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Vanadiumcorp-Electrochem Phase II Update High Purity Iron Produced Using Hydroelectricity

Corporate Updates

Vanadiumcorp-Electrochem Phase II Update

High Purity Iron Produced Using Hydroelectricity

VANCOUVER, BRITISH COLUMBIA – June 29, 2017 – VanadiumCorp Resource Inc. (TSX-V : “VRB”)

(the "Company") is pleased to announce the first re actor installation is complete, in operation and

successful and consistent recovery of high purity i ron. Phase II development of Vanadiumcorp-

Electrochem Process Technology is located Electrochem Technologies & Materials Inc. (“Electrochem”)

facilities in Boucherville, Quebec.

Scaled trial production capacity increasing on schedule:

/xrhombus The first large reactor designed with a nameplate capacity of 300 kg/month of VTM was

successfully installed at Electrochem’s facilities using readily available industrial equipment

required for production scale-up. Additional customized items will be installed to accommodate

the specificity of the patent pending VanadiumCorp-Electrochem technology.

/xrhombus The ferrous sulfate heptahydrate (copperas) crysta ls was successfully produced from VTM

concentrated from 2013 confirmation holes drilled on the Lac Doré deposit, using conventional

milling and magnetic separation. The copperas cris tallized from the pregnant liquor solution

“PLS” allowed the electrowinning of pure electrolyt ic iron using Electrochem’s patented

technology. This represents the first time pure ele ctrolytic iron metal was processed from Lac

Dore vanadiferous titanomagnetite “VTM” using hydroelectricity. This demonstrates the potential

of implementing this integrated CO2 free iron making process.

/xrhombus In parallel, 5 kg batches of VTM were processed us ing a gallon-size vessel in order to confirm

results obtained during Phase I with a particular a ttention on the consumption of chemicals,

energy and water. So far the results confirmed a sp ecific consumption of sulfuric acid close to

stoichiometry and a low water utilization allowing to produce highly concentrated liquors suitable

for recovering efficiently iron, vanadium, titanium, and silica products. The energy consumption

was kept at a minimum relying on the exothermic cha racter of the chemical reactions involved

that will allow an autogenous mode of operation when performed industrially.

/xrhombus Once fully operational, the large reactor will all ow efficient assessment of the technology

robustness and to further optimize its design prior to building additional reactors and equipment

as Phase II continues toward a targeted nameplate capacity of 1 tonne per month of VTM.

/xrhombus Processing other vanadiferous concentrates and metallurgical by-products supplied from various

industrial partners worldwide is also expected to facilitate scale-up to 1 tonne per month capacity

and the beginning of Phase III.

/xrhombus Consistent yields and recoveries (+95%) remain con sistent in Phase II confirming the industrial

potential of the new and greener technology that ca n now be applied to other vanadiferous

feedstocks, hematite, vanadium slags from steel making, iron ores, and non-monetized calcine

from primary vanadium producers that all containing elevated concentrations of iron which are

not currently processed efficiently or at all by existing conventional technologies.

TSX -V: “VRB”

/xrhombus Current focus on the preparation on vanadium chemi cals and the vanadium electrolyte (VE) at

Phase II scale for qualification by end users.

Adriaan Bakker, CEO of VanadiumCorp states, “Consistent results and increasing efficiencies in Phase

II bode well to utilize our green processing techno logy for our exclusive 100% owned VTM resources

and potential for mass adoption by various industries.”

In Phase II, VanadiumCorp-Electrochem Technology is incorporating Electrochem's globally patented

technology for electrowinning to produce high purit y electrolytic iron. Scaling the process with large r

infrastructure such as reactors to process larger batches of VTM is necessary to fully test for production

of vanadium pentoxide, vanadium electrolyte and electrolytic iron for final qualification by potential end

users.

Based on the continued success within Phase II, Van adiumCorp and Electrochem are both confident

about the disruptive integrated approach having a p rofound impact for processing vanadium and iron

feedstocks in Canada and abroad with an exclusive, environmentally friendly technology developed in

Quebec, Canada.

Non-dilutive cost mitigation variables:

/xrhombus Scalable infrastructure and available equipment

/xrhombus Applicable grants and government incentives

/xrhombus R&D tax credits

/xrhombus Contribution from global partners and internationa l interest

Electrochem Technologies & Materials Inc. is a rese arch and development company that invents,

develops, patents, scales-up and commercialize prop rietary metallurgical and electrochemical

technologies that are innovative, and sustainable. VanadiumCorp-Electrochem Technology is located

at Electrochem's facilities in Boucherville, Quebec.

Conventional pyrometallurgical processes used for vanadium, titanium and steel production utilize either

direct soda ash roasting of the magnetite followed by water leaching, or the arc smelting and slagging

of the magnetite followed by soda ash roasting of the vanadium-rich slag. Smelting or roasting is capital

intensive with high operating costs, technical risks and significant emissions of greenhouse gases that

pose serious environmental issues. Hydrometallurgical processes for the extraction of vanadium have

been proposed in the last decade as a lower cost al ternative in replacement of the conventional

processes such as TNG Limited’s TIVAN Process. Howe ver they do not recover electrolytic iron co-

product, which is expected to represent a significa nt portion of value. The Vanadiumcorp-Electrochem

Technology addresses these key issues and allows the full recovery of vanadium for the production of

either a vanadium electrolyte (VE) or vanadium chem icals used for preparing vanadium battery

electrolyte as well as the concurrent production of a high quality iron co-product at competitive cost.

The aspect related to the to VTM production contain ed in this press release has been reviewed by

Réjean Girard, P.Geo, a Qualified person in regard of NI-43-101 regulations.

For more information, contact Vanadiumcorp:

Adriaan Bakker, President, CEO

By phone: 604-385-4489

By email: [email protected]

Website: www.vanadiumcorp.com

Adriaan Bakker,

President and Chief Executive Officer

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.