Grid Metals Makwa Mayville Project Update 2019 Focus on Project Advancement

TORONTO, ON / ACCESSWIRE / January 24, 2019 / Grid Metals Corp. GRDMMSMGF ("Grid" or "the Company") today provided an update on the Makwa Mayville Nickel Copper Project (the "Project") located in south eastern Manitoba, Canada. Grid is focused on developing the project towards feasibility study and production.

The Project was the subject of a Preliminary Economic Assessment (PEA, April 2014 prepared by RPA Inc. - see press release dated April 14, 2014)*. The Company is currently implementing several of the key recommendations of the PEA focused on improving the project economics and advancing the Project. Foremost among these is test work targeting increased nickel recovery from the Mayville Deposit (one of two deposits to be mined as per the PEA).

The Mayville resource reported in the April 2014 PEA contained ~105,000,000 pounds of nickel in the Indicated category and ~20,000,000 pounds in the Inferred category, and which when processed was expected to yield an average nickel recovery of 41% to final nickel concentrate over the life of mine. Improving nickel recovery from Mayville would add revenue to the Project and was one of the key recommendations made in the 2014 PEA.

Metallurgy Update

The first stage of the program completed to date analyzed the metal deportment from two representative samples of the deposit and outlined the potential for improvement of nickel recoveries from the nickel-copper bearing samples. The potential recovery of cobalt from Mayville mineralization was also assessed.

From the samples analyzed the following observations were made:

• Pentlandite is the main nickel mineral and contains ~90% of the total nickel with pyrrhotite containing ~10%.

• Pentlandite has a nickel:cobalt ratio of 18:1 and accounted for an average of 70% of the cobalt in the two samples.

• All of the copper is contained in chalcopyrite.

The initial conclusions of the mineralogical work were that;

• The process best suited to the samples analyzed was bulk rougher flotation of chalcopyrite and pentlandite with an emphasis on pyhrrotite rejection, followed by separation into copper and nickel concentrates.

• Enhancement of cobalt recovery and cobalt grade in the nickel concentrate could be possible through bulk rougher flotation followed by copper/nickel separation.

• Further flotation testwork should be completed in order to establish the flotation characteristics of the samples and likely grades and recoveries that could be achieved.

The metal contents of the samples analyzed were Sample 1 (1.01% Cu; 0.47% Ni; and 0.03% Co) and Sample 2 (0.53% Cu; 0.26% Ni and 0.02% Co). The metallurgical program is currently progressing including flotation testing with the objective to establish parameters of separate nickel and copper concentrates from Mayville and for cobalt recovery.

The Company plans to initiate an updated PEA for the Project in the event improved metallurgical input parameters are established.

The Company is also continuing its exploration focus for near-mine additional sources of mineralization at both Makwa and Mayville and is completing a program focused on known lithium bearing pegmatites in the Mayville area.

Ian Ward P. Eng. is overseeing the metallurgical program as a consultant to the Company and is a Qualified Person for NI 43-101 purposes and has approved the scientific and technical information in this release. The test program is being conducted under contract with XPS Expert Process Solutions ("XPS"), a Sudbury based technical consultancy and testing firm. XPS has extensive experience in flowsheet development and nickel-copper- cobalt ores.

To find out more about Grid Metals, please visit our website at www.gridmetalscorp.com.

On Behalf of the Board of Grid Metals Corp.

We seek safe harbour.

This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, "forward-looking statements"). Such forward-looking statements may include the Company’s plans for its properties, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risk, uncertainty of production and capital costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, metallurgical risk, currency fluctuations, fluctuations in the price of nickel, cobalt, copper and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company’s Management Discussion and Analysis for the most recent financial period and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.

Neither the TSX Venture Exchange nor it Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

SOURCE: Grid Metals Corp.