Nevada Clean Magnesium Announces Amendments to Joint Venture with Scanmag AS

VANCOUVER, BRITISH COLUMBIA / TheNewswire - July 19, 2016 - Nevada Clean Magnesium, Inc. (TSXV: NVM; Frankfurt-M1V; OTC Pink Sheets: MLYFF) (The "Company") today announced that it has amended certain terms of its Research and Development Joint Venture with ScanMag AS of Norway dated June 18, 2015 (the "R&D Agreement").

Under the terms of the R&D Agreement, ScanMag was to make an initial payment of USD$2,000,000 to NVM within 12 months, based on the assumption that certain research and development would have been completed within the timeframe of the agreement. Unfortunately difficulties with the equipment and research contractor has failed to provide the needed information. In order to permit further testing of the alternate reductant and allow sufficient time for ScanMag to submit funding grant applications to Enova As (a development bank in Norway) for $400 million NOK (approx. $45 million USD) to the construct full scale pilot furnaces to be operated and commercialized at ScanMag's facility in Norway, the parties have agreed to extend the time for the payment to NVM until December 18, 2016.

In addition, the parties have agreed that the joint venture operator under the R&D Agreement, Meloy Innovation and Technology Centre AS (MITC), is responsible to pay for the new reductant testing program to be completed by the research lab of the University of Colorado, for the salary and travel costs of James Sever to oversee that testing, and contribute $20,000 CDN toward the planning and fabrication of NVM's bench scale furnace currently being built in British Columbia. In other respects, the R&D Agreement remains in effect as before.

Lothar Maruhn of ScanMag AS states " We remain strongly committed to completing the joint venture between ourselves and Nevada Clean. Confirmation of the alternate reductant is a very important step for us and completion of the work will allow us to accelerate the commercialization of the process which benefits both our companies."

Edward Lee, CEO of the Company, states "Shareholders can now see that completing the test work will result, not only in the initial investment from ScanMag, but ultimately in the construction of commercialized full size furnaces. Any reduction in our timeline will be invaluable and we may be in a position to move straight to a bankable feasibility while conducting the prefeasibily study. So yes, we are very pleased that ScanMag remains committed to the completion of our joint venture."

About Nevada Clean Magnesium, Inc.

Nevada Clean Magnesium is focused on becoming a major U.S. producer and distributor of primary, high grade, low cost magnesium metal extracted from its 100% owned Tami-Mosi property located in North Central Nevada. Based on the Company's NI 43-101 Preliminary Economic Assessment Report published in September 2011 and amended in July 2014, the Tami-Mosi Project has an inferred resource of 412 million tonnes with an average grade of 12.3% Mg for a contained metal content of 111 billion pounds of magnesium using a 12% cut-off grade contained within a high purity dolomite block. For more information, please visit www.nevadacmi.com.

This news release was reviewed by the president of Nevada Clean Magnesium, James Sever, P. Eng. a qualified person recognized under NI 43-101.

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

To Reach Nevada Clean Magnesium Please Contact:

Edward Lee, CEO at (604) 210-9862

Forward-Looking Statement

Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements in this news release include that MITC will pay certain costs; statements about NVM becoming a major U.S. producer and distributor of primary, high grade, low cost magnesium metal, and that our Project has an inferred resource of 412 million tonnes.

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Actual results may differ materially from those currently anticipated due to a number of factors, including that results may not be as we expect, including that MITC may not raise sufficient funds to carry out its obligations; the Company's dolomite reserves may not be mined because of technical, regulatory, financing or other obstacles, the market price for magnesium may make our resources uneconomic, and other risks associated with being a mineral exploration and development company. These forward-looking statements are made as of the date of this news release and, except as required by applicable laws, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements.

For additional information please visit our website at http://www.nevadacmi.com or view our profile at http://www.sedar.com.

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