent undivided interest in 12 metallic and industrial

mineral permits encompassing 96,000 hectares throughout the province of Alberta (see press release dated Feb. 1, 2016). These permits were acquired based on compilation of historic ex-ploration for lithium by the province, as well as oil and gas well data and known geology. MGX’s current lith-ium-brine-bearing land position by way of permits and permit applica-tions now stands at over 540 square miles (141,000 hectares). The permits and permit applications are all geo-logically associated with current and past-producing oil fields.

On April 14th the company announced: MGX Further Expands Lithium Land Position to 300,000 hectares in Alberta

The Permits encompass known historic high-grade lithium values (>100 mg/L) as reported in the Province of Alberta Industrial Minerals database. MGX now controls a significant portion of lithium bearing areas throughout the Province of Alberta. This includes large strategic land blocks located throughout Mack-enzie County of northwestern Alberta with close proximity to historic oil fields. MGX’s lithium brine bearing land position now spans over 300,000 hec-tares (1,160 square miles) with signifi-cant holdings in the geologically-favor-able areas of Mackenzie, Fox Creek and Red Deer.

Major existing infrastructure including wells, roads and power are available on MGX’s lithium properties along with the support of nearby oil field services. MGX continues to focus on leveraging existing infrastructure in cooperation with oil and gas operators and all levels of government with the explicit goal of moving to immediate test production and test processing of lithium brine. Alberta offers the unique advantage in the global lithium race of massive existing infrastructure associated with lithium brine bear-ing areas and large existing historical databases essentially, in these areas, eliminating the need for conventional exploration drilling.

In connection with the Agreement,

MGX has agreed to issue one million common shares of the Company, with 333,000 shares due at closing and an additional 333,000 shares due on the first and second anniversaries. The Company will also issue cash payments totaling CA$60,000, with CA$20,000 due at closing and an additional CA$20,000 due on the first and second anniversaries. MGX has also granted a 2% Net Smelter Royalty to the Syndi-cate, of which 1% may be repurchased by the Company for a one-time cash payment of CA$1 million.

Also on April 14th, the Company an-nounced: MGX Minerals Receives In-itial Process Design and Scoping Study for Production of Lithium Carbonate

The Study includes flowsheet recom-mendations and operational expendi-ture (OPEX) calculations to process lithium-bearing brine of 20,000 bpd (barrels per day) in a commercial plant. The process proposes to significantly reduce the process time versus trad-itional solar evaporation, which is up to 18 months. The process is designed to rapidly separate brine minerals to produce various compounds including lithium carbonate, sodium chloride and calcium chloride. The implementation of multiple product lines is designed to maximize potential revenue and re-duce the lithium carbonate equivalent cost of production.

Utilizing significant literature search-es, solubility models and in-house brine expertise, a workable process was developed by Cementation AG. A flowsheet, non-iterative mass bal-ance, evaporator load, pond sizing, equipment list and operating costs were also developed based on water analyses from historic central wells located on MGX’s Fox Creek Property.

“The proposed process developed by Cementation AG provides for a mod-ern industrial process that would re-duce evaporation time and provide for a number of product lines to offset potential costs and increase potential long term profits,” stated MGX Presi-dent and CEO Jared Lazerson.

Why is This Becoming the Mineral of Choice?

7 Research #6 | MGX Minerals Inc.

Swan Hills Formation: The Company has identified an initial group of 16 past produ-cing wells for test production. These wells are located within the lithium bearing brine pools of the Swan Hills formation near Fox Creek and cover an area of approximately 8 km in length and reach up to 3.2 km in width.

In Rockstone Research’s recent article on MGX Minerals, Stephan Bogner reports:

The lithium property from MGX contains dozens of oil wells with significant previ-ous production of brine from hundreds to thousands of barrels per well per day. Past production indicates very low oil produc-tion of generally less than 3% resulting in very high brine production. MGX is focused on leveraging the massive existing infra-structure including wells, roads, power and fluids handling expertise in the Fox Creek region, where unemployment rates have risen dramatically due to a shrinking of the oil and gas industry in recent years. Today, MGX announced the identification of 16 past producing wells for test production in the lithium-bearing Swan Hills Formation near Fox Creek. A central well of the 8 x 3 km well-cluster reported historical lith-ium grades of 130 mg/L, another well 3 km away reported 117 mg/L, and a third well 10 km away showed 130 mg/L again. Past production of brine in the most recent wellhead production reports for the clus-ter totaled 17,000 barrels per day (“bpd”), which would be 6.2 million barrels or 740 million litres per year. Assuming a grade of 130 mg/L, ~96 t of lithium could be pro-duced each year which equates to ~511 t of lithium carbonate at 100% recovery (at $14,000/t lithium carbonate valued at $7.2 million USD, which number appears to be a good cost scale for a pilot plant). The costs of drilling a new well at this depth could

easily exceed $2 million USD (plus pipelines, water re-injection equipment, permitting etc.). Thus, 16 new wells could cost more than $32 million USD, however MGX does not plan to incur those costs because the existing wells are operational. MGX could just pump and go; thus utilizing existing pipelines and other infrastructure near-by. From a business and environmental stand-point, this would be highly advantageous. MGX is in discussion with specialized en-gineering firms for initial design process flow and equipment list to build a 20,000 bpd plant for the extraction of lithium, potassium and magnesium compounds. MGX aims to design a conventional high efficiency, high recovery extraction facility.

We at JGR have had the pleasure of interviewing Mr. Lazerson:

(1) JGR: Can you tell us about the lith-ium properties—where are they locat-ed? Do they contain oil?

JL: The properties are throughout Al-berta with a central block near Fox Creek. This is an old oil producing area so there is still some oil in the wells but they are primarily producing brine on average 98% brine / 2% oil. There are a variety of well categories, currently operating, shut-in and abandoned. Our preference is to use existing wells with operators in place but in time we will operate our own wells or acquire operat-ing wells and this may include the oil or gas as well.

(2) JGR: How did you receive these lith-ium claims? What did you have to give up in return?

JL: We acquired the claims from vari-ous parties that were working togeth-er. The initial claims covering 96,000ha were acquired for 1.5M shares (over 3 years) and $20,000 cash. We just staked an additional 45,000ha to connect and expand certain claims and expect to have these formalized within 30 days. We are excited about our intial pro-cess design and scoping study as stat-ed on our news release on April 14th.

(3) JGR: Can you monetize if so, exactly how and when?

JL: We are just completing our initial plant design and will do some metal-lurgy testing. We focused on leveraging existing technologies but combining them in a new way to produce lithium

and other industrial minerals so we ex-pect our CAPEX and operating numbers to be quite strong particularly in light of a potentially vast resource base. So, in short we would aim for cash flow within the year.

(4) JGR: What are the start-up costs?

JL: We are working with various par-ties on the financing of the initial com-mercial plant. Our potential partners each have various interests which have brought us together, some are local so they are focused more on regional or oil business opportunities others just want to be in battery commodities such as lithium. Although there are a number of items to address in terms of permit-ting, construction and production, it is our strategic goal of being in production within the year.

(5) JGR: Can you let us know about the oil – start-up costs, monetization etc.?

JL: The oil, in the ratios we have dis-cussed, would represent about 25% of the potential revenue so it is significant but the acquisition of oil rights and wells or drilling of wells is a significant under-taking so we see this as a long term or regional opportunity, in areas where there is essentially no production but good lithium grades. Right now we are working with existing operators where they have the oil rights and we have the mineral rights. We will look to acquire oil rights in the right scenario at the right time.

(6) JGR: Please let us know about the pat-ents? What is it for? How is it useful for MGX? How will MGX use it and monetize?

JL: At this time we are developing a pro-prietary process and it is likely we will file patents. The process we are using, to our knowledge, has never been used before. It is complex but essentially con-ventional solution that is specifically designed for highly mineralized brine leveraging inputs from western Canada. It is the in-between step between brine evaporation, which is cheap but takes a year and a half to produce, and hard-rock, which is underground mining and very expensive.

(7) JGR: As my readers are aware, XMG Minerals is a diversified company that holds magnesium claims (please see news release dated April 14 below).

8 Research #6 | MGX Minerals Inc.

Can you please let us know is happen-ing with the bulk tonnage of magne-sium?

JL: We tried to get this done in the dead of winter and it just wasn’t pos-sible to get the road development com-pleted with the snow. Right now haul road construction is underway as part of our comprehensive development agreement with Dominion Excavating a local First Nation’s owned company. We would expect this to be complet-ed within a few weeks and blasting and loading to commence shortly thereafter.

(8) JGR: Will you be able to excavate and sell more bulk tonnage?

JL: Yes. This is our plan as part of our in-itial operations and move to cash flow.

(9) JGR: Is there any off-take agree-ments in place?

JL: No. We have a strong list of custom-ers in both North America and Europe that are waiting on bulk samples.

(10) JGR: What is the cap-ex – where will you get the money from?

JL: We are squeezing the CAPEX down as small as possible to produce a modular scalable solution. The CAPEX will be a combination of equity and debt. At this time the high interest corporate debt market is quite strong with bank rates near an all-time low around 2% so we look to finance primarily with debt, but you always need some equity.

(11) JGR: Anything else you’d like to add?

JL: MGX is committed to its goal of ac-quiring and developing industrial min-eral properties in western Canada with low barriers to entry and low CAPEX. We continue to execute rapidly and are excited moving into 2016 with two ma-jor projects in Magnesium and Lithium underway.

MGX Minerals Inc. (CSE: XMG) offers high potential near-term share gains as a result of its movement to the de-velopment and production phase of their project. As stated by CEO Jared Lazerson himself, the Company intends to enter production within the year, and upon the announcement of this produc-tion, it’s expected that the share price

of $0.10 will not stay there for too long. MGX’s greatest strategic advantage is the diversification of minerals housed within its properties, which effective-ly sets the Company up with multiple streams of revenue that can be fully exploited based on market conditions. The Company’s management team has continually demonstrated clear strategic planning and execution, and we expect shareholders will benefit greatly when investing in MGX Minerals Inc.

Please visit the in-depth corporate presentation

Happy Investing!

Kal Kotecha PhDEditor of the Junior Gold Reportemail: kal@juniorgoldreport.comwebsite: www.juniorgoldreport.com

Kal Kotecha, PhD, is the editor and founder of the Junior Gold Report, a publication about small cap mining stocks that is read and enjoyed by thousands of investors. He was the editor and creator of the Moly/Gold Report, which focused on critical analyses and open journalism of companies profiting from the precious and base metals sector. The scope of his current activities include worldwide onsite analyses and reporting of developing companies. Kal has previously held leadership positions with many junior mining companies. After completing his MBA in Finance in 2007, Kal completed his PhD in Business Adminis-tration in January 2016. His thesis was on the Affective Heuristics of the 2008 stock market crash. He also lectures Economics at the Uni-versity of Waterloo and Niagara College where he was voted Professor of the Year 2013/2014.

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Therefore, information provided herewithin should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the au-thor assumes to be reliable. No Offer to Sell Securities: JGR is not a registered investment advisor. JGR is intended for informational, educational and research purposes only. It is not to be considered as investment advice. Subscribers are encouraged to conduct their own research and due diligence, and consult with their own independent financial and tax advisors with respect to any investment opportunity. No statement or expression of any opinions contained in this report consti-tutes an offer to buy or sell the shares of the companies mentioned herein. Links: JGR may contain links to related websites for stock quotes, charts, etc. JGR is not responsible for the content of or the privacy practices of these sites. Release of Liability: By reading JGR, you agree to hold Junior Gold Report its associates, sponsors, affiliates, and partners harmless and to completely release them from any and all liabilities due to any and all losses, dam-ages, or injuries (financial or otherwise) that may be incurred. Forward Looking Statements Except for statements of historical fact, cer-tain information contained herein constitutes forward-looking statements. Forward looking statements are usually identified by our use of certain terminology, including “will”, “be-lieves”, “may”, “expects”, “should”, “seeks”, “anticipates”, “has potential to”, or “intends’ or by discussions of strategy, forward looking numbers or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not histor-ical facts, and include but are not limited to, estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to the effectiveness of the Company’s business model; future oper-ations, products and services; the impact of regulatory initiatives on the Company’s oper-ations; the size of and opportunities related to the market for the Company’s products; general industry and macroeconomic growth rates; expectations related to possible joint and/or strategic ventures and statements regarding future performance. Junior Gold Report does not take responsibility for accur-acy of forward looking statements and advis-es the reader to perform own due diligence on forward looking numbers or statements.

Disclaimer, Haftungsausschluss und sonstige Informationen über diesen Research Report und den Autor:

Rockstone ist ein Research-Haus, das auf die Analyse und Bewertung von Kapital-märkten und börsengelisteten Unterneh-men spezialisiert ist. Der Fokus ist auf die Exploration, Entwicklung und Produktion von Rohstoff-Lagerstätten ausgerichtet. Durch Veröffentlichungen von allgemei-nem geologischen Basiswissen erhalten die einzelnen Unternehmensanalysen aus der aktuellen Praxis einen Hintergrund, vor welchem ein weiteres Eigenstudium angeregt werden soll. Sämtliches Research wird unseren Lesern auf dieser Websei-te und mittels dem vorab erscheinenden Email-Newsletter gleichermaßen kostenlos und unverbindlich zugänglich gemacht, wo-bei es stets als unverbindliche Bildungsfor-schung anzusehen ist und sich ausschliess-lich an eine über die Risiken aufgeklärte, aktienmarkterfahrene und eigenverant-wortlich handelnde Leserschaft richtet.

Alle in diesem Report geäusserten Aussa-gen, ausser historischen Tatsachen, sollten als zukunftsgerichte Aussagen verstanden werden, die mit erheblichen Risiken ver-bunden sind und sich nicht bewahrheiten könnten. Die Aussagen des Autors unterlie-gen Risiken und Ungewissheiten, die nicht unterschätzt werden sollten. Es gibt keine Sicherheit oder Garantie, dass die getätig-ten Aussagen tatsächlich eintreffen oder sich bewahrheiten werden. Daher sollten die Leser sich nicht auf die Aussagen von Rockstone und des Autors verlassen, sowie sollte der Leser anhand dieser Informatio-nen und Aussagen keine Anlageentschei-dung treffen, das heisst Aktien oder sonstige Wertschriften kaufen, halten oder verkau-fen. Weder Rockstone noch der Autor sind registrierte oder anerkannte Finanzbera-ter. Bevor in Wertschriften oder sonstigen Anlagemöglichkeiten investiert wird, sollte jeder einen professionellen Berufsberater konsultieren und erfragen, ob ein derar-tiges Investment Sinn macht oder ob die Risiken zu gross sind. Der Autor, Stephan Bogner, wird von Zimtu Capital Corp. be-zahlt, wobei Teil der Aufgaben des Autors ist, über Unternehmen zu rechechieren und zu schreiben, in denen Zimtu investiert ist. Während der Autor möglicherweise nicht direkt von dem Unternehmen, das ana-lysiert wird, bezahlt und beauftragt wur-de, so würde der Arbeitgeber des Autors, Zimtu Capital, von einem Aktienkursanstieg profitieren. Darüberhinaus besitzt der Au-tor ebenfalls Aktien von MGX Minerals Inc.

und würde von einem Aktienkursanstieg ebenfalls profitieren. Es kann auch in man-chen Fällen sein, dass die analysierten Un-ternehmen einen gemeinsamen Direktor mit Zimtu Capital haben. Somit herrschen Interessenkonflikte vor. Die vorliegenden Ausführungen sollten somit nicht als un-abhängige “Finanzanalyse” oder gar “Anla-geberatur” gewertet werden, sondern als “Werbemittel”. Weder Rockstone noch der Autor übernimmt Verantwortung für die Richtigkeit und Verläßlichkeit der Informa-tionen und Inhalte, die sich in diesem Re-port oder auf unser Webseite befinden, von Rockstone verbreitet werden oder durch Hyperlinks von www.rockstone-research.com aus erreicht werden können (nachfol-gend Service genannt). Der Leser versichert hiermit, dass dieser sämtliche Materialien und Inhalte auf eigenes Risiko nutzt und weder Rockstone noch den Autor haftbar machen werden für jegliche Fehler, die auf diesen Daten basieren. Rockstone und der Autor behalten sich das Recht vor, die Inhal-te und Materialien, welche auf www.rock-stone-research.com bereit gestellt werden, ohne Ankündigung abzuändern, zu verbes-sern, zu erweitern oder zu enfernen. Rock-stone und der Autor schließen ausdrück-lich jede Gewährleistung für Service und Materialien aus. Service und Materialien und die darauf bezogene Dokumentation wird Ihnen “so wie sie ist” zur Verfügung gestellt, ohne Gewährleistung irgendeiner Art, weder ausdrücklich noch konkludent. Einschließlich, aber nicht beschränkt auf konkludente Gewährleistungen der Taug-lichkeit, der Eignung für einen bestimm-ten Zweck oder des Nichtbestehens einer Rechtsverletzung. Das gesamte Risiko, das aus dem Verwenden oder der Leistung von Service und Materialien entsteht, ver-bleibt bei Ihnen, dem Leser. Bis zum durch anwendbares Recht äußerstenfalls Zuläs-sigen kann Rockstone und der Autor nicht haftbar gemacht werden für irgendwelche besonderen, zufällig entstandenen oder indirekten Schäden oder Folgeschäden (einschließlich, aber nicht beschränkt auf entgangenen Gewinn, Betriebsunterbre-chung, Verlust geschäftlicher Informatio-nen oder irgendeinen anderen Vermögens-schaden), die aus dem Verwenden oder der Unmöglichkeit, Service und Materialien zu verwenden und zwar auch dann, wenn Investor Marketing Partner zuvor auf die Möglichkeit solcher Schäden hingewiesen worden ist. Der Service von Rockstone und des Autors darf keinesfalls als persönliche oder auch allgemeine Beratung aufgefasst werden. Nutzer, die aufgrund der bei www.rockstone-research.com abgebildeten oder bestellten Informationen Anlageentschei-

dungen treffen bzw. Transaktionen durch-führen, handeln vollständig auf eigene Gefahr. Die von der www.rockstone-rese-arch.com zugesandten Informationen oder anderweitig damit im Zusammenhang ste-hende Informationen begründen somit kei-nerlei Haftungsobligo. Rockstone und der Autor erbringen Public Relations und Mar-keting-Dienstleistungen hauptsächlich für börsennotierte Unternehmen. Im Rahmen des Internetangebotes www.rockstone-re-search.com sowie auf anderen Nachrich-tenportalen oder Social Media-Webseiten veröffentlicht der Herausgeber, dessen Mit-arbeiter oder mitwirkende Personen bzw. Unternehmen journalistische Arbeiten in Form von Text, Bild, Audio und Video über Unternehmen, Finanzanlagen und Sach-werte. Ausdrücklich wird darauf hingewie-sen, dass es sich bei den veröffentlichten Beiträgen um keine Finanzanalysen nach deutschem Kapitalmarktrecht handelt. Trotzdem veröffentlichen wir im Interesse einer möglichst hohen Transparenz gegen-über den Nutzern des Internetangebots vorhandene Interessenkonflikte. Mit einer internen Richtlinie hat Rockstone organi-satorische Vorkehrungen zur Prävention und Offenlegung von Interessenkonflikten getroffen, welche im Zusammenhang mit der Erstellung und Veröffentlichung von Beiträgen auf dem Internetangebot www.rockstone-research.com entstehen. Diese Richtlinie ist für alle beteiligten Unterneh-men und alle mitwirkenden Personen bin-dend. Folgende Interessenkonflikte können bei der Rockstone im Zusammenhang mit dem Internetangebot www.rockstone-re-search.com grundsätzlich auftreten: Rock-stone oder Mitarbeiter des Unternehmens können Finanzanlagen, Sachwerte oder unmittelbar darauf bezogene Derivate an dem Unternehmen bzw. der Sache über welche im Rahmen der Internetangebote der Rockstone berichtet wird, halten. Rock-stone oder der Autor hat aktuell oder hatte in den letzten 12 Monaten eine entgeltli-che Auftragsbeziehung mit den auf www.rockstone-research.com vorgestellten Un-ternehmen oder interessierten Drittpartei-en über welches im Rahmen des Interne-tangebots www.rockstone-research.com berichtet wird. Rockstone oder der Autor behalten sich vor, jederzeit Finanzanlagen als Long- oder Shortpositionen von Unter-nehmen oder Sachwerten, über welche im Rahmen des Internetangebotes www.rock-stone-research.com berichtet wird, einzu-gehen oder zu verkaufen. Ein Kurszuwachs der Aktien der vorgestellten Unternehmen kann zu einem Vermögenszuwachs des Autors oder seiner Mitarbeiter führen. Hieraus entsteht ein Interessenkonflikt.

9 Research #6 | MGX Minerals Inc.