June 23, 2016

Research #5Lithium in Utah & Nevada

Assays pending for the Tule Lithium Brine Project in UtahToday, Umbral Energy Corp. published an update on upcoming exploration activities at its Gerlach Lithium Brine Project in the San Emidio Desert near Gerlach, Washoe County, Nevada. It was also stated that assays from its second project, Tule in Utah, are pending and expected shortly. Rockstone is looking forward to these results as favorable lithium values may create significant shareholder value since the company is currently valued at $2 million. However Umbral’s Gerlach Project in Nevada looks also very promising: Nevada Energy Metals Inc. (market capitalization: $13 million CAD) states that previous work on their San Emidio Lithium Project has detected the presence of up to 312 ppm lithium (average 250 ppm) in the playa sediments, located in the southern lobe of the San Emidio playa (26 km south of Umbral’s property) and adjacent to US Geothermals’ plant. Furthermore, they state that US Geothermal has reported “anomalous” lithium content from brine samples at their facility. Thus, the San Emidio desert playa offers great potential for Umbral’s upcoming geophysics and drilling program to discover highly elevated lithium values in subsurface brine aquifers.

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: 58,016,972

Canadian Symbol (CSE): UMBCurrent Price: $0.04 CAD (June 22, 2016)Market Capitalization: $2 million CAD

German Symbol / WKN: 2UE / A118T0 Current Price: €0.031 EUR (June 22, 2016)Market Capitalization: €2 million EUR

Chart Canada (CSE)

Chart Germany (Frankfurt)

The San Emidio Desert in northern Nevada is a geothermaly active area (source: Steve Chandler)

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he San Emidio Desert is the name given to the playa ex-tending south from Gerlach and

it is the southern “tongue” of the largest dry lake bed in North America (Black Rock Desert). Umbral’s 89 claims cover an area of 720 hectares and it is less than 5 km from Gerlach. The property is locat-ed within the southern lobe of the Black Rock Desert, a graben feature of the Basin and Range geological province which dominates throughout Nevada. San Emidio is a dry lake bed (playa), its edges are covered with a thin veneer (up to 3 m) of wind-blown sand dunes and mounds. In this respect, San Emidio is not a pure evaporite basin, such as Great Salt Lake, Sevier Lake, or the Bolivian and Chilean salars, where active evaporation and salt/phosphate-deposition (±Li) is on-going.

Although composed of dried mud/silt/ash, the compacted playa mud is salty (indicating some form of evaporation dur-ing the life of the playa). In this respect, the San Emidio playa may be more appro-priately compared to the Clayton Valley. Country rock along the eastern margin of the playa has been hydrothermally al-tered (e.g. Empire Gypsum deposit, Wind Mountain epithermal Au/Ag deposit), suggesting high heat flow and intense groundwater flow. This activity would have leached lithium where present.

All well-known natural hot springs in the region occur to the north and northeast of the town of Gerlach. These springs are located adjacent to the Black Rock De-sert, and may feed its groundwaters, and those of the San Emidio basin. More im-portant for Umbral’s property is the pres-ence of US Geothermals’ electro-gen-eration plant located 27 km south of the G01-89 claims on the eastern edge of the southern lobe of the San Emidio playa. This confirms the presence of geo-thermal activity (hence brines) in the San Emidio playa, which appears to be a closed valley, may have lithium-bearing clays and/or ash in its sediments, has active, hot, lithium bearing groundwater flow along its eastern margin (US Geo-thermal, gypsum mine, etc), and has been affected by evaporite-style pro-cesses. The San Emidio property may therefore be conducive to the pres-ence of lithium-bearing groundwater.

Research #5 | Umbral Energy Corp.

Shaded relief image of northwestern Nevada and

surrounding areas showing a series of geothermal systems referred to as the Black Rock

Desert (BRD) geothermal belt (modified from Faulds et al., 2004). Yellow circles

are geothermal systems with temperatures of 100-160C; red circles are geothermal systems

with temperatures >160C; PLFZ-Pyramid Lake Fault Zone.

(source)

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Analyst Coverage

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.

Upcoming Exploration

San Emidio exploration is expected to focus initially on geophysical surveying, particularly IP, to detect conductive layers beneath the playa floor. Brines are salty, and are therefore strongly conductive. The thicker and strongest conductive zones can subsequently be drill-tested for lithium content. Further research into the distribution of active hydrothermal activ-ity along its eastern edge is also required.

Today, Jag Bal (President of Umbral) commented:

“I am excited about the rapid progress Umbral has made on both the Tule and Gerlach Projects and look forward to continuing progress on both. Regarding Tule, initial samples collected have been sent to ALS Chemex in Elko, NV. and com-pany is awaiting results.”

Above: Staking of Umbral’s Gerlach Property in April 2016; Below: NAIP image showing surficial hydrothermal alteration and the Wind Mountain epithermal deposit in orange, and the geothermal power plant in black. The San Emidio Desert is bounded to the west by the Fox Range and to the east by the northern Lake Range. (source)

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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.

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Research #5 | Umbral Energy Corp.