CellCube to Spin Out Vanadium Assets to a New Vanadium Focused Public Company and to Make Special Distribution to Shareholders

Date: Jun 29, 2018

CellCube Energy Storage Systems Inc. (“CellCube” or the “Company”) (CSE: CUBE) (OTC: CECBF) (Frankfurt: 01X) is pleased to announce the Company intends to spin out its 100% owned vanadium project, Bisoni Mackay and Bisoni-Rio in Nevada, USA, into a newly formed subsidiary called Vanadium 23 Corp. (“Vanadium 23”).

Vanadium prices have increased over 320% since January 2017 with V2O5 prices now approximately US $17 per pound.  Vanadium, widely used as an alloy to strengthen steel and in vanadium flow batteries for the energy storage industry, is the best performing battery metal over this time period surpassing cobalt, copper and nickel.

Upon completion of the spin out arrangement, the Company intends to issue one (1) share of Vanadium 23 for every two (2) shares of CellCube held by CellCube shareholders of record.  The Company intends to retain a 19.9% interest in Vanadium 23.

Transaction highlights:

•Vanadium 23 will be a publicly listed independent vanadium exploration and production company with advanced projects in Nevada.

•Distribution of a share dividend to CellCube shareholders with CellCube retaining a 19.9% ownership as well as certain off-take rights and a net smelter royalty.

•The formation of a new “pure play” vanadium company, Vanadium 23, that will fast track its drilling programs on the vanadium projects to upgrade its Indicated and Inferred Resources.  On completion of the planned drilling, a new NI 43-101 Technical Report will be commissioned to develop a new resource estimate. It is planned to follow this by commissioning a Preliminary Economic Assessment.

•A National Instrument 43-101 Indicated Resource of 11.9 million tons at an average grade of 0.39 per cent vanadium pentoxide (V2O5), and an Inferred Resource of 7.0 million tons at an average grade of 0.42 per cent V2O5 (see Company news release Sept. 13, 2016). Only 12 per cent of the Bisoni McKay area has been drilled, and none of the Bisoni-Rio which is contiguous with Bisoni McKay and sits between Bisoni and Prophecy’s Gibellini vanadium deposit.

•Research currently conducted by the University of Calgary focussing on testing of the Bisoni McKay vanadium and its use for production of vanadium electrolyte is ongoing. The University of Calgary will be performing tests using a laboratory test battery that has been provided by Enerox GmbH.

The proposed spin-out transaction will be subject to shareholder approval.

Vanadium 23 will be highly focused on creating a portfolio of high quality vanadium assets on a global scale. Furthermore, Vanadium 23 will already have supply agreements with its parent company, CellCube, a leading vanadium battery manufacturer, for its vanadium requirements for their large vanadium flow batteries.

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