Market Overview

Mag One's Commercial Plant for High-Purity Magnesia and Silica On Track

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Tickers: XCNQ:MDD, XOTC:MGPRF, PINX:MGPRF
Tags: Mining

MONTREAL QUEBEC, CANADA / TheNewswire / 12 October 2017. MAG ONE PRODUCTS INC., ("Mag One" or the "Company") is pleased to announce that it has received positive feedback on its commercial high-purity magnesium oxide (MgO) and silica (SiO2) project description submitted this past summer to the Quebec Ministry of the Environment ("MDDELCC"). Specifically, Mag One has learned that the proposed project in Southeastern Quebec will not be subject to an environmental evaluation, a process which is often lengthy and costly. As such, the process to obtain a certificate of authorisation (CA) for the environmentally-friendly commercial 30,000 tonnes/year (tpy) high-purity magnesia and 33,000 tpy silica plant will be simpler, faster and more cost-effective, given that less administrative measures are involved.

"The timeline to bringing the environmentally sustainable MgO and SiO2 commercial plant online has been shortened greatly with this news," said Gillian Holcroft, President of Mag One. "We are one step closer to creating high tech jobs in the region. Our hydrometallurgical piloting facility at the MRC des Sources Mining Innovation Centre (CIMMS) will continue to generate engineering data for the commercial plant, as well as to produce high-purity silica and ultimately high-purity MgO for characterization and for off-take agreements. We are already in contact with potential commercial and product development partners for these materials." It is anticipated that the site for the commercial plant will be determined before the end of 2017.

Mag One has developed a unique, sustainable, chlorine-free approach to cost-effectively transforming serpentinite tailings into high-purity MgO and silica. Not only does the high-purity MgO have a significant commercial market, it will also serve as a feedstock for Mag One's innovative aluminothermic reduction process to produce magnesium metal.

Management's decision to begin permitting efforts, a key requirement for commercial operations, have not been based on results from a feasibility study of mineral reserves that would demonstrate economic and technical viability of the project. Without this study there is increased uncertainty and increased economic and technical risks. Management does intend to engage an engineering firm to carry out a pre-feasibility study once the pilot plant effort is nearing completion and will use the pilot data as a basis for the study.

The US Geological Survey (USGS) estimated that world primary magnesium production rose nearly 4% from 2015 to 2016 to 1,010,000 metric tonnes per year. Vehicle manufacturers are under constant pressure to reduce weight in vehicles for greater fuel efficiencies and lower emissions. The density of magnesium is 33% less than aluminum, but the carbon footprint of Chinese-produced magnesium metal (80% of the world production) via the Pidgeon Process (estimated at 23-26 kg CO2eq/kg Mg metal produced)* makes the use of magnesium challenging when looking at the overall life-cycle analysis of a vehicle. Mag One's unique process is aimed at dramatically reducing the magnesium metal production carbon footprint which should help support the adoption of magnesium and magnesium alloys in the automotive, aerospace and military industries. F

*Mar 2017 IMA Webinar "Environmental Benefits of Mg in Transport Applications"

Mag One Products Inc. is a company that aims to be a global leader in the magnesium (Mg) market by concentrating on four projects at its manufacturing plant sites in southern Quebec, Canada.

  1. I.Production of high -purity MgO, Silica and other saleable co-products, byproducts and compounds.

  2. II.Production of 99.9% pure Mg ingots.

  3. III.Magboard Products Inc., assembly and sale of MgO-based, structural insulated sheathing panels and wallboards.

  4. IV.MagPower's Mg-Air Fuel Cell for scalable emergency power on sea and land

Key advantages that these four projects share are Mag One's advanced technologies, a modular processing plant expansion concept, and the Company's easy access to tonnes of already-mined, serpentinite tailings.

Gillian Holcroft, Eng., M.Eng., President and Director of Mag One Products Inc., is the Company's designated qualified person for this press release, and has prepared and supervised the preparation of and approved the scientific and technical disclosure in this news release.

Signed: "Gillian Holcroft, Eng., M.Eng."

President and Director

www.MagOneProducts.com

For further information or questions kindly contact the Company via email: info@MagOneProducts.com and IR@MagOneProducts.com

Mag One listed on the CSE with the symbol, "MDD", the Borse Frankfurt stock exchange ("Frankfurt") and the Xetra with the ticker symbol "304" and the OTCQB with ticker symbol "MGPRF". The listings on the Frankfurt and OTCQB exchanges provide the company exposure to the European and U.S. markets and potential investors. Certain statements contained in this release may constitute "forward-looking statements" or "forward-looking information" (collectively "forward-looking information") as those terms are used in the Private Securities Litigation Reform Act of 1995 and similar Canadian laws. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated", "anticipates" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the business of the Company, the Property, financing and certain corporate changes. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein. This news release does not constitute an offer of securities for sale in the United States. CSE has not reviewed this news release and does not accept responsibility for the adequacy or accuracy of the content of this news release. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.

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