RETRANSMISSION: Manganese X Energy Announces Filing of Independent Preliminary Economic Assessment for its Battery Hill Project

Montréal, Québec--(Newsfile Corp. - June 27, 2022) - Manganese X Energy Corp. (TSXV: MN) (FSE:9SC) (OTCQB : MNXXF) ("Manganese X", "MN", or the "Company") is pleased to announce that, further to its May 12, 2022 news release, it has filed a technical report on Sedar of a Preliminary Economic Assessment (the "PEA") for its wholly owned Battery Hill manganese project, located near Woodstock, N.B.. There is no material difference in the PEA from the information disclosed in the May 12, 2022 news release.

The PEA was prepared by Wood Canada Ltd., an independent engineering service group with extensive experience in mining and mineral processing. The PEA technical report was prepared in accordance with the requirements of National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), has an effective date of May 12, 2022, and has a report date of June 24, 2022.

PEA Highlights (All dollar values are in US dollars unless otherwise stated):

  • Robust Economics
    • After-tax net present value using a 10% discount rate ("NPV10"): $486 million
    • 25% internal rate of return ("IRR")
    • Capital costs ("CAPEX") of $350 million with a payback of 2.8 years
    • Average annual gross revenue of $177 million per year over the 47 years Project life
    • Average annual gross revenue of $220 million over the first seven years
    • Life of mine ("LOM") operating cost ("OPEX") of $122/t material processed
  • HPMSM Market Price
    • Base case market price of $2,900/t for battery-grade high-purity manganese sulphate ("HPMSM") is well below the long-term forecast price of $4,200/t HPMSM estimated by CPM Group
  • Price Sensitivity
    • Base case undiscounted after-tax cashflow: $3.4 billion
    • Sensitivity analysis shows after-tax NPV10 reaches $914 million at $4,200/t HPMSM
  • Long Mine Life
    • 40-year mine production life and seven years of stockpile reclaim feed
    • Total LOM production of 3.2 million tonnes of HPMSM
    • Average annual HPMSM production of 68,000 tonnes over the LOM
    • Average annual HPMSM production of 84,000 tonnes in the first seven years of production
  • Low Environmental Impact
    • Flowsheet produces a filtered residue leach product with initial acid-base accounting and non-acid generating test results showing no acid drainage risk
  • Project Objectives
    • Project is now advancing towards a pilot project, pre-feasibility study as well as advancing a drilling program to upgrade and expand manganese resources

Disclosure

The PEA results are summarized for purposes of this press release. Further details on the PEA technical report are available on SEDAR under the Company's profile at www.sedar.com and the Company's website. https://www.manganesexenergycorp.com/wp-content/uploads/2022/06/final-pea-revised.pdf

The PEA is preliminary in nature; it includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the preliminary economic assessment will be realized. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

This News Release has been reviewed and approved by Perry MacKinnon, P.Geo, Vice President of Exploration with Manganese X Energy and a "Qualified Person" as defined under National Instrument 43-101 Standards of Disclosure for Mineral Projects.

About Manganese X Energy Corp.

Manganese X's mission is to advance its Battery Hill project into production, with the intent of supplying value-added materials to the lithium-ion battery and other alternative energy industries. The Company is also striving to achieve new environment-friendly more efficient methodologies, while processing manganese at a lower competitive cost. The company is the only publicly traded manganese company in North America moving rapidly toward commercialization of a manganese deposit.

Subsidiary Disruptive Battery Corp.'s mission is to develop an HVAC (heating, ventilation and air conditioning) air purification delivery system for cleaner and healthier air, aiming to mitigate COVID-19 and other contaminants on surfaces and in the air. For more information visit the website at www.manganesexenergycorp.com

On behalf of the Board of Directors of

MANGANESE X ENERGY CORP.

Martin Kepman

CEO and Director

Email: martin@kepman.com

Tel: 1-514-802-1814

Cautionary Note Regarding Forward-Looking Information:

This press release contains certain information that may constitute "forward-looking information" under applicable Canadian provincial securities legislation. Forward-looking information includes, but is not limited to, the results of the PEA, including statements relating to net present value, future production, future development and commercialization, estimates of cash cost, proposed mining plans and methods, cash flow forecasts, HPMSM recoveries, timing for permitting and environmental assessments, ability to acquire surface rights at a reasonable cost, realization of Mineral Resource estimates, capital and operating cost estimates, project and life of mine estimates, ability to obtain permitting by the time targeted, the timing and amount of estimated future production , exploration expenditures and potential upside and alternatives, the viability and efficacy of Manganese X's proprietary extraction process, including its ability to produce a superior manganese product, and its suitability for use in battery manufacturing. Readers should not place undue reliance on forward-looking statements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Manganese X to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The PEA results are estimates only and are based on a number of assumptions, any of which, if incorrect, could materially change the projected outcome. There are no assurances that the Project will be placed into production. Factors that could affect the outcome include, among others: the actual results of development activities; project delays; inability to raise the funds necessary to complete development; general business, economic, competitive, political and social uncertainties; future prices of HPMSM or project costs could differ substantially and make any commercialization uneconomic; availability of alternative manganese sources or substitutes; actual manganese recovery; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; accidents, labour disputes, the availability and productivity of skilled labour and other risks of the mining industry; political instability, terrorism, insurrection or war; delays in obtaining governmental approvals, necessary permitting or in the completion of development or construction activities; Mineral Resource estimates relating to the Project could prove to be inaccurate for any reason whatsoever; additional but currently unforeseen work may be required to advance to the feasibility stage; even if the Project goes into production, there is no assurance that operations will be profitable; and risks related to the interpretation of the gross metal royalty ("GMR") set forth in the Company's option agreement dated April 22 2016 with Globex Mining Enterprises Inc. (the "Option Agreement"), including with respect to: (i) the brevity and potential challenges the Company and other parties may face in regard to interpreting the terms of the GMR; (ii) determination of the reference prices that are to be used to value the metals and products that are produced from the Project; and (iii) the stage of production in the processing and value chain of deliverable metals within a production facility whereby the GMR becomes payable, all of which could have a significant impact on the determination of the GMR payable by the Company. The Option Agreement has not been the subject of any litigation to date and accordingly no findings or decisions have been made by any court or arbitrator regarding the specific interpretation of the Option Agreement.

Although Manganese X has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and Manganese X disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined by the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/129214

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