Mr. Chris Doornbos reports

E3 LITHIUM PROVIDES GRANT FUNDING AND FINANCIAL POSITION UPDATE

E3 Lithium Ltd. has provided an update on its financial position, and the status of the government grants and investments that supported E3 Lithium's growth in 2023.

E3 Lithium has secured more than $32-million in non-share dilutive government grants and investments to date, supporting the execution of its rigorous and ambitious development plans, and its position as a global leader in lithium development.

Alberta Innovates

Alberta Innovates has supported the company's development of direct lithium extraction (DLE) technology and testing in lab and field environments, culminating in the successful 2023 field pilot plant. Of the $1.8-million grant first announced in 2021, E3 Lithium has received $1,425,000 thus far, and anticipates receiving the remaining $375,000 early in 2024, subject to the successful completion of a milestone report.

Innovation, Science and Economic Development Canada's Strategic Innovation Fund (SIF)

E3 Lithium announced a $27-million investment from SIF in 2022, which supports a broad spectrum of the company's resource, technology and development up to commercial production. Eligible costs under the agreement are reimbursed at 33.94 per cent. E3 Lithium has claimed approximately $6-million to date, leaving close to $21-million to be claimed up to the start of commercial operations.

Natural Resources Canada's Critical Minerals Research Development and Demonstration Program (CMRDD)

In March, 2023, E3 Lithium announced the award of a $3,545,000 non-repayable contribution from the CMRDD program to support the construction and operation of its 2023 field pilot plant. E3 Lithium has claimed the total amount of the contribution on the heels of its field pilot plant and anticipates receiving the remainder of the $3,545,000 within the next few months.

In addition to the above, E3 Lithium has received funding from Alberta Jobs Now, which offsets the cost of hiring and training Albertans in new or vacant positions. The company has claimed and received the total value of the grant of $43,750.

E3 Lithium's financial position to kick off 2024

As at Sept. 30, 2023, E3 Lithium had cash working capital of $37.9-million. Its balance sheet, in combination with the support provided by the grants and investments above, puts E3 Lithium in a strong position to deliver on its plans in 2024.

"We are extremely grateful for the support we have received from all levels of government as we continue to build our company and the lithium industry in Canada," said Chris Doornbos, president and chief executive officer of E3 Lithium. "The number and magnitude of new sources of grant funding that support companies like ours is astounding, and we will continue to actively prioritize and pursue all grants we are eligible for as we progress the development of our operations."

About E3 Lithium Ltd.

E3 Lithium is a development company with a total of 16 million tonnes of lithium carbonate equivalent measured and indicated and 900,000 tonnes LCE inferred mineral resources1 in Alberta. As outlined in E3's preliminary economic assessment, the Clearwater lithium project has a net present value (8 per cent) of $1.1-billion (U.S.) with a 32-per-cent internal rate of return pretax and $820-million with a 27-per-cent IRR after-tax. E3 Lithium's goal is to produce high-purity, battery-grade lithium products to power the growing electrical revolution. With a significant lithium resource and innovative technology solutions, E3 Lithium has the potential to deliver lithium to market from one of the best jurisdictions in the world.

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