Chairman's Message - Fall 2018

On behalf of the management and directors, I am pleased to update you on the key milestones completed thus far in 2018 and the goals and objectives for New Age Metals (NAM) for the balance of 2018 & 2019.

This message will also comment on other key corporate goals and milestones including: Preliminary Economic Assessment (PEA), our first economic study which is fully funded and was initiated in August 2018 on our River Valley Platinum Group Metal (PGM) Project. This message will outline our exploration and development plans for our River Valley PGM Project as well as the proposed plans for our 100% owned Alaskan Genesis PGM and Base Metal Project. We will further reflect on key 2018 milestones for our Lithium Division and our plans for the exploration and development of our 8 Lithium and Rare Metals projects in Manitoba for 2019.

Due to improved metal prices for Platinum Group Metals more specifically Palladium, Rhodium, Platinum and projected favourable supply and demand statistics in the base metals (Nickel, Copper, Cobalt) sector, management believes that investor’s sentiment is beginning to change. Investors with interest in both the common shares of Junior companies with advanced stage projects like River Valley and others who would purchase the physical metal themselves are beginning to take notice of these changing economic indicators. The long-term consensus for the palladium, cobalt, copper, nickel and lithium markets continues to forecast a physical metal deficit. Palladium/Platinum demand is increasing due to significant supply risks from declining South African production combined with a growing demand picture.

Demand for Lithium and Platinum Group Metals continues to be driven by four key factors:

  1. Global auto sales growth both in electric and internal combustion engine vehicles
  2. Increasing global emissions standards, which require higher palladium loadings, and the continuing move away from diesel engines to more palladium-intensive gasoline engines.
  3. An additional factor is the increasing popularity of hybrid-electric vehicles, which require slightly higher palladium loadings to meet emission standards due to their lower operating temperature.
  4. Platinum Group Metals are also a store of value like Gold and Silver.

River Valley PGM Deposit, Sudbury, Ontario

River Valley is the largest undeveloped primary PGM resource in Canada, with 4.626Moz PdEq in Measured Plus Indicated including an additional 2.7 Moz PdEq in Inferred. The resource above is the result of a new 2018 NI 43-101 calculation, which was completed April 2018 by WSP Canada Inc. (WSP) under the supervision of Todd McCracken, P. Geo. The River Valley PGM project has excellent infrastructure and is within 100 kilometers of the Sudbury Metallurgical Complex. The project is 100% owned by NAM.

River Valley has an ongoing geophysics program using the most up to date survey methods. Surface exploration and our recent drill programs have had encouraging results.

In 2017 New Age Metals continued to make geological advancements in the newly discovered higher-grade Pine Zone. The contact zone is where the current measured and indicated resources have been proven and where approximately $45 million has been expended to date. Thus far in 2018, other new targets that have not been previously explored have been identified, see Figure 1 below. These new targets may extend the River Valley Project mineralization to new zones that are very close to our existing resources.

Figure 1: The northern portion with superimposed 2018 merged IP at -100 level. This figure was retrieved from the River Valley Geophysical review by Geoscience North (Alan King, P.Geo., M.Sc.). Note: Figure 1 only represents approximately 3.5 km of the overall strike length of the River Valley PGM Project. The red line represents the contact where previous drilling has occurred. The yellow band represents the footwall where the Pine Zone was discovered. The circles represent new drill targets. Over time we plan to continue a geophysical program along the 16kms of strike and at depth.

Current Exploration and Development Objectives:

  1. Complete the River Valley Project Preliminary Economic Assessment (PEA)
    In July and August, NAM engaged P&E Mining Consultants to collaborate with DRA Americas to complete the first economic study: Preliminary Economic Assessment on River Valley. The PEA will look at the River Valley resource as defined in our most recent 2018 Resource Update and design potential mining scenarios for open pit mining and specifically outline the projected mine life, metal production rates and processing routes for our River Valley Project. It will further consider capital and operating costs to be incurred to finally deliver a report that incorporates all of the above information into a financial model to provide total cash flow, pre-tax net present value (NPV) and pre-tax internal rate of return. Completion of the PEA is slated for the end of the second quarter of 2019.
  2. Mineralogical studies underway.
    Expert Process Solutions (XPS), based in Falconbridge, Ontario has been engaged to perform mineralogical studies of the ore. XPS provides world class quantitative mineralogy for ore body characterization and metallurgical technology services for operational support, growth initiatives and project development and has extensive experience in many commodities including Platinum Group Metals. Management of NAM believes that a better understanding and characterization of the River Valley PGM mineralization will be a guide in future endeavors and development work including improved flowsheet and processing options in preparation for a Preliminary Economic Assessment (PEA) Report.

    XPS is collaborating with Steinert, a company that specializes in magnetic and sensor sorting solutions that are finding new applications in the mining industry to explore various methodologies that could facilitate pre-concentrating River Valley ore and upgrade the value of material that would be put through later stages of processing in a plant that would treat River Valley ore and our concentrates.

    Figure 2: Illustration of a Steinert ore sorting processing unit being tested for its application with River Valley material.

    North American Palladium, Canada’s only primary producer of PGMs, ships all its concentrates approximately 1,000 km from its Thunder Bay, Ontario Lac-des- Iles mine to the Sudbury Mining Complex for processing where the local majors have extra capacity to treat PGM ores.

    Subject to continued positive project development results for the River Valley Project and the completion of a positive Preliminary Economic Assessment, NAMs management plan is to develop a series of open pits, mine and concentrate on site and ship our concentrates approximately 100 road kilometers to the Sudbury Metallurgical complex.

  3. Ground proof several of the large geophysical anomalies identified in the 2018 geophysical program, conduct selective bulldozer stripping.
  4. Mapping of new mineralized zones, surface sample and/or diamond saw sampling, send samples for assay.
  5. Complete report with budgets to outline a 3-phase diamond drill program on the multiple drill targets as outlined by the Abitibi geophysical reports and Alan King’s interpretation of these reports in the northern 3.5-4 km of River Valley.

Figure 3: Global resource of River Valley. Note: A 0.4 g/t cut-off grade was used as that was approximately the open pit cut-off of Canada’s only PGM producing mine, North American Palladium’s Lac des Iles. The current economic study is expected to use higher cut-off grades and will focus in the northern portion of the project.

Platinum Group Metal Applications

We are encouraged about the economics surrounding PGMs as analysts continue to see ongoing deficits being forecasted in both Platinum and Palladium. The automotive industry will drive increases in demand for palladium and platinum due to the ever-increasing loadings of these precious metals in gasoline and diesel vehicles. The use of auto catalysts is mainstream in developed countries but their need has recently been mandated by more stringent regulations surrounding emissions in China, India and Brazil. Both Platinum and Palladium, outside of their extensive uses in catalytic converters which convert harmful gasses from hydrocarbon emissions into less harmful substances in vehicles. PGM’s, like gold and silver are precious metals and are therefore also considered a store of value.

As a reminder to our shareholders and investors our River Valley Project also contains: Gold, Cobalt, Copper, Nickel, and Rhodium. Rhodium and Platinum have had significant price increases in 2017 and 2018.

Exploration Plans for Lithium Division 2018

Figure 4: Tanco Mine, Manitoba. This Pegmatite Field hosts the world class Tanco Pegmatite that has been mined for Tantalum, Cesium and Spodumene (one of the primary Lithium ore minerals) in varying capacities, since 1969.

Figure 5: Overview of NAM’s Lithium division’s go-forward plan.

The Company has eight pegmatite hosted Lithium Projects in the Winnipeg River Pegmatite Field, located in SE Manitoba. In January, NAM announced a final agreement with Azincourt Energy Corp. (TSX.V: AAZ) for the Manitoba Lithium Projects. (News Release: January 15th, 2018) This Pegmatite Field hosts the world class Tanco Pegmatite that has been mined for Tantalum, Cesium and Spodumene (one of the primary Lithium ore minerals) in varying capacities, since 1969. NAM’s Lithium Projects are strategically situated in this prolific Pegmatite Field. Presently, NAM, under its subsidiary Lithium Canada Developments, is the largest mineral claim holder in the Winnipeg River Pegmatite Field for Lithium and Rare Metal projects. Azincourt Energy Corp. as our option/joint venture/funding partner, is financed for and has committed to a minimum of $600,000 to be expended on exploration this year in Manitoba. On July 11th,2018, NAM announced that they had exercised their option to search for Lithium and Rare Metals on the CAT4 claim.

On August 16th NAM provided an update on the summer 2018 exploration program where assays from the Lithium Two Project showed up to 3.3% Li2O. Further to the assay results, extensive surface exploration programs were completed on the Lithman North while there are ongoing programs taking place on the Lithman East and Lithman East Extension Projects.

Figure 6: Map showing the geographic position of the Winnipeg River Pegmatite Field in relation to Ontario and Manitoba.

Our technical team has started advanced surface exploration on Lithium One in early September and two drill applications have been applied for. Additional work will also be completed on several of the company’s other Manitoba Lithium projects. Further announcements will be forthcoming.

What follows is more detailed layouts of our Lithium Project assets.

Figure 7: Map showing the 8 Manitoba, 100% owned Lithium Projects, which are under an Option/ Joint-Venture with Azincourt Energy (AAZ)

Genesis Platinum Group Metal, Base Metal Project, Alaska

The Genesis PGM Project is an under explored, highly prospective multi-prospect drill ready Pd-Pt-Ni-Cu property that warrants follow-up drilling, additional surface mapping, sampling to expand the known footprint of mineralization and to determine the ultimate size and grade of the layered mineralization outlined to date. NAM management is actively seeking an option/joint-venture partner for this road accessible PGM/Multiple Element Project using the Prospector Generator business model. The stable land status, ease of access and superb infrastructure make this project prospective for year-around exploration, development and production.

Figure 8: Map of the Genesis PGM/ Base Metal Project in Alaska.

A detailed work program has been proposed in a recent NI 43-101 technical report done by Curt Freeman, President of Avalon Development Corporation who will manage these programs beginning in the fall of 2018.

Third Party Reports & Other Corporate Updates

The company has reports from 3 third party companies that have reviewed our projects and given their assessment of them. In September 2018, we received two reports which detailed the investment merits of the River Valley Project, and an outlook on Platinum Group metal forecasts, supply and demand for the metals and more. These reports are to be used to help us find a dedicated and committed financial partner who has a long-term belief in Platinum Group Metals and wants to contribute to develop our project to production. More specifically once a CA is signed with an interested major mining company, private equity company, mine finance company, these reports will be distributed to the potential partner.

NAM was a sponsor of the 2018 CPM Group Platinum Group Metals Yearbook, click the link here to see the 2018 PGM yearbook. CPM Group provides research and consulting services related to precious metals and all other commodity markets.

Current Market Awareness Program

Conferences This Quarter

On the 12th of September, management and the directors of NAM attended the North America Mining Expo as a Platinum sponsor, Harry Barr, CEO spoke at the Gala dinner event. On Wednesday, September 12 a NAM hosted a property tour at our River Valley Project and over 45 stakeholders attended (part of the attendees can be seen in the picture below), representing all aspects of the mining industry followed later that night by a town hall presentation where Mr. Barr presented the companies business plan and fall 2018 update and plans for 2019 and beyond to a group of stakeholders.

Fall 2018 River Valley Project site tour group picture.

On the weekend of September 29th management will be attending the Capital Event conference in Muskoka where we have 18 scheduled meetings with investors, family offices, and stockbrokers who are interested in the mining industry. A 20-minute NAM presentation will be given to each party. The Company is slated to visit Toronto, Atlanta and Vancouver in the fall of 2018. In February 2019 management plans to present its business plan at the Pre-Indaba Mining Investment conference and the 1-2-1 conference in Capetown, South Africa. In March 2019 the company will be attending the Raise Capital Event and the Prospectors and Development (PDAC) meetings in Toronto.

Third Party Social Media, Digital Marketing, and U.S. Radio Campaigns

In the first quarter of 2018, NAM signed contracts with, Investing News Network (a fully owned subsidiary of Dig Media Inc.), and International Mining Research. In the third quarter of 2018 we expanded our marketing contracts by signing contracts with Market-One-Media and Investor Intel. We plan to expand our social media programs to maximize our market outreach in house through specific focus on these digital marketing technologies. These programs will augment our existing programs. We are pleased to be working with these companies whose platforms provide content and contact with thousands of investors every day who follow small cap stocks. In early March 2018, to add to our U.S. marketing program and our OTC listing (U.S. Trade Symbol: PAWEF). NAM has signed contracts with NYC Radio, LLC, Corporate Profile Minute on the Larry Kudlow Show, which is featured on over 150 radio stations coast to coast, and the Ellis Martin Report, which is broadcasted on 100 terrestrial stations in the United States and worldwide via the VoiceAmerica Business Channel.

Figure 9: New Age Metals 1 -year stock chart as of September 20, 2018.

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I would personally like to acknowledge our Directors, Management Team and Technical Team for their ongoing hard work and dedication to our Company.

On behalf of our board of directors, I would like to thank you, our shareholders and interested parties for your continued interest and support.

Harry Barr

Chairman & CEO

Harry Barr, Chairman & CEO

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