Non-binding agreement secures E3 strategic optionality and market access for lithium hydroxide into Europe, with E3's focus remaining firmly on lithium carbonate for the Clearwater Project

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, is pleased to announce that it has entered into a non-binding Collaboration Agreement (the "Agreement") with Tees Valley Lithium Ltd. ("TVL"), a wholly owned subsidiary of Alkemy Capital Investments plc (LSE: ALK). The Agreement establishes a framework that creates optionality for E3 to convert its lithium carbonate into lithium hydroxide and further support offtake relationships in the European market.

Under the proposed non-binding Agreement, E3 would utilize TVL's lithium hydroxide conversion capacity at its UK refinery to convert lithium carbonate produced at E3’s Clearwater Project into battery-grade lithium hydroxide for supply to E3's potential customers. The Agreement contemplates up to 50,000 tonnes of lithium hydroxide over an initial 10-year term.

The Agreement is non-binding in all respects and there is no guarantee that E3 will enter into a definitive agreement with TVL, or that E3 will utilize TVL's conversion capacity. Any future arrangement remains subject to the terms of a potential offtake agreement with a third-party customer and finalizing the terms and execution of a binding definitive agreement with TVL.

"This Collaboration Agreement gives E3 meaningful optionality as we negotiate with potential offtake partners," said Chris Doornbos, CEO and Chair of E3 Lithium. "This framework provides a potential pathway to serve hydroxide demand while we continue to focus on our speed to market and enhanced capital efficiencies for our carbonate production. We look forward to our ongoing collaboration with TVL."

About Tees Valley

TVL is dedicated to providing battery-grade lithium chemicals to meet the growing demand of the electric vehicle supply chain in Europe. Strategically located in Teesside, TVL is committed to sustainable, efficient, and world-class operations. TVL's refinery in the Tees Valley, UK, has previously announced a binding offtake agreement with a wholly owned subsidiary of Glencore plc for up to 10,000 tonnes per annum of battery-grade lithium hydroxide, demonstrating the commercial momentum behind TVL's independent merchant refining model.

ON BEHALF OF THE BOARD OF DIRECTORS

Chris Doornbos, 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, Chris Doornbos, P. Geo., Chief Executive 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: the potential for E3 to enter into a definitive, binding agreement with TVL; the potential utilization of TVL's lithium hydroxide conversion capacity at its UK refinery; the potential conversion of lithium carbonate produced at E3's Clearwater Project into battery-grade lithium hydroxide; the potential supply of up to 50,000 tonnes of lithium hydroxide over an initial 10-year term; the potential for E3 to establish offtake relationships in the European market; E3's ability to serve hydroxide demand while maintaining its focus on speed to market and capital efficiencies for carbonate production; and the anticipated benefits of the Agreement and any future collaboration between E3 and TVL. 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.

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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.