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Ultra Power Systems Pty Ltd Executes Second Payment According to the Patent Option Agreement for the Vanadiumcorp-Electrochem Processing Technology in Australia

Mergers & Acquisitions Property Options & Staking Metallurgy & Processing

Ultra Power Systems Pty Ltd Executes Second

Payment According to the Patent Option

Agreement for the Vanadiumcorp-Electrochem

Processing Technology in Australia

VANCOUVER

,

May 23, 2019

/CNW/ - VanadiumCorp Resource Inc. (TSX-V: "VRB") (the

"Company") and Electrochem Technologies & Materials Inc. ("Electrochem") have both received the

second scheduled payment from Ultra Power Systems Pty Ltd ("Ultra") as specified in the Patent

Option Agreement ("POA" ,"Option") to purchase an exclusive license for the jurisdiction of

Australia

signed by all parties

November 23, 2018

. Within the next 30 days, Ultra Power Systems Pty Ltd

("Ultra") will make the last payment enabling the right to finalize the terms of license within the next

six months.

Ultra plans to utilize the Australian license of VanadiumCorp-Electrochem Processing Technology

("VEPT") to expedite construction of the world's first dedicated vanadium processing facility. Ultra's

core objective is to directly integrate low cost battery grade vanadium electrolyte into vanadium

redox batteries from virtually any source in a fraction of the time and capital requirements of current

vanadium extraction processes. The VEPT dramatically reduces emissions associated with

vanadium extraction as well as substantially offsetting the operating cost of the vanadium precursors

used to manufacture electrolyte through the production of valuable by-products.

The resultant vanadium electrolyte therefore has a lower carbon footprint as well. Additionally, the

electrolyte offers an exceedingly long usage life (effectively perpetual reuse), which provides an

excellent basis for long-term leasing of this unique non-depreciating product.

Key aspects of the signed POA signed

May 23, 2018

include the following terms with all

financial considerations split evenly between VRB and Electrochem:

USD

$500,000 USD

total payment completes exercise of the Option.

Non-reimbursable down payment received upon signing the Patent Option Agreement.

Option to acquire the exclusive license of VEPT for the jurisdiction of Australia Territory.

Definitive license terms exercisable in the POA includes a minimum annual payment, financing

fees and a gross royalty due upon production, applicable to all vanadium products, ferrous

sulfate heptahydrate (copperas), titanium products and other by-products for a project duration

of 25 years.

Adriaan Bakker

, CEO of VanadiumCorp states, "Ultra Power will soon have the unique and exclusive

license to produce vanadium sustainably and efficiently. VanadiumCorp continues to benefit with

non-dilutive cash flow and a realistic pathway to commercialize vanadium batteries as the superior

and sustainable solution over competitive technologies."

Ultra Power Systems Pty Ltd.

is an Australian privately owned and financed company planning to

build a vanadium electrolyte production facility with VEPT in

Australia

to process abundant vanadium-

bearing resources and feedstocks for vertical integration into leasing vanadium batteries to mines

and remote communities, primarily in

Canada

and

Australia

. Ultra also intends to utilize its electrolyte

rights to participate in large scale renewable projects and to engage sub-licensees in strategic areas

of the globe. UPS was formed for the purpose of offering next generation power and storage

system solutions to capital conscious clients. The company intends to provide brand and generation

agnostic solutions according to a customer's needs, but with the core provision of a third-generation

VRFB, which represents a transformational catalyst to enable the vision of blended power supply

inputs on micro- and mega-grids.

VanadiumCorp Resource Inc.

is an integrated technology and mining company focused on

developing the exclusive supply chain for vanadium based energy storage and emerging technologies

that utilize vanadium. VanadiumCorp is focused on commercializing the most efficient and sustainable

recovery method to produce vanadium with jointly developed process technology. VanadiumCorp

also holds a significant vanadium-titanium-iron bearing resource base in mining friendly

Quebec,

Canada

including the 100% owned Lac Dore Project adjacent to Blackrock Metals Inc. and the

100% owned Iron-T Project near the Glencore Matagami (Zinc-Copper) Mine.

Electrochem Technologies & Materials Inc.

(

www.electrochem-technologies.com

) is a private

Canadian Corporation that currently owns twenty-four patents worldwide on proprietary chemical,

metallurgical and electrochemical technologies that are innovative, and sustainable. Commercially,

the company manufactures industrial electrodes, recycles rare earths, produces tantalum, tungsten

chemicals and vanadium electrolyte at its production facilities in

Boucherville, QC

.

VEPT:

The jointly owned "VanadiumCorp-Electrochem" Process Technology ("VEPT") describes a

novel chemical process invented by Dr.

Francois Cardarelli

that addresses the recovery of

vanadium, iron, titanium, and silica feedstocks such as vanadiferous titano-magnetite, iron ores and

concentrates such as magnetite and hematite, vanadium containing wastes such as BOF-slags,

calcine and other industrial by-products also containing vanadium. Building a conventional primary

vanadium mine can take typically take 5-10 years with a large capital requirement and involve

significant technical risks, a large carbon footprint. For the small number of surviving producers,

vanadium is generally recovered at 1% from VTM concentrate as a single commodity that requires

costly purification and is cost and trade prohibitive to import from

China

,

South Africa

and

Brazil

. For

convenient access to the International PCT Patent Publication the PCT is available for direct

download using the following link.

https://goo.gl/N8pPfU

Vanadium Redox Flow Batteries (VRFB, VRB)

are containerized, long duration, non-flammable,

compact, reusable over infinite cycles and last more than 20 years. Most batteries use two

chemicals that change valence (or charge or redox state) and cross contaminate and thus degrade

over time. VRBs utilize multiple valence states of vanadium as a single element to store and release

charge. VRBs consists of two tanks of vanadium electrolyte that flow adjacent to each other past a

membrane and generate a charge by moving electrons back and forth during charging and

discharging. This battery offers unlimited energy capacity simply by using larger electrolyte storage

tanks. It can be left completely charged for long periods without losing power and maintenance is

much simpler than other batteries. The unique advantage to separate power and energy also

provides significant advantages over competing technologies. With sustainably produced

VanadiumCorp Electrolyte

TM

, the carbon footprint of the VRB is remarkably low.

On behalf of the board of VanadiumCorp:

Adriaan Bakker

President and Chief Executive Officer

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

the policies of the TSX

Venture Exchange) accepts responsibility for the adequacy or accuracy of

this release.

SOURCE

VanadiumCorp Resource Inc.

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/May2019/23/c8525.html

%SEDAR: 00005245E

For further information:

Adriaan Bakker, President and CEO, VanadiumCorp Resource Inc., (TSX-

V: "VRB"), By phone: 1-604-385-4489, By email: [email protected], Website:

www.vanadiumcorp.com; Brad Appleyard, Managing Director, Ultra Power Systems PTY, By email:

[email protected], By phone: +618 6141 3395; Francois Cardarelli, President &

Owner, Electrochem Technologies & Materials Inc., Website: www.electrochem-technologies.com

CO: VanadiumCorp Resource Inc.

CNW 16:46e 23-MAY-19