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Lithium Exploration Group CEO Distributes July Newsletter Part 2 of 3 -- Oilfield Waste

SCOTTSDALE, AZ -- (Marketwired) -- 07/25/14 -- Lithium Exploration Group Inc. (OTCQB: LEXG) CEO discusses the lithium industry, the oilfield waste disposal industry, and water scarcity in his July 2014 newsletter:

Dear Shareholders,

This is the second installment of my three part July newsletter discussing [1] Lithium (yesterday), [2] Oilfield Waste (today), and [3] Water Scarcity (Monday). This format provides an opportunity for discussion of a number of key issues at the beginning of our fiscal year without overwhelming you with one long-winded diatribe. My goal is to address some of the 'macro' issues facing the industries in which we operate, and to point out how we intend to monetize these opportunities.

Oilfield Waste:

In our last fiscal year we acquired two waste disposal facilities in Alberta. One (Wardlow) is a 17-year-old liquid and solid waste facility with great management and a great location. The other (Morinville) was a suspended well that we brought back to life (literally) and are presently working on an application to return the well to full Class 1A status. Both are part of Alta Disposal, a wholly-owned subsidiary of LEXG.

Our Wardlow facility is in a great location because it is 75 km north of its nearest competitors and provides a full suite of liquid and solid waste disposal to its customers. The one major change we will be going through is adding oil treatment to the suite of services to be offered to customers. This will allow us to offer services to the very small customers in the area, bringing their direct production from the field and separating the oil from the water (a service we cannot provide today). We have had a great response to this expansion from the local producers. Local trucking companies have also indicated a massive demand for these services in the immediate area. There are more than 6,700 active wells within 30 km of Tero, and we hope to be able to develop this facility into a dominant force in the region once the oil treatment expansion is completed.

Our Morinville facility is more of a "project" but has a tremendous amount of upside because the well itself holds a Class 1A license, which means it has the ability to not only dispose of oilfield liquids but it can also dispose of industrial and hazardous waste for third parties. Located north of Edmonton near major industrial facilities and accessible to the oil sands, this facility is clearly well-positioned. We are in the process of upgrading the surface facilities to meet regulatory standards, at which point this facility will be worth twenty times what we have invested into it.

I read a really interesting article last week in the Alberta Oil Magazine (http://www.albertaoilmagazine.com/2014/07/dirty-water-big-business/#content) on the topic of Secure Energy and their entry into the Canadian waste disposal industry. They started their business with 16 employees and one facility in 2007 (probably a bit smaller than Alta Disposal is today) and today have a $2.8B market cap as a publicly traded company on the TSX. Take a look at the above article if you can. It will give you a greater understanding of the present and future of the disposal industry in North America.

We'd definitely like to be the next Secure Energy but one thing we are not going to do is try to copy them. That would be a losing proposition. They came into a market that had two major competitors that were both in flux at the time and punched them in the mouth (literally from what I understand):

Tervita (formerly CCS) was taken private around the time that Secure was expanding, which lead to a new management strategy at the top of that company.

Newalta is where the management of Secure worked before they split off on their own venture. They obviously had ideas about how to run a disposal business more effectively as they have, in a few short years, outpaced their former employer and taken a massive market share in Western Canada.

My point here is that it has been done once, and can be done again but you are not going to sneak up on any of these larger players as Secure once did.

Our goal is to partner with independent operators who can leverage our infrastructure, connections, and capital to increase their revenue and profitability. We don't want to take over day-to-day operations so we only want to partner with owners that have stable operators in place. That said, we don't just want any old disposal well that is out there; we intend to be selective about our investment and acquisition strategy. We have already looked at and passed on ten opportunities this year and have only made one offer which was rejected.

Strategy is fine, but what makes our strategy different? We have technology... we intend to deploy our technology at each and every facility that we buy to treat both oil and water, providing other revenue streams that don't exist in the industry today. It will sound familiar that we intend to decrease CAPEX and OPEX thus increasing profitability.

I don't pretend to be as smart, qualified, or good looking as Mr. Amirault (CEO of Secure) but I have a technology that he does not have. #fieldtestingthisfall

Sincerely,
Alex Walsh
CEO
Lithium Exploration Group

About Lithium Exploration Group
Lithium Exploration Group is a US-based exploration and development company focused on the acquisition and development potential of lithium brines and other precious metals that demonstrate high probability for near-term production. Currently the company is focused on its Western Canada lithium assets, testing its Ultrasonic Generator Technology and the acquisition of oil and gas related assets in Western Canada. Lithium Exploration Group is a fully reporting company traded on the OTCQB under the symbol LEXG. Website: www.lithiumexplorationgroup.com.

Safe Harbor Statement
This news release contains "forward-looking statements". Statements in this press release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future testing of the ultrasonic technology.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of lithium prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements.

Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

CONTACT:
Ten Associates, LLC
Tom Nelson
480-326-8577
[email protected]

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