Mr. Chris Doornbos reports

E3 LITHIUM SUCCESSFULLY COMMISSIONS PHASE 2 OF ITS DEMONSTRATION FACILITY

E3 Lithium Ltd. has successfully commissioned phase 2 of its Clearwater project demonstration facility and continues to operate the reservoir production test.

Lithium analysis of the brine produced from the production test confirmed 75.8 milligrams per litre lithium, demonstrating the continued consistency of the brine chemistry across the Clearwater and greater Bashaw district. The current operations at the demo facility are facilitating a reservoir test to confirm flow parameters over an extended period. Brine is being pumped from the production well and immediately disposed in the injection well, all within the Demo facility, enabling rapid assessment. The demo facility operations have achieved stable brine production and injection through the well pair. During initial operations, the wellbore, through the electrical submersible pump (ESP), maintained the targeted flow rate of 1,400 cubic metres/day at steady state. The data collected from this part of the operations will support the reservoir development plan update, supporting the feasibility study. Following the production test, the next planned operation will focus on brine:gas analysis, supporting the design of the front end of the plant.

E3 collects and analyzes brine samples at regular intervals during operations and has confirmed lithium concentrations of 75.8 mg/L. The brine chemistry analyses have been completed by an independent third party laboratory. These results and independent validation support the company's confidence in the technical foundation for its planned commercial development.

"With phase 2 operations under way, E3 has begun a series of project-scale derisking activities for the Clearwater project," said Chris Doornbos, chief executive officer and chair of E3 Lithium. "We have already moved more brine through these two wells than E3 has handled through all its previous testing combined, and we expect to continue to operate the pump as needed over the coming 24 months. The confirmation of the initial reservoir response and the lithium grade at these new wells further bolsters the consistency and predictability of the Leduc Aquifer and the lithium resource base held by E3."

The data collected from these operations will support E3's continuing engineering work, including the completion of front-end engineering design (FEED) and the feasibility study for the Clearwater project. The company will continue to operate the demo facility to collect additional reservoir, brine chemistry and process performance data required to support commercial facility design and future development decisions.

About E3 Lithium Ltd.

E3 Lithium is a development company with a total of 21.2 million tonnes of lithium carbonate equivalent (LCE) measured and indicated as well as 0.3 Mt LCE (lithium carbonate equivalent) inferred mineral resources in Alberta. The Clearwater prefeasibility study outlined a 1.13 Mt LCE proven and probable mineral reserve with a pretax NPV (net present value) (8 per cent) of $5.2-billion (U.S.) with a 29.2-per-cent IRR (internal rate of return) and an after-tax NPV (8 per cent) of $3.7-billion (U.S.) with a 24.6-per-cent IRR.

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