June 6, 2016

Research #7Lithium in Alberta Magnesium in British Columbia

At the forefront of Alberta‘s lithium brine riches

Today, MGX Minerals Inc. reported to have acquired the intellectual property and design rights to a proprietary processing design which proposes to reduce lithium brine evaporation times by >99% over standard solar evaporation pond processes, from approximately 18 months to 1 day. The design was developed as part of the previously announced Design & Scoping Study for its highly mineralized lithium brine properties in Alberta, which include 14 of the 24 highest grade (>90 mg/L) lithium assays thoughout the province, as reported by the Alberta Geological Service. All intellectual property rights have now been acquired from the inventor. The company has retained Fasken Martineau, an international business law firm, to conduct an intellectual property assessment and prepare documentation for the filing of a patent. Rockstone believes that today’s news demonstrate that the process flowsheet, designed by Cementation AG, has been working successfully for the highly mineralized brine associated with MGX’s lithium properties in Alberta. With this technology in hand, coupled with the vast existing infrastructure in Alberta, MGX could be clearly at the forefront of the rapidly developing lithium brine industry, especially in Alberta. A maiden NI43-101 Technical Report is expected to be completed by next week.

Company Details

MGX Minerals Inc.#303 - 1080 Howe StreetVancouver, BC, Canada V6C 2T1Phone: +1 604 681 7735 Email: jared@mgxminerals.comwww.mgxminerals.comShares Issued & Outstanding: 41,603,017

Canadian Symbol (CSE): XMGCurrent Price: $0.195 CAD (June 3, 2016)Market Capitalization: $8 million CAD

German Symbol / WKN: 1MG / A12E3PCurrent Price: €0.14 EUR (June 3, 2016)Market Capitalization: €6 million EUR

Chart Canada (CSE)

Chart Germany (Frankfurt)

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GX Minerals’ President and CEO, Jared Lazerson, commented today:

“This proprietary design process, com-bined with vast existing infrastructure in Alberta, positions MGX at the forefront of the rapidly developing lithium brine in-dustry. The potential advantage of using a new design to reduce lithium brine pro-cessing time is significant. Solar evapor-ation is necessary due to a deficiency of infrastructure that existing lithium brine producers face, particularly in the remote high altitude deserts of South America where options are extremely limited. As well, the cost/revenue model has shifted dramatically due to surging demand for lithium compounds, creating an oppor-tunity to change how lithium is produced moving forward. There are a number of areas for improvement including the elimination of solar evaporation. We be-lieve the Company has solved the issue of very long production times, relatively low recoveries (40-50%) currently asso-ciated with lithium brine processing, and real estate requirement of lake size solar evaporation ponds. We are now mov-ing to protect this intellectual property as it may have great value to MGX and the lithium industry moving forward.”

On April 14, MGX received an initial Process Design & Scoping Study from Cementation AG, an engineering consultation firm that was engaged to analyze the extraction of minerals from the heavily mineralized brine of the Fox Creek and Swan Hills areas within MGX’s portfolio of Alberta lithium properties. The study includes flowsheet recommendations and operational expenditure (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 traditional 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 reduce the lithium carbonate equivalent cost of production. A flowsheet, non-iterative mass balance, 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. Jared Lazerson commented on April 14:

“The proposed process developed by Cementation AG provides for a modern industrial process that would reduce evaporation time and provide for a number of product lines to offset potential costs and increase potential long term profits.”

On May 9, MGX received the initial CAPEX (capital expenditure) report for a lithium carbonate production plant from Cementation AG. The CAPEX budget is the second part of the previously received initial Process Design & Scoping Study. Cementation AG formulated a detailed initial CAPEX budget based on quotations from potential vendors in addition to applying in-house expertise and experience.

Scoping Study Highlights

Further details of the proposed process and production plant design are provided as follows:

• Reduction of production time of lithium carbonate by greater than 99% over current traditional brine production (1 day versus 18 months);

• multiple end market products including

lithium carbonate, sodium chloride and calcium chloride with potential for addition of boron and bromine production;

• strategic sourcing of reagents and energy to reduce input costs;

• application of energy efficient technology to significantly reduce potential operating expenditures (OPEX); and

• utilization of existing oil and gas infrastructure and expertise to reduce CAPEX and OPEX.

The Study also includes a metallurgy testing protocol. MGX is currently evaluating metallurgical laboratories for bench testing of the proposed process.

As a result of the CAPEX report, Cementation AG has provided a 6-month engineering and development project plan to follow metallurgy testing for the detailed engineering of the proposed lithium carbonate plant.

On May 18, MGX reported to now control 14 of the top 24 historical high-grade lithium properties (>90 mg/L, up to 140 mg/L) as reported by the Alberta Geological Service in 2013. The dataset comprises lithium geochemical data from ground and formation water in Alberta and near the Alberta border. The data was captured from several databases, including the Alberta Geological Survey (oil and gas wells database, AERI and Beaver River Basin projects), and the Alberta Research Council. In total there are 1,511 records, of which 48 records have >75 mg/L lithium. 19 analyses have >100 mg/L lithium (up to 140 mg/L) and occur within the Middle to Upper Devonian Beaverhill Lake Formation and Woodbend and Winterburn groups of west-central to northwestern Alberta.

Research #7 | MGX Minerals Inc.

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On May 18, MGX also reported to have engaged APEX Geoscience to complete a NI43-101 compliant technical report on MGX’s Alberta lithium properties. Mr. Roy Eccles (P. Geo.) will author the technical report.

Mr. Eccles is considered one of the foremost experts on Alberta lithium brine, having spent 25 years of his career at the Alberta and Manitoba Geological Surveys. While at the Alberta Geologic Survey, Eccles oversaw the above mentioned Province-wide sampling program responsible for compiling lithium values from oil and gas wells in Alberta. Eccles obtained his B.Sc. and M.Sc. from the Universities of Manitoba and Alberta. He completed his thesis on “The Petrogenesis of the Northern Alberta Kimberlite Province”. Eccles is a practicing professional geologist with the Association of Professional Engineers and Geoscientists of Alberta. He has over 26 years of mineral exploration experience encompassing a wide range of geological processes and commodities. Eccles has published over 70 manuscripts and 75 oral presentations. He is internationally recognized for his research and knowledge of the geology and economic mineral potential of the Canadian Shield and the Western Sedimentary Basin.

MGX believes that completion of a NI43-101 compliant Technical Report is an important first step towards potentially developing future mineral resources for its properties. The Technical Report will include detailed geological and historical information on the properties and is expected to be completed in one month (i.e. by June 18).

Rockstone is looking forward to the receipt of this NI43-101 compliant Technical Report as MGX has not yet completed a mineral estimate of the Alberta Lithium Properties and the initial Process Design & Scoping Study’s purpose was solely to develop a process design, not to provide a preliminary economic assessment. Readers are also cautioned that the company has not completed a pre-feasibility or feasibility study which establishes mineral reserves with demonstrated economic and technical viability.

Figure above: Historic wells in the Swan

Hills Formation

Figure to the left:

Historic Well Production

(boe/d)

Research #7 | MGX Minerals Inc.

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About MGX Minerals Inc.

MGX Minerals Inc. is a diversified Canadian mining company engaged in the acquisition and development of industrial mineral deposits in western Canada that offer near-term production potential, minimal barriers to entry and low initial capital expenditures. The company operates lithium, magnesium and silicon projects throughout British Columbia and Alberta, including the Driftwood Magnesium Project, which is being rapidly advanced towards production. MGX has also consolidated key mining claims throughout the Driftwood Mining District and now controls the majority of known magnesite occurrences in British Columbia. MGX has recently received approval of a 20-year mining lease for Driftwood and bulk sampling is currently underway. For further information, please visit the company’s website at www.mgxminerals.com

Analyst Coverage

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

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

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

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

Research #2 “MGX Minerals Accelerates Towards Production“

Research #1 “MGX Minerals Plans To Enter The Magnesium Market In 2016“

Research #7 | MGX Minerals Inc.

MGX’s Alberta Lithium Properties

Overview

MGX has consolidated a strategic portfolio of lithium properties located throughout the Province of Alberta. The total land package spans more than 300,000 hectares and contains some of the highest reported levels of lithium bearing brine in Province, with lithium levels reaching up to 140 mg/L as reported in the Provincial Industrial Minerals database (1).

All permits and permit applications are geologically associated with current and past oil producing fields. MGX has identified an initial group of 16 past producing 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. Past production of brine in the most recent wellhead production reports for the cluster totaled approximately 17,000 bpd as reported in the GeoScout database. A central well within this cluster reported historical grades of 130 mg/L lithium and 2 additional nearby wells reported historical grades of 117 mg/L and 130 mg/L at 3 km and 10 km, respectively, as reported in the Provincial industrial minerals database.

Location & Infrastructure

All properties surround existing wells that have provided initial historic assays. The properties are generally associated with past producing oil fields that are fully serviced with nearby roads, power and wellheads in place.

6 Permits are located in Alberta’s Fox Creek area and include wells with reported historic lithium values ranging from 115-140 mg/L, in the lithium-bearing Leduc and Swan Hills formations. The 6 Permit Applications cover various locations throughout the Province including the Keg River, Winterburn and Woodbend Group formations, with reported historic values ranging between 95-140 mg/L lithium.

Technical Consultants

MGX has engaged industry experts to lead development strategies of these properties, including The Lamar Corporation, Cementation AG and Mr. Derek Stonehouse.

The Lamar Corporation

The Lamar Corporation is led by Dr. Larry Marks, a 35-year industry veteran of the oil and gas sector. Dr. Marks spent 30 years in various executive roles for Shell Canada Ltd. and various Shell Group companies, including General Manager and Vice President of Marketing and Transportation for Shell Canada. He has experience in all facets of the oil and gas business, having worked extensively throughout Canada, Asia, Africa and the Middle East in his career.

While at Shell Canada, Dr. Marks implemented strategies for marketing, sales and transportation of energy and co-products in excess of more than $3 billion in annual revenue.

Cementation AG

Cementation AG (Above Ground Division) has completed a Process Design and Scoping Study for MGX’s Alberta lithium properties.

Derek Stonehouse

Mr. Stonehouse has over 26 years of experience in the oil and gas industry in western Canada, including the identification and drilling of over 140 horizontal wells. In particular, his experience with Northern Blizzard Resources, involving the re-development of an existing oil pool thought to be previously exhausted, and grass roots development of the Montney gas/condensate exploration target for Storm Resources, currently producing 10,000 bpd, are highly relevant to the development of MGX’s lithium fields.

(1) All assays referenced are from the geoScout Oil & Gas Industry database as reported by well operators and monitored by the Government of Alberta.

Vancouver Commodity ForumJune 14, 2016 at Hyatt Regency Hotel in Vancouver

Click Here to Register

Exhibitors:

92 Resources Corp. (TSX.V: NTY; Frankfurt: R9G2)ALX Uranium Corp. (TSX.V: AL; Frankfurt: 6LLN)Arctic Star Exploration Corp. (TSX.V: ADD; Frankfurt: 82A)Aurvista Gold Corp. (TSX.V: AVA; Frankfurt: AVA2)Belmont Resources Inc. (TSX.V: BEA; Frankfurt: L3L1)Canadian Zeolite Corp. (TSX.V: CNZ ; Frankfurt: ZEON)Commerce Resources Corp. (TSX.V: CCE; Frankfurt: D7H)Copper North Mining Corp. (TSX.V: COL; Frankfurt: 79M)Dunnedin Ventures Inc. (TSX.V: DVI; Frankfurt: 5DD)Electra Stone Ltd. (TSX.V: ELT; Frankfurt: 44E1)Equitas Resources Corp. (TSX.V: EQT; Frankfurt: T6UN)Group Ten Metals Inc. (TSX.V: PGE; Frankfurt: 5D31)MGX Minerals Inc. (CSE: XMG; Frankfurt: 1MG)Nevada Clean Magnesium Inc. (TSX.V: NVM; Frankfurt: M1V)Nickel One Resources Inc. (TSX.V: NNN; Frankfurt: 7N1)NRG Metals Inc. (TSX.V: NGZ; Frankfurt: OGPN)Scandium Int. Mining Corp. (TSX.V: SCY; Frankfurt: 0E6)True Leaf Medicine Int. Ltd. (CSE: MJ; Frankfurt: TLA)Umbral Energy Corp. (CSE: UMB; Frankfurt: 2UE)Vatic Ventures Corp. (TSX.V: VCV.H)Voltaic Minerals Corp. (TSX.V: VLT; Frankfurt: 2P61)Zimtu Capital Corp. (TSX.V: ZC; Frankfurt: ZCT1)

Program:

12:00 pm: Exhibitor floor opens

1:00 pm: Welcome from Dave Hodge, President of Zimtu Capital Corp.

1:10 pm: Participant company introductions by Dave Hodge and Sven Olsson

1:30 pm: Joe Martin (Cambridge House International): The difference between exploration and mining, and the importance of Vancouver

1:40 pm: John Kaiser (Kaiser Researcb Online): “Criticality of Supply” and how it effects world prices, demand, and the ability to use that to your advantage in the market place

2:10 pm: BREAK - Networking with refreshments

3:00 pm: Stephan Bogner (Rockstone Research): How European markets impact Canadian markets

3:20 pm: John Hykawy (Stormcrow Capital): Demand & Pricing for lithium, cobalt and other battery materials

3:50 pm: Gerry McCarvill (Aurvista): Hedging the metals mar-kets - How to contain the large down drafts of the last 5 years 4:00 pm: Chris Berry (Disruptive Discoveries Journal): The future of lithium

4:30-6:00 pm: Networking Session with refreshments

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Disclaimer and Information on Forward Looking Statements:All statements in this report, other than statements of historical fact should be con-sidered forward-looking statements. Much of this report is comprised of statements of projection. Statements in this report that are forward looking include that mag-nesium, lithium and metal prices are ex-pected to increase; that MGX Minerals Inc. or its partner(s) can and will start exploring further; that exploration has or will discov-er a mineable deposit; that the company can raise sufficient funds for exploration or development; that any of the mentioned mineralization indications or estimates are valid or economic. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in these forward-look-ing statements. Risks and uncertainties respecting mineral exploration and mining companies are generally disclosed in the annual financial or other filing documents of MGX Minerals Inc. and similar compan-ies as filed with the relevant securities commissions, and should be reviewed by any reader of this report. In addition, with respect to MGX Minerals Inc., a number of risks relate to any statement of projection or forward statements, including among other risks: the receipt of all necessary ap-provals and permits; the ability to conclude a transaction to start or continue develop-ment; uncertainty of future magnesium, lithium and metal prices, capital expendi-tures and other costs; financings and addi-tional capital requirements for exploration, development, construction, and operating of a mine; the receipt in a timely fashion of further permitting for its legislative, pol-itical, social or economic developments in the jurisdictions in which MGX Minerals Inc. carries on business; operating or tech-nical difficulties in connection with mining or development activities; the ability to keep key employees, joint-venture part-ner(s), and operations financed. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Ac-cordingly, readers should not place undue reliance on forward-looking information. Rockstone and the author of this report do not undertake any obligation to up-date any statements made in this report.

Disclosure of Interest and Advisory Cautions: Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned. Rockstone, its owners and the author of this report are not registered broker-dealers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an investment based solely on what you read in an online or printed report, including Rockstone’s report, especially if the investment involves a small, thinly-traded company that isn’t well known. The author of this report is paid by Zimtu Capital Corp., a TSX Venture Exchange listed investment company. Part of the author’s responsibilities at Zimtu is to research and report on companies in which Zimtu has an investment. So while the author of this report is not paid directly by MGX Minerals Inc., the author’s employer Zimtu will benefit from appreciation of MGX Minerals Inc.’s stock price. In addition, the author owns shares of MGX Minerals Inc. and would also benefit from volume and price appreciation of its stock. MGX Minerals Inc. may have one or more common directors with Zimtu Capital Corp. Thus, multiple conflicts of interests exist. Therefore, the information provided herewithin should not be construed as a financial analysis but rather as advertisment. 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 author assumes to be reliable. Rockstone and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. Lastly, the author does not guarantee that any of the companies mentioned will perform as expected, and any comparisons made to other companies may not be valid or come into effect. Please read the entire Disclaimer carefully. If you do not agree to all of the Disclaimer, do not access this website or any of its pages including this report in form of a PDF. By using this website and/or report, and whether or not you actually read the Disclaimer, you are deemed to have accepted it. Information provided is educational and general in nature

Analyst Profile & Contact

Stephan Bogner (Dipl. Kfm., FH)Mining Analyst Rockstone Research 8050 Zurich, SwitzerlandPhone: +41-44-5862323Email: sb@rockstone-research.com

Stephan Bogner studied at the International School of Management (Dortmund, Germany), the European Business School (London,

UK) and the University of Queensland (Brisbane, Australia). Under supervision of Prof. Dr. Hans J. Bocker, Stephan completed his diploma thesis (“Gold In A Macroeconomic Context With Special Consideration Of The Price Formation Process”) in 2002. A year later, he marketed and translated into German Ferdinand Lips‘ bestseller (“Gold Wars“). After working in Dubai for 5 years, he now lives in Switzerland and is the CEO of Elementum International AG specialized in duty-free storage of gold and silver bullion in a high-security vaulting facility within the St. Gotthard Mountain Massif in central Switzerland.

Rockstone is a research house specialized in the analysis and valuation of capital markets and publicly listed companies. The focus is set on exploration, development, and production of resource deposits. Through the publication of general geological basic knowledge, the individual research reports receive a background in order for the reader to be inspired to conduct further due diligence. All research from our house is being made accessible to private and institutional investors free of charge, whereas it is always to be construed as non-binding educational research and is addressed solely to a readership that is knowledgeable about the risks, experienced with stock markets, and acting on one’s own responsibility.

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Research #7 | MGX Minerals Inc.