ESSEX MINERALS INC. - KNX RESOURCES ACQUISITION COMPLETED

Canada - Essex Minerals Inc. (the 'Company') (TSX-V: ESX) (OTCQB: ESXFM) (FRA: EWX1) is pleased to announce that it has completed the acquisition of its Australian joint venture partner, KNX Resources Ltd ('KNX').

The terms of the acquisition are in accordance with the revised purchase terms announced on September 9, 2021, and conditional approval granted by the TSX Venture Exchange, comprising 5,000,000 ordinary shares in Essex (the 'Purchase Shares') and 5,000,000 two-year share purchase warrants with an exercise price of 20c per warrant (the 'Purchase Warrants') to the shareholders of KNX. The Company shall retain the right to force conversion of the Purchase Warrants if the Essex share price closes above $0.45 per share for more than five consecutive trading days (the 'Conversion Event') prior to their expiry date.

Upon occurrence of the Conversion Event, Essex shall undertake on a best endeavours basis to arrange buyers for any underlying shares from any unexercised Purchase Warrants at $0.40 per share and retain $0.20 per share from the sale proceeds for the Purchase Warrant exercise and deliver $0.20 per share to each KNX Purchase Warrant holder. If Essex is unable to deliver the $0.20 per share to each KNX Warrant holder within 60 days of a Conversion Event, the KNX Warrant holders will be free to exercise the Purchase Warrant by delivering the $0.20 exercise price to Essex in the normal manner.

The Purchase Shares and Purchase Warrants have been issued to the KNX shareholders on the basis of one Essex Purchase Share and one Essex Purchase Warrant for approximately every 4.052 KNX shares in issue. The Purchase Shares and Purchase Warrants will be subject to a statutory four month hold period from the date of issuance. Completion of the acquisition gives Essex an 88% interest in the Cumberland and Compass Creek Projects and 100% of the Mt Turner Project through its 100% ownership of KNX.

About KNX

KNX is arm's length private Australian exploration company with 25 shareholders. The five largest shareholders of KNX and the number of Purchase Shares and Purchase Warrants they will receive for their KNX shares, and their Purchase Shares as a per centage of the Company's issued capital after the acquisition is as follows:

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