First Vanadium Corp. Announces Maiden Mineral Resource Estimate at Carlin Vanadium Project, Nevada

February 27, 2019 10:49 AM EST | Source: Phenom Resources Corp.

Vancouver, British Columbia--(Newsfile Corp. - February 27, 2019) - First Vanadium Corp. (TSXV: FVAN) (OTCQX: FVANF) (FSE: 1PY) (formerly Cornerstone Metals Inc.) ("First Vanadium" or the "Company") is pleased to announce that SRK Consulting (U.S.), Inc. ("SRK") has completed an independent National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate (Table 1) on the Carlin Vanadium deposit located 6 miles south of Elko, Nevada. The mineral resource estimate replaces the 2010 SRK historic mineral resource estimate.

Table 1. Carlin Vanadium Mineral Resource Statement at 0.3% V₂O₅ Cut-off grade (CoG) (Effective Feb. 1, 2019)

Classification	CoG (% V₂O₅)	Grade (% V₂O₅ )	Tons (in millions)	V₂O₅lb (in millions)
Indicated	0.3	0.615	24.64	303

Inferred	0.3	0.520	7.19	75

Mineral Resources are not Mineral Reserves. Mineral resources which are not mineral reserves do not have demonstrated economic viability. There has been insufficient exploration to define the Inferred Resources tabulated above as an Indicated or Measured Mineral Resource. There is no guarantee that any part of the mineral resources discussed herein will be converted into a mineral reserve in the future.
The Mineral Resources in this estimate were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
The mineral resources listed in Table 1 are confined within a Whittle Pit Shell with a 45⁰ pit slope and a strip ratio of 2.6:1 waste to ore including all categories. The following parameters were used to construct the Whittle pit shell and to derive the mineral resource cut-off grade of 0.3% V2O5: Metal prices: US$12.50/lb V2O5 flake, Mining: US$2.50/t, Processing: US$52.50/t, G&A: US$1.50/t, Product Transport: $2.00/t, Process Recovery: 85%.
Contained pounds may not add due to rounding.

This is the first time Indicated mineral resources have been established for the deposit, justified by the Company's two drill campaigns totaling 89 holes which verified historic drilling, twinned 6 historic holes either replicating or demonstrating improved grade, and in-filled to tightened the previous drill pattern.

The resource as defined within the pit shell has a defined strike length of approximately 1,800 metres and width averaging 600 metres, starting at surface to depths of 120 metres. The thickness of the main mineralized zone ranges from 15 metres to 50 metres. As noted in the Company's press release of January 31, 2019, the recent acquisition of adjoining lands via a mineral lease has had a positive impact on the overall pit shell design.

First Vanadium President and Chief Executive Officer, Paul Cowley stated, "Our Maiden resource estimate far exceeds our expectations. Approximately 77% of the estimation reports to the Indicated category, grades are higher than expected in the Indicated category, and the contained pounds of V₂O₅ metal in the deposit in both Indicated and Inferred categories are higher than expected."

The Carlin Vanadium deposit mineral resource was estimated by Dr. Bart Stryhas of SRK Consulting (U.S.), Inc. based on 216 rotary, reverse circulation and diamond drill holes completed by Union Carbide in the late 1960s and First Vanadium in 2018. The grade estimation utilizes an Inverse Distance Squared algorithm and is confined by a 0.2% V₂O₅grade shell. The raw sample data was capped at 2.5% V₂O₅ prior to being composited to 10ft lengths. A dynamic sample search orientation was employed which follows the trends of the mineralized horizons.

The 0.3% V₂O₅ cut-off grade was chosen for resource reporting based on the reasonable potential for economic extraction under a conceptual open pit mining and milling scenario using US$2.50/t mining cost, US$52.50/t milling cost, US$1.50/t admin cost, US$2.00/t product transport cost, 85% recovery, and a US$12.50/lb V₂O₅ value. The results of the resource estimation provided a CIM classified Indicated and Inferred Mineral Resource. The SRK Technical Report will be prepared and filed on SEDAR (www.sedar.com) under the Company's profile, in accordance with NI 43-101 Standards of Disclosure for Mineral Projects within 45 days of this news release.

The Carlin Vanadium deposit is considered the largest, highest grade primary vanadium deposit in North America and now exceeds the numbers quoted in USGS Professional Paper 1802 Critical Mineral Resources of the United States-Economic and Environmental Geology and Prospects for Future Supply dated December 18, 2017.

Sensitivity Table

Sensitivity analysis of the Carlin Vanadium Project's NI 43-101 mineral resource estimate for V2O5 at various cutoff grades (CoG):

Classification	CoG (% V₂O₅)	Grade (% V₂O₅)	Tons (in millions)	V₂O₅lb (in millions)
Indicated^*1	0.2	0.539	31.26	337
	0.3^*2	0.615	24.64	303
	0.4	0.702	18.64	262
	0.5	0.776	14.44	224
	0.6	0.849	10.92	185
	0.7	0.929	7.80	145
	0.8	1.012	5.32	108

Inferred^*1	0.2	0.450	9.72	87
	0.3^*2	0.520	7.19	75
	0.4	0.596	4.94	59
	0.5	0.677	3.18	43
	0.6	0.745	2.08	31
	0.7	0.847	1.05	18
	0.8	0.959	0.53	10

*¹ Mineral Resources are not Mineral Reserves. Mineral resources which are not mineral reserves do not have demonstrated economic viability. There has been insufficient exploration to define the Inferred Resources tabulated above as an Indicated or Measured Mineral Resource. There is no guarantee that any part of the mineral resources discussed herein will be converted into a mineral reserve in the future.

*² The Base Case reported resources are highlighted in bold and have been constrained within a US$12.50/lb V₂O₅ optimized pit shell described above.

Vanadium prices have been on a steady rise again since January 11, 2019 and now sit at US$17.60/lb for V₂O₅ flake.

First Vanadium President and Chief Executive Officer, Paul Cowley stated, "Our Maiden resource estimate provides a base for an economic study on the project."

Technical disclosure on the mineral resource estimate in this news release has been reviewed and approved by Dr. Bart Stryhas, PhD, CPG., a Qualified Person as defined by National Instrument 43-101. Technical disclosure excluding the mineral resource estimate in this news release has been reviewed and approved by Paul Cowley, PGeo., a Qualified Person as defined by National Instrument 43-101, and President and CEO of the Company.

About First Vanadium Corp.

First Vanadium (formerly Cornerstone Metals Inc.) has an option to earn a 100% interest in the Carlin Vanadium Project, located in Elko County 6 miles south of a major rail hub and mining community of Carlin, Nevada, a major highway (I-80) and power. The Carlin Vanadium Project hosts the Carlin Vanadium Deposit which is a black shale-hosted flat to shallow dipping vanadium deposit at shallow depths, 0-60 m (0-200 ft) below surface.

ON BEHALF OF FIRST VANADIUM CORP.

per: "Paul Cowley"
CEO & President
(778) 655-4311
pcowley@firstvanadium.com
www.firstvanadium.com

Neither 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 information

Certain statements in this news release constitute "forward-looking" statements. These statements relate to future events or the Company's future performance. All such statements involve substantial known and unknown risks, uncertainties and other factors which may cause the actual results to vary from those expressed or implied by such forward-looking statements. Forward-looking statements involve significant risks and uncertainties, they should not be read as guarantees of future performance or results, and they will not necessarily be accurate indications of whether or not such results will be achieved. Actual results could differ materially from those anticipated due to a number of factors and risks. Although the forward-looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions on the date of this news release, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof and the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.