Mr. Jean-Sebastien Lavallee reports

CRITICAL ELEMENTS ANNOUNCES APPOINTMENT OF EX ROCKWOOD CFO AS VP FINANCE

Critical Elements Corp. has appointed Dr. Marcus Brune as vice-president of finance. Dr. Brune will join the senior management team and will oversee the structuring of the Rose project debt financing, strategic investment and off-take agreements.

Dr. Brune was chief financial officer of Rockwood Lithium from 2011 until the acquisition by Albemarle in 2015. He left Albemarle in 2016 once the lithium business was successfully integrated into Albemarle's organizational structure. Prior to joining Rockwood Lithium, Dr. Brune had worked in different executive positions in corporate finance and merger and acquisitions for Rockwood Holdings and its predecessor companies since 2004. Prior to that, he was with McKinsey as a strategy consultant for organizational development and management. Dr. Brune completed his doctorate in material sciences at the Technical University of Dortmund, Germany, after earning a physics degree.

"We are pleased to welcome Dr. Brune to the management team, where he will oversee all financial activities, including evaluating and securing sources of funding, forecasting and budget management. His extensive financial and technical experience, particularly as CFO of Rockwood Lithium, will be valuable to Critical Elements as the company continues its transition towards becoming a lithium producer."

Update on strategic discussions

Critical Elements management is pleased with its advancement with global strategic and offtake partners and continues to work closely with its financial adviser, Canaccord Genuity Corp., to successfully conclude this process.

Update on project activities

Critical Elements would also like to provide an update on the Rose permitting process. The company has received initial questions from the MDDELCC and been actively working with the WSP team to provide a response. Critical Elements is confident that the Rose project remains on track to be permitted by the end of the first half of 2019. The private placement that closed in May, 2018, continues to provide the company with sufficient capital to finance the permitting process. Finally, in addition to the appointment of Dr. Brune, management is also working to strengthen the Critical Elements team for development and construction of the Rose project.

About Critical Elements Corp.

The company recently released a financial analysis for Critical Elements' wholly owned Rose lithium tantalum project (Rose lithium-tantalum project feasibility study, WSP, Oct. 20, 2017), which is based on price forecasts of $750 (U.S.)/tonne for chemical-grade lithium concentrate (5 per cent lithium dioxide), $1,500 (U.S.)/tonne for technical-grade lithium concentrate (6 per cent Li2O) and $130 (U.S.) per kilogram for tantalum pentoxide in tantalite concentrate, and an exchange rate of 75 U.S. cents per $1 (Canadian). The internal rate of return (IRR) for the Rose lithium-tantalum project is estimated at 34.9 per cent after tax, and net present value (NPV) is estimated at $726-million (Canadian) at an 8-per-cent discount rate. The estimated payback period is 2.8 years. The pretax IRR for the Rose lithium-tantalum project is estimated at 48.2 per cent and the pretax NPV at $1,257-million (Canadian) at an 8-per-cent discount rate (see press release dated Sept. 6, 2017).

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