("Alliance") has reached an agreement with Magnola Metallurgy Inc. and Magnola Mining Inc. which allows it to benefit from industrial facilities on the site of the former Magnola plant in the Eastern Townships in Quebec as well as giving access to the gigantic halls of serpentines for establishing its demonstration unit.

This installation marks the first step in the development of commercial activities of Alliance Magnesium production from tailings of serpentine.

"We are very happy to benefit from this exceptional site for our starting pilot operations, which will, in a few years, leads in the commercial  production of 50,000 tons of magnesium and other high-value mineral products," said Dr. Joel Fournier , President and CEO of Alliance at the presentation of the installations in Asbestos / Danville this morning.

"Alliance is committed to delivering to the region a thriving industrial activity and job creation, with respect for the environment and community," said Dr. Fournier.

Demonstration activities should be held over a period of 14 months to be followed by the first phase of commercial production in 2017.

Alliance Magnesium is a privately-owned Canadian company dedicated to the production of Magnesium metal and other high value minerals from serpentine rock. Alliance has developed a game changing technology and process giving it a cheaper and cleaner approach from current methods used worldwide by magnesium producers. Serpentine rock contains an average of 25% magnesium metal, a highly valuable opportunity for metal extraction. The new Alliance's process is the alternative in replacing the Chinese Pidgeon Process, one of the main CO2 and sulfuric pollution emission source in the world due to its massive utilization of coal. Alliance has elaborated a three-step development program in order to reach a 50 000 tm production of magnesium metal by 2018. Magnesium is a strategic metal for the Automotive and Aerospace industries in order to help to reduce average vehicle weight and increase fuel efficiency as well as reduce significantly greenhouse gas emissions. According to independent studies, annual demand for magnesium could grow by over 10 % until 2025. Alliance Magnesium aims at becoming one of the most important suppliers of pure magnesium metal for all major automobile and transport clients in the Western World.

• [Editor:tianyawei]