Mr. Chris Doornbos reports

E3 LITHIUM INITIATES PERMITTING PROCESS FOR THE CLEARWATER PROJECT CENTRAL PROCESSING FACILITY WITH SUBMISSION OF EPEA APPLICATION

E3 Lithium Ltd. has submitted its Environmental Protection and Enhancement Act (EPEA) application to the Alberta Energy Regulator (AER) and has initiated the formal AER Directive 056 (D56) notification and consultation program for its Clearwater project central processing facility (CPF).

Clearwater project central processing facility

The EPEA application represents a significant step forward in advancing E3 Lithium's commercialization plans for lithium production in Alberta. EPEA is a provincially mandated submission common for facilities of this nature in Alberta. The EPEA application describes the Clearwater project and its main process operations and outlines the environmental management plans and mitigation strategies that will be deployed by E3 to ensure that its Clearwater lithium extraction and processing facility is operated safely and responsibly.

The first step in the D56 application process is the formal consultation and notification of stakeholders in the area surrounding the CPF prior to the formal permit application to the AER, which is separate from the EPEA application that has been submitted by E3. The consultation and notification process began in late November and E3 anticipates submitting the D56 facility application for the CPF in early 2026. An approved D56 licence for the CPF will provide the required provincial government authority to construct and operate the CPF. When approved, the application ensures that the CPF meets Alberta's safety, environmental and land-use standards and that E3 Lithium has completed meaningful engagement with stakeholders.

The permitting process for the lithium production facility

In Alberta, brine-hosted minerals are regulated through the AER, which determines the overall process and outlines, through directives, the application-specific licences required to build and operate. The CPF, which will host the lithium production equipment, requires both approval under D56 and EPEA, which are separate applications.

The production of the brine through wells and pipelines is also governed under D56, with specific sections for these types of application. Each well and pipeline will be subject to individual approvals after consultation with landowners, similar to the current consultation process for the CPF. The full production and reinjection of brine are then governed through a reservoir scheme application under AER Directive 065. E3 will be conducting consultation for the wells and pipelines through 2026 for the first phase of development. Additional permits for power facilities are also under way and the project will need a municipal development permit issued by the county. Additional information on the permit application process can be found on the AER website.

"The Mineral Resource Development Act, passed in late 2021, provided a regulatory framework to the AER for lithium in brine, with E3 Lithium being the first company to receive a facility licence under this framework for its demonstration facility," said Chris Doornbos, president and chief executive officer of E3 Lithium. "The submission of the EPEA application and commencement of the consultation process for the D56 permit comes after two years of early engagement with the most proximal landowners. We appreciate the ongoing communication with local stakeholders whose feedback has been impactful as we have finalized the design of the facility. Starting the permitting marks an important milestone in the progression of our Clearwater project toward commercial operations."

The application for the facility would enable production of up to 32,000 tonnes per year of lithium carbonate (LC). E3 Lithium's current development plans bring the Clearwater project into production in phases, with phase 1 production targeted to be approximately 12,000 tonnes of LC per year. Time frames to receive approval for facility licences of this nature in Alberta are typically six months. Given this is the first EPEA application for a lithium production facility, the company is anticipating a longer time frame.

About E3 Lithium Ltd.

E3 Lithium is a development company with a total inferred mineral resources of 21.2 million tonnes of lithium carbonate equivalent (LCE) measured and indicated as well as 300,000 tonnes LCE in Alberta and inferred mineral resources of 2.5 million tonnes LCE in Saskatchewan. The Clearwater prefeasibility study outlined a 1.13-million-tonne-LCE proven and probable mineral reserve with a pretax net present value (discounted at 8 per cent) of $5.2-billion (U.S.) with a 29.2-per-cent internal rate of return and an after-tax NPV (discounted at 8 per cent) of $3.7-billion (U.S.) with a 24.6-per-cent IRR.

Unless otherwise indicated, Kevin Carroll, PEng, chief development officer and a qualified person under National Instrument 43-101, has reviewed and approved the technical information contained in this news release.

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