Mr. Jean-Sebastien Lavallee reports

CRITICAL ELEMENT ANNOUNCES $5 MILLION BOUGHT DEAL COMMON SHARE FINANCING

Critical Elements Corp. has entered into an agreement with Canaccord Genuity Corp. to sell 14 million common shares on a bought-deal private-placement basis at a price of 37 cents per share for gross proceeds of $5.18-million. In addition, the company will grant the underwriter an overallotment option, exercisable prior to the closing of the offering, to purchase from the company up to an additional 2.75 million common shares at 37 cents per share to raise additional gross proceeds of up to $1,017,500.

The underwriter will receive a cash commission of 7 per cent of the gross proceeds raised and non-transferable share purchase warrants entitling the underwriter to purchase, at the price of the offering within 24 months after closing of the offering, common shares equal to 7 per cent of the aggregate number of securities sold pursuant to the offering. Canaccord Genuity will also be issued an additional 200,000 common shares as a corporate finance fee.

The company intends to use the net proceeds for exploration and development of the company's projects, and for general working capital purposes.

Closing of the offering is anticipated to occur on or before June 7, 2016, and is subject to receipt of applicable regulatory approvals including approval of the TSX Venture Exchange. Securities issued under the offering and through the overallotment option will be subject to a four-month hold period which will expire four months from the date of closing.