Innovation Metals Corp. Provides Update on Agreement with Hexagon Energy Materials

Toronto, Ontario--(Newsfile Corp. - October 7, 2020) - Innovation Metals Corp. ("IMC" or the "Company") today provides an update on the Investment Agreement announced on October 10, 2019 between IMC and Hexagon Energy Materials Limited ("Hexagon"). The Investment Agreement has been terminated effective October 6, 2020.

The Investment Agreement provided Hexagon with a 12-month option ("Option") to acquire 49% of American Innovation Metals LLC, a prospective joint-venture company that on exercise of the Option, would have had the exclusive rights to commercialize IMC's RapidSX™ technology for rare-earth elements ("REEs") separation. The Investment Agreement required Hexagon to make an initial payment to IMC of US$2 million ("Initial Funds") on or before October 10, 2020, plus an additional US$4 million in deferred consideration. As Hexagon was not able to secure an investor to provide the Initial Funds to enable Hexagon to exercise the Option, Hexagon provided notice to IMC that it had withdrawn from the Investment Agreement on October 6, 2020.

In recent months, as travel restrictions hampered travel to and from Australia, the uncertainty concerning Hexagon's ability to exercise the Option, per the terms of the Investment Agreement, became challenging for IMC. With the Investment Agreement now terminated, IMC can proceed with the commercialization of RapidSX and advance with various end-user candidates and counterparties with clarity, conviction and certainty.

IMC's proprietary RapidSX technology is in the process of being developed for commercialization for the cost-effective bulk separation and purification of REEs - including both heavy REE ("HREEs") and light REEs ("LREEs") - for the production of REE oxides ("REOs"), in addition to other critical metals, such as lithium ("Li"), nickel ("Ni"), and cobalt ("Co") for lithium-ion ("Li-ion") battery materials.

IMC wishes Hexagon well in its future endeavors and looks forward to providing further updates on the commercialization of the RapidSX technology for the separation of HREEs and LREEs in the coming months.

# # #

About Innovation Metals Corp.

IMC has developed the proprietary RapidSX™ process, for the low-cost separation and purification of REEs, Ni, Co, Li and other technology metals, via an accelerated form of solvent extraction. IMC is commercializing this approach for a number of metals, to help enable mining and metal-recycling companies to compete in today's global marketplace. IMC is a wholly owned subsidiary of Ucore Rare Metals Inc.

For more information, please www.innovationmetals.com.

About the RapidSX™ Technology

IMC developed the RapidSX separation technology with the assistance of US$1.8 million in funding from the United States Department of Defense ("US DoD"), resulting in the production of commercial-grade, separated REOs at the pilot scale. RapidSX combines the time-proven chemistry of conventional solvent extraction ("SX") with a new column-based platform, which significantly reduces time to completion and plant footprint, as well as potentially lowering capital and operating costs. SX is the international REE industry's standard commercial separation technology and is currently used by 100% of all REE producers worldwide for bulk commercial separation of both HREEs and LREEs. Utilizing the same chemistry as conventional SX, RapidSX is not a "new" technology, but represents a significant improvement on the well-established, well-understood, proven conventional SX separation technology preferred by REE producers.

Forward-Looking Statements

This news release contains projections and statements that may constitute "forward-looking statements" within the meaning of applicable Canadian, United States and other laws. Forward-looking statements in this release may include, among others, statements regarding the future plans, costs, objectives or performance of Innovation Metals Corp. ("IMC"), or the assumptions underlying any of the foregoing. In this news release, words such as "may", "could", "would", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "goal", "estimate" and similar words and the negative forms thereof are used to identify forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that are beyond IMC's control, and which may cause the actual results, level of activity, performance or achievements of IMC to be materially different from those expressed or implied by such forward-looking statements. Such risks and uncertainties could cause actual results and IMC's plans and objectives to differ materially from those expressed in the forward-looking information. IMC can offer no assurance that its plans will be completed. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. Except as required by law, IMC assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

CONTACT
Dr. Gareth Hatch, CEng, FRSA, FIMMM, FIET
Chief Executive Officer and Chairman of the Board of Directors
Innovation Metals Corp.
+1 416 218 2006
info@innovationmetals.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/65425