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 - 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.