Mr. Chris Doornbos reports

E3 LITHIUM SET TO BEGIN OPERATIONS FOR PHASE 2 OF THE DEMONSTRATION FACILITY

E3 Lithium Ltd. has completed well development and pump installation, and is now ready to begin operations for phase 2 of its demonstration facility. The company has developed a three-phase plan with multiple goals at each phase to demonstrate commerciality of producing battery-grade lithium carbonate.

As outlined on March 9, 2026, the two main goals of phase 2 are to complete a reservoir production test to further delineate flow through the Leduc Reservoir and to collect water and gas chemistry data. The reservoir test will inform the reservoir development plan (RDP) that is currently being completed and will result in a well and pipeline network design that informs well and pipeline permitting. Brine and gas data collected will inform the design of the inlet and gas separation for the commercial facility. Information collected from this work is some of the last technical data required for the feasibility study that E3 is working through for the Clearwater project. As is standard in the industry, the company submitted the Directive 51 application that occurs once the wells are completed. Upon receipt of its licence, the site will begin operations, which are expected to run for eight to 12 weeks before moving to demo phase 3. Work completed at the demonstration facility to date has been supported in part by the $5-million in funding provided by Emissions Reduction Alberta (ERA).

In parallel with phase 2 operations, the team at E3 will be setting up for phase 3 of its demonstration, which focuses primarily on the direct lithium extraction (DLE) testing and is the final phase of E3's demonstration facility. Phase 3 consists of both the operation of the 30-column DLE, paired with the purification/carbonation equipment, that was successfully commissioned during phase 1, and the construction and operation of a full commercial size single DLE column.

Over the course of the summer, E3 will procure the equipment for, and build out the single column unit, supported through the government of Canada's Global Partnerships Initiative (GPI) $36.5-million conditionally approved funding announced on March 2, 2026 (E3 Lithium -- news releases).

While phase 2 of the demonstration facility focuses on acquiring necessary engineering data, phase 3 provides a real-world proof of concept for brine to battery-grade lithium carbonate production. Phase 3 of the demo will produce nearly 100 tonnes per year of lithium carbonate equivalent (LCE) in lithium chloride that the company will use to further its offtake discussions. Operating the DLE technology at 1:1 scale to a commercial system, with brine moving live through the process, validates the key parameters to financial institutions, strategic partners, off-takers and the government. This will form a critical component to secure project financing for the construction of the Clearwater project's first phase which will produce 12,000 tonnes per year of lithium carbonate.

About E3 Lithium Ltd.

E3 Lithium is a development company with a total of 21.2 million tonnes of lithium carbonate equivalent (LCE) measured and indicated as well as 0.3 Mt LCE inferred mineral resources in Alberta. The Clearwater prefeasibility study outlined a 1.13 Mt LCE proven and probable mineral reserve with a pretax NPV (net present value) (8 per cent) of $5.2-billion (U.S.) with a 29.2-per-cent IRR (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.

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