Mr. Chris Doornbos reports

E3 LITHIUM OUTLINES DEMONSTRATION PROGRAM OBJECTIVES TO ADVANCE LITHIUM PRODUCTION IN ALBERTA

E3 Lithium Ltd. has outlined the main objectives of its demonstration facility project, aimed at producing battery-grade lithium carbonate from E3 Lithium's brine and lithium mineral resource, located in Alberta. The demo project is supported by Emissions Reduction Alberta (ERA), providing $5-million to support this important advancement for Alberta's lithium industry. The facility and equipment will be completed over the winter and in operation in mid-2025.

Overview of the demonstration program

The demo project will encompass the full suite of process operations, from brine production, pretreatment to lithium carbonate production. The overarching goal is to replicate the functionality of the E3 Lithium commercial system at a smaller scale, to test the cohesiveness of each unit when operated simultaneously. The project will be divided into six main systems, each designed to operate as close to a commercial system as possible:

1. Brine production: Likely to occur in two stages, the brine will be sourced from the aquifer to feed the production equipment to generate lithium carbonate. A second stage will increase brine production volume to emulate a commercial production well, testing the reservoir properties at this scale.
2. Pre-DLE (direct lithium extraction) brine treatment: Separating the entrained gas in the brine, this step will remove these gases using conventional petroleum industry two-phase separation equipment, producing a brine that can be fed directly into the DLE system.
3. Scaled-up DLE system: A larger-scale, fully automated DLE system will be deployed to mimic, as closely as possible, the same process operations that will be deployed in the commercial facility. This includes the numbers of vessels per module, how brine enters and exits the vessels, and the sequence of rinse and desorption steps. The sorbent will be sourced from a third party vendor for the DLE system in line with the company's prefeasibility study (PFS).
4. Post-DLE treatment: This step further concentrates and refines the lithium chloride from the DLE system, optimized to produce battery-grade lithium as the final step.
5. Carbonation equipment: Sodium carbonate, sourced from a commercial supplier, will be added to the lithium chloride in a reactor to produce battery-grade lithium carbonate. As outlined in E3 Lithium's PFS, the byproduct of this step is sodium chloride (table salt), which can be added back into the brine for disposal.
6. Water recovery: Process water streams from the post-DLE treatment will be collected, where appropriate, to be used as strip fluid for desorbing the lithium from the sorbent in the DLE step.

As outlined, E3 Lithium is commissioning the carbonation equipment in the laboratory in Calgary. The goal is to operate the equipment at demonstration scale in the lab to build the necessary skill set and confirm the operational parameters to enable the company to produce consistent battery-grade lithium carbonate. The remainder of the equipment is being sourced from manufacturers as per the E3 Lithium commercial design specifications and requirements.

The demo project will be built and subsequently operated in defined phases:

1. The engineering and design of the equipment are well under way, with the focus on a design that closely resembles a commercial operating unit.
2. Equipment manufacturing is set to begin in the new year, with an expected four to five months to delivery on site.
3. Commissioning will occur on site with brine that has already been produced, accelerating the commissioning process.
4. Once the system is operating to the designed specifications, the live brine stream will be connected, enabling end-to-end operations to produce battery-grade lithium carbonate.

The lithium carbonate can be further converted to lithium hydroxide with one of the company's partner equipment vendors to define the process operations for that final step.

The success of the company's demo project, operated from E3 Lithium's field location in Alberta, will achieve two essential objectives:

• Confirm the process to achieving battery-grade lithium carbonate under commercial conditions;
• Provide consistent product to the company's potential customers over an extended period produced by E3 Lithium.

Similar to the field pilot project, further details on the specific operating objectives will be outlined for the demo project closer to its operational start.

"The success of the demonstration project will provide critical data and validation to our processes while enabling our commercial initiatives," said Chris Doornbos, president and chief executive officer of E3 Lithium. "Completing these milestones and reducing technical risks for the Clearwater project -- and the lithium industry in Alberta as a whole -- will strengthen our path to commercial operations and reinforces E3 Lithium's long-term growth strategy."

About E3 Lithium Ltd.

E3 Lithium is a development company with a total of 16.2 million tonnes of lithium carbonate equivalent (LCE) measured and indicated as well as 900,000 tonnes LCE inferred mineral resources in Alberta and 2.5 million tonnes LCE inferred mineral resources in Saskatchewan. The Clearwater prefeasibility study outlined a proven and probable mineral reserve of 1.13 million tonnes LCE 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 net present value (discounted at 8 per cent) of $3.7-billion (U.S.) with a 24.6-per-cent internal rate of return. E3 Lithium's goal is to produce high-purity, battery-grade lithium products to power the growing electrical revolution. With a significant lithium resource and innovative technology solutions, E3 Lithium has the potential to deliver lithium to market from one of the best jurisdictions in the world.

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