New Energy Announces Successful Renegotiation of Agreements FOR Cobaltera District Projects Announces Terms of Letter of Intent FOR Joint Venture with Wealth Minerals Ltd.
#2300 – 1177 West Hastings Street, Vancouver, BC, Canada, V6E 2K3
Phone: 604-484-1232 / Fax: 604-408-7499
NEW ENERGY ANNOUNCES SUCCESSFUL RENEGOTIATION OF AGREEMENTS
FOR COBALTERA DISTRICT PROJECTS
ANNOUNCES TERMS OF LETTER OF INTENT FOR JOINT VENTURE WITH
WEALTH MINERALS LTD.
NR18-20 December 6, 2018
Vancouver, B.C. – New Energy Metals Corp. ("New Energy Metals " or the " Company")
(TSX.V:ENRG) (OTC:NEMCF) is pleased to announce that it has suc cessfully renegotiated the
agreements (the " Cobaltera Agreements ") for the Company's Cobaltera Projects
(the "Cobaltera Projects"), located in Chile's San Juan cobalt district (see news relea ses dated
April 4 and 11 and May 29, 2018). New Energy Metals also annou nces that Wealth Minerals
Ltd. ("Wealth") and the Company have agreed on terms for the previously anno unced letter of
intent (the " Cristal Letter Agreement "), which would result in a joint venture (the " JV")
between the companies for the continued exploration of the Cris tal Copper project (the " Cristal
Project") (see news release dated November 16, 2018).
Renegotiation of Cobaltera Agreements
The successful renegotiation of, and amendment to, the Cobalter a Agreements under which the
Company was assigned the underlying option agreements for the C obaltera Projects' will
eliminate future payments to the assignors thereunder, in excha nge for the issuance of 5,000,000
common shares of New Energy Metals to the assignors. The renegotiation represents a total
savings for the Company of USD $1,482,178 and results in the Company not having to issue
a further additional 3,950,000 co mmon shares in the capital of the Company as previously
contemplated under the agreements.
Cesar Lopez, New Energy Metals' newly appointed President and C EO commented, "The
renegotiation of these agreements places the company in a stron ger overall fiscal position, giving
us increased leverage to acquire further long-life projects, wh ile representing a substantial
savings for the company."
Cristal Letter Agreement
Pursuant to the Cristal Letter Agreement, Wealth has agreed to deliver to the Company 50,000
common shares in the capital of Wealth and a 30% free-carried interest (the "FCI") in the Cristal
Project, as consideration for the Company transferring and assi gning to a subsidiary of Wealth
("Wealth Copper ") all of its right, title and interest in the Cristal Project and the Company's
option thereto (the " Cristal Transaction"). Upon the earn-in by Wealth Copper of the option,
the initial participating interests in the JV are expected to b e Wealth Copper as to 70% and the
Company's wholly-owned Chilean subsidiary as to 30%. Wealth Co pper will assume all of the
Company's obligations and liabil ities under the Cristal Project option, including the remaining
property option payments (see new release dated March 1, 2018).
NR18-19 Continued 2 December 6, 2018
"Cristal is an interesting asset that has not received the focu s it deserves from New Energy
Metals, given the Company's focus on its assets in the San Juan cobalt district," commented
Cesar Lopez, President and CEO of the Company. "We look forwar d to working with Wealth to
advance the Cristal Project, particularly in the wake of Wealth 's recently announced copper spin-
out entity. Cristal will now enjoy significant attention and New Energy Metals will participate in
any success through shared ownership in Wealth, a joint venture interest in the Cristal Project,
and/or significant cash payments."
Subject to acceptance of the Cristal Transaction by the TSX Ven ture Exchange (the " TSXV")
and the completion of satisfactory due diligence, the Company and Wealth Copper will enter into
a definitive assignment and assumption agreement (the "Definitive Agreement").
About the Company
New Energy Metals is focused on the exploration and development of energy metals in Chile.
The Company's assets include the Cristal copper project located in northern Chile and several
prospective cobalt projects in Chile's past producing San Juan cobalt district.
On behalf of New Energy Metals Corp.
César Lopez, President & CEO
T: 604.484-1232
W: www.newenergymetals.ca
Neither the TSX Venture Exchange nor its Regulation Services Pr ovider (as that term is defined
in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively, "forward-
looking statements") within the meaning of applicable Canadian and U.S. securities legislation, including the
United States Private Securities Litigation Reform Act of 1995 . All statements, other than statements of historical
fact, included herein including, without limitation, the Company's expectation that it will be able to enter into the
Definitive Agreement, the Company's expectation that it will be successful in enacting its business plans and
acquiring properties, the anticipated content, commencement, timing and cost of exploration programs in respect of
the Company's projects and otherwise, anticipated results from exploration activities, the Company's expectation
that it will be able to obtain the necessa ry permits to exploit, develop, produce and export copper or cobalt, and the
anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although
the Company believes that such statements are reasonable , it can give no assurance that such expectations will
prove to be correct. Forwar d-looking statements are typically identified by words such as: "believes", "expects",
"anticipates", "intends", "estimates", "plans", "may", "should", "potential", "scheduled", or variations of such words
and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would,
might or will occur or be taken or achieved. In making the forward-looking statements in this news release, the
Company has applied several material assumptions, including without limitation, that it will be able to negotiate
and execute the Definitive Agreem ent and that it will obtain TSXV acceptanc e of the Cristal Transaction, that
market fundamentals will re sult in sustained precious me tals demand and prices, the receipt of any necessary
permits, licenses and regulatory approv als in connection with the future d evelopment of the Company's Chilean
projects in a timely manner, the availability of financing on suitable terms for the development, construction and
NR18-19 Continued 3 December 6, 2018
continued operation of the Company projects, and the Company's ability to comply with environmental, health and
safety laws.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to differ materially from any future results,
performance or achievements expressed or implied by th e forward-looking information. Such risks and other
factors include, among others, the ability of the Company to obtain sufficient financing to fund its business activities
and plans, operating an d technical difficulties in connection with mi neral exploration and development and mine
development activities for the Company's projects generally, actual resu lts of exploration activities, the timing and
amount of estimated future production, costs of production, capital expenditures, requirements for additional
capital, future prices of precious metals, copper and lith ium, changes in general economic conditions, changes in
the financial markets and in the demand and market price for commodities, possible variations in ore grade or
recovery rates, possible failures of plants or processes to operate as anticipated, other risks of the mining industry,
the inability to obtain any necessary governmental and regulator y approvals (including TSXV acceptance of the
Cristal Transaction), permits or financing or in the completion of development or construction activities, changes in
laws, regulations and policies affecting mining operations, hedging practices, currency fluctuations, title disputes or
claims limitations on insurance coverage, risks related to joint venture operations, and risks related to the
integration of acquisitions, as well as those factors discussed under the heading "Risks and Uncertainties" in the
Company's most recent management's discussion and analysis and other filings of the Company with the Canadian
Securities Authorities, copies of which can be found under the Company's profile on the SEDAR website at
www.sedar.com.
Readers are cautioned not to place undue reliance on forward-looking statements. Except as otherwise required by
law, the Company undertakes no obligation to update any of the forward-looking information in this news release or
incorporated by reference herein.