MGX and Belmont Form Nevada Lithium Joint Venture at Kibby Basin MGX Targets US Lithium Brine Acquisitions for its Rapid Extraction Technology

1. July 13, 2018
Report #12
Lithium in Nevada, USA
MGX Targets US Lithium Brine Acquisitions for its Rapid Extraction Technology
MGX and Belmont Form Nevada Lithium
Joint Venture at Kibby Basin
In light of the pressing need for a
new US lithium supply under the
new tariff regime under the Trump
Administration, MGX Minerals Inc.
today announced a strategic joint
venture with Belmont Resources
Inc., entering into a Property
Option Agreement to acquire up to
50% interest in Belmont’s flagship
Kibby Basin Lithium Brine Property,
located some 50 km north of the
Clayton Valley and thus closer to
Tesla’s Gigafactory near Sparks,
Nevada.
With the overappropriated Clayton Valley
hosting the only lithium mine on US
soil and a potential trade war escalating
between China and the US at the very
moment, the spotlight is, and will be, on
domestic production of batteries and
strategic commodities like lithium as
such have officially been deemed critical
to the economic and national security of
the US.
According to the agreement, MGX
is acquiring an initial 25% interest
in Belmont´s Kibby Basin Project
for funding up to $300,000 CAD in
exploration expenditures to be used
for drilling. Kibby Basin is drill-ready,
with drill permits received recently in
June and a drilling contractor already
selected. With drilling to start now, we
will very soon find out, probably with
the first drill hole, if the Kibby Basin hosts
lithium-enriched brine. Hence, MGX’s
strategic move looking for US lithium
brine sources for its award-winning rapid
extraction technology comes with a
perfect timing.
Company Details
Belmont Resources Inc.
Suite 600 - 625 Howe Street
Vancouver, BC, V6C2T6 Canada
Phone: +1 604 683 6648
Email: gmusil@belmontresources.com
www.belmontresources.com
Shares Issued & Outstanding: 70,727,620
Canadian Symbol (TSX.V): BEA
Current Price: $0.065 CAD (07/12/2018)
Market Capitalization: $5 Million CAD
German Symbol / WKN: L3L1 / A1JNZE
Current Price: €0.042 EUR (07/12/2018)
Market Capitalization: €3 Million EUR
Chart Canada (TSX.V)
Chart Germany (Frankfurt)

2. 2
The agreement allows MGX to earn an
additional 25% interest in the Kibby
Basin Project by funding an additional
$300,000 CAAD in exploration ex-
penditures for drilling at which time
the project will become a 50/50 Joint
Venture with access to MGX’s rapid
lithium extraction technology.
Upon exercise of the full option agree-
ment, MGX will become the project
operator and the 50/50 Joint Venture will
be formed with Belmont covering further
exploration in the Kibby Basin, which may
include additional exploration drilling,
well testing operations, and extraction
plant installation and operation.
The benefits for Belmont (current market
capitalization: $5 million CAD) are clear:
MGX (current market capitalization:
$123 million CAD) will provide its lithium
extraction technology, which is nearing
commercial deployment on several sites
in Alberta, and take over the Kibby Basin
Project as a financially strong operator
with strong ties into the US.
Belmont CEO, James Place, commented
today in a separate press-release from
Belmont:
“This agreement puts Belmont on se-
cure footing with regard to funding the
next stage of evaluation of the Kibby
Property and, at the same time, enables
us to get a significant “leg up” on lith-
ium production by partnering with one
of the leaders in extraction technology.”
The Kibby Basin is probably the most
prospective basin in Nevada to host
lithium-enriched brine and its sheer size
is compelling:“The target area is a large
well-defined anomaly discovered by a
magnetotelluric survey carried out by
Belmont in January 2018.”
In March 2018, Belmont received a
Geophysical Report which included the
results from a Spartan Magnetotelluric
(MT) Survey over Belmont’s 100% owned
Kibby Basin Property in Nevada. The sur-
vey was started in January by renowned
Quantec Geoscience Ltd. and covered
most of Belmont’s claims.
Now let’s take a look at the results:
One of the best identified aquifers is
interpreted to be 6 km long and 3.5 km
wide, including a thick (up to 1 km) zone
of very low resistivity (between 1 and
0.14 Ohm-meters; see 3D maps above).
Report #12 | Belmont Resources Inc.
“Kibby has significantly higher conductivity than the other published MT
survey results for similar lithium explorers in the region. We are optimistic
that our lithium values will reflect that difference. If the results for conductiv-
ity relates to lithium concentration for the Kibby in the same way that other
companies in the area have found, then Kibby could be a significant lithium
brine source containing a conductive anomaly that is measured in cubic
kilometres.” James Place, CEO & President of Belmont Resources Inc., in the
press-release “Belmont submits drilling plans for Kibby basin” (June 14, 2018)

3. 3
Satellite image of lithium prospective
basins in Nevada. Source: GoogleEarth
Bottom Line
Reading through several company’s
technical reports and press-releases
regarding resistivities (see comparison
with other lithium projects here) gives
me the impression that Kibby Basin’s
resistivity results are very good and
superior to many projects worldwide,
especially to the ones that I have seen in
the region.
What I see in other company’s public
information is that Kibby Basin’s best
resistivity results are many times better
than the best results of other companies,
whereas Kibby Basin’s potential pay zone
appears relatively large.
The resistivity survey shows that the
conductivity becomes greater as it goes
deeper – so once the drillers hit brine,
the concentrations should increase as
they drill deeper until the center of the
anomaly is hit.
With drilling to start now, we will soon
find out if there is lithium in Kibby Basin.
This could turn out big for both compan-
ies, so MGX agreed to acquire 4 million
units of Belmont at a price of $0.05 CAD
per unit, with each unit consisting of 1
common share of Belmont and 1 share
purchase warrant exercisable at $0.08
in the first year and $0.10 in the second
year after closing.
Additionally, MGX will be granted war-
rants to purchase up to 10 million shares
of Belmont at $0.20 per share exercisable
within 3 years.
If MGX exercises all warrants, the com-
pany would own 18 million shares of
Belmont, representing a significant stake
in Belmont as the company currently has
around 71 million shares in the market.
Report #12 | Belmont Resources Inc.
Resistivity survey on the Kibby Basin Property in January 2018.
The Kibby Basin (basin removed topography looking south-southwest; presumably
this would be the topography if the basin fill was removed).

4. 4
Disclaimer and Information on
Forward Looking Statements:
Allstatementsinthisreport,otherthanstatements
ofhistoricalfactshouldbeconsideredforward-look-
ingstatements.Muchofthisreportiscomprisedof
statementsofprojection.Statementsinthisreport
thatareforwardlookingincludethatBelmont
ResourcesInc.(“Belmont”)oranyothercompanyor
marketwillperformasexpected;thatconductive
zoneshavebeensuccessfullylocatedatdepth,giv-
inghighhopesfortheupcomingdrillprogram;that
therewillbeanupcomingdrillprogram;thattoday’s
announcedfinancingcanbeclosedsuccessfully;
thatalithiumdiscoverycanbemadewithdrilling;
thattheMTsurveyresultswerehighlypositive;that
Belmontisinagreatpositiontofindaconcentrated
brinedeposit,potentiallyrichinlithium; thatgeo-
physicshasidentifieda6kmlongand3,5kmwide
aquiferthatincludesathick(upto1km)zoneofvery
lowresistivity); thatthereisacorrelationbetween
resistivityvaluesandthequalityofproject;thatthe
lowertheOhm-mresistivitynumber,thebetter
thechancesintersecthighergradesoflithiumwith
subsequentdrilling,especiallyifvaluesarebelow
1Ohm-m;thatBelmont’sresistivityresultsarevery
goodandsuperiortomanyprojectsworldwide,
especiallytotheonesthattheauthorhasseenin
theregion;thatBelmont’sbestresistivityresultsare
manytimesbetterthanthebestresultsofother
companies,whereasBelmont’spotentialpayzone
appearsrelativelylarge;thatthecompanycanraise
sufficientfundsforatransaction;thatanyofthe
mentionedplans,comparisonswithothercompan-
ies,regionsornumbersarevalidoreconomic.Such
statementsinvolveknownandunknownrisks,un-
certaintiesandotherfactorsthatmaycauseactual
resultsoreventstodiffermateriallyfromthosean-
ticipatedintheseforward-lookingstatements.Risks
anduncertaintiesrespectinglithiumandresource
companiesaregenerallydisclosedintheannual
financialorotherfilingdocumentsofBelmontand
similarcompaniesasfiledwiththerelevantsecur-
itiescommissions,andshouldbereviewedbyany
readerofthisreport.Inaddition,withrespecttoBel-
mont,anumberofrisksrelatetoanystatementof
projectionorforwardstatements,includingamong
otherrisks: Thereceiptofallnecessaryapprovals
andpermits;theabilitytoconcludeatransactionto
startorcontinueexploration;uncertaintyoffuture
marketregulations,capitalexpendituresandother
costs;uncertaintyoffinancingsandadditional
capitalrequirementsforexploration,development,
construction,andoperatingofafacility;thereceipt
inatimelyfashionoffurtherpermitting;legislative,
political,socialoreconomicdevelopmentsinthe
jurisdictionsinwhichBelmontcarriesonbusiness;
operatingortechnicaldifficultiesinconnectionwith
productionordevelopmentactivities;theabilityto
keepkeyemployees,joint-venturepartner(s),and
operationsfinanced.Lowandpromisingresistivity
valuesareonlyindicativeofapotential lithium
brinezone.Insteadofbrine-enrichedsediments
oraquifers,highlyconductivematerialidentified
bygeophysicscould,forexample,alsobeaclay-or
halite-dominatedsequence,whichofferslessresist-
ancethansandorhardrockbasementmaterial,and
haslittletonopotentialtohostbrine.Onlydrilling
canshowwhatahighlyconductivezoneismadeof
andifthereislithiumpresentinsignificantquanti-
ties.Therecanbenoassurancethatsuchstatements
willprovetobeaccurate,asactualresultsandfuture
eventscoulddiffermateriallyfromthoseanticipated
insuchstatements.Accordingly,readersshouldnot
placeunduerelianceonforward-lookinginforma-
tion.Rockstoneandtheauthorofthisreportdonot
undertakeanyobligationtoupdateanystatements
madeinthisreportunlessrequiredbylaw.
Disclosure of Interest and
Advisory Cautions:
Nothinginthisreportshouldbeconstruedasa
solicitationtobuyorsellanysecuritiesmentioned.
Rockstone,itsownersandtheauthorofthisreport
arenotregisteredbroker-dealersorfinancialadvisors.
Beforeinvestinginanysecurities,youshouldconsult
withyourfinancialadvisorandaregisteredbrok-
er-dealer.Nevermakeaninvestmentbasedsolelyon
whatyoureadinanonlineorprintedreport,including
Rockstone’sreport,especiallyiftheinvestment
involvesasmall,thinly-tradedcompanythatisn’twell
known.TheauthorofthisreportispaidbyZimtu
CapitalCorp.,aTSXVentureExchangelistedinvest-
mentcompany.Partoftheauthor’sresponsibilities
atZimtuistoresearchandreportoncompaniesin
whichZimtuhasaninvestment.Sowhiletheauthor
ofthisreportisneitherpaiddirectlybyBelmontnor
MGXMineralsInc.,theauthor’semployerZimtuwill
benefitfromappreciationofBelmont’sandMGX’s
stockprices.TheauthoralsoownssharesofBelmont
ResourcesInc.,MGXMineralsInc.andZimtuCapital
Corp.,andthuswouldalsobenefitfromvolume
andpriceappreciationofitsstocks.Thus,multiple
conflictsofinterestsexist.Therefore,theinformation
providedherewithinshouldnotbeconstruedasan
independentfinancialanalysisorrecommendation
butasadvertisement.Theauthor’sviewsandopinions
regardingthecompaniesfeaturedinreportsarehis
ownviewsandarebasedoninformationthathehas
researchedindependentlyandhasreceived,which
theauthorassumestobereliable,buttheauthorhas
notindependentlyverified.Rockstoneandtheauthor
ofthisreportdonotguaranteetheaccuracy,com-
pleteness,orusefulnessofanycontentofthisreport,
noritsfitnessforanyparticularpurpose.Belmonthas
notreviewedallofthecontentofthisreportpriorto
publicationandassuchmaynotagreetostatements
madeherein.Lastly,theauthordoesnotguarantee
thatanyofthecompaniesmentionedinthereports
willperformasexpected,andanycomparisonsmade
toothercompaniesmaynotbevalidorcomeinto
effect. Pleaseread theentireDisclaimercarefully.If
youdonotagreetoalloftheDisclaimer,donotaccess
thiswebsiteoranyofitspagesincludingthisreportin
formofaPDF.Byusingthiswebsiteand/orreport,and
whetherornotyouactuallyreadtheDisclaimer,you
aredeemedtohaveacceptedit.Informationprovided
iseducationalandgeneralinnature.
Author Profile and Contact
Stephan Bogner (Dipl. Kfm. FH)
Rockstone Research
8260 Stein am Rhein, Switzerland
+41-44-5862323
sb@rockstone-research.com
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.
For more information and sign-up for
free newsletter, please visit:
www.rockstone-research.com
Report #12 | Belmont Resources Inc.