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VRB.V ·

MOU with C-Tech Innovation Limited to develop Electrolyte Production Plant in Canada

Partnerships & JV

MOU with C-Tech Innovation Limited to develop Electrolyte

Production Plant in Canada

VANCOUVER, BRITISH COLUMBIA - January 12, 2017 - VanadiumCorp Resource Inc. (T SX-V:

"VRB") (the "Company") is pleased to announce it ha s signed a memorandum of understanding

"MOU" with leading UK technology company C-Tech Innovation Limited (C-Tech) to collaborate on the

development of a vanadium electrolyte "VE" plant in Canada. Direct VE capacity is the main

consideration in the Company's preliminary economic assessment "PEA". C-Tech will assist in

recovery optimization and beneficiation of Vanadium Corp electrolyte directly from magnetite

concentrate.

C-Tech is an innovative research and technology com pany focused on preparation of VE for use in

vanadium redox flow batteries (VRFB). Under the MOU a test plant capable of producing battery-

ready electrolyte will be established in Quebec, Ca nada. C-Tech will also collaborate with

VanadiumCorp (along with other consultants) on a commercial-scale VE plant .

The MOU will allow the companies to collaborate on a number of key strategic initiatives including:

• The development of vanadium electrolyte production and other specialty high purity vanadium

materials using CTech's highly efficient electroche mical processing technology from

VanadiumCorp's mineral claims located in the mining center of Chibougamau, Quebec.

• The development and commercialization of efficient and environmentally friendly mineral

extraction and processing technologies to enable th e direct production of vanadium electrolyte

from unrefined raw materials, including the simultaneous removal of contaminant metals.

• Pursue reasonable efforts to enter into a definitiv e agreement within 12 months from the

effective date of signing for the MOU

The general process & production development outline for The Lac Dore Vanadium Project:

• Commence initial testing of VanadiumCorp VTM, V205

• Demonstrate recovery and economics with C-Tech electrochemical pilot plant

• Commence scaled up commercial vanadium electrolyte manufacture with C-Tech production

plant

Ged Barlow, MD of C-Tech Innovationcomments, "Vanad iumCorp is executing plans to put together a

low cost vertically integrated supply chain for VE manufacture. C-Tech is excited to be part of this

innovative business model and looks forward to capi talizing upon its manufacturing and purification

technologies in the expandingVE market."

Adriaan Bakker, CEO of VanadiumCorp states, "Vanadi umCorp's aim is to mitigate VE costs with

direct process, unique supply, low cost power and v ertical integration into VRFB technology. The

objective of our partnership with C-Tech is to redu ce total VRFB cost and accelerate

commercialization."

TSX-V: “VRB”

C-Tech Innovation delivers innovative products and processes for electrochemical and advanced

thermal applications. This includes unique electroc hemical processes for use in energy and

environmental applications, such as metal recovery, water treatment, chemical synthesis, fuel cells

and batteries.

C-Tech's expertise with flow batteries, and electro chemical production of VE allows for a vertically

integrated process flowsheet, test production and n ecessary production infrastructure. C-Tech has

developed a proprietary electrochemical process for the production of VE in VRFBs. Approximately

42% of the total cost of a VRB battery is attributed to VE specifically. VE is thus the critical component

that stores electrical energy indefinitely at megaw att to gigawatt scale and ideal for storing renewab le

energy and many other applications such as EV charg ing stations and remote off grid power. VRFBs

manage the intermittent nature of renewable energy most efficiently compared to competing

technologies. Increasing grid stability, modernizat ion, security and managing power for later use are

all possible with the VRFB. With 100% reusable VE as the sole electrolyte, VRFBs typically last longer

than 25 years and represent a "green" energy storag e technology. The lower risk operation of VRFBs

makes them ideally suited for commercial operations where safety is of paramount importance. The

cost reduction potential of directly processed VE for VRFBs could offer significant advantages.

About VanadiumCorp :

VanadiumCorp is focused on the development of its 1 00% owned Lac Dore Vanadium project. The

project will incorporate local "green" processing f or high-purity vanadium electrolyte, which forms a

key component of flow batteries. Favorable metallur gy, low impurities such as silica and no superficia l

oxidation allow for a direct purification process unique to VanadiumCorp .

FOR MORE INFORMATION, CONTACT :

Adriaan Bakker, President and Chief Executive Officer - Direct: 604-385-4485

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the p olicies of the TSX Venture Exchange)

accepts responsibility for the adequacy or accuracy of this release.