Mr. Chris Doornbos reports

E3 LITHIUM PROVIDES STATUS UPDATE ON CLEARWATER PROJECT

E3 Lithium Ltd. has provided a status update on its Clearwater project. The company is also hosting an investor webinar today, Sept. 29, 2026.

Investor webinar

E3 will host a live investor webinar today, Sept. 29, 2026, at 12 p.m. MT (2 p.m. ET). Participants can join the webinar at the time of the event; no preregistration is required. A recording will be available on the company's website following the event.

Chris Doornbos (chief executive officer and chair), Brian Newmarch (chief financial officer) and Tom Gear (chief operating officer) will review recent progress across the company's technical, commercial and financial workstreams, followed by a question-and-answer session.

Clearwater project status update

Demonstration facility

Phase 2 of the company's demonstration facility operations is nearing completion. With significant data collected through this process, E3 is finalizing gas composition testing that supports commercial facility design. Following phase 2 completion, operations will focus on lithium carbonate production as the company ramps up phase 3. The team is also working through an expansion of the direct lithium extraction (DLE) system to deploy a commercial-scaled column, similar to those in use by industry peers. Commercial-scaled column operations will provide operating and technical data to support financing and strategic partner negotiations, with operations expected to run through 2027 and potentially beyond, providing training to commercial facility operators.

Front-end engineering design (FEED) and feasibility study

E3's objective for the completion of FEED and its feasibility study is to provide a robust, data-backed design for the commercial facility. To support this work, E3 continues to build out its engineering and technical capacity with support from engineering, procurement and construction (EPC) contractors to manage detailed engineering to support continuing project development and subsequent expansion phases. FEED will continue as data collected from the demonstration facility this fall is compiled and engineering work advances toward completion in 2027.

Permitting

E3 has submitted the licence application for the Clearwater central processing facility (CPF) that, once granted, would enable E3 to produce up to approximately 30,000 tonnes per year of battery-grade lithium carbonate. The company continues to engage with local stakeholders and the Alberta Energy Regulator to ensure full transparency on its plans and operations to facilitate continuing and open dialogue. E3 is committed to continuing local stakeholder engagement with project updates, which are available in the company's quarterly community connection newsletter and its stakeholder-focused video series published on the E3 website.

Commercial progress

E3 continues to build relationships with prospective offtake partners as product qualification work progresses. The company recently signed a non-binding memorandum of understanding (MOU) with India-based Epsilon CAM that outlines a framework for potential long-term supply of battery-grade lithium carbonate from the Clearwater project. E3 is also increasing optionality for access to the European hydroxide market with a non-binding MOU signed with United Kingdom-based Tees Valley Lithium (TVL). Discussions with industry partners have accelerated in 2026 as E3 expands its relationships with international partners supported by Natural Resources Canada's Global Partnerships Initiative (GPI).

Government support

E3's development program benefits from strong collaboration with Natural Resources Canada, whose GPI is supporting phase 3 of the demonstration facility and FEED, with up to $36.5-million in non-repayable funding. This partnership reflects the federal government's continued commitment to Canadian critical minerals development and supports a capital-efficient path to advancing the Clearwater project toward final investment decision and commercial operation.

"Each of Clearwater's key workstreams is moving forward: The demonstration facility is entering its final phase, engineering and FEED is advancing on the strength of phase 2 results, and our offtake discussions continue to broaden," said Mr. Doornbos, chief executive officer and chair of E3 Lithium. "With federal funding supporting phase 3 of the demonstration facility and FEED, we are derisking the Clearwater project as we advance towards our goal of first production."

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 mineral resources as well as 400,000 tonnes LCE inferred mineral resources in Alberta, comprising: (a) measured and indicated mineral resources of 16.2 million tonnes LCE at a lithium grade of 75.5 milligrams per litre within its Clearwater project; and (b) measured and indicated mineral resources of 5.0 million tonnes LCE at a lithium grade of 54.0 milligrams per litre and inferred mineral resources of 300,000 tonnes LCE at a lithium grade of 42 milligrams per litre within its Garrington district. The Clearwater prefeasibility study outlined a 1.13-million-tonne-LCE proven and probable mineral reserve at a lithium grade of 75.5 milligrams per litre, 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, Chris Doornbos, PGeo, chief executive 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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