Corporate Update
PRESS RELEASE
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES
Corporate Update
December 18, 2019 – Montréal, Québec – Critical Elements Lithium Corporation (the
“Corporation” or “Critical Elements”) (TSX-V: CRE) (US OTCQX: CRECF) (FSE: F12) is pleased
to provide an update on its activities. Over the last few months, Critical Elements has been in steady
communication with Provincial and Federal regulatory authorities concerning the permitting of the
Rose Lithium-Tantalum project (“Rose” or the “Proje ct”). Critical Elements provided Québec’s
Ministère de l'Environnement et de la Lutte contre les changements climatiques (the “MELCC”) and
the Canadian Environmental Assessment Agency (the “ CEAA”) with requested information this
week and expects feedback within the next 4-6 weeks.
Strategic Partner & Project Financing Discussions
The Corporation continues to work closely with its financial advisor, Canaccord Genuity Corp., to
evaluate ongoing interest from global strategic par tners that seek to accelerate Rose Lithium-
Tantalum project into production.
As part of the process, Critical Elements and their advisors have been in contact with a number of
logical potential strategic parties, including OEMs , cathode manufacturers and battery cell
manufacturers. These discussions are expected to continue into next year.
“Potential end-users recognize that our team has th e capacity to successfully deliver lithium
products and that our development strategy provides the flexibility to meet the current and future
needs of major end-users. We remain confident in our ability to achieve a strategic partnership with
a large lithium product end-user”, stated Jean-Séba stien Lavallée, Chairman & CEO of Critical
Elements.
In parallel, we continue to work with various financial institutions and lenders to explore project debt
financing opportunities for the construction of Rose.
Other Key Developments
Critical Elements is also pleased to reiterate some of the progress that has been made in recent
months in terms of aligning community interests with those of the Corporation, as well as advancing
the project engineering of Rose.
Impact & Benefit Agreement
In July 2019 the Cree Nation of Eastmain, the Grand Council of the Crees (Eeyou Istchee), the
Cree Nation Government and the Corporation have sig ned an impact and benefit agreement,
referred to as the Pikhuutaau Agreement (the “Pikhu utaau Agreement“), concerning the
development and operation of Rose in Eeyou Istchee.
The Pikhuutaau Agreement is a binding agreement tha t will govern the long-term working
relationship between the parties while respecting C ree traditional activities and ensuring the
promotion of Cree economic and social development based on mutual trust and respect during all
phases of the Project through a sustainable develop ment approach. It provides for training,
employment and business opportunities for the Crees and particularly the Crees of Eastmain at the
Project, as well as for the cooperation and involve ment of the Cree parties with Critical Elements
in the environmental monitoring during all phases of the Project. The Pikhuutaau Agreement also
ensures financial benefits for the Cree parties on a long-term basis, consistent with the Cree Nation
Mining Policy and with Critical Elements’ approach to develop the Project while ensuring the
promotion of Cree economic and social development in a mutually beneficial manner.
Project Engineering
In October 2019, Primero Group (“Primero”) successf ully completed the first phase of its Early
Contractor Involvement (“ECI”) agreement with the C orporation and provided a Guaranteed
Maximum Price (“GMP”) for the engineering, procurement and construction (“EPC”) of Rose on a
lump sum turnkey basis that is in line with the Pro ject’s feasibility study published November 29,
2017.
Primero is also offering the Corporation its EPC se rvices as a fully integrated package if the final
lump sum is within the GMP, and if technical and commercial parameters are met during the second
phase.
A summary of the ECI approach is included below:
ECI Phase I – Guaranteed Maximum Price (completed) :
o Review and assimilate all of the existing design a nd data
o Stress test and optimize the design through review s, specific value engineering
and trade-off studies
o Reconfirm quantities and pricing
o Initiate selected engineering deliverables to achi eve nominally 25% engineering
definition
o Formulate a GMP for the process plant and associat ed process supporting
infrastructure
o Submit a proposal and schedule to progress to the next phase
ECI Phase II – Front End Engineering Design (“FEED ”):
o Progress and finalize a selected set of engineerin g deliverables to achieve
nominally 40% engineering definition
o Advance long lead and critical equipment packages to “Ready for Award” status
o Complete the contracting strategy and partnership for construction
o Optimize and reduce contingency applied to the GMP in order to formulate a
Lump Sum (the “LS”) cost estimate for the EPC of the process plant and
associated process infrastructure
o Submit a complete and firm proposal with schedule to Critical Elements for the
EPC-LS contract (the Corporation expects the lump sum cost estimated to be in
line with the feasibility study (Rose Lithium-Tantalum project feasibility study,
WSP, November 29, 2017))
o Execution of the EPC-LS
Operation and maintenance support throughout scope of services
Jean-Sebastien Lavallée (OGQ #773), geologist, shareholder, Chairman & CEO of the Corporation
and a Qualified Person under NI 43-101, has reviewed and approved the technical content of this
release.
About Critical Elements Lithium Corporation
The Corporation recently released a financial analy sis for Critical Elements’ wholly-owned Rose
Lithium Tantalum project (Rose Lithium-Tantalum pro ject feasibility study, WSP, November 29,
2017), which is based on price forecasts of US $750/tonne for chemical-grade lithium concentrate
(5% Li2O), US $1,500/tonne for technical-grade lithium concentrate (6% Li2O) and US $130/kg for
Ta2O5 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% after tax, and net present value
(“NPV”) is estimated at CA $726 million at an 8% di scount rate. The estimated payback period is
2.8 years. The pre-tax IRR for the Rose Lithium-Tan talum 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 Indic ated 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 le vel of confidence sufficient to allow the
appropriate application of technical and economic p arameters, to support mine planning and
evaluation of the economic viability of the deposit . The life-of-mine (LOM) plan provides for the
extraction of 26.8 million tonnes of ore, 182.4 mil lion 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 nominal production rate is es timated 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% Li2O and 133 ppm Ta2O5,
including dilution. The mill will process 1.61 mill ion 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.
FOR MORE INFORMATION:
Jean-Sébastien Lavallée, P.Geo.
Chief Executive Officer
819-354-5146
www.cecorp.ca
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
This news release contains “forward-looking informa tion” within the meaning of Canadian Securities
legislation. 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 state that certain actions, events or results “ may”,
“could”, “would”, “might” or “will be taken”, “occu r” or “be achieved”. Forward-looking information co ntained
herein include, without limitation, statements rela ting to mineral reserve estimates, mineral resource
estimates, realization of mineral reserve and resource estimates, capital and operating costs estimates, the
timing and amount of future production, costs of production, success of mining operations, the ranking of the
project in terms of cash cost and production, permi tting, economic return estimates, power and storage
facilities, life of mine, social, community and environmental impacts, lithium and tantalum markets and sales
prices, off-take agreements and purchasers for the Company’s products, environmental assessment and
permitting, securing sufficient financing on acceptable terms, opportunities for short and long term optimization
of the Project, and continued positive discussions and relationships with local communities and stakeholders.
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 f rom those anticipated in such statements. According ly,
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 may cause actual results to differ materially from
expected results described in forward-looking infor mation include, but are not limited to: Critical El ements’
ability to secure sufficient financing to advance a nd complete the Project, uncertainties associated with the
Company’s resource and reserve estimates, uncertainties regarding global supply and demand for lithium and
tantalum and market and sales prices, uncertainties associated with securing off-take agreements and
customer contracts, uncertainties with respect to social, community and environmental impacts, uncertainties
with respect to optimization opportunities for the Project, as well as those risk factors set out in the Company’s
year-end Management Discussion and Analysis dated A ugust 31, 2019 and other disclosure documents
available under the Company’s SEDAR profile. Forward-looking information contained herein is made as of
the date of this news release and Critical Elements disclaims any obligation to update any forward-loo king
information, whether as a result of new information, future events or results or otherwise, except as required
by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.