MGX acquires 3,455 acres of O&G leases in Utah

May 2, 2018

2018-05-02 09:06 ET – News Release

Mr. Jared Lazerson reports

MGX MINERALS EXPANDS UTAH PETROLITHIUM PROJECT; ACQUIRES ADDITIONAL OIL AND GAS LEASES AT PARADOX BASIN

MGX Minerals Inc. has acquired an additional 3,455 acres of oil and gas leases as a result of successful bidding at a recent State of Utah School and Institutional Trust Land Administration (SITLA) auction. The leases are located contiguous to the Company’s unitized 80,380-acre Blueberry Unit (“Blueberry Unit”) and show similar subsurface geological formations and structures favorable for accumulations of oil and gas as well as lithium brine-bearing formations. The newly acquired leases are located within the proposed 3D seismic geophysical survey area, which is scheduled to commence in August. The survey will include approximately 9,000 data points.

The Blueberry Unit (oil, gas and lithium) and Lisbon Valley Claims (lithium) now consists of approximately 115,000 acres of oil and gas leases and 118,000 acres of largely overlying and contiguous mineral claims. Brine content within the Lisbon Valley oilfield have been historically reported as high as 730 ppm lithium (Superior Oil 88-21P).

The Project is being simultaneously explored for oil, gas, lithium and other brine minerals to determine locations for deployment of the Company’s lithium and mineral extraction technology. In total MGX controls over two million acres of mineral leases and permits overlying brine-bearing formations throughout North America.

Blueberry Unit

MGX is currently earning a 75% working interest in the Project, with the remaining interest primarily controlled by the Paradox Partner. The Paradox Partner has been engaged by MGX as subcontracted operator of the Project. The Project is host to National Instrument (N.I) 51-101 estimated prospective resources (the “Estimate”) consisting of leasehold and royalty interests in San Juan County, Utah and Miguel County, Colorado. The estimate was prepared by the Ryder Scott Company, L.P. (“Ryder Scott”), an independent qualified reserves evaluator within the meaning of N.I. 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101”), with an effective date of June 30, 2017. The Estimate was prepared in accordance with N.I. 51-101 and the Canadian Oil and Gas Evaluation.

 Estimated Gross Volumes                                                       
Unrisked Prospective (Recoverable) Hydrocarbon Resources                      
Leasehold Interest in San Juan County, Utah and San Miguel County, Colorado of
MGX MINERALS INC.                                                             
As of June 30,2017                                                            
Formation         ULTIMATE RECOVERY OIL - MMBO ULTIMATE RECOVERY GAS - BCFCOC* 
                  LOW       BEST     HIGH     LOW      BEST     HIGH          
Paradox Clastics                                                              
CB2               41.799    59.498   85.324   33.441   47.602   68.266   0.075
CB3               41.915    60.641   85.833   33.536   48.517   68.671   0.075
CB4               12.766    18.745   26.692   10.213   14.781   21.355   0.075
CB5               33.185    48.065   68.841   26.548   38.453   55.074   0.075
CB6               6.603     9.607    13.874   5.283    7.686    11.100   0.045
CB7               1.892     2.735    3.948    1.514    2.188    3.158    0.032
CB8               19.108    27.525   39.079   15.287   22.022   31.264   0.068
CB9               11.452    16.671   23.711   9.162    13.337   18.970   0.068
CB10              14.565    21.169   30.088   11.652   16.936   24.073   0.068
CB11              2.021     2.929    4.244    1.617    2.344    3.396    0.032
CB12              9.352     13.609   19.525   7.482    10.887   15.620   0.045
CB13              9.333     13.158   19.297   7.468    10.815   15.438   0.045
CB14              3.195     4.621    6.634    2.556    3.697    5.308    0.045
CB15              6.455     9.432    13.633   5.164    7.546    10.908   0.045
CB16              2.752     3.987    5.768    2.202    3.190    4.615    0.045
CB17              3.770     5.390    7.835    3.016    4.313    6.269    0.040
CB18              4.673     6.728    9.572    3.739    5.383    7.658    0.045
CB19              16.690    24.226   34.542   13.358   19.381   27.636   0.068
CB20              2.931     4.253    6.118    2.435    3.402    4.895    0.040
CB21  (Cane Creek)35.336    51.338   73.971   28.272   41.073   59.177   0.097
CB22              5.635     8.261    11.957   4.508    6.609    9.566    0.045
Leadville         1.000     2.100    4.000    153.000  231.700  341.600  0.066

*COC – Chance of Commerciality = Chance of Discovery * Chance of Development

Lisbon Valley and Paradox Basin Geology

The Project is proximate to Lisbon Valley oilfield which has approximately 140 wells. According to production statistics, as reported by the Utah Department of Natural Resources, Oil, Gas and Mining Division, cumulative lifetime production within the Lisbon Valley oilfield has totaled 51.4 million barrels of oil as of June 2017 (“Oil Production by Field, Utah Department of Natural Resources, Division of Oil, Gas and Mining”; June 2017; Click Here). The Paradox Basin has been noted by the USGS as having one of the largest undeveloped oil and gas fields in the United States (“Assessment of Oil and Gas Resources in the Paradox Basin Province{A }”; USGS; 2011; Click Here).

About MGX Minerals

MGX Minerals is a diversified Canadian resource company with interests in advanced material and energy assets throughout North America. Learn more at www.mgxminerals.com.

We seek Safe Harbor.

https://www.mgxminerals.com/investors/news/2018.html