A Greement with the C REE N Ation of E Astmain and N Iskamoon C Orporation FOR the Implementati ON of the E Astmain R Iver L Ake S Turgeon S Pawning G Round E Nhancement P Roject F Ebruary 27 , 201 8 - M Ontreal , Q Uebec – Critical Elements Corporation (the “ Company ” OR “Critical
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PRESS RELEASE
A GREEMENT WITH THE C REE N ATION OF E ASTMAIN AND N ISKAMOON
C ORPORATION FOR THE IMPLEMENTATI ON OF THE E ASTMAIN R IVER L AKE
S TURGEON S PAWNING G ROUND E NHANCEMENT P ROJECT
F EBRUARY 27 , 201 8 - M ONTREAL , Q UEBEC – Critical Elements Corporation (the “ Company ” or “Critical
Elements”) (TSX - V: CRE) (US OTCQX: CRECF) (FSE: F12) is pleased to announce an agreement with
the Cree Nation of Eastmain and Niskamoon Corporation for the implementation of the Eastmain River
Lake Sturgeon Spawning Ground Enhan cement Project located just above Conglomerate Bridge on the
James Bay Highway, 113 km from the mouth of the Eastmain river (the “Project”).
On August 2, 2017, Critical Elements announced the filing of the environmental impact study (“EIS”)
prepared by WS P regarding the Corporation’s Rose Lithium - Tantalum Project with the Environmental and
Social Impact Review Committee (COMEX) and the Canadian Environmental Assessment Agency. On
December 22, 2017, Critical Elements filed an updated version of the EIS. One of the various initiatives
proposed in the EIS is to compensate for the potential social and environmental impacts of the Rose
Lithium - Tantalum Project on fish habitat s by implementing the Project.
Critical Elements is therefore very pleased that the Pr oject is now getting underway as it is sensitive to
the importance of mitigating the social and environmental impacts of its Rose Lithium - Tantalum Project
on the community. Jean - Sébastien Lavallée, Critical Elements’ Chief Executive Officer declared “ Criti cal
Elements is very happy to support and participate to the implementation of this great project in
collaboration with Eastmain Cree Nation and Niskamoon Corporation . T his agreement is directly in line
with the sustaining social and environmental collabor ation that Critical Elements want s to establish with
the local community ” .
" Niskamoon is very proud to enter into a partnership for this very important habitat enhancement project,
towards which we have been working with the Cree Nation of Eastmain and Hy dro - Québec since 2010.
We believe strongly that a healthy environment and the social well - being of the Cree Nation go hand in
hand, so we are very excited that Critical Elements has come on board and we look forward to working
with them to bring back the l ake sturgeon population in the Eastmain River in the years to come ,"
declared Marc Dunn, environment director, Niskamoon C orporation .
" On behalf of the families on whose hunting territories this very important project is located as well as for
the people of the Cree Nation of Eastmain, we are very happy that the spawning ground enhancement is
moving forward, and we are looking forward to continuing working together in the future ," declared
Kenneth Cheezo, Chief, Cree Nation of Eastmain and Brian Weapenicap po, tallyman for RE - 02 trapline.
T he Corporation is also announcing that it h as granted options to directors and officers to acquire a total
of 2,100,000 common shares. Each option entitles its holder to subscribe for one share of the Corporation
at a pri ce of $ 1.25 for a period of five years.
Paradox Public Relations will also receive 300,000 stock options to purchase the same number of
common shares of the Company at a price of $1.25 per share for 2 years. These options will vest over a
12 - month perio d at a rate of 25% per quarter. The options are granted in accordance with the Policy 4.4
of the TSX Venture Exchange and the terms and conditions of the Company’s Stock Option Plan.
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A BOUT C RITICAL E LEMENTS C ORPORATION
The Company recently released a fin ancial analysis for Critical Elements’ wholly - owned Rose Lithium -
Tantalum project (Rose Lithium - Tantalum project feasibility study, WSP, October 20, 2017), which is
based on price forecasts of US $750/tonne for chemical - grade lithium concentrate (5% Li 2 O), US
$1,500/tonne for technical - grade lithium concentrate (6% Li 2 O) and US $130/kg for Ta 2 O 5 in tantalite
concentrate, and an exchange rate of US $0.75/CA $. The internal rate of return (“IRR”) for the Rose
Lithium - Tantalum project is estimated at 34.9% aft er tax, and net present value (“NPV”) is
estimated at CA $726 million at an 8% discount rate. The estimated payback period is 2.8 years.
The pre - tax IRR for the Rose Lithium - Tantalum Project is estimated at 48.2% and the pre - tax NPV
at CA $1,257 million at an 8% discount rate (see press release dated September 6, 2017). The
financial analysis is based on the Indicated mineral resource. An Indicated mineral resource is that part of
a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics can
be estimated with a level of confidence sufficient to allow the appropriate application of technical and
economic parameters, to support mine planning and evaluation of the economic viability of the deposit.
The life - of - min e (LOM) plan provides for the extraction of 26.8 million tonnes of ore, 182.4 million tonnes
of waste, and 11.0 million tonnes of overburden for a total of 220.2 million tonnes of material. The
average stripping ratio is 7.2 tonnes per tonne of ore. The no minal production rate is estimated at 4,600
tonnes per day, with 350 operating days per year. The open pit mining schedule allows for a 17 - year mine
life.
The mine will produce a total of 26.8 million tonnes of ore grading an average of 0.85% Li 2 O and 13 3 ppm
Ta 2 O 5 , including dilution. The mill will process 1.61 million tonnes of ore per year to produce an annual
average of 236,532 tonnes of technical - and chemical - grade spodumene concentrate and 429 tonnes of
tantalite concentrate.
INFORMATION
Investo r r elations:
Jean - Sébastien Lavallée, P. Geo.
Chairman and CEO
819 - 354 - 5146
www.cecorp.ca
Paradox Public Relations
514 - 341 - 0408
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is described in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.