Hombre Muerto North Project

HIGHLIGHTS

• Initial sample results for the second core hole indicate excellent lithium values with very low Mg/Li ratios. The arithmetic average of three samples taken to a depth of 61.5 m is 719 mg/l lithium with a magnesium to lithium ratio ranging from 2.1 to 3.3.

Adrian Hobkirk, CEO of NRG Metals Inc., commented, “We are encouraged to find high lithium grades in the first part of the second hole, and these results demonstrate the presence of lithium bearing brine across our Tramo property. We will have a more complete picture once this hole is completed and when we have the results of the pumping test from the large diameter hole completed adjacent to the first core hole.”

HIGHLIGHTS

• Brine samples collected from 300 to 401 meters (m) show high grade values very similar to the assays previously reported for the samples from surface to a depth of 300 m, with an arithmetic average 918 mg/l lithium and a low magnesium to lithium ratio.
• The arithmetic average lithium concentration for all of the samples from the surface to a depth of 401 m is 900 mg/l, with a relatively low magnesium to lithium ratio of 3.0 to 1.0.

José de Castro, Chief Operating Officer of NRG Metals Inc., commented “We are very enthusiastic about the results at Hombre Muerto Norte. We are seeing exceptionally high grades in a clastic host rock that appears to have good permeability, and the brine chemistry is very favorable. The production of lithium from brine involves concentration of lithium contained in the brine by evaporation. The Hombre Muerto brine is unsaturated, which means that it should be possible to concentrate the brine more quickly using less pond area than would be the case for a typical saturated brine. Furthermore, the sulfate and magnesium ratios are low compared to other salar brines, and this means that the consumption of lime and other reagents should be relatively low compared to other lithium projects. These characteristics imply favorable operating and capital cost profiles, should the economic and technical feasibility of the project be established.”

HIGHLIGHTS

• Brine samples collected from 100 - 300 meters show high grade values very similar to the assays for the samples from surface to a depth of 100 meters, with an average 888 mg/l Li and a low Mg to Li ratio.
• The hole has been completed to a depth of 401 meters.
• Adjacent rotary drill hole for pump testing has been completed to a depth of 393 meters.
• Drilling has commenced on a second diamond core hole approximately 2.1 kilometers to the east of the first hole.

José de Castro, Chief Operating Officer of NRG Metals Inc., commented...
“We are very excited about the outstanding results from our first hole. The results continue to exceed our expectations. These high grades and favorable Mg to Li ratios have the potential to have a very positive impact on any future capital and operating costs should the economic viability and technical feasibility of the project be established. We are very encouraged to see the entry of POSCO from South Korea into the Hombre Muerto basin with their pending $280 million purchase of the northern part of the Sal de Vida lithium project from Galaxy Resources Ltd."

HIGHLIGHTS
• Brine samples collected over the first 100 meters average 905 mg/l Li with a low Mg to Li ratio.

• The hole is now at 300.5 meters in clastic sediments, and brine samples are currently being collected from 300 to 100 meters. Drilling will resume after the sampling is completed.

• Adjacent rotary drill hole for pump testing is at a depth of 173 meters.

José de Castro, Chief Operating Officer of NRG Metals Inc., commented...
“We are very excited about the exceptional results from the initial sampling. The lithium grades and low Mg to Li ratios exceeded our expectations. The high grades and favorable Mg to Li ratios have the potential to have a very positive impact on any future capital and operating costs should the economic viability and technical feasibility of the project be established."

NRG has mobilized a rotary drill to the Hombre Muerto North Lithium project to complement the diamond drill already at site. The rotary hole, which is located 15 meters east of the core hole currently underway, is to carry out pump testing.  Drilling has reached a depth of 245 meters.

The first diamond core hole has been advanced to a depth of 105 meters with a target depth of up to 350 meters. The geological profile observed so far in the core is that of sand, gravel, and clay, with a small halite zone, consistent with the expected geology. Brine was encountered from the top of the hole, and samples have been taken every ten meters from the current depth back to surface using a double packer unit.

Panoramic view - drill pad complete, drill rig on site and drilling staging underway.

Panoramic view - road construction out to drill location is now complete.  Next step is establishing the drill pad.