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VanadiumCorp Comments on New US Geological Survey Recognizing Vanadium and Titanium as Critical to a National Economy and National Security and President Trump's Subsequent Executive Order

Company Commentary

VanadiumCorp Comments on New US Geological Survey Recognizing Vanadium

and Titanium as Critical to a National Economy and National Security and

President Trump's Subsequent Executive Order

VANCOUVER, Dec. 22, 2017 /CNW/ - VanadiumCorp Resou rce Inc. (TSX-V: "VRB") has commented on

the release of the U.S. Geological Survey's report on the critical mineral resources of the United States

and President Donald Trump's order to develop a federal critical mineral strategy.

The report lists 23 metals and minerals that are critical to "the national economy and national security of

the United States." Vanadium and titanium are two of the 23 materials listed, recognized as critical to

"national economy and national security" and are just a few of the metals and minerals on the list for

which the U.S. is import-dependent. The 850-page report is the first comprehensive update on US

mineral resource landscape since the 1973 Oil Crisis.

The report is followed by a Presidential Executive Order to develop a federal strategy to reduce forei gn

dependence on critical minerals.

VanadiumCorp owns a significant vanadium-titanium-i ron bearing resource base in one of the world's

most mining-friendly jurisdictions, Quebec, Canada. VanadiumCorp is also exploring licensing and joint ly

developing innovative, carbon-free process technolo gy that unlocks new strategic supplies of vanadium

and various co-products, including titanium.

The reports states:

Regarding vanadium for energy storage : "The emerging need for large-scale electricity storage makes

vanadium redox-flow batteries (VRBs) a major potent ial future use of vanadium. Because of their

largescale storage capacity, development of VRBs co uld prompt increases in the use of wind, solar, and

other renewable, intermittent power sources. Lithium-vanadium-phosphate batteries produce high

voltages and high energy-to-weight ratios, which make them ideal for use in electric cars. Vanadium us e

in lithium batteries is expected to increase to 1,700 metric tons in 2017 from 200 metric tons in 2012

(Perles, 2013)." "The VRB..." "consists of an assem bly of power cells in which two vanadium-based

electrolytes are separated by a proton exchange mem brane. The main advantages of the VRBs are (a)

their nearly unlimited capacity, which is made possible simply by using sequentially larger storage tanks;

(b) their ability to be left completely discharged for long periods of time with no detrimental effect s; (c) the

ease of recharging them by replacing the electrolyte if no power source is available to charge it; and (d)

their ability to withstand permanent damage if the electrolytes are accidentally mixed (Polyak, 2012)."

Regarding alloys and steel: "Vanadium is irreplaceable for its role in aerospac e applications because

vanadium-titanium alloys have the best strength-to- weight ratio of any engineered material yet

discovered." Vanadium, when combined with titanium, produces a stronger and more stable alloy, and

when combined with aluminum produces a material suitable for jet engines and high-speed airframes. No

acceptable substitutes exist for vanadium in aerospace titanium alloys.

"The high-strength, low-alloy (HSLA) steels containing vanadium are widely used for the construction of

auto parts, buildings, bridges, cranes, pipelines, rail cars, ships, and truck bodies, including armor plating

for military vehicles (Polyak, 2012)." "Only a lim ited degree of substitution is possible among these

metals, however. Replacement of vanadium with other mineral commodities requires significant technical

adjustments to the steel production process to ensure that product specifications and quality are not

compromised. For example, use of vanadium generally requires less energy consumption during

production than does niobium to give equivalent steel properties. Therefore, substitution for vanadium is

normally not considered for short-term changes in m arket conditions because of the considerable effort

involved in implementing the change."

"Additionally, significant amounts of vanadium are available for commercial use as a byproduct of

petroleum refining, and processing of coal, tar sands, and oil shales may be important future sources. "

These types of feedstocks as well as virtually any other vanadium bearing waste or primary source can

now be processed carbon free with high efficiency VanadiumCorp and Electrochem combined

technologies. The exclusive products targeted include VanadiumCorp Electrolyte TM and many specialty

metals including titanium that are also included in 23 critical materials listed in the report.

The Report, formally titled "Critical Mineral Resources of the United States Economic and Environmenta l

Geology and Prospects for Future Supply," (USGS Pro fessional Report 1802), updates USGS Report

820, issued 44 years ago during the 1973 oil crisis. The report presents updated reviews of 23 mineral

commodities and commodity groups viewed as critical to a broad range of existing and emerging

technologies, renewable energy, and national security. The Report represents the U.S. Government's

most comprehensive assessment of the nation's miner al resource profile and potential, serving to inform

federal mineral policy.

Secretary Ryan K. Zinke, of the Department of the Interior, which oversees the USGS, stated on the

release of the report: "I commend the team of scientists at USGS for the extensive work put into the

report, but the findings are shocking. The fact that previous administrations allowed the United States to

become reliant on foreign nations, including our competitors and adversaries, for minerals that are so

strategically important to our security and economy is deeply troubling. As both a former military

commander and geologist, I know the very real national security risk of relying on foreign nations for what

the military needs to keep our soldiers and our hom eland safe."

The USGS study was followed by the signing of a new Executive Order by President Trump, "A Federal

Strategy to Ensure Secure and Reliable Supplies of Critical Minerals." The Executive Order directs the

U.S. Secretaries of the Interior and Defense to prepare a list of critical minerals within 60 days, and to

develop and report within 6 months a strategy for r educing foreign dependence on those metals and

minerals deemed critical. "This executive order will prioritize reducing the Nation's vulnerability to

disruptions in our supply of critical minerals safely and responsibility for the benefit of the American

people," said President Trump.

VanadiumCorp is developing and exploring licensing potential fo r an innovative, carbon-free process

technology that unlocks a new strategic supply of vanadium and coproducts such as titanium. Jointly

developed and owned with Electrochem, this innovative chemical process allows for integrated and

carbon-free recovery of critical metals needed on a global scale. VanadiumCorp also holds a significan t

vanadium-titanium-iron bearing resource base in mining friendly Quebec, Canada.

Electrochem Technologies & Materials Inc. is a private Canadian corporation that invents, de velops,

patents, scales-up and commercializes proprietary chemical, metallurgical and electrochemical

technologies that are innovative, and sustainable. Electrochem owns the exclusive rights for its patented

iron electrowinning process worldwide. The company also manufactures industrial electrodes and

produces tantalum and tungsten fine chemicals.

VanadiumCorp Electrolyte TM is a registered trademark representing the new indu stry standard.

VanadiumCorp is developing as baseline of battery g rade quality compliant with international

standards.

ON BEHALF OF THE BOARD

Adriaan Bakker, President and Chief Executive Offic er

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.

FORWARD LOOKING STATEMENTS: This news release conta ins forward-looking statements, which

relate to future events or future performance and reflect management's current expectations and

assumptions. Such forward-looking statements reflect management's current beliefs and are based on

assumptions made by and information currently available to the Company. Investors are cautioned that

these forward looking statements are neither promises nor guarantees, and are subject to risks and

uncertainties that may cause future results to differ materially from those expected. These forward-looking

statements are made as of the date hereof and, exce pt as required under applicable securities legislation,

the Company does not assume any obligation to updat e or revise them to reflect new events or

circumstances. All of the forward-looking statements made in this press release are qualified by these

cautionary statements and by those made in our fili ngs with SEDAR in Canada (available at

WWW.SEDAR.COM ).

SOURCE VanadiumCorp Resource Inc.

View original content with multimedia:

http://www.newswire.ca/en/releases/archive/December 2017/22/c3984.html

%SEDAR: 00005245E

For further information: Vanadiumcorp: By phone: 604-385-4489, By email:

[email protected], Website: www.vanadiumcorp.com

CO: VanadiumCorp Resource Inc.

CNW 14:00e 22-DEC-17