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Drilling Completed on Fifth Well of Clayton Valley South Lithium Brine Project

Pure Energy Minerals Limited is pleased to report that drillers have exceeded the target depth ("TD") and completed the fifth well on the Clayton Valley South (CVS) Lithium Brine Project located in Esmeralda County, Nevada.

The Company has successfully completed well CV-5 from surface to a depth of 1,620 feet (494 meters) below ground level ("bgl"). The drillers installed steel casing to a depth of 60 feet (18 meters) in order to isolate the upper sequences of gravels from the targeted aquifers below. Mud rotary drilling proceeded very smoothly to the TD of 1,600 feet (488 meters) and beyond. As drilling terminated, some sand flowed into the hole, so the well was completed with 3" (76 mm) PVC casing down to 1,580 feet (482 meters). In order to facilitate fluid inflow from prospective aquifers, the drillers set screened casing from 580 feet (177 meters) to the bottom of the well.

As in previous wells, Pure Energy geologists and/or hydrogeologists monitored all drilling and collected samples of drill cuttings for analysis. The final stages of well completion involve air-lifting and the injection of solvents to break down drilling muds. This process is underway and the drillers are preparing the well for down-hole geophysical logging and fluid sampling.

This well (CV-5) is located approximately midway between wells CV-4 and CV-6 (See Company news releases dated January 25 and February 16, 2016). Stepping out a total of approximately 3.8 miles (6.0 kilometers) from previous drilling, these three wells span approximately 2.0 miles (3.2 kilometers) of the axis of the property. They are aligned from north-northeast to south-southwest approximately along the deepest portion of the Clayton Valley Basin. Figure 1 (below) is a base map showing the wells drilled to date by Pure Energy Minerals. As the data from these new wells is incorporated into the project database, it is expected to confirm and upgrade the southern portion of the Company's lithium brine resource.

Pure Energy Minerals CEO, Robert Mintak, commented, "We have achieved our objective for this winter drilling campaign by completing wells CV-4, CV-5, and CV-6 to depths not yet tested on the project. This drill program exceeded our expectations for the quality of the geological data collected, while the costs came in on budget. The technical team will remain in the field for sampling of these new wells and to collect composite brine samples to support the upcoming mini-pilot plant studies."

The data collection from these wells will facilitate updated resource calculations, as well as internal engineering studies that will support the preliminary economic analysis scheduled for mid-year. The drill will soon be moving north to drill a monitoring well for the upcoming pumping tests. Permitting is also getting underway for the next phase of drilling and pumping tests at Clayton Valley South.


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