Chairman's Message - Winter/Spring 2018

On behalf of the management and directors, I am pleased to update you on the key milestones completed in 2017 and the goals and objectives for New Age Metals (NAM) in 2018. This message will also comment on other key items including: the recent rise in the price of Platinum Group Metals, more specifically Palladium; outline our extensive ongoing exploration and development activities on our River Valley PGM project and our Lithium Division. Due to improved metal prices, investor’s sentiment, increased demands for the metals we explore for and the stages of development our projects are at, management of NAM remains optimistic that 2018 will be a banner year.

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 in the line above is the result of a new 2018 NI 43-101 calculation, which has just been completed 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.

In 2017 New Age Metals continued to make geological advancements in the new high-grade Pine Zone, that was first discovered in 2015. In June, Abitibi Geophysics conducted our Geophysical program that outlined additional high priority targets in the Pine Zone, that were drilled from July to September. The 2017 drilling at the Pine and T-3 Zones has extended new mineralization for approximately 140 metres east of the previous known mineralization and at least 300 m below surface into the footwall of the identified resources. This winter’s geophysical program will be followed by our 2018 summer/fall drill program. The targets identified in the 2017 geophysical program have confirmed continued PGM mineralization in the footwall to the main River Valley contact. The contact is where the current measured and indicated resources have been proven. With continued geophysics and drilling success in 2018, other new targets that have not been previously explored could extend along the 16kms of strike and at depth.

Figure 1: Northern Portion of the River Valley PGM Deposit Showing Regions of Current IP Geophysics and grade at a 0.4 cut-off. NOTE: Image only represents approximately 3.5 km of the overall strike length of the River Valley PGM deposit.

During 2018 the company’s exploration and development objectives are:

  1. Complete ground IP Geophysics.
    The current geophysical survey on our River Valley PGM project is a high-resolution OreVision® IP survey performed by Abitibi Geophysics, (Thunder Bay, Ontario), who completed last year’s survey on our new discovery the Pine Zone through to our T-3 target. New drill discoveries have been made in these zones in 2015-2017.  OreVision IP can reveal targets at four times the depth of conventional IP without compromising near-surface resolution. The goal of the geophysical survey is to test the footwall portion to the main River Valley PGM Deposit, southward of the Pine Zone IP survey (News Release: Jun 19th, 2017) and to cover the area between target anomalies T4 to T9 (Figure 1). This area represents a survey strike length of approximately 2000 meters. The line cutting, and grid is near completion and the IP crews are in the field. Upon completion of the geophysics, the company will outline a series of drill programs to test the geophysical anomalies generated from this survey and outline additional drilling to the north in Pine Zone and T-3.
  2. Complete mineralogical studies currently 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. Major companies within the Sudbury mining complex have extra capacity to treat PGM ores. 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.
  3. Continue with drilling in the northern portion of the project and explore more target areas based on recommendations of the updated 2018, NI 43-101 resource calculation and the 2018 winter geophysics program. Drilling is slated for the summer and fall of 2018.

Figure 2: The Yellow Band represents the interpolated footwall potential area of the River Valley Deposit based on the results of the Pine Zone where footwall mineralization was noted to extend 150 meters eastward from the main deposit. At present the only area that has confirmed footwall mineralization is in the Pine Zone (defined from 2015 to 2017 drilling). Geophysics and exploration are in progress to test other areas of the deposit, with a specific focus on outlining a sufficient ounce bank in the northern portion of the project.

Platinum Group Metal Prices & Performance

We are encouraged about the economics surrounding PGMs as we continue to see ongoing deficits being forecasted in both Platinum and Palladium. Most recently the price of Palladium, our primary metal at River Valley, has hit an all-time high, and outpaced all other commodities in 2017 and over the past 10 years. Our second most important metal Platinum, has come off its bottom price in late 2017 and has increased substantially to date. As a reminder to our shareholders and investors our River Valley Project also contains: Gold, Silver, Copper, Nickel, and Rhodium, most of which have experienced recent price increases.

Recently the World Platinum Investment Council forecasted a deficit in Platinum production for the next 5 consecutive years. Palladium for the 10 years from 2008-2017, has averaged 21.5% per annum while Gold averaged only 5.8% per annum over that same period. 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), are considered precious metals, like Gold and are seen as a store of value.

Exploration Plans for Lithium Division 2018

The Company has five pegmatite hosted Lithium Projects in the Winnipeg River Pegmatite Field, located in SE Manitoba. In January, NAM announced a signed 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 one of the largest mineral claim holders in the Winnipeg River Pegmatite Field for Lithium. Azincourt Energy Corp. as our option/joint venture/funding partner, is financed for and has committed to a minimum of $500,000 to be expended on exploration this year in Manitoba. A management committee has been formed and plans are being formalized to begin the exploration process as early as possible in 2018. Further announcements will be forthcoming.

Third Party Analytical Reports

In January 2018, we received a second detailed analytical report conducted by Siddharth Rajeev of Fundamental Research Corporation. The FRC report is currently available to view on www.newagemetals.com for further information please email Paul Poggione in Corporate Development at paulp@newagemetals.com or call 613-659- 2773.

Current Market Awareness Program

Conferences This Quarter
In early February, our President Trevor Richardson is in South Africa attending 3 conferences with a full schedule, including two 1-2- 1 style conferences with over 25 pre-booked meetings with mine finance companies, major mine companies, institutions, stock brokers, and high net worth individuals. In mid-February, Harry Barr (CEO) and Paul Poggione (Corporate Development), had a minimum of 25 pre-booked meetings at the Capital Event Conference in Whistler to meet new and existing investors, stockbrokers and institutions. In March, the entire New Age Metals team assembled in Toronto. We attended the RAI$E Capital 1-2-1 event, where at least 25 different groups were presented NAM’s corporate mandate via our slide deck. On the Saturday before the Prospectors and Developers Association Convention (PDAC), we had various meetings at the Metals Investor Forum Conference. Our main event, the PDAC in Toronto, the world’s largest mining convention, is where our company hosted a small hospitality room that doubled as a boardroom and over 40 meetings were completed to continue our New Age Metals market awareness program. Several meetings were held with prospectors, junior mining companies, and major mining companies, to advance our objectives. Our President, Trevor Richardson was asked to speak in two packed rooms, one for the Canada-China Investment Conference and the second in the Ontario Pavilion, both talks were focused on advanced stage mineral projects in Ontario. Management of NAM believes that the 2018 PDAC was one of the best attended and most positive mining conferences in recent years.

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

In the first quarter of 2018, NAM signed contracts with Stockhouse.com, Investing News Network (a fully owned subsidiary of Dig Media Inc.), and International Mining Research. These programs will augment our existing programs with Palisade Global, Agoracom, Alpha Stoxx, and Star IR. We are pleased to be working with these companies whose platforms provide content and contact with thousands of investors every day. In early March, 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.

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

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

Harry Barr

Chairman & CEO
NEW AGE METALS INC.

Harry Barr, Chairman & CEO

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