Funding to advance Demonstration Facility construction and operations along with critical engineering for the completion of the Clearwater Project Feasibility Study to bring the project to final investment decision

Company Website: https://www.e3lithium.ca/
CALGARY, Alberta -- (Business Wire)

E3 LITHIUM LTD. (TSXV: ETL) (FSE: OW3) (OTCQX: EEMMF), “E3”, “E3 Lithium” or the “Company,” a leader in Canadian lithium development, has been conditionally approved for up to C$36.5 million of non-repayable funding through the Government of Canada’s Global Partnerships Initiative (GPI) (the “Funding”), to accelerate the development of its Clearwater Project.

The Funding supports 75% of the forecasted $48 million project to complete E3's Demonstration Facility Phase 3 and its Clearwater Project Feasibility Study. With the Funding, E3 will accelerate and expand the scope of the Demonstration Facility that will enable the Company to build and operate its third phase (see E3’s corporate presentation), located east of Olds, Alberta. Phase 3 of the Demonstration Facility will include a single, full-sized commercial column, expected to produce the carbonate equivalent of 100 tonnes per year in lithium chloride. The Funding will also support the Company's Front End Engineering Design (FEED) that will form part of the Clearwater Project's Feasibility Study and the technical staff involved in the project, including hiring an additional 25 full time positions.

The Funding will enable the ongoing production of battery-grade lithium carbonate at an increased scale, de-risking E3’s Direct Lithium Extraction (DLE) technology on a 1:1 scale commercial column and finalize Clearwater Project engineering to enable a Final Investment Decision (FID), including a Class 3 cost estimate.

Support from the GPI represents a strong vote of confidence from the Government of Canada in the role E3 Lithium will play in advancing reliable and secure supply chains, and in the expansion of Canada’s and its allies’ defence industrial base. E3 Lithium is proud to be leading this project in collaboration with Axens Group, a France-based global provider of clean energy solutions and technologies, and ABB, a Switzerland-headquartered leader in electrification and automation.

The funding is conditional upon the completion of customary due diligence and the execution of a contribution agreement.

“Canada is putting real capital behind the secure and reliable critical mineral supply chains that our economies and defence industries rely on,” said the Honourable Tim Hodgson, Minister of Energy and Natural Resources. “By supporting companies like E3 Lithium, we are helping deliver the minerals the world needs and the prosperity and security Canadians deserve.”

“Canada has a generational opportunity to lead in critical minerals, and this support from the federal government reinforces the importance of developing lithium resources responsibly and innovatively,” said Chris Doornbos, President and CEO of E3 Lithium. “This investment allows us to move rapidly toward commercial production while contributing to Canada’s energy security and economic growth. E3 is on track to be one of the first commercial lithium projects to come on-stream in Canada, creating jobs and future opportunities for all Canadians.”

ON BEHALF OF THE BOARD OF DIRECTORS

Chris Doornbos, President, CEO & Chair
E3 Lithium Ltd.

About E3 Lithium

E3 Lithium is a development company with a total of 21.2 million tonnes of lithium carbonate equivalent (LCE) Measured and Indicated¹ as well as 0.3 Mt LCE Inferred mineral resources² in Alberta. The Clearwater Pre-Feasibility Study outlined a 1.13 Mt LCE proven and probable mineral reserve with a pre-tax NPV(8%) of USD 5.2 Billion with a 29.2% IRR and an after-tax NPV(8%) of USD 3.7 Billion with a 24.6% IRR¹.

1:The Clearwater Project NI 43-101 Pre-Feasibility Study, effective June 20, 2024, identified 16.2 Mt LCE (measured and indicated) and is available on the E3 Lithium’s website (www.e3lithium.ca/technical-reports/) and SEDAR+ (www.sedarplus.ca).

2:The mineral resource NI 43-101 Technical Report for the Garrington District Lithium Resource Estimate, effective June 25, 2025, identified 5.0 Mt LCE (measured and indicated) and 0.3 Mt LCE (inferred) and is available on the E3 Lithium’s website (www.e3lithium.ca/technical-reports/) and SEDAR+ (www.sedarplus.ca).

Unless otherwise indicated, Kevin Carroll, P. Eng., Chief Development Officer and a Qualified Person under National Instrument 43-101, has reviewed and approved the technical information contained on this news release.

Forward-Looking and Cautionary Statements

This news release includes certain forward-looking statements as well as management’s objectives, strategies, beliefs and intentions or forward-looking information within the meaning of applicable securities laws. Forward-looking statements are frequently identified by such words as “believe”, “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend”, “project”, “potential”, “possible” and similar words referring to future events and results. Forward-looking statements are based on the current opinions, expectations, estimates and assumptions of management in light of its experience, perception of historical trends, and results of the PFS, but such statements are not guarantees of future performance. In particular, this news release contains forward-looking information relating to: E3 accelerating and expanding the scope of the Demonstration Facility that will enable the Company to build and operate its third phase; Funding supporting the Company's FEED and supporting hiring of additional 25 full time positions; Funding enabling the ongoing production of battery-grade lithium carbonate at an increased scale, de-risking E3’s Direct Lithium Extraction (DLE) technology on a 1:1 scale commercial column and finalizing Clearwater Project engineering to enable FID; the Company’s expectations regarding the production of lithium carbonate; plans and objectives of management for the Company’s operations of the Demonstration Facility; and the inherent hazards associated with mineral exploration and mining operations. In preparing the forward-looking information in this news release, the Company has applied several material assumptions, including, but not limited to, that any additional financing needed will be available on reasonable terms; the exchange rates for the U.S. and Canadian currencies will be consistent with the Company’s expectations; that the current exploration, development, environmental and other objectives concerning the Demonstration Facility can be achieved and that its other corporate activities will proceed as expected; that general business and economic conditions will not change in a materially adverse manner and that all necessary governmental approvals for the planned activities on the Demonstration Facility will be obtained in a timely manner and on acceptable terms.

All forward-looking information (including future-orientated financial information) is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, the effectiveness and feasibility of emerging lithium extraction technologies which have not yet been tested or proven on a commercial scale or on the Company’s brine, risks related to the availability of financing on commercially reasonable terms and the expected use of proceeds; operations and contractual obligations; changes in estimated mineral reserves or mineral resources; future prices of lithium and other metals; availability of third party contractors; availability of equipment; failure of equipment to operate as anticipated; accidents, effects of weather and other natural phenomena and other risks associated with the mineral exploration industry; the Company’s lack of operating revenues; currency fluctuations; risks related to dependence on key personnel; estimates used in financial statements proving to be incorrect; competitive risks and the availability of financing, as described in more detail in our recent securities filings available under the Company’s profile on SEDAR+ (www.sedarplus.ca). Actual events or results may differ materially from those projected in the forward-looking statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements except as required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260301227231/en/

Contacts:

E3 Lithium - Investor Relations
investor@e3lithium.ca
587-324-2775

E3 Lithium - Media Inquiries
communications@e3lithium.ca
587-324-2775

Source: E3 Lithium Ltd.