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Lithium Exploration Group CEO Distributes October 2016 Letter To Shareholders

Wednesday, 26 October 2016 10:00 AM

Lithium Exploration Group Inc.

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PHOENIX, AZ / ACCESSWIRE / October 26, 2016 / Lithium Exploration Group Inc. (OTCPINK: LEXG) CEO Alex Walsh updates shareholders on company activities.

Dear Shareholders,

I wanted to take this opportunity to update all of our shareholders and followers on the progress we have made over the past few months. In August, we began testing the SonCav Oil Unit in Houston, Texas. We knew the capabilities of the technology but were not sure how it would operate over an extended testing regimen. We began the testing slowly to gather performance data, with the underlying goal of stressing the unit to ensure that it could withstand hours of operation at peak performance. To date, the testing has gone extremely well. We have been able to ramp up the heat of the fluid and RPM of the unit more quickly each time we have run it, and have run into no mechanical issues. At peak performance, the bearings have never reached heats at which we would be concerned about their structural integrity being compromised.

We have been running consistent temperatures between 250 and 300 degrees Fahrenheit and are presently analyzing the molecular changes that we have made to the oil that we have treated to date. At this stage we are confident in the technology's ability to perform as a mobile field treater for produced crude oil. The only calculation we still need to gauge is the flow rate of our unit and energy consumption that we can have certified by a third party. This can be used as a sales tool for potential users. The market in Canada for third-party treating is almost $1.5B CAD and our technology will take up a much smaller footprint. Based on our initial testing, it will have a fraction of the operational costs of technologies currently available.

When we were part owners of Tero Oilfield Services, we went through the process of pricing out the construction of a custom treating facility. It would have cost us more than $250K CAD and would have required five times more space than the SonCav Oil Unit takes up. In addition, it would have had a massive regulatory and operational expense because it would have used a natural-gas-fired boiler as the heat source. The SonCav Oil Unit utilizes electrical input to power a 150 HP motor to generate the same heat and production, and takes up a fraction of the space of a traditional heat treater.

In summary, we know we can heat oil. We know we use a small footprint. We know that the SonCav Oil Unit will pass all industry specifications. We now just need to document how much oil we can treat on a daily basis and how much our units will cost to deploy in the field. Once we collect that data and have the manufacturing specifications ready to go, we will be deploying these units all across Western Canada.

It has been a long road for me and my team here at LEXG, but we are finally at the point of commercialization and we are very excited about what we will be able to accomplish next year.

Sincerely,

Alex Walsh
CEO
Lithium Exploration Group

About Lithium Exploration Group

Lithium Exploration Group is a US-based exploration and development company focused on the acquisition and development potential of lithium brines and other precious metals that demonstrate high probability for near-term production. Currently the company is focused testing its SonCav Technology and the acquisition of oil and gas related assets in Western Canada. Lithium Exploration Group is traded on the OTCPINK under the symbol LEXG. Website: www.lithiumexplorationgroup.com.

Safe Harbor Statement

This news release contains "forward-looking statements". Statements in this press release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future testing of the ultrasonic technology.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of lithium prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements.

Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

Contact Info

Shanon Chilson
480-641-4790
[email protected]

SOURCE: Lithium Exploration Group

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