2016-11-21 20:19 ET - News Release

Mr. Vojtech Agyagos reports

BELMONT RECEIVES BLM DRILLING PERMIT FOR KIBBY BASIN, NEVADA AND ARRANGES FINANCING

The Bureau of Land Management (BLM), Tonopah, field office has issued a drilling permit for Belmont Resources Inc.'s wholly owned subsidiary Belmont Nevada Inc.'s Kibby basin, Nevada, project to drill up to nine holes (200 to 500 feet in depth).

The work forms part of the phase 2 exploration program in the Kibby basin as previously outlined in the NI 43-101 technical report (E.L. Hunsaker III, May, 2016). The drill holes will require only minimal pad and access road construction, with a limited disturbance area of approximately 3.46 acres, in accordance with applicable BLM and Nevada Division of Minerals regulations. A reclamation bond has been posted.

"Mr. Robert G. Cuffney, certified professional geologist, is currently reviewing drilling bids and anticipates securing a drilling contractor and equipment shortly," said Vojtech Agyagos, chief executive officer and president. "The drilling is designed to demonstrate the existence of a deposit of lithium within the prospect area. Recently announced surface samples assayed positive for lithium."

The Kibby basin lithium project is located in Esmeralda county, Nevada, home to North America's only producing lithium mine (Albemarle's Silver Peak mine).

The Kibby basin is approximately 120 miles from Tesla's $5-billion lithium-ion-battery gigafactory currently under construction.

Financing

The company also announces that it is arranging a non-brokered private placement of up to five million units at a price of six cents per unit to raise gross proceeds of up to $300,000. Each unit will consist of one common share of the company and one transferable share purchase warrant. Each whole warrant will permit the holder to acquire one additional share of the company at a price of 10 cents in the first year and at 15 cents in the second year after closing.

The company will pay a finder's fee of up to 10 per cent in cash and/or warrants. The common shares and warrants are subject to a statutory hold period, and the financing is subject to exchange acceptance.

The company intends to use the net proceeds from the private placement for exploration on the Kibby basin property and general working capital.

We seek Safe Harbor.