Tesla Motors (TSLA), Pure Energy Minerals Enter Agreement for Potential Lithium Hydroxide Supply

September 16, 2015 3:09 PM EDT

Pure Energy Minerals Limited (OTC: HMGLF) is pleased to announce that the Company has entered into an agreement with Tesla Motors Inc. ("Tesla")(Nasdaq: TSLA) dated September 15th, 2015 (the "Agreement") for the potential supply of lithium hydroxide (the "Product") that Pure Energy plans to produce from the Company's Clayton Valley, Nevada Lithium Brine Project (the "Project"). Pure Energy will conduct a mining study in the form of a Preliminary Economic Assessment, Pre-Feasibility Study or Feasibility Study to confirm the technical feasibility and economic viability of the Project.

Provided that Pure Energy meets certain terms and conditions related to project execution, product quality and timing of delivery, the Agreement establishes a commitment for an annual purchase volume of product over a period of 5 years by Tesla and/or its authorized purchasers. The Agreement sets a predetermined price that is below current market rates and is aligned with Tesla's goal to continuously reduce the cost of its lithium ion batteries. It is proposed that the Product will be used in the battery cell manufacturing process of Tesla's rapidly growing electric vehicle and stationary storage business units, which are located approximately 3.5 hrs. drive from the Project. Any deliveries from Pure Energy will cover a portion of Tesla's needs with the remainder to come from other sources.

Robert Mintak, Pure Energy CEO, commented, "This agreement with Tesla is a significant milestone that validates Pure Energy's lithium brine project and business development model, and is an important step in the development of the Project. Pure Energy is aligned with both Tesla's and the State of Nevada's development objectives, and we hope to positively contribute to Nevada's booming clean energy based economy."

Certain information relating to future pricing formula and forecasted deliveries has been omitted on the basis of confidentiality and on the basis that the Agreement is subject to various conditions in relation to project execution, product quality, pricing and timing of delivery.

The Company's primary strategy is to advance the Project through to production.

For greater details about the Project, please refer to the Company's Technical Report dated July 17, 2015, available under the Company's profile at www.sedar.com.

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