BlueBird Battery Metals to Increase its Australian Property Portfolio with Acquisition of 726 km2 of Exploration Licenses in the Broken Hill Camp, New South Wales, Australia

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BlueBird Battery Metals to Increase its Australian Property Portfolio

with Acquisition of 726 km2 of Exploration Licenses in the

Broken Hill Camp, New South Wales, Australia

Vancouver, British Columbia, July 10, 2018 – BlueBird Battery Metals Inc. (TSXV: BATT;

US:BBBMF) (the “Company” or “BlueBird”) is pleased to announce that it has entered into a

binding letter of intent (“ LOI”) to acquire 75% of the rights, title and interest in the gran ted

exploration licences of a 726 km 2 property holding in the Broken Hill Project, Australia from

Impact Minerals Ltd (“ Impact”) (IPT:ASX) through the acquisition of 75% of the outstanding

share capital of Impact’s wholly-owned subsidiary that holds the exploration licenses.

“We are excited to be able to secure the opportun ity to explore such a world-class district, and

the orginal area that launched BHP Billiton, fo r battery and other related metals. A number of

priority exploration targets have already been identi fied, and our technical team is pleased to be

able to work closely with Impact Minerals, le d by respected PhD (Economic Geology) and CEO,

Dr. Mike Jones,” commented Peter A. Ball Chairman and CEO of Bluebird. “Our collection

of strategic battery metals a ssets in Australia an d Canada establishes a foundation from which

BlueBird can become a leader in the sector. We anticipate a busy year, as we start to formalize

our exploration strategy, and get boots on the ground to quickly build value for our shareholders.”

Highlights of the Transaction:

 The Broken Hill District, located in New South Wales, is one of t h e w o r l d s ’ m o s t

productive base metal camps, with estimated historical resourc es of 28 Mt lead, 24 Mt

zinc and approximately one billion ounces of silver produced fr om the “Line of Lode”, at

the Broken Hill Mine, the deposit that established Broken Hill Propriety Ltd., (now BHP

Billiton) one of the largest mining conglomerates in the world.

 Large strategic ground holding of 726 km 2 proximal to the Broken Hill Mine with

approximately $6 million of exploration completed on the property to date by Impact and

previous explorers.

 Over 100 km strike extent of highly prospective trends with the potential for the

discovery of large, high grade battery metal and base metal deposits.

 Identified drill-ready targets with potential for the discovery o f N i , C o , C u a n d

Platinum Group Metals (PGM’s), as well as significant Pb-Zn-Ag potential.

 Extensive infrastructure and well established road and rail acc ess to the prospective

properties.

 Indication of significant battery metals and Broken Hill Type (“BHT”) base metals targets

including:

o Ironstone-Hosted Cu-Co-Au Deposits where previous trenching results of 23 m of

1.5% Cu with no assays completed for Au and Co.

o Thackaringa-Style Cobalt-bearing Pyrite Deposits where previous drilling

intersected thick widths of extensive cobalt grades ranging from 0.02% to 0.15%.

o Ultramafic-hosted magmatic PGM-Ni-Cu-Co Deposits, where previous drilling

has outlined significant PGM-Ni-Cu-Co mineralization e.g. 1.2 m of 283 g/t Pt Eq

(0.5% Co, 10.4 g/t Pt, 10.9 g/t Au, 254 g/t Pd, 7.4% Ni, 1.8% Cu, and 19 g/t Ag).

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o Broken Hill Type Pb-Zn-Ag Deposits where historical drilling intersected BHT

mineralization over widths of 15 to 19 m at 3.2% to 4.2% Zn equivalent.

The selected results outlined a bove are historical and have not been verified by the Company.

There are no assurances that the results are representative or that the Company will be able to

duplicate the results noted.

“We believe that the Broken Hill District is em erging as Australia’s premier cobalt exploration

belt, a view validated with the recent results reported by Cobalt Blue Holdings, currently

advancing its Thackaringa Cobalt deposits through feasibility studies. We believe that the Broken

Hill Project demonstrates the potential for similar mineralization,” stated Alf Stewart, President

of Bluebird. “Recent research in Australia has led to the discovery that the Broken Hill District

sits above a deeply rooted crustal structure, which allows tapping of material from the Earth’s

mantle, and leads to the potential for numourous major targets hosting multiple styles of

mineralization in the District.”

Figure 1: Property Outline of Prospective Corridors for Base Metals Deposits

Figure 1: Impact license

holding and prospective corridors for Base

Metal Deposits

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Ultramafic-hosted PGM-Cu-Ni Deposits

The project area contains a 40 km belt of mafic-ultramafic sills, dykes and stocks associated with

gossans and fresh outcrops of high-grade PGM’s, Ni, Cu, Co, Au and Ag mineralization).

The Moorkai Intrusive Complex is a nine (9) km arc of mafic-ultramafic rocks hosting numerous

gossan zones that have returned multi-gram PGM results with ele vated Ni and Cu from surface

reconaissance sampling. Historical test pits at the Platinum Springs prospect, located in the

southern portion of the arc, id entified high grade platinum and palladium mineralization with

elevated rare PGM’s such as rhodium and iridium together with elevated nickel and copper grades

associated with massive magmatic sulphide minerlization. ( refer to Figure 2 ) . N o n e o f t h e

samples from the test pits were assayed for cobalt.

Figure 2: Prospects and results along the Moorkai Intrusive Complex

The selected results presented in Figure 2 are historical and have not been verified by the Company. There are no

assurances that the results are representative or that the Company will be able to duplicate the results noted.

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Impact has identified four priority exploration targets to date:

1. Red Hill: Drillingby Impact intersected 1.2 m of 283 g/t Pt Eq (0.5% Co, 10.4 g/t Pt, 10.9

g/t Au, 254 g/t Pd, 7.4% Ni, 1.8% Cu, and 19 g/t Ag) from 67.3 m in RHD012 in vein

hosted sulphide. Further drilling here may lead to the definition of a shallow resource with

early production potential.

2. Platinum Springs: Impact intersected further fres h massive magmatic sulphide: 0.65 m

of 76.2 g/t Pt Eq (11.5 g/t Pt , 1.4 g/t Au, 25.7 g/t Pd, 7.4% Ni, 7.6% Cu, 44 g/t Ag (no

cobalt assays)) from 57.1 m in PSD002 (refer to Photo below – PSD002).

3. Moorkai: Rock samples identified a 9 km strike extent with selected samples that graded

assays 6.8 g/t Pt, 28 g/t Pd, 9% Cu, and 2.6% Ni.

4. Little Darling Creek: Historical drilling intersected 4.5 m of 5.0 g/t Pt Eq (0.5% Ni, 0.4%

Cu, 2.7 g/t 2PGM) from 40.5 m in DDH3. This has not been followed up.

The selected results presented above are histor ical and have not been ver ified by the Company.

There are no assurances that the results are re presentative or that the Company will be able to

duplicate the results noted.

Ironstone Hosted Cu-Co-Au Deposits:

Magnetic ironstones that are potential hosts for Cu-Co-Au miner alization have been identified in

the regional airborne magnetic data. There has been scant previ ous exploration for this style of

deposit in the Broken Hill area.

Interpretation of the airborne data and regional geological mapping highlights approximately 100

k m o f s t r i k e l e n g t h w i t h t h e p o t e n t i a l t o h o s t p r o s p e c t i v e i r o nstones within the Broken Hill

properties (refer to Figure 3), including the Copper King Prospect:

 The Copper King Prospect is a series of historic copper occurrences and workings located

in the east of Impact’s properties (refer to Figure 3).

 Previous work has identified an anomalous Cu-Co-Au trend up to 3.5 km long which is in

part defined by variably magnetic ironstone units.

 This trend was sampled with a focus on identifying potential co pper mineralization, there

was limited analyses focused on the gold and cobalt potential.

 Rock chip samples for cobalt range up to 0.13% Co, but there are no drill hole assays for

cobalt.

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 Three trenches dug in 2012 across parts of the trend near old w orkings returned selected

grades of 23 m of 1.5% Cu and 4 g/t Ag including 1.5 m of 3.2% Cu.

 The shafts and workings were extensively rock chip sampled with grades of up to 3.3%

Cu, 1.2% Pb, 1.2% Zn and 40 g/t Ag; Assaying was never completed for Cobalt.

The selected results presented above are histor ical and have not been ver ified by the Company.

There are no assurances that the results are re presentative or that the Company will be able to

duplicate the results noted.

Thackaringa Style Pyrite-Cobalt Deposits

The optioned property has signi ficant potential for large, Thackaringa style, pyrite-cobalt

deposits, similar to the Thackaringa Cobalt deposits (Pyrite Hill, Big Hill and Railway deposits)

of Cobalt Blue Holdings Ltd. (ASX: COB) , now being considered for development ( refer to

Figure 3). The Himalaya Formation, within the Thackaringa Group hosts the Pyrite Hill, Big Hill

and Railway deposits. The Himalaya Formation is interpreted to extend for over 100 km of strike

throughout the optioned property (refer to Figure 3).

Figure 3: Ironstone Hosted Cu-Co-Au Deposits

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A high priority area, where exten sive cobalt mineralization has been intersected in previous drill

holes, is the Pine Creek Prospect:

 The Pine Creek Prospect is located 10 km west of Broken Hill and occurs in the same rocks

that host the Thackaringa deposits some 30 km to the south (refer to Figure 3 above).

 Exploration in the 1980’s identified two north-south trending u nits of felsic gneiss with

extensive disseminated pyrite.

 Two drill holes targeting the western gneiss unit, intersected extensive pyrite (5-20%) with

cobalt grades ranging from 0.02% to 0.15% Co.

o The assays returned: 92 m of 0.04% Co from 50 m in PC6 (true thickness of about

45 m; refer to Figure 4).

The results presented above are historical and have not been verified by the Company. There are

no assurances that the results are representative or that the Company will be able to duplicate the

results noted.

Figure 4: Geology and significant drill results of the Pine Creek Project

Broken Hill Type PB-Zn-Ag Deposits (“BHT”)

The Broken Hill “Line of Lode”, is one of the worlds’ largest silver-lead-zinc deposits.

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Dora East Prospect

 Impact drilled three diamond drill holes at the Dora East prosp ect in 2015 along strike to

known silver-lead-zinc workings at surface known as the Dora mines.

 Follow up drilling targeted a conductor about 250 m southwest along strike (refer to Figure

5).

 These drill holes intersected BHT mineralization over widths of 15 to 19 m including

narrow intercepts of very high grade zinc and silver in drill hole RHD 018 (refer to Photo

below - Massive sulphide from RHD018 at Dora East).

 The mineralisation is open at depth and along strike and is a p riority area for follow up

drilling.

Figure 5: Geology plan map of the Dora East Prospect

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The results presented above are historical and have not been verified by the Company. There are

no assurances that the results are representative or that the Company will be able to duplicate the

results noted.

Please visit the website www.bluebirdbatterymetals.com for additional information, maps,

sections, and assay tables related to the Broken Hill Battery Metals Project.

The technical content of this news release has been reviewed an d approved Wes Hanson, P.Geo.,

a director of the Company and a Qualified Person pursuant to Na tional Instrument 43-101. The

qualified person has not yet visited the Broken Hil l Project, and therefore has not yet verified

the data disclosed, including sampling, analytical , and test data underlying the information or

opinions contained in the written disclosure.

LOI Terms

Under the terms of the LOI, which will be formalized by a definitive agreement among the parties,

the Company will purchase 75% of the Broken Hill District by the acquisition of a 75% interest in

the share capital of Impact’s wholly-owned subsidiary that hold s the exploration licenses. The

LOI contemplates that the Company will pay Impact CAD$125,000 c ash and issue 5.25 million

common shares, subject to TSX Venture Exchange approval. The LOI also provides for the issue

of CAD$500,000 worth of common shares, and obligates the Company to complete CAD$2.25M

of exploration expenditures over a three year period. The defin itive agreement will also

contemplate the issue of up to 1,050,000 common shares six months after the definitive agreement

(subject to various reductions in number of shares issued depen ding on the trading price of the

Company’s shares).

This transaction is subject to the acceptance of the TSX Venture Exchange.

A finder's fee will be paid to COMVERJ Pty Ltd in respect of th e transaction pursuant to the

policies of the Exchange.

About BlueBird Battery Metals

BlueBird Battery Metals (TSXV: BATT; US: BBBMF) is a Canadian publicly listed company

focused on the global exploration and development of strategic battery metals projects, primarily

cobalt and nickel. BlueBird’s goal is to pursue a business mode l that offers direct and long-term

leverage to the price appreciation in nickel and cobalt, two principal materials in EV batteries. The

Company plans to become a leader in the battery metals sector, as cobalt is currently in a global

supply deficit, has a vulnerable supply chain, and is part of an emerging sector with extraordinary

potential. BlueBird is advancing its portfolio of battery metals focused assets in Western Australia