August 4, 2016

Research #6Lithium in Utah & Nevada

Umbral Energy assays 204 ppm lithium at surface on its Tule Valley Project in Utah

Today, Umbral Energy Corp. published initial assays from 13 soil and 4 water samples taken on its 100% owned Tule Valley Lithium Project in Utah. Surface samples from wet evaporite mud assayed 204, 186, 144, 122 and 106 ppm lithium (average: 152 ppm lithium). The Sevier Playa Property of Crystal Peak Minerals Inc. (market capitalization: $50 million CAD), located 60 km southeast of the Tule Valley, is a brine based potash, lithium and magnesium project with lithium values in post-production brine solution (after potassium sulphate extraction) ranging from 50 to 200 ppm lithium, according to its NI43-101 Technical Report of November 2013 (currently completing a Feasibility Study). Crystal Peak is an evaporite basin (similar to Tule Valley) and the company is targeting the production of potash, lithium and other minerals, through the use of a cost-effective solar evaporation process, and as such is a potential blueprint for Umbral. Thanks to today’s significant lithium assays from surface, Umbral is expected to start geophysics now in order to identify drill targets to test for lithium-rich brines in aquifers below surface. In closing, congratulations to Zimtu Capital’s in-house geologist, Nick Rodway, who originally staked this property earlier this year, whereafter Zimtu sold it to Umbral against shares and cash.

Company Details

Umbral Energy Corp.929 Mainland StreetVancouver, BC, V6B 1S3 Canada Phone: +1 604 628 1767Email: jbal@umbralenergy.com www.umbralenergy.comShares Issued & Outstanding: 60,542,146

Canadian Symbol (CSE): UMBCurrent Price: $0.05 CAD (August 3, 2016)Market Capitalization: $3 million CAD

German Symbol / WKN: 2UE / A118T0 Current Price: €0.037 EUR (August 4, 2016)Market Capitalization: €2 million EUR

Chart Canada (CSE)

Chart Germany (Frankfurt)

The Tule Valley hardpan with volcanic rocks in the background (source).

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he President of Umbral Energy Corp., Jag Bal, commented in today’s press-release:

“We are encouraged with our first round of exploration on our Tule Property. With the presence of Lithium as high as 204 ppm in our samples, we are now focused on phase two of our exploration program.”

According to the assay table, samples of actively evaporating briny surface muds are all anomalous in lithium (>0.01% Li). Each of these anomalous samples (indicated in green) is very wet, saturated with salty brine, contains salt and/or gypsum crystals, and lies below 1,340 m altitude. These locations are where the playa surface dips below the current groundwater table (<1,339 m), wherein near-surface brines reach the surface, form shallow pools (<0.3 m deep), and evaporate.

The western half of the playa seems to lie at a lower altitude than the eastern half. The fact that both the surface brines (W03, 04) and resultant saturated muds are anomalous in lithium is deemed encouraging for the deposition of near-surface lithium mineralization on the property.

A total of 4 water samples and 13 soil samples were collected from the property. The soils were crushed, pulverized and assayed for lithium and a suite of pathfinder elements (eg, K, Mg, B, F, Na, Ca, Li/K and Li/Mg ratios). Most soil samples were collected at the claim post sites that were located on exposed playa.

Tule Valley has similar characteristics to Clayton Valley, Nevada, a dry lake bed where lithium is derived from brines located within more porous sediment layers at depth under playa.

The Tule Valley exploration will focus initially on geophysical surveying, particularly IP, to detect conductive layers beneath the playa. Brines are salty, and are therefore strongly conductive. The thicker and strongest conductive zones will subsequently be drill-tested for lithium content.

Research #6 | Umbral Energy Corp.

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Red arrows outline possible fluid mobilization from hard-rock lithium sources:

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Previous Coverage

Research #5: “Assays pending for the Tule Lithium Brine Project in Utah“ (June 23, 2016)

Research #4: “On the right lithium brine track“ (June 6, 2016)

Research #3: “Umbral Energy starts lithium exploration at Tule Valley in Utah“ (May 19, 2016)

Research #2: “Umbral Energy Acquires Gerlach Lithium Brine Project in Nevada“ (May 10, 2016)

Research #1: “Umbral Energy to explore for lithium brines in Utah“ (April 26, 2016)

About Umbral Energy Corp.

Umbral Energy Corp. is currently listed as a junior resource issuer having mineral exploration projects. It is listed on the TSX.V (Toronto Venture Exchange) under the symbol UMB and in Germany under 2UE. Recently, 2 lithium brine projects were acquired in Nevada (Gerlach Property; only 120 km north of Tesla‘s Gigafactory #1) and Utah (Tule Valley Property). Both properties have key characteristics for hosting lithium bearing brines in an acquifer: (1) nearby geothermal clusters with hot springs; (2) large, closed basin; (3) gravity low / basin low with pleistocene lake bottom; (4) within ashfall deposition; (5) potential lithium source rocks in vicinity; (6) ideal desert evaporation climate. The company also has a mineral exploration project in Quebec (Canada) as well as an interest in oil and gas property in Alberta (Canada). In addition, the company is conducting diligence in regards to the commercial cultivation of marijuana under the newly established Health Canada regulations, through its subsidiary PhyeinMed.

Similar to the Clayton Valley, the Tule Valley is also a closed basin and has what is called a horst and graben structure, whereas it is down faulted by normal faults on both sides of the valley. Those are key characteristics for confining brines, so mineralization cannot escape.

The Tule Valley is surrounded by 3 other lithium rich areas: The Honey Comb Project, located 20 km north of Tule Valley, reported surface sampling assays between 1,500-1,700 ppm lithium from a rhyolite dome in 2011. The Spor Mountain Beryllium Mine from Materion Corp. is located 30 km northeast of the Tule Valley. Both the Honey Comb and Spor Mountain projects indicate that the volcanics surrounding the Tule Valley are rich in lithium and therefore may have acted as a source of lithium for enriched brines in aquifers below surface. The Sevier Lake Project from Crystal Peak Minerals Inc. is located 60 km southeast of the Tule Valley and is a brine based potash, lithium and magnesium project. Its November 2013 NI43-101 report states lithium values in post-production brine solution (after potassium-sulphate

extraction) ranges from 50 to 200 mg/l lithium. The Sevier Lake Project is located within an evaporite basin similar to the Tule Valley. Crystal Peak is composed of the 35-million-year old Tunnel Springs Tuff – an volcanic ash-flow deposit that erupted from a large caldera to the east. The cavities (tafoni) eroded out of the tuff and show that a lot of rainfall has washed minerals out of the tuff concentrating in nearby closed basins.

The area to the north of the Tule Valley contains volcanic rocks such as rhyolite flows and tuffs ranging in age from 3.4 to 4.7 Ma, and are known to contain significant values of lithium, beryllium, rubidium and REEs. Chemical and mineralogical studies of samples from shallow excavations and drill holes revealed abnormal quantities of cesium, rubidium and lithium in the beryllium-bearing tuffs (Stonehouse, 1985). Results from the soil grid suggest that lithium, beryllium, rubidium and TREO (total rare earth oxides, including lanthanum to lutetium plus yttrium) mineralization may be present under shallow cover to the east flank of the Big Honey Comb Hill.

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Disclaimer and Information on Forward Looking Statements:All statements in this report, other than state-ments of historical fact should be considered forward-looking statements. Much of this re-port is comprised of statements of projection. Statements in this report that are forward looking include that Umbral Energy Corp. or any other company or market will perform as expected; that Umbral Energy Corp. will complete the recently announced property transaction; that Umbral Energy Corp. or its partner(s) can and will start exploring or even producing and selling any kinds of products; that the company can raise sufficient funds for a transaction, exploration and corporate matters; that any of the mentioned plans, comparisons with other companies, regions or numbers are valid or economic. Such state-ments involve known and unknown risks, un-certainties and other factors that may cause actual results or events to differ materially from those anticipated in these forward-look-ing statements. Risks and uncertainties re-specting lithium and resource companies are generally disclosed in the annual financial or other filing documents of Umbral Energy Corp. and similar companies as filed with the relevant securities commissions, and should be reviewed by any reader of this report. In addition, with respect to Umbral Energy Corp., a number of risks relate to any state-ment of projection or forward statements, including among other risks: the receipt of all necessary approvals and permits; the ability to conclude a transaction to start or continue exploration; uncertainty of future market regulations, capital expenditures and other costs; financings and additional capital requirements for exploration, development, construction, and operating of a facility; the receipt in a timely fashion of further permit-ting for its legislative, political, social or eco-nomic developments in the jurisdictions in which Umbral Energy Corp. carries on busi-ness; operating or technical difficulties in connection with production or development activities; the ability to keep key employees, joint-venture partner(s), and operations fi-nanced. There can be no assurance that such statements will prove to be accurate, as ac-tual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking in-formation. Rockstone and the author of this report do not undertake any obligation to update any statements made in this report.

Disclosure of Interest and Advisory Cautions: Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned. Rockstone, its owners and the author of this report are not registered broker-dealers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an investment based solely on what you read in an online or printed report, including Rockstone’s report, especially if the investment involves a small, thinly-traded company that isn’t well known. The author of this report is paid by Zimtu Capital Corp., a TSX Venture Exchange listed investment company. Part of the author’s responsibilities at Zimtu Capital Corp. is to research and report on companies in which Zimtu has an investment. So while the author of this report is not paid directly by Umbral Energy Corp., the author’s employer Capital Corp. will benefit from appreciation of Umbral Energy Corp.’s stock price. The author also owns shares in Umbral Energy Corp., oas well as of Zimtu Capital Corp. and thus would also benefit from volume and price appreciation of its stocks. Thus, multiple conflicts of interests exist. Therefore, the information provided herewithin should not be construed as a financial analysis or recommendation but as advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. Rockstone and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. Umbral Energy Corp.has not reviewed the content of this report prior to publication. Lastly, the author does not guarantee that any of the companies mentioned in the reports will perform as expected, and any comparisons made to other companies may not be valid or come into effect. Please read the entire Disclaimer carefully. If you do not agree to all of the Disclaimer, do not access this website or any of its pages including this report in form of a PDF. By using this website and/or report, and whether or not you actually read the Disclaimer, you are deemed to have accepted it. Information provided is educational and general in nature.

Analyst Profile and Contact

Stephan Bogner (Dipl. Kfm. FH)Mining Analyst Rockstone Research 8050 Zurich, Switzerland+41-44-5862323sb@rockstone-research.com

Stephan Bogner studied at the International School of Management (Dortmund, Germany), the European Business School (London)

and the University of Queensland (Brisbane, Australia). Under supervision of Prof. Dr. Hans J. Bocker, Stephan completed his diploma thesis (“Gold In A Macroeconomic Context With Special Consideration Of The Price Formation Process”) in 2002. A year later, he marketed and translated into German Ferdinand Lips‘ bestseller („Gold Wars“). After working in Dubai for 5 years, he now lives in Switzerland and is the CEO of Elementum International AG specialized in duty-free storage of gold and silver bullion in a high-security vaulting facility within the St. Gotthard Mountain Massif in central Switzerland.

Rockstone is a research house specialized in the analysis and valuation of capital markets and publicly listed companies. The focus is set on exploration, development, and production of resource deposits. Through the publication of general geological basic knowledge, the individual research reports receive a background in order for the reader to be inspired to conduct further due diligence. All research from our house is being made accessible to private and institutional investors free of charge, whereas it is always to be construed as non-binding educational research and is addressed solely to a readership that is knowledgeable about the risks, experienced with stock markets, and acting on one’s own responsibility.

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Research #6 | Umbral Energy Corp.