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Approval of Hydro-Québec’S Connection and Powerline Relocation Project to Power the Rose Lithium-Tantalum Project

Corporate Updates

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PRESS RELEASE

APPROVAL OF HYDRO-QUÉBEC’S CONNECTION AND POWERLINE

RELOCATION PROJECT TO POWER THE ROSE LITHIUM-TANTALUM PROJECT

February 28, 2023 - M ONTRÉAL , QUÉBEC – Critical Elements Lithium Corporation (TSX-V: CRE ) (US

OTCQX: CRECF) (FSE: F12) (" Critical Elements " or the " Corporation ") is pleased to announce that, on

January 9, 2023, following the positive recommendat ion by the Environmental and Social Impact Review

Committee (the “ COMEX ”), the Québec Minister of the Environment, the Fig ht against Climate Change,

Wildlife and Parks (the “ Minister ”) has authorized Hydro-Québec’s connection and pow erline relocation

project, subject to certain conditions.

This is another significant step forward for the Ro se Lithium-Tantalum Project (“ Rose ” or the “ Project ”).

For the Project to go forward, Hydro-Québec will have to relocate a segment of the Eastmain-1-Nemiscau

line (which currently crosses the future mine site on a distance of 4.1 km), construct a 315/25-kV transformer

substation, and connect the mine to the Eastmain-1-Nemiscau powerline. Hydro-Québec derives over 94%

of its electricity from hydropower with almost all of the remainder generated from renewable sources. Critical

Elements is fortunate to be situated in Québec for several reasons including access to one of the cleanest

electricity grids globally.

With the favourable decision of the Federal Ministe r of Environment and Climate Change rendered in

August 2021, the approval by the Québec Minister of Natural Resources and Forests of the rehabilitatio n

and restoration plan concerning the Project in May 2022, the receipt of the Certificate of Authorizati on

pursuant to section 164 of Québec’s Environment Quality Act from the Minister in November 2022, and the

Minister authorizing Hydro-Québec’s connection and powerline relocation project in January 2023, the

Corporation is getting a step closer making a final investment decision for the Project.

“With the Minister of the Environment, the Fight aga inst Climate Change, Wildlife and Parks authorizing

Hydro-Québec’s connection and powerline relocation project, we are excited about the prospect of moving

forward with the Rose Lithium-Tantalum Project in t he James Bay Eeyou Istchee region ,” stated Jean-

Sébastien Lavallée, CEO of Critical Elements.

About Critical Elements Lithium Corporation

Critical Elements aspires to become a large, responsible supplier of lithium to the flourishing electric vehicle

and energy storage system industries. To this end, Critical Elements is advancing the wholly owned, high

purity Rose lithium project in Québec, the Corporat ion’s first lithium project to be advanced within a land

portfolio of over 1,050 square kilometers. On June 13 th , 2022, the Corporation announced results of a

feasibility study on Rose for the production of spodumene concentrate. The after-tax internal rate of return

for the Project is estimated at 82.4%, with an esti mated after-tax net present value of US$1.9 B at an 8%

discount rate. In the Corporation’s view, Québec is strategically well-positioned for US and EU markets and

boasts good infrastructure including a low-cost, low-carbon power grid featuring 94% hydroelectricity. The

project has received approval from the Federal Mini ster of Environment and Climate Change on the

recommendation of the Joint Assessment Committee, c omprised of representatives from the Impact

Assessment Agency of Canada and the Cree Nation Gov ernment and also received the Certificate of

Authorization pursuant to section 164 of Québec's Environment Quality Act from the Québec Minister of the

Environment, the Fight against Climate Change, Wildlife and Parks.

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For further information, please contact:

Patrick Laperrière

Director of Investor Relations and Corporate Development

514-817-1119

[email protected]

www.cecorp.ca

Jean-Sébastien Lavallée, P. Géo.

Chief Executive Officer

819-354-5146

[email protected]

www.cecorp.ca

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.

Cautionary statement concerning forward-looking statements

This news release contains “forward-looking informa tion” within the meaning of Canadian Securities leg islation.

Generally, forward-looking information can be identified by the use of forward-looking terminology such as “scheduled”,

“anticipates”, “expects” or “does not expect”, “is expected”, “scheduled”, “targeted”, or “believes”, or variations of such

words and phrases or statements that certain action s, events or results “may”, “could”, “would”, “migh t” or “will be

taken”, “occur” or “be achieved”. Forward-looking information contained herein include, without limitation, the permitting

process of the Rose Lithium-Tantalum Project,as well as the outcome of such process and positive effects for the the

Rose Lithium-Tantalum Project. Forward-looking information is based on assumptions management believes to be

reasonable at the time such statements are made. There can be no assurance that such statements will prove to be

accurate, as actual results and future events could differ materially from those anticipated in such s tatements.

Accordingly, readers should not place undue reliance on forward-looking information.

Although Critical Elements has attempted to identify important factors that could cause actual results to differ materially

from those contained in forward-looking information , there may be other factors that cause results not to be as

anticipated, estimated or intended. Factors that ma y cause actual results to differ materially from ex pected results

described in forward-looking information include, but are not limited to: the final outcome of the permitting process, the

Corporation’s ability to meet all conditions imposed thereunder and its effects on the development of the Rose Project,

, as well as those risk factors set out in the Corp oration’s Management Discussion and Analysis for its most recent

quarter ended November 30, 2022 and other disclosure documents available under the Corporation’s SEDAR profile.

Forward-looking information contained herein is mad e as of the date of this news release and Critical Elements

disclaims any obligation to update any forward-looking information, whether as a result of new information, future events

or results or otherwise, except as required by applicable securities laws.