December 6, 2018 - 8:00 AM EST
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New Energy Announces Successful Renegotiation of Agreements for Cobaltera District Projects

Announces Terms of Letter of Intent for Joint Venture with Wealth Minerals Ltd.

Vancouver, British Columbia--(Newsfile Corp. - December 6, 2018) - New Energy Metals Corp. (TSXV: ENRG) (OTC Pink: NEMCF) ("New Energy Metals" or the "Company") is pleased to announce that it has successfully renegotiated the agreements (the "Cobaltera Agreements") for the Company's Cobaltera Projects (the "Cobaltera Projects"), located in Chile's San Juan cobalt district (see news releases dated April 4 and 11 and May 29, 2018). New Energy Metals also announces that Wealth Minerals Ltd. ("Wealth") and the Company have agreed on terms for the previously announced letter of intent (the "Cristal Letter Agreement"), which would result in a joint venture (the "JV") between the companies for the continued exploration of the Cristal Copper project (the "Cristal Project") (see news release dated November 16, 2018).

Renegotiation of Cobaltera Agreements

The successful renegotiation of, and amendment to, the Cobaltera Agreements under which the Company was assigned the underlying option agreements for the Cobaltera Projects' will eliminate future payments to the assignors thereunder, in exchange for the issuance of 5,000,000 common shares of New Energy Metals to the assignors. The renegotiation represents a total savings for the Company of USD $1,482,178 and results in the Company not having to issue a further additional 3,950,000 common shares in the capital of the Company as previously contemplated under the agreements.

Cesar Lopez, New Energy Metals' newly appointed President and CEO commented, "The renegotiation of these agreements places the company in a stronger overall fiscal position, giving us increased leverage to acquire further long-life projects, while representing a substantial savings for the company."

Cristal Letter Agreement

Pursuant to the Cristal Letter Agreement, Wealth has agreed to deliver to the Company 50,000 common shares in the capital of Wealth and a 30% free-carried interest (the "FCI") in the Cristal Project, as consideration for the Company transferring and assigning to a subsidiary of Wealth ("Wealth Copper") all of its right, title and interest in the Cristal Project and the Company's option thereto (the "Cristal Transaction"). Upon the earn-in by Wealth Copper of the option, the initial participating interests in the JV are expected to be Wealth Copper as to 70% and the Company's wholly-owned Chilean subsidiary as to 30%. Wealth Copper will assume all of the Company's obligations and liabilities under the Cristal Project option, including the remaining property option payments (see new release dated March 1, 2018).

"Cristal is an interesting asset that has not received the focus it deserves from New Energy Metals, given the Company's focus on its assets in the San Juan cobalt district," commented Cesar Lopez, President and CEO of the Company. "We look forward to working with Wealth to advance the Cristal Project, particularly in the wake of Wealth's recently announced copper spin-out entity. Cristal will now enjoy significant attention and New Energy Metals will participate in any success through shared ownership in Wealth, a joint venture interest in the Cristal Project, and/or significant cash payments."

Subject to acceptance of the Cristal Transaction by the TSX Venture Exchange (the "TSXV") and the completion of satisfactory due diligence, the Company and Wealth Copper will enter into a definitive assignment and assumption agreement (the "Definitive Agreement").

About the Company

New Energy Metals is focused on the exploration and development of energy metals in Chile. The Company's assets include the Cristal copper project located in northern Chile and several prospective cobalt projects in Chile's past producing San Juan cobalt district.

On behalf of New Energy Metals Corp.

César Lopez, President & CEO
T: 604.484-1232
E: [email protected]
W: www.newenergymetals.ca

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and U.S. securities legislation, including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein including, without limitation, the Company's expectation that it will be able to enter into the Definitive Agreement, the Company's expectation that it will be successful in enacting its business plans and acquiring properties, the anticipated content, commencement, timing and cost of exploration programs in respect of the Company's projects and otherwise, anticipated results from exploration activities, the Company's expectation that it will be able to obtain the necessary permits to exploit, develop, produce and export copper or cobalt, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: "believes", "expects", "anticipates", "intends", "estimates", "plans", "may", "should", "potential", "scheduled", or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved. In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, that it will be able to negotiate and execute the Definitive Agreement and that it will obtain TSXV acceptance of the Cristal Transaction, that market fundamentals will result in sustained precious metals demand and prices, the receipt of any necessary permits, licenses and regulatory approvals in connection with the future development of the Company's Chilean projects in a timely manner, the availability of financing on suitable terms for the development, construction and continued operation of the Company projects, and the Company's ability to comply with environmental, health and safety laws.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Such risks and other factors include, among others, the ability of the Company to obtain sufficient financing to fund its business activities and plans, operating and technical difficulties in connection with mineral exploration and development and mine development activities for the Company's projects generally, actual results of exploration activities, the timing and amount of estimated future production, costs of production, capital expenditures, requirements for additional capital, future prices of precious metals, copper and lithium, changes in general economic conditions, changes in the financial markets and in the demand and market price for commodities, possible variations in ore grade or recovery rates, possible failures of plants or processes to operate as anticipated, other risks of the mining industry, the inability to obtain any necessary governmental and regulatory approvals (including TSXV acceptance of the Cristal Transaction), permits or financing or in the completion of development or construction activities, changes in laws, regulations and policies affecting mining operations, hedging practices, currency fluctuations, title disputes or claims limitations on insurance coverage, risks related to joint venture operations, and risks related to the integration of acquisitions, as well as those factors discussed under the heading "Risks and Uncertainties" in the Company's most recent management's discussion and analysis and other filings of the Company with the Canadian Securities Authorities, copies of which can be found under the Company's profile on the SEDAR website at www.sedar.com.

Readers are cautioned not to place undue reliance on forward-looking statements. Except as otherwise required by law, the Company undertakes no obligation to update any of the forward-looking information in this news release or incorporated by reference herein.


Source: Newsfile Corp. (December 6, 2018 - 8:00 AM EST)

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