Mr. Chris Doornbos reports

E3 LITHIUM AND EPSILON CAM SIGN MOU FOR SUPPLY OF BATTERY-GRADE LITHIUM CARBONATE, STRENGTHENING BATTERY MATERIALS SUPPLY CHAIN

E3 Lithium Ltd. has entered into a non-binding memorandum of understanding with Epsilon CAM Pvt. Ltd., a developer and manufacturer of lithium-iron-phosphate-based cathode active materials for lithium-ion batteries. The MOU, effective Sept. 1, 2026, outlines the framework for potential long-term supply of battery-grade lithium carbonate from E3's Clearwater project.

The MOU contemplates the potential supply of maximum up to 5,000 tonnes per year of battery-grade lithium carbonate over a five-year term, representing up to 40 per cent of E3 Lithium's proposed Stage 1 production of 12,000 tonnes per year from the Clearwater project. Final volumes and commercial terms would be established as the parties progress toward a definitive agreement.

This understanding strengthens Epsilon's strategy to build a geographically diversified and resilient battery material supply chain. Epsilon's Gen III LFP is already progressing with global customer validations while the company is building a 30,000-tonne-per-year cathode material facility with phase 1 completion by early 2028. The potential supply of battery-grade lithium carbonate from E3 Lithium's Clearwater project would add a new source of this critical raw material to the supply chain.

"Securing long-term offtake contracts is a critical commercial milestone required to advance the Clearwater project," said Chris Doornbos, chief executive officer and chair of E3 Lithium. "This MOU with Epsilon demonstrates a serious interest and draws a clear path from Alberta brine directly into the battery supply chain. We look forward to advancing our negotiations and relationship with Epsilon as our Clearwater project moves toward shovel-ready."

Vikram Handa, managing director of Epsilon CAM, said: "The electric mobility growth requires a battery materials supply chain that is resilient, diversified and globally connected. Our engagement with E3 Lithium strengthens this approach as we progress towards commercialization in India with a 30,000-tonnes cathode materials facility. This is also a great opportunity to connect upstream lithium resources in Canada with downstream cathode active material production in India for development of a more diversified battery materials and battery value chain."

The terms of the MOU are likely to follow industry standards for offtake and follow a predictable path towards a definitive agreement seen within the industry. Generally, as the company continues to execute on permitting, advancing demonstration and moving closer to completing its feasibility study, E3 expects agreements to finalize as the project advances toward a final investment decision.

About E3 Lithium Ltd.

E3 Lithium is a development company with a total of 21.2 million tonnes of lithium carbonate equivalent measured and indicated mineral resources, as well as 300,000 tonnes LCE inferred mineral resources in Alberta, composed of: (a) measured and indicated mineral resources of 16.2 million tonnes lithium at a grade of 75.5 milligrams per litre within its Clearwater project (1); and (b) measured and indicated mineral resources of 5.0 Mt lithium at a grade of 54.0 mg/l lithium and inferred mineral resources of 300,000 tonnes lithium at a grade of 42 mg/l lithium within its Garrington district (2). The Clearwater prefeasibility study outlined a 1.13 Mt LCE proven and probable mineral reserve at a grade of 75.5 mg/l lithium, with a pretax net present value (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 (1).

(1) The technical report titled "Clearwater Project, NI 43-101 Technical Report on Pre-Feasibility Study, Bashaw District Mineral Property, Central Alberta, Canada," with an effective date of June 20, 2024, is available on the E3 Lithium's website and under E3 Lithium's profile on SEDAR+.

(2) The technical report titled "NI 43-101 Technical Report for the Garrington District Lithium Resource Estimate," with effective date of June 25, 2025, is available on the E3 Lithium's website and under E3 Lithium's profile on SEDAR+.

Unless otherwise indicated, Mr. Doornbos, PGeo, chief executive 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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