Mr. Jared Lazerson reports

MGX MINERALS CLOSES $6.3 MILLION FIRST TRANCHE OF NON-BROKERED PRIVATE PLACEMENT

Further to its news release dated Nov. 29, 2017, it has closed the first tranche of its previously announced non-brokered private placement financing for proceeds of up to $7.5-million.

The first tranche generated raising gross proceeds of $6,304,801.60 by issuance of 3,092,192 flow-through units at $1.05 per flow-through unit and 3,058,000 non-flow-through units at $1 per non-flow-through unit. The company anticipates closing its second and final tranche of the offering before Dec. 15, 2017.

Under the offering, the company planned to issue up to an aggregate of five million non-flow-through units and 2,380,852 flow-through units. The flow-through units were oversubscribed by 711,240 flow-through units in the first tranche.

Each non-flow-through unit comprises one common share of the company and one common share purchase warrant. Each warrant will entitle the holder to acquire one additional common share of the company for a period of 36 months from the date of closing at an exercise price of $1.15. Each flow-through unit comprises one common share issued on a flow-through basis pursuant to the Income Tax Act (Canada) and one-half of one common share purchase warrant. Each flow-through warrant will entitle the holder to acquire one additional common share, on a non-flow-through basis, for a period of 36 months at a price of $1.15.

The securities issued under the offering will be subject to hold period of four months and one day.

In connection with the offering, the company will provide a finder's fee to EMD Financial Inc. equal to a cash payment of 8 per cent of the gross proceeds of the offering raised from purchasers introduced to the company by EMD, common shares equal to 4 per cent of the total number of non-flow-through units and flow-through units sold to EMD purchasers, and non-transferable warrants equal to 4 per cent of the total number of non-flow-through units and flow-through units sold to EMD purchasers. Each finder's warrant will entitle the holder to purchase one common share at a price of $1.15 for a period of 36 months following the closing date.

The flow-through unit proceeds will be used for qualified mineral exploration expenses on the company's projects in Canada. The non-flow-through unit proceeds are expected to be used for advancement of the company's lithium and magnesium assets, including continued investment into extraction equipment and PurLucid, property payments and additional acquisitions, engineering studies, permitting activities, and for general working capital.

About MGX Minerals Inc.

MGX Minerals is a diversified Canadian resource company with interests in lithium, magnesium and silicon assets throughout North America.

We seek Safe Harbor.