LITHIUM SAMPLING; AND FINANCING

Belmont collects samples at Kibby, arranges loans

2016-10-05 19:47 ET - News Release

Mr. Gary Musil reports

Belmont Resources Inc. has provided an update on its Kibby property.

Kibby drilling application and sampling

Bob Cuffney, PGeo, recently visited the Kibby Basin property to review road access and locate drill sites for the proposed reverse-circulation and shallow direct push drilling. While on site, Mr. Cuffney also flagged the various drill sites and collected 10 samples of the playa sediments for lithium assaying. These samples have been delivered to the ALS Group assaying facility in Reno, Nev., and results will be reported as received and compiled by Mr. Cuffney.

While in the region, Mr. Cuffney also visited the Bureau of Land Management (BLM) office in Tonopah, Nev., to discuss the notice of intent (NOI) application, in particular, bond calculations in relation to areas of disturbance, and reclamation requirements. A notice of intent to drill up to 10 exploration holes has been submitted to the Bureau of Management for review and approval. Drill bids are being solicited, and the drilling program is anticipated to start in late October or early November, depending on drill availability.

Financing

Belmont has arranged demand loans for a total amount of $105,000 from three non-related parties. The proceeds of the loans are to be used to secure additionally staked claims in the Kibby Basin, Nevada, for property expenditures and working capital.

The loans bear interest at 1.5 per cent per month. In consideration for the loans, the company has also agreed to issue an aggregate of 262,500 bonus common shares at a deemed price of six cents per share. The loans and issuance of bonus shares are subject to regulatory approval, and the shares issuable pursuant to the agreements will be subject to a four-month-plus-one-day hold from the date issued.

Lithium in the news

"U.S. Plans to Stockpile More Lithium Compounds Used in Batteries," Reuters U.S. edition, by Pratima Desai, editing by Alexander Smith, Oct. 5, 2016

"The U.S. Defense Logistics Agency (DLA) said it has a mandate to buy 600 kilograms of lithium cobalt oxide (LCO) and 2,160 kg of lithium nickel cobalt aluminum oxide (NCA) in the fiscal year starting Oct. 1.

"They are double what were mandated to buy in the 2015-2016 fiscal year. Both compounds are used to make lithium-ion batteries. LCO batteries are used for mobile phones and laptops, and NCA batteries are used for electric vehicles."

"Electric Car Revolution Brightens Outlook for a Medley of Metals," Reuters, by Jan Harvey-London, Oct. 5, 2016

"While estimates vary, IHS Automotive expects electric vehicles to represent nearly 4 per cent of all light vehicles worldwide by 2020, equivalent to 3.9 million cars, up from just over 14,000 in 2010.

"'The lithium industry is going from 160,000 tonnes of LCE (lithium carbonate equivalent) today to at least 260,000 tonnes by 2020,' said Simon Moores, managing director of Benchmark Mineral Intelligence.

"Prices of battery-grade lithium in China, the biggest lithium-ion battery producer, surged to above $20,000 a tonne this summer, nearly three times higher than a year earlier, as demand grew."

About Belmont Resources

Belmont is an emerging resource company engaged in the acquisition, exploration and development of mineral properties in Canada and Nevada, United States.

We seek Safe Harbor.