Mr. Jean-Sebastian Lavallee reports

CRITICAL ELEMENTS LITHIUM ORDERS FIRST LONG LEAD EQUIPMENT FOR THE ROSE LITHIUM-TANTALUM PROJECT

Critical Elements Lithium Corp. has ordered the equipment with the longest lead time to manufacture, namely transformers (315 kilovolts (kv) to 25 kV) for the main power station of the Rose lithium-tantalum project. The order was concluded with one of the leaders in the design and construction of industrial transformers, the Italian company Tamini Trasformatori srl.

In order to meet the electrical energy needs of the project, the corporation will install two electrical transformers with a ventilation stage during the construction period. The two transformers will operate simultaneously to supply the site and the operating processing plant. A single transformer will be able to support all loads in the event of failure of one of the two transformers.

In addition, in order to reduce greenhouse gases and reduce the use of diesel generators, the substation will be able to support electrical energy at the end of the construction period with only one transformer.

Jean-Sebastien Lavallee, chief executive officer of the corporation, stated: "Today's news represents another action to reduce the risks associated with the project schedule. This is another step towards the development of the Rose lithium-tantalum project. With every step completed, management's confidence increases in achieving the corporation's goal to make a final investment decision, commence construction and achieve initial production in 2026."

Critical Elements' Rose lithium-tantalum project is one of the most advanced hard-rock lithium projects in North America, having achieved key milestones including:

• The Pikhuutaau agreement, an impact and benefits agreement for the development and operation of the Rose lithium-tantalum project, signed with the Cree Nation of Eastmain, the Grand Council of the Crees (Eeyou Istchee) and the Cree Nation government in July, 2019;
• A favourable decision statement from the federal Minister of the Environment and Climate Change, issued in August, 2021, following the thorough environmental assessment conducted by the joint assessment committee, comprising representatives from the Impact Assessment Agency of Canada and the Cree Nation government;
• The approval by the Quebec Minister of Natural Resources and Forests of the rehabilitation and restoration plan concerning the Rose lithium-tantalum project, in May, 2022;
• The receipt of the certificate of authorization under Section 164 of Quebec's Environment Quality Act, in November, 2022, following the environmental and social impact assessment and review procedure under the responsibility of the Environmental and Social Impact Review Committee (COMEX);
• The receipt of the Rose lithium-tantalum project mining lease in September, 2023, from the Quebec Minister of Natural Resources and Forests. The mining lease is granted under the Quebec Mining Act and gives the holder the right to mine mineral substances for the Rose lithium-tantalum project. The mining lease is granted for a period of 20 years.

Qualified person

Yves Perron, Eng, MBA, vice-president, engineering, construction and operations, for the corporation, is the qualified person who has reviewed and approved the technical contents of this news release on behalf of the corporation.

About Critical Elements Lithium Corp.

Critical Elements aspires to become a large, responsible supplier of lithium to the flourishing electric vehicle and energy storage system industries. To this end, Critical Elements is advancing the wholly owned, high-purity Rose lithium-tantalum project in Quebec, the corporation's first lithium project to be advanced within a land portfolio of over 1,050 square kilometres. On Aug. 29, 2023, the corporation announced results of a new feasibility study on Rose for the production of spodumene concentrate. The after-tax internal rate of return for the project is estimated at 65.7 per cent, with an estimated after-tax net present value of $2.2-billion (U.S.) at an 8-per-cent discount rate. In the corporation's view, Quebec is strategically well positioned for U.S. and European Union markets and boasts good infrastructure including a low-cost, low-carbon power grid featuring 94 per cent hydroelectricity. The project has received approval from the Federal Minister of Environment and Climate Change on the recommendation of the joint assessment committee, comprising representatives from the Impact Assessment Agency of Canada and the Cree Nation government; it also received the certificate of authorization pursuant to Section 164 of Quebec's Environment Quality Act from the Quebec Minister of the Environment, the Fight against Climate Change, Wildlife and Parks, and the project mining lease from the Quebec Minister of Natural Resources and Forests under the Quebec Mining Act.

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