Mr. Chris Doornbos reports

E3 LITHIUM PROVIDES AN UPDATE ON ITS STRATEGIC GROWTH AND DIRECTION FOR LONG-TERM VALUE CREATION

E3 Lithium Ltd. has outlined its long-term corporate growth strategy with a clear vision on shareholder value creation across its business. The company's top priority remains the accelerated development of its Clearwater project, with Stage 1 aiming to produce 12,000 tonnes of lithium carbonate per year targeted for 2028 to 2029. Supported by strong long-term battery industry fundamentals, E3 plans to enhance shareholder value by optimizing its asset portfolio by reviewing its non-core assets, exploring inbound opportunities and expanding its reach into the battery industry.

"As we accelerate the development of our Clearwater project to commercialization, we have the scale and significant expansion opportunities within this single asset, which has the brine volume to produce up to 150,000 tonnes of lithium carbonate annually for 50 years," said Chris Doornbos, chair and chief executive officer of E3 Lithium. "Our priority and focus remain firmly on Clearwater, however, there is value in exploring strategic opportunities that can create long-term value for E3, including optimizing our lithium asset portfolio and working on battery technology integration. Our goal is to create a pipeline of commercial initiatives for the future of E3 while focusing on our core business of producing battery-grade lithium carbonate at Clearwater."

Asset portfolio review

At the district scale, E3's Bashaw asset contains 16.2 million tonnes lithium carbonate equivalent (LCE) of measured and indicated (M&I) resource, a globally significant lithium asset. The Bashaw district offers meaningful production upside and has the potential to scale to 150,000 tonnes of lithium carbonate per year, positioning E3 to be one of the largest lithium producers in North America. The company remains focussed on executing its primary project, the staged development of the Clearwater, hosted within the greater Bashaw district. E3 also holds additional assets outside its core focus area, specifically the company's Garrington district which contains an additional 5.0 million tonnes LCE M&I resource. Similar to Bashaw, Garrington is hosted within the well understood and historically proven and productive Leduc aquifer. E3 has initiated a strategic review of this asset to accelerate value creation that could include a potential joint venture, sale or internal development. The company sees meaningful underlying value in its Garrington asset with the potential to provide non-dilutive capital to advance the Clearwater project and support broader growth.

Global opportunities

E3 is gaining global recognition for its expertise in resource identification and reservoir development, as well as direct lithium extraction (DLE) and overall lithium processing. At the same time, Western, European and other trade friendly nations are accelerating efforts to secure critical mineral supply chains. E3 continues to receive inbound interest in global development opportunities and is actively exploring these to deploy its technical expertise and value-driven development approach in key strategic jurisdictions. To capitalize on long-term partnership potential, including its recent collaboration with Germany's TKMS and France's Axens, the company is strategically evaluating its roster of opportunities. E3 aims to develop a pipeline of global projects that leverage its technical expertise to support the development of deep, geothermal lithium enriched brines, creating additional value beyond its core Alberta-based business and assets. E3 will consider and evaluate joint ventures or acquisitions that diversify its asset portfolio and enhance market access for its lithium production.

Battery vertical integration

As battery technologies evolve, from improvements in energy density and cost reductions in current lithium-ion platforms, to the development of the next-generation lithium metal batteries, E3 believes significant opportunities will emerge to integrate lithium production into the battery manufacturing process. To date, no commercial battery has replaced the lithium-ion battery in its breadth of applications, and the majority of new battery facilities being planned are based on this platform. Recent advancements in cathode technology have seen a significant increase in the use of the lithium iron phosphate (LFP) chemistry and other newer cathode chemistries, such as lithium manganese rich (LMR), both utilizing lithium carbonate. These advancements were one of the main drivers for the company's plan to evaluate the removal of the lithium hydroxide conversion equipment from the first phase of its Clearwater project. With limited cathode production capacity in North America, E3 sees a strategic opportunity to partner with cathode developers to integrate the lithium-to-cathode value chain, reduce overall battery costs and establish long-term industry partnerships. Local cathode production will be a critical component in enabling domestic battery manufacturing.

In the past, E3 has collaborated with Pure Lithium on their lithium metal battery platform. While Pure Lithium has undergone a significant transformation and recently opened its new facility in Chicago, the companies are reviewing the next steps to advance the commercialization of lithium metal production. In parallel, E3 is actively exploring cathode opportunities to position its lithium as a key contributor to the Canadian and broader G7+ battery ecosystem.

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 indicated1 as well as 300,000 tonnes LCE 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 discount rate) 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.

Unless otherwise indicated, Kevin Carroll, PEng, chief development officer and a qualified person under National Instrument 43-101, has reviewed and approved the technical information contained on this news release.

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