Mr. Jean-Sebastien Lavallee reports

CRITICAL ELEMENTS LITHIUM ANNOUNCES NEW HIGH-GRADE DISCOVERY WITHIN THE ROSE PROJECT WITH PROMISING GRADES OF UP TO 5.62% LI2O

Critical Elements Lithium Corp. has released the first grab sample results from the newly discovered spodumene-bearing pegmatite located approximately eight kilometres west of the Rose deposit.

The Rose lithium-tantalum project is situated within the Rose and Rose South property blocks, which constitute 395 square kilometres, or only 38 per cent of the 1,050 square kilometres in the corporation's highly prospective exploration portfolio in Quebec.

Summer 2023 initial prospecting results

During the summer of 2023, Critical Elements conducted a prospecting program over several areas, including the Rose, Rose South, Rose North and Nemaska belt properties. The objective of the field program was to identify new pegmatite bodies using systematic rock geochemical sampling of all pegmatite bodies in order to refine the geological interpretation of the properties and prioritize for further exploration work, including drilling. A total of 866 rock samples were collected during the exploration campaign.

As reported on Sept. 12, 2023 (press release), several new outcrop discoveries have been identified in the Rose pegmatite swarm. To date, four spodumene-bearing pegmatite outcrops have been identified in this new discovery area. At this early stage, the exact strike length, width and orientations of these dikes is unknown, but the apparent strike length along the outcrops exceeds 400 metres. To date, the results from the initial 10 selected samples have been received. All samples are lithium bearing and 50 per cent of them report values over 3 per cent lithium oxide, with some results as high as 3.02 per cent Li2O, 3.62 per cent Li2O, 3.60 per cent Li2O, 3.37 per cent Li2O and 5.62 per cent Li2O (see an attached table). The reader is cautioned that grab samples are selective by nature and may not represent average grades of the mineralization in the pegmatites.

Jean-Sebastien Lavallee, chief executive officer of Critical Elements Lithium, commented: "Today's results are very exciting, as the exploration team is now planning a large-scale drilling program at Rose. Furthermore, with more than 395 square kilometres of property at Rose and Rose South, we believe that there might be potentially multiple discoveries in this highly prospective area within trucking distance to the proposed Rose concentrator."

Management is currently designing a large-scale drill program with multiple rigs to test the new discoveries and potentially expand the Rose project resource. Details of this extensive program will be forthcoming in the near term.

Quality assurance/quality control

Quality assurance/quality control procedures have been implemented to ensure best practices in sampling and analysis of the samples. Standards and blanks were regularly inserted into the sample stream. The samples were delivered, in secure tagged bags, directly to the ALS Minerals laboratory facility in Val d'Or, Que. The samples are weighed and identified prior to sample preparation. The samples are crushed to 70 per cent minus two millimetres, then separated and pulverized to 85 per cent passing 75 micrometres. All samples are analyzed using sodium peroxide fusion ME-MS-89L, with full analysis for 52 elements. Values over 25,000 parts per million lithium were reassayed using Li-ICP-82b, and values over 2,500 ppm tantalum pentoxide were reassayed using Ta-XRF10.

Qualified person

Paul Bonneville, Eng, is the qualified person that 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 released 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 United States 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, 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 received the project mining lease from the Quebec Minister of Natural Resources and Forests under the Quebec Mining Act.

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