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 October 21, 2015 - 9:00 AM EDT
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Letter from the President


Vancouver, BC / TheNewswire / October 21, 2015 - Dajin Resources Corp. - Dear shareholders, the past several months have been an exciting time in the lithium sector and for Dajin Resources Corp. ((TSX-V: DJI) (OTC: DJIFF) (Frankfurt: A1XF20)). This letter begins with a lithium market update, followed by a summary of the progress being made by Dajin.

According to experts, lithium prices continue to move higher. Simon Moores of Benchmark Mineral Intelligence reports that compared to 2014, "...lithium carbonate prices are up 10%-15% and lithium hydroxide 20%-25%." Mr. Moores has a graph in his September presentation indicating that the lithium carbonate price is up 40% from 2010. Notably, his graph depicts 2014 and 2015(e) annual price increases accelerating. Evidence of this trend can be found in the news that FMC Corp. is raising prices on its lithium products by 15%.

Month after month attention is turning even more to lithium demand. Since my last President's Letter, 2 new gigafactories (or expansions of existing factories) have been announced, and an Apple Inc. EV confirmed. Tesla Motors acquired an additional 1,200 acres (468 hectares) of property in Nevada for possible expansion. BMW Corp. announced that within 10 years, ALL of its vehicles will be electric. Demand forecasts are rising for both lithium-ion EVs and giant, grid-scale, Energy Storage Systems, "ESS." Another noteworthy news item is the Volkswagen diesel scandal. Clearly a black eye for Internal Combustion Engines, "ICEs." This event could hasten the demise of ICE's, more than offsetting multi-year lows in oil and natural gas prices.

Panasonic Corporation, one of the world's leading battery makers, is predicting significant growth for lithium-ion batteries. Panasonic is expecting CAGR (Compound Annual Growth Rate) of 74.9% in utility-scale (stationary storage), batteries and a CAGR of 16.9% in EVs.

According to, Resource and Markets, "In the past five years, global installed capacity of lithium-ion based ESS has grown 20% per year. Sodium-sulfur and Lithium-ion batteries occupy 75% of installed capacity...China emphasizes lithium-ion batteries which share 71% of the country's total installed capacity."

This commentary is just the tip of the iceberg. These items are not merely data points, but evidence of the strength of the lithium sector. Frank Giustra, billionaire Canadian philanthropist and business mogul, recently jumped into a Nevada lithium play through a restructured company where he is the largest shareholder. Giustra, a very successful entrepreneur, is unlikely to be joining the lithium revolution late in the game unless there is good upside potential.

Dajin Resources' key advances since my last letter:

Since July 2015, Dajin has completed a number of essential steps towards commencing a robust exploration campaign. Dajin's strong management team and technical advisory board has enabled us to make confident strides at the Teels Marsh and Alkali Lake properties, and also at our prospective Salinas Grandes salar in Jujuy Province in Argentina. We are advancing three assets, each of which could attract a great deal of attention if lithium demand continues to appreciate.

On July 23rd, we announced the completion of a 550 station gravity survey at Alkali Lake. A key takeaway is that surface sampling confirmed the presence of near-surface lithium in the enclosed basin. The depth of sediment in the closed basin and other measurements are necessary to define the potential volume of the basin before additional exploration. On August 13th we announced the results from our completed gravity survey and a 3D gravity and airborne magnetic basin model at Alkali Lake. We learned that our claim area at Alkali Lake is above a basin that's roughly 4,000 feet (1,200 m) deep. This information, and other data obtained from this work, is important for estimating the basin's potential volume.

On August 18th, we reported that we had received permits for deep Geoprobe work on our Teels Marsh claims. This work was commissioned after the gravity survey completed earlier this year indicated that Teels Marsh is a deep, closed basin greater than 8,900 feet (2,700 m), indicating the potential to retain a large quantity of fluids. Over time, faulting in these locations has created a deep basin trapping ground water within the sedimentary fill rich in volcanic sediments high in lithium. Later in August, we announced that we reviewed the completed gravity survey and 3D airborne magnetic basin modeling at Alkali Lake. In addition to prior results indicating a basin roughly 4,000 feet (1,200 m) deep, a second basin approximately 3 km east was identified. The depth of this eastern basin ranges from 3,000 to 4,000 feet (1,000 - 1,200 m). The 100% owned Alkali Lake area holds 191 claims on 3,850 acres (1,558 hectares).

On September 10th, Dajin reported that it applied for water rights with the Nevada Division of Water Resources (NDWR) for Dajin's 100% owned Teels Marsh claims. The application is for a lithium development project designed to produce at a pump rate of 620 gallons per minute, not to exceed 1,000 acre feet per year has successfully made it through the publication and protest period without any protests or opposition. This is a major step in completing the permitting process with NDWR. On September 16th, we completed our deep Geoprobe program at Teels Marsh. This exploratory work was designed to help determine if shallow (less than 200 feet (60 m)) brine deposits exist and determine subsurface properties in preparation for deep drilling. Nine holes were completed, the deepest of which was 195 feet (59 meters). Sediments will be analyzed for their physical properties, composition and lithium concentrations.

On September 29th, J. Malcolm Bell, appointed to Dajin's Technical Advisory Board. Mr. Bell has over 35 years of industry experience as principal, senior officer or director of private and public companies. Mr. Bell founded Hi-Tec Resource Management Ltd., a minerals exploration company providing geological consulting services in western Canada. He co-founded British Canadian Mines Ltd., the largest privately held mineral exploration company in Newfoundland and co-founded PB Energy Partners, an oil and gas exploration partnership. Mr. Bell is MD of Malcolm Bell & Associates Ltd., a private Vancouver company that sources capital for companies in mining, renewable energy and technology ventures.

Earlier this month, Dajin announced that planning for the 2015 - 2016 exploration program at Salinas Grandes in northwest Argentina is well underway. Dajin Technical Advisory Board member, Mr. John Kieley (former Vice-president Exploration for Lithium Americas Corp. in Argentina), has begun organizing the program for the Salinas Grandes salar.

Signs of increased demand for lithium are everywhere, while meaningful doubts about a commensurate supply remain. All of the recent exploration activity and a lot more development in the lithium industry are happening than could possibly be communicated in this letter, yet by all accounts we are still at an early stage for the development of the lithium-ion battery.

Thank you for your continued support.


Brian Findlay,

President & CEO

October 2015

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Source: TheNewsWire (October 21, 2015 - 9:00 AM EDT)

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