Option To Acquire 90% Interest Mexican Lithium Project

VANCOUVER, BC - One World Minerals Inc. has entered into a binding letter agreement with Lithium Investments ltd. (LIL), an arm's length private British Columbia company, to acquire all of the shares of LIL from the shareholders thereof. The principal assets of LIL consist of the rights and interests under an option and joint venture agreement (the "Option Agreement") with third parties to acquire up to a 90% interest in the Rico Litio Property in Mexico.

The Property covers 291 square miles or 75,410 hectares over a closed basin where surface and auger samples were taken over a distance of 74 miles (120 kilometers). The sampling work program was conducted by LIL and returned assay results between 53 to 188 parts per million lithium in the northern part of the Property. In the southern part of the Property, samples ranged from 15 and 82 parts per million lithium, with an average value of 74 ppm lithium from 24 samples across 74 miles. It is important to note the samples were taken from surface salts and shallow auger holes and not from brines that may occur at depth.

The basin also has geological attributes to develop lithium brines, including recent tectonic and volcanic activity; many hot springs; young rhyolitic volcanic lavas; high heat flows within the region; and ash flow tuffs surrounding and within the basin.

The Property is located in the state Baja California Norte, Mexico. Ready access to the Property includes paved roads and dirt roads within the basin. There is paved access to the USA, which is 100 miles to the north. The Property is only 21 miles (35 kilometers) from San Felipe which is a well-established service center that can provide housing and mine personnel. Power is available from major power lines that cross the Property near the north end, as well as interconnected power lines from the US via Mexicali to San Felipe.

In connection with the Transaction under the Option Agreement, OWM has agreed to issue 22,500,000 common shares to LIL with 10 million common shares issuable upon closing the Transaction and an additional 12.5 million common shares issuable upon the first anniversary of the closing date. In addition, OWM has agreed to pay LIL i) CDN$100,000 30 days after the closing date, ii) CDN$200,000 on the first anniversary date of the closing date, iii) CDN$300,000 on the second anniversary date of the closing date, and iv) CDN$400,000 on the third anniversary date of the closing date.

Pursuant to the terms of the Option Agreement, LIL has the option to earn an 80% interest in the Property for the issuance of 1,600,000 shares, payment of US$250,000 and property expenditures of US$900,000 before the end of 2017. LIL has the option to acquire an additional 10% interest in the Property for a further payment of US$5 million upon delivery of a feasibility report on the Property. If the underlying owners dilute below a 10% equity interest, a 3.0% NSR royalty replaces the 10% equity interest, and LIL has an option to purchase one half of the NSR royalty for US$2,500,000. All share issuance obligations of LIL are intended to be assumed by OWM on closing of the Transaction to acquire LIL.

Management anticipates that the initial exploration program on the Property will include gravity, time domain EM, and resistivity geophysical surveys, geologic mapping and detailed geochemical sampling throughout the basin prior to drill testing for anomalous brines with drilling of several targets to commence in May 2017 and be completed before the end of June 2017.