Corporate Update
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PRESS RELEASE
CORPORATE UPDATE
February 1 th , 2023 - M ONTRÉAL , QUÉBEC – Critical Elements Lithium Corporation (TSX-V: CRE ) (US
OTCQX: CRECF) (FSE: F12) (" Critical Elements " or the " Corporation ") is pleased to provide a corporate
update regarding its exploration, engineering, permitting and project financing activities. The Corporation is
fully funded for these preparatory activities leadi ng to a potential final investment decision for its wholly-
owned Rose Lithium-Tantalum project ("Rose Project" or "Project") in the James Bay Region of Northern
Québec (the “ Final Investment Decision ”). Critical Elements is pleased to be working clo sely with the
Cree Nation of Eastmain, the Grand Council of the Crees (Eeyou Istchee), and the Cree Nation Government
under the Pikhuutaau Agreement signed in July 2019.
Exploration Update
Critical Elements has commenced a drilling program on it’s wholly owned Lemare Lithium project, located
within a portion of the Corporation’s highly prospective 1,050 km 2 exploration portfolio. The objective of the
drilling program is to confirm and expand the known Lemare zone identified by drilling in 2016-2017. T he
Corporation plans to drill approximately 7,000 meters during its winter program on Lemare with the objective
of delivering an initial mineral resource estimate later this year.
During the summer of 2022, Critical Elements conducted a prospecting program over the Lemare property
and several areas of the Corporation’s Nemaska belt property portfolio. Prior to the prospecting campaign,
EarthLabs, through its GoldSpot Discoveries division, generated and ranked LCT pegmatite targets using
its in-house “SmartTarget” methodology that combine s both expert-driven and machine-learning data-
driven targeting approaches. The objective of the f ield program was the identification of new pegmatit e
bodies using systematic rock geochemical sampling o f all pegmatite bodies to refine the geological
interpretation of the properties for further exploration work.
Sample results confirming the extension of the LCT pegmatite trend on the Lemare property had also
extended the strike potential for future drilling on the Lemare property ( Figure 1 and 2 ). The LCT pegmatite
trend on the Lemare property now has a potential st rike length of over 5 kilometres (See Press Release
October 27 th , 2022 ). The winter 2023 drill program will test some of this potential strike extension. Additional
drilling is expected following the Lemare program, as part of the total 25,000m program announced in 2022.
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Figure 1: 2023 proposed Lemare drilling program map
Figure 2: Goldspot targeting with 2023 proposed drillhole location map
Front-End Engineering Design Study
The Corporation is pleased to provide a progress up date on the front-end engineering design (“FEED”)
studies for the process plant and related infrastru cture. Bumigeme Inc. has been mandated to conduct a
gap analysis on the process plant focusing on design review, optimization, and mitigation of potential risks
related to the flowsheet developed during the feasi bility study released by the Corporation in 2022 (t he
“2022 Feasibility Study”), a copy of which is available on the Corporation website and on SEDAR under its
issuer profile. The gap analysis informs the FEED s tudy to optimize and freeze the design of the proce ss
plant and produce an updated capital cost estimate. As of today, 98% of this mandate has been completed.
On completion of the processing plant FEED study, a value engineering study will finalize this optimization,
freeze the 3D layout for all equipment and define datasheet for long-lead equipment orders.
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WSP has been conducting the FEED study for process and non-process infrastructure such as the main
electrical station and 25 kV distribution, utilitie s, water management, final effluent facility, and m ining
support facilities. This infrastructure FEED study will optimize and freeze the design and produce an
updated capital cost estimate. The infrastructure F EED study consists of optimizing the design and
producing preliminary engineering documents to redu ce some risks for the infrastructure project estima te.
WSP will be responsible for consolidating all estim ates from other consultants and producing the overa ll
project estimate. As of today, more than 80% of the WSP mandate has been completed and the completion
of the WSP mandate is scheduled for the end of February 2023.
Golder is now part of WSP. WSP-Golder has been mandated to complete the detailed engineering design
of the stack tailings facility (“STF”) for filtered mill tailings in co-disposal with a pit waste rock disposal facility
(“WRF”). Engineering works include STF and WRF hazard classification, tailings laboratory testing, staging
and placement, water management design, hydrogeolog ical modelling and seepage collection, stability
assessment, and an instrumented monitoring plan. As of today, more than 50% of the Golder mandate
been completed and completion of this mandate is expected by the end of Q2 – 2023.
Detailed engineering is expected to follow value engineering and take 12 to 14 months. The Corporation is
fully funded to complete all detailed engineering. Assuming project financing and specific constructio n
permits are in place, tree clearing and site prepar ation may commence with detailed engineering being
approximately 60% to 75% completed and a Final Inve stment Decision having been made. Based on the
2022 Feasibility Study, the construction period is expected to be approximately 20 months.
Bumigeme Inc. is a Montréal based multidisciplinary engineering firm offering various services in
geotechnical, mining operations, ore processing, me chanical and electrical engineering. Bumigeme Inc.
has executed several prefeasibility and feasibility studies as well as detailed engineering and constr uction
activities on mining projects in Canada, South Amer ica and West Africa. Bumigeme Inc. conducted the
original mineral processing of the 2017 Feasibility Study for the Rose Project .
As one of the world's leading professional services firms, WSP provides engineering, design, and strategic
advisory services in Transportation & Infrastructur e, Property & Buildings, Environment, Power & Energ y,
Resources and Industry sectors. WSP had previously conducted the infrastructure portion of the
Corporation’s original feasibility study and environmental impact assessment for the Rose Project released
in 2017 (the “ 2017 Feasibility Study ”) .
Golder is a global organization which offers construction, design, and consulting services in their specialist
areas of earth, environment, and energy characteriz ed by technical excellence, innovative solutions, a nd
award-winning customer service. Their clients work in key sectors, namely mining, oil and gas,
manufacturing, and the energy and infrastructure sectors.
Environmental Authorization and Permitting
The Province of Québec is considered one of the top mining jurisdictions globally by the Fraser Institute in
its annual survey of mining companies. Permitting t ransparency is one of the key factors in the instit ute’s
considerations and certainty of land tenure is an essential driver of mining investment.
In August 2021, Critical Elements announced that the Federal Minister of Environment and Climate Change
had rendered a favorable decision in respect of the proposed Rose Project. In a Decision Statement, which
included the conditions to be complied with by the Corporation, the Minister confirmed that the Projec t is
not likely to cause significant adverse environment al effects when mitigation measures are taken into
account.
In May 2022, Critical Elements announced that the Québec Minister of Energy and Natural Resources has
approved the rehabilitation and restoration plan concerning the Rose Project.
In November 2022, Critical Elements received the Ce rtificate 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 Parcs.
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The receipt of the Certificate of Authorization pur suant to Québec's Environment Quality Act and the
approval of the rehabilitation and restoration plan are a prerequisite to the granting of the mining lease and
the land use lease that will be necessary to move forward with the Project.
The Corporation has been working actively to comple te the application for the mining lease and land us e
lease. The Critical Elements team does not anticipa te having any difficulty meeting the various condit ions
attached to the Federal and Provincial authorizations and is advancing the monitoring programs related to
the Rose Project.
Project Financing Process
Critical Elements has commenced a formal process to receive and analyze multiple expressions of interest
in participating in the financing and development o f the project received to date. The Corporation’s long-
term strategy of avoiding Memorandums of Understand ing for offtake arrangements leaves the Rose
Project’s planned production unencumbered in a tight market for spodumene concentrate, both for chemical
conversion for the burgeoning EV battery market, an d also for the higher margin glass and ceramics
industry. The Corporation believes that the Project’s location in a top mining jurisdiction with access to low
cost, low carbon energy, as well as strong financia l and human capital, makes the Rose Project’s
metallurgically attractive spodumene concentrate hi ghly desirable. Management is actively engaged in
identifying the optimal strategic partner or partne rs to maximize benefits for all the Corporation’s
stakeholders, but at this time, there can be no guarantees as to the timing and outcome of this process.
Qualified persons
Yves Perron, Eng. MBA, Vice-President Engineering, Construction and Reliability and Marc-André Pelletier,
Project Geologist for the Corporation and Member in good standing with the Ordre des géologues du
Québec (permit No. 2040) are the qualified persons that has reviewed and approved the technical contents
of this news release on behalf of the Corporation.
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, hi gh
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, lo w-carbon power grid featuring 93% 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 Parcs.
For further information, please contact:
Patrick Laperrière
Director of Investor Relations and Corporate Development
514-817-1119
www.cecorp.ca
Jean-Sébastien Lavallée, P. Géo.
Chief Executive Officer
819-354-5146
www.cecorp.ca
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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 i nformation contained herein include, without limita tion, statements
relating to the results and completion of the 2023 exploration program, the permitting process, the results and outcome
of the Front-End Engineering Design Study as well as the outcome of the formal process launched by the Corporation
in connection with the project financing. Forward-l ooking information is based on assumptions manageme nt 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 co uld differ materially from those anticipated in suc h statements.
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: final and complete results o f the Corporation’s
2023 exploration program, the final outcome of the permitting process and the Corporation’s ability to meet all conditions
imposed thereunder, the final results of the Front-End Engineering Design Study and its effects on the development of
the Rose Project, the formal process launched in co nnection with the project financing not producing t he anticipated
and expected results, as well as those risk factors set out in the Corporation’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 made as of the date of this news releas e and Critical
Elements disclaims any obligation to update any for ward-looking information, whether as a result of ne w information,
future events or results or otherwise, except as required by applicable securities laws