Mr. Chris Doornbos reports

E3 LITHIUM FINALIZES THE CONTRIBUTION AGREEMENT FROM THE CRITICAL MINERALS INFRASTRUCTURE FUND

E3 Lithium Ltd. has executed the contribution agreement for $4,397,625 in non-repayable funding from the Critical Minerals Infrastructure Fund (CMIF).

Under the agreement terms, E3 Lithium will receive reimbursement for 50 per cent of eligible expenditures up to the total $4.4-million allocation. The investment will be used to undertake preconstruction work on the necessary transportation and energy infrastructure to develop the Clearwater project. This includes facilitating electrical connection and substation power studies, transportation assessments, and the associated engagement initiatives, which are key deliverables for supporting the demonstration facility and feasibility study.

E3 previously announced on March 3, 2025, conditional approval for up to $4.7-million in funding from CMIF. The reduction in the amount under the finalized contribution agreement is related to a minor change in scope and costs for a portion of the project. This strategic funding will support the advancement of the Clearwater project, enhancing the company's ability to develop critical infrastructure and optimize operations.

The Canadian critical minerals strategy aims to drive the transition to a low-carbon economy by advancing critical mineral development through a collaborative and adaptive approach with partners across Canada and internationally. A key initiative under this strategy, CMIF provides up to $1.5-billion in federal funding until 2030 to address infrastructure gaps, support clean energy and enable sustainable critical minerals production.

"E3 Lithium is advancing a new industry in the province of Alberta and this funding supports the design and advancement of some of the infrastructure needed to support the Clearwater project," commented Chris Doornbos, president and chief executive officer of E3 Lithium. "This investment supports E3's development and also opens new opportunities for the province and Canada to be a leader in critical minerals."

Since 2017, E3 has secured approximately $41.9-million in funding support from both the provincial and federal governments. The company sappreciate the support from NRCan and the CMIF as this funding will accelerate project milestones and help the Clearwater project toward first lithium production in Alberta.

About E3 Lithium Ltd.

E3 Lithium is a development company with total mineral resources of 16.2 million tonnes of lithium carbonate equivalent (LCE) measured and indicated as well as 900,000 tonnes LCE inferred in Alberta and mineral resources of 2.5 million tonnes LCE inferred 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. 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.

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

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