October 31, 2018 Report #18 · Report #2 “Dark clouds over Clayton Valley and green lights for Belmonts Kibby Basin Project” Report #1 “Early Report on Belmont Resources”

October 31, 2018

Report #18Lithium in Nevada, USA

“We‘ve come a long way, but we‘re just getting started!“

Belmont reports final lithium assays from first hole of 2018 and gets ready for continued drilling at Kibby Basin in NevadaToday, Belmont Resources Inc. reported the last round of assays from drilling the first hole of 2018 (KB-3) at Kibby Basin in Nevada, USA. Plans are underway for the next hole (KB-4) to be drilled in November.

Today’s drill results of the remaining 59 core samples from the lower section of the hole are, once again, “encouraging” as consistently high levels of lithium at depths between 387 m (1,270 ft.) and the bottom of the hole at 548 m (1,798 ft.) were encountered in sediments, including a 43 m long intersection with a weighted average of 393 ppm lithium between 423 m and 466 m (1,389-1,528 ft.).

Remarkably, of the 59 samples tested, 6 were above 500 ppm and 41 were above 300 ppm lithium.

On September 28, Belmont reported the first batch of results from the bottom of the hole (428-546 m; 1,403-1,792 ft). 20 of 25 samples exceeded greater than 100 ppm lithium, with 7 samples containing greater than 300 ppm lithium, and the highest sample containing 580 ppm lithium.

On September 12, Belmont reported drill results from the first section of the hole. The highest concentration of lithium occurred within a 91 m (300 ft.) long intercept at depths between 296-387 m (970-1,270 ft.) averaging 390 ppm lithium, including an average of 415 ppm lithium between 338-369 m (1,110-1,210 ft.) with a high of 580 ppm lithium.

Overall, the results are a great indication that the Kibby Basin possibly also hosts lithium-enriched brines.

Company Details

Belmont Resources Inc.Suite 600 - 625 Howe StreetVancouver, BC, V6C2T6 Canada Phone: +1 604 683 6648Email: [email protected] Issued & Outstanding: 88,226,620

Canadian Symbol (TSX.V): BEACurrent Price: $0.04 CAD (10/31/2018)Market Capitalization: $4 Million CAD

German Symbol / WKN: L3L1 / A1JNZE Current Price: €0.028 EUR (10/31/2018)Market Capitalization: $3 Million EUR

Chart Canada (TSX.V)

Chart Germany (Frankfurt)

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Although multiple brine prospective zones were encountered throughout KB-3, unexpected complications incurred during logging due to collapse of the casing and inability to pull the upper steel casing. This resulted in a possible contamination of the sampled brine, hence no representative brine samples were obtained.

The next hole (KB-4) will include down-hole geophysical surveying in conjunction with drilling to improve the chances to accurately locate layers of high conductivity and porosity and allow high quality, representative samples to be taken where lithium concentrations are potentially higher.

Using geophysical survey results concurrent with drilling is intended to allow Belmont’s crew to obtain groundwater samples that are representative of the layers of interest. As with previous drilling, sediment samples will be collected and logged throughout the advancement of the next holes.

On October 16, Belmont announced an expanded drill program with plans of

up to 1,463 m (4,800 ft.) of additional drilling across 4 holes as already permitted within the Kibby Basin MT survey area.

Today, Belmont announced the signing of a contract with Harris Exploration Drilling & Associates, with plans underway to start drilling KB-4 in November.

During drilling of KB-3, Belmont’s CEO and President, Jim Place, commented in late August:

“KB3 has encountered multiple brine prospective layers that may represent lithium enriched aquifers in Kibby Basin.”

Sand and gravel zones, which may represent brine-bearing aquifers, were encountered at depths of 46-52 m (150-170 feet), 64-70 m (210-230 feet), 79-91 m (260-300 feet), and 274-280 m (900-920 feet), where a potentially major aquifer in a cobble gravel was intersected. Thus, a total of approximately 30 m (100 ft.) of potentially lithium-enriched aquifer(s) have been encountered successfully.

The Kibby Basin shares many character-istics with the Clayton Valley some 50 km to the south, where lithium brines are being exploited since more than 50 years (nowadays operated by Albemarle Corp.), including closed structural basin, large conductor at depth, lithium anom-alies at surface and depth, evidence of a geothermal system, and potential aqui-fers in porous ash and gravel zones.

As can be seen in Figure 1, the Main Ash Aquifer (“major tuff-bed aquifer”) of the Clayton Valley hosted brine ranging between less than 2 ppm, 40 ppm and 320 ppm lithium, whereas the highest grades were encountered near faults. KB-4, the next proposed hole at Kibby Basin, may be drilled even closer to potential faults (see Figure 4) and thus intersecting potentially higher grades than KB-3.

As the lithium brine grades in Clayton Valley’s main aquifer vary greatly between nothing and more than 300 ppm, Belmont’s shareholders should take into account that it may take several holes to find the higher graded portions of a potentially lithium-enriched brine zone at Kibby Basin.

Report #18 | Belmont Resources Inc.

Figure 1: Generalized cross-section of the Clayton Valley Playa, showing structural position of the major tuff-bed aquifer (“Main Ash Aquifer”) and inferred directions of aquifer movement (Source: “Origin of the lithium-rich brine, Clayton Valley, Nevada”, 1986)

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The subsurface lithium brines at Clayton Valley are pumped from 6 distinct aquifer units (see Figure 2), whereas the Main Ash Aquifer ranges between 5-20 m in thickness (according to “Geochemistry of lithium-rich brines in Clayton Valley, Nevada, USA; 2011).

According to Figure 3, some of the more productive pay zones of the Main Ash Aquifer at Clayton Valley range in thickness between 3-9 m (10-30 feet) and occur near faults.

According to Belmont’s press-release on September 28:

“Ash layers accounted for four of the five low lithium samples, suggesting that initial lithium content may have been leached from the porous ash layers and transported to brines elsewhere in the basin. The boreholes targeting the southern portion of a large MT conductor still offer potential to identify saturated sediments containing lithium-rich brines.

Based on Quantec MT geophysics, the proposed second hole (KB-4, AKA 2018-2) would likely mimic hole 3 with redox boundary (and aquifer) at 900-1000 ft. depth, and reduced clays with high Li content below 1,000 ft.”

With the wealth of information and hands-on experience from KB-3, and the next hole (KB-4) already being planned in detail, Belmont is right on track for a possibly stellar discovery of lithium-enriched brines at Kibby Basin.

In light of the encouraging lithium concentrations thus far observed in sediments both in the upper and lower section of the hole, the next few weeks are awaited with great excitement for the possible discovery of lithium-rich brines as MGX Minerals Inc. may then consider to deploy its award-winning rapid lithium brine extraction technology at Kibby Basin.

The importance of a potential discovery by Belmont in Nevada, combined with MGX’s rapid lithium extraction tech-nology, cannot be understated. The US needs new lithium production as lithium

is on the list of stra-tegic commodities deemed critical to economic and nation-al security. MGX’s new way to extract lithium without solar evapor-ation would be all the more welcome as the US currently produ-ces only about 4% of global lithium supply, all of it coming from Albemarle’s evap-

Report #18 | Belmont Resources Inc.

Figure 2: Schematic cross-section of aquifers in Clayton Valley along the dip of the basin. (Source: Zampirro, 2003)

Figure 3: Locations and thicknesses of the Clayton Valley’s Main Ash Aquifer near faults. (Source: Zampirro, 2003)

Figure 4: Quaternary faults in the Kibby Basin. (Source)

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oration ponds at the Silver Peak Mine located 50 km south of Kibby Basin. While companies have been fighting over water rights in the “overappropriated” Clayton Valley, Belmont has already filed for water rights at Kibby Basin. Another advantage for MGX-Belmont is that they control almost the entire Kibby Basin, making an entry for other companies all the more difficult, especially if drilling encounters lithium-rich brine.

About the Kibby Basin JV

MGX Minerals Inc. is partnered with Belmont Resources Inc. on the 2,056 hec-tares (5,080 acres) Kibby Basin Property and currently earning up to 50% interest with the goal of forming a 50/50 Joint Venture to utilize MGX’s rapid lithium ex-traction technology. Geologic research of the Kibby Basin has indicated that prox-imal rhyolitic flows and tuffs surrounding the basin could be a potential source of lithium brine in the Kibby Basis Playa. In addition, the Kibby Basin is located with-in a geothermal cluster at a basin low setting. Regional geophysical signatures in the area reflect similar anomalies com-parative to that of Clayton Valley.

Rapid Lithium Brine Extraction Technology

MGX has developed a rapid lithium extraction technology eliminating or greatly reducing the physical footprint and investment in large, multi-phase,

lake sized, lined evaporation ponds, as well as enhancing the quality of extraction and recovery across a com-plex range of brines as compared with traditional solar evaporation. This tech-nology is applicable to petrolithium (oil and gas wastewater), natural brine, and other brine sources such as lithium-rich mine and industrial plant wastewater. The technology was recently chosen as

winner of the Base & Specialty Metals Industry Leadership Award at the 2018 S&P Global Platts Global Metals Awards, held in London in May (see MGX press release dated May 18, 2018). Most re-cently (October 30), MGX announced to have deployed the first advanced waste-water treatment system in Alberta, Can-ada, projecting possible first cleantech revenue at the earliest in November.

Report #18 | Belmont Resources Inc.

During drilling of hole KB-3, multiple brine-prospective layers were encountered at Kibby Basin and as can be seen in above picture, possible brine aquifers were sampled yet collapse of the hole casing prevented a representative analysis. The next hole (KB-4) may sample brine with more success.

Belmont’s Kibby Basin is located just 50 km from the Clayton Valley, where large evaporation ponds represent North America’s only lithium brine operation, whereas MGX Minerals Inc. intends to deploy its rapid lithium extraction technology at Kibby in case favorable lithium brine zones are encountered with drilling. (See map here)

Previous Coverage

Report #17 “MGX-Belmont Announce Next Round of Encouraging Lithium Drill Results from Nevada” Report #16 “MGX-Belmont sample up to 580 ppm lithium in sediments at Kibby Basin Nevada Joint Venture”Report #15 “MGX-Belmont Drilling Finds Multiple Brine Prospective Zones at Kibby Basin Lithium Joint Venture”Report #14 “The Drills are Turning at MGX-Belmont‘s Kibby Basin” Report #13 “MGX and Belmont to Start Drilling at Kibby Basin Lithium Project in Nevada on Saturday” Report #12 “MGX and Belmont Form Nevada Lithium JV” Report #11 “Ohm-m! The Divine Sounding of Resistivity” Report #10 “Belmont Resources (BEA.V): Cheapest US lithium play may just be what others promised” Report #9 “It‘s Time For Belmont To Shine In Nevada” Report #8 “Bingo! Belmont finds striking drill targets for lithium brine deposits at Kibby Basin in Nevada” Report #7 “The Missing Puzzle Piece to Discover Lithium Aquifers in the Kibby Basin of Nevada?” Report #6 “Belmont on track to eclipse the Clayton Valley” Report #5 “Belmont getting ready to drill for untapped lithium brines at Kibby Basin in Nevada” Report #4 “The perfect lithium basin?”Report #3 “Prominent gravity low identified on Kibby Basin Lithium Brine Property in Nevada” Report #2 “Dark clouds over Clayton Valley and green lights for Belmonts Kibby Basin Project” Report #1 “Early Report on Belmont Resources”

5 Report #18 | Belmont Resources Inc.

Map showing the location of MGX-Belmont’s Kibby Basin, Tesla’s Gigafactory and Albemarle’s Silver Peak Lithium Mine. (See map here)

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Disclaimer and Information on Forward Looking Statements:All statements in this report, other than state-ments of historical fact should be considered forward-looking statements. Much of this report is comprised of statements of projec-tion. Statements in this report that are forward looking include that Belmont Resources Inc. (“Belmont”), MGX Minerals Inc. (“MGX”) or any other company or market will perform as expected; that any of the mentioned plans, comparisons with other companies, regions or numbers are valid or economic; that any more drilling, or exploration, or work, will be performed; that today’s reported assays are encouraging in the sense that near-by aquifers may also host lithium-enriched brine; that aquifers and brine zones are present or can be found; that today’s results, in combination with similar results reported earlier, are a great indication that the Kibby Basin may also host lithium enriched brines; that Belmont is right on track for a stellar discovery of lithium-en-riched brines at Kibby Basin; that in light of the encouraging lithium concentrations thus far observed in sediments both in the upper and lower section of the hole, the next few weeks are awaited with great excitement for the potential discovery of lithium-rich brines; that MGX may consider to deploy its award-winning rapid lithium brine extraction technology at Kibby Basin; that MGX’s new way to extract lithium without solar evap-oration can work as expected; that because MGX-Belmont control almost the entire Kibby Basin, entry for other companies is difficult; that Belmont’s shareholders should take into account that it may take several holes to find the higher graded portions of a potentially lithium-enriched brine zone at Kibby Basin; that the next hole (KB-4) may sample brine with more success; and that Belmont will be granted water rights. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those antici-pated in these forward-looking statements. Risks and uncertainties respecting lithium and resource companies are generally disclosed in the annual financial or other filing docu-ments of Belmont and similar companies as filed with the relevant securities commissions, and should be reviewed by any reader of this report. In addition, with respect to Belmont, a number of risks relate to any statement of projection or forward statements, including among other risks: The receipt of all necessary approvals and permits; the ability to conclude a transaction to start or continue exploration; uncertainty of future market regulations, capital expenditures and other costs; uncer-tainty of financings and additional capital requirements for exploration, development, construction, and operating of a facility; joint venture or other partners may not perform as agreed or as expected; MGX’s technology may not succeed in extraction of lithium, and even if it does succeed, the process may not be economic; Belmont may not receive further

permitting in a timely fashion of; legislative, political, social or economic developments in the jurisdictions in which Belmont carries on business; operating or technical difficulties in connection with production or development activities; the ability to keep key employees, joint-venture partner(s), and operations fi-nanced. Accordingly, readers should not place undue reliance on forward-looking informa-tion. Rockstone and the author of this report do not undertake any obligation to update any statements made in this report unless required by law. Disclosure of Interest and Advisory Cautions: Nothing in this report should be construed as a solicitation to buy or sell any securities men-tioned. Rockstone, its owners and the author of this report are not registered broker-deal-ers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-deal-er. Never make an investment based solely on what you read in an online or printed report, including Rockstone’s report, especially if the investment involves a small, thinly-traded company that isn’t well known. The author of this report is paid by Zimtu Capital Corp., a TSX Venture Exchange listed investment company. Part of the author’s responsibilities at Zimtu is to research and report on companies in which Zimtu has an investment. So while the author of this report is neither paid directly by Belmont nor MGX Minerals Inc., the author’s employer Zimtu will benefit from appreciation of Belmont’s and MGX’s stock prices. The auth-or also owns shares of Belmont Resources Inc., MGX Minerals Inc. and Zimtu Capital Corp., and thus would also benefit from volume and price appreciation of its stocks. Thus, multiple conflicts of interests exist. Therefore, the infor-mation provided should not be construed as an independent financial analysis or recom-mendation but as advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable, but the author has not independently verified. Rockstone and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. Belmont has not reviewed all of the content of this report prior to publication and as such may not agree to statements made herein. Lastly, the author does not guarantee that any of the compan-ies mentioned in the reports will perform as expected, and any comparisons made to other companies may not be valid or come into effect. Please read the entire Disclaimer carefully. If you do not agree to the Disclaimer, do not access this website or any of its pages including this report in form of a PDF. By using this website and/or report, and whether or not you actually read the Disclaimer, you are deemed to have accepted it. Information pro-vided is educational and general in nature.

Author Profile and Contact

Stephan Bogner (Dipl. Kfm. FH)Rockstone Research 8260 Stein am Rhein, [email protected]

Stephan Bogner studied at the International School of Management (Dortmund, Germany), the European Business School (London) and the University of Queensland

(Brisbane, Australia). Under supervision of Prof. Dr. Hans J. Bocker, Stephan completed his diploma thesis (“Gold In A Macroeconomic Context With Special Consideration Of The Price Formation Process”) in 2002. A year later, he marketed and translated into German Ferdinand Lips‘ bestseller („Gold Wars“). After working in Dubai for 5 years, he now lives in Switzerland and is the CEO of Elementum International AG specialized in duty-free storage of gold and silver bullion in a high-security vaulting facility within the St. Gotthard Mountain Massif in central Switzerland.

Rockstone is specialized in capital markets and publicly listed companies. The focus is set on exploration, development, and production of resource deposits. Through the publication of general geological basic knowledge, the individual reports receive a background in order for the reader to be inspired to conduct further due diligence. All reports are being made accessible free of charge, whereas it is always to be construed as non-binding educational research and is addressed solely to a readership that is knowledgeable about the risks, experienced with stock markets, and acting on one’s own responsibility.

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Report #18 | Belmont Resources Inc.