Innovation Metals Corp. Announces Successful Pilot-Scale Separation of Nickel and Cobalt from Laterite Ores Using Proprietary Low-Cost RapidSX Process

TORONTO, ON--(Marketwired - August 05, 2016) - Innovation Metals Corp. ("IMC" or "the Company") is pleased to report on the successful separation of nickel and cobalt from nickel-laterite ores at the pilot scale, using its proprietary RapidSX™ process for the low-cost separation of technology metals.

The patent-pending RapidSX process has previously been used to successfully separate rare-earth elements ("REEs") from concentrates (as recently announced in IMC's news release dated February 18, 2016). The process was more recently applied to the separation of nickel, cobalt and other valuable metals, from a pregnant leach solution ("PLS") produced from a bulk sample provided by a major miner of nickel-laterite ores. Commercial-grade (99.6%+) purities were obtained.

"In addition to utilizing IMC's RapidSX process for the separation and purification of these valuable metals once in solution," said Patrick Wong, CEO of IMC, "we have combined a unique, proprietary chloride-based leaching process for producing the PLS, with a cost-saving acid-regeneration step. This allows us to extract and to monetize over 80% of the metals present in these ores (compared to the typical 2-3% seen with current laterite-ore processes), while reducing acid consumption and cost. We are now looking for Strategic and Financial Partners who can see the benefit of such an approach to lateritic-ore processing."

Nickel is of vital importance in the manufacturing of stainless steel, other steel, non-ferrous and super alloys, as well as plating, metal-hydride rechargeable batteries and catalysts. Cobalt is essential for the production of Li-ion rechargeable batteries, super alloys, cutting tools, high-performance magnets, catalysts and other applications. Almost all cobalt, however, is produced as a by-product of copper and nickel mining, and sustainable sources can only be achieved through low-cost extraction methods.

"Existing nickel-sulfide deposits are being depleted through mining," commented Gareth Hatch, President of IMC, "with few high-quality exploration targets on the horizon. Nickel-laterite deposits are therefore set to become the most important source of nickel in the future. In addition, future demand for cobalt in Li-ion batteries is projected to grow dramatically, as electric vehicles take increasing market share in the automotive sector. This combination of factors, makes it vital that the industry has access to efficient processes for producing nickel and cobalt from lateritic ores, that are cost effective even at today's relatively low prices for these metals. We believe that IMC's approach is one such process."

The RapidSX approach reduces the number of solvent-extraction ("SX") steps required for nickel and cobalt separation, by over 50% when compared to conventional SX, leading to a significant reduction in plant footprint and associated capital expenditures. The process also leads to dramatic reductions in operating costs and time to process completion, avoiding the need for expensive resins or other separation approaches unproven at scale. It was originally developed as a result of IMC's participation in a recent process-development program, funded by the US Army Research Laboratory, part of the US Department of Defense.

IMC's overall process approach for nickel and cobalt includes the electrowinning of the metals produced via the RapidSX process. The multi-stage approach also produces a number of other, valuable commercial-grade metallic compounds, of significant interest to the specialty-chemicals industry.

"We are pleased to add the successful production of commercial-grade nickel and cobalt, to the previous milestone of separating REEs using the RapidSX process," said Mr. Wong. "We are in advanced discussions with a number of potential lateritic-ore feedstock suppliers and customers, and we are particularly keen to partner with existing industry players, who would benefit significantly from the overall IMC approach. The next step is to complete our pilot-scale program, ahead of building a demonstration plant for the production of nickel, cobalt and other valuable products, from lateritic ores. This plant will produce over 1,000 tonnes of nickel and 150 tonnes of cobalt per year."

About Innovation Metals Corp.

Innovation Metals Corp. ("IMC") is a private Canadian-based company and the developer of the RapidSX™ process, a patent-pending, low-cost approach to the separation of nickel, cobalt, REEs and other technology metals, via solvent extraction. The company will provide low-cost separation capabilities to current and existing producers, assuring security of supply for end users and sovereign governments.

Forward-Looking Statements

This news release contains projections and statements that may constitute "forward-looking statements" within the meaning of applicable Canadian and United States 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.