Mr. Chris Doornbos reports

E3 LITHIUM RELEASES Q1 2026 RESULTS AND CONTINUES ADVANCEMENT TOWARD COMMERCIALIZATION

E3 Lithium Ltd. has filed its unaudited consolidated financial statements for the three-month period ended March 31, 2026, and the accompanying management discussion and analysis on SEDAR+.

"Q1 2026 marked an important period of execution and momentum for E3 as we continued advancing the Clearwater project toward commercialization," said Chris Doornbos, chief executive officer and chair of E3 Lithium. "During the quarter, we delivered battery-grade lithium carbonate to global partners and offtakers, advanced key permitting activities, and established our inaugural credit facility. We further strengthened our strategic position through our teaming agreement with TKMS and advanced operations at our demonstration facility. Together, these milestones continue to derisk the project and position E3 for future growth as we progress toward commercialization."

Key highlights during Q1 2026:

• Delivered battery-grade lithium carbonate to global partners and offtakers:
  • The company delivered battery-grade lithium carbonate to multiple parties as part of its engagement with targeted offtake and strategic partners. This marked an important milestone as E3 advanced customer qualification and strategic partnership dialogue, reinforcing the company's emerging role in the global lithium market.
• Submitted Directive 056 facility licence application:
  • E3 formally submitted an application to the Alberta Energy Regulator (AER) in accordance with Directive 056 for its Clearwater project's central processing facility (CPF). The D56 licence, along with EPEA (Environmental Protection and Enhancement Act) application, which was submitted in late 2025, mark two key permits required by the provincial government authority to construct and operate the CPF.
• Established inaugural credit facility for $2-million:
  • E3 entered into an operating loan facility for $2-million with ATB Financial. This credit facility will primarily support letters of credit issuance in support of continuing development activities for the company's Clearwater project as it advances toward a final investment decision (FID).
• Significant undrawn government grants of $54-million:
  • As of March 31, 2026, the company had $54-million of undrawn government grants. Drawing on these funds will support E3's continuing activities, including completion of the demonstration facility, as the company advances toward FID and commercialization.

Key highlights subsequent to Q1 2026:

• Signed teaming agreement with Germany's TKMS to support critical minerals supply:
  • In April, 2026, E3 signed a teaming agreement with Germany's TKMS to collaborate on research, technology transfer and investment to support lithium resources into strategic applications. This agreement establishes a strategic framework for co-operation, supporting the Canadian Patrol Submarine Project (CPSP) and reflects potential financial contribution to E3, aligned with Canada's Industrial and Technological Benefits (ITB) policy.
• Beginning operations for phase 2 of the demonstration facility:
  • In April, 2026, E3 announced completion of well development and pump installation for phase 2 of its demonstration facility, which is expected to generate the final data required for the Clearwater project feasibility study. In parallel, E3 is preparing for the final phase of demonstration facility operations, which will be focused on commercial-scale DLE (direct lithium extraction) technology validation and integrated production of battery-grade lithium carbonate to support project financing and commercialization of the Clearwater project.

E3 expects continued advancement of the Clearwater project throughout 2026 as the company progresses toward being shovel ready. Key priorities include continuing operations and data collection from the demonstration facility, commercial-scale validation of its proprietary DLE technology, and completion of engineering activities supporting the Clearwater project feasibility study. The company also intends to continue engagement with strategic partners, potential offtake counterparties and government stakeholders as it advances Clearwater project commercialization and evaluates broader opportunities across the battery supply chain.

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 300,000 tonnes of LCE inferred mineral resources in Alberta. The Clearwater prefeasibility study outlined a 1.13-million-tonne-LCE proven and probable mineral reserve with a pretax net present value (discounted at 8 per cent) of $5.2-billion (U.S.) with a 29.2-per-cent 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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