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CRE.V ·

Corporate Update

Corporate Updates

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PRESS RELEASE

CORPORATE UPDATE

February 17 th , 2022 - M ONTRÉAL , QUÉBEC – Critical Elements Lithium Corporation (TSX-V: CRE ) (US

OTCQX: CRECF) (FSE: F12) (" Critical Elements " or the " Corporation ") is pleased to announce it has

retained the services of Bumigeme Inc. (“Bumigeme”) , WSP in Canada ("WSP”), and Golder Associates

Ltd (“Golder”) to prepare front-end engineering design work for the process plant and related infrastructure

and the detailed design of the co-disposal facility for the waste rock and filtered tailings at the Rose Lithium-

Tantalum project (the “Rose Project”).

Process plant and related infrastructure

Bumigeme will conduct a gap analysis on the process plant which will focus on design review, optimization,

and mitigation of potential risks related to the flowsheet developed during the feasibility study released by

the Corporation in 2017 (the “2017 Feasibility Stud y”) a copy of which is available on the Corporation

website and on SEDAR under its issuer profile. Bumi geme will then conduct the front-end engineering

design (“FEED”) which will optimize and freeze the design of the process plant and produce an updated

capital cost estimate. The work will deliver a comprehensive package of documents which will become the

basis for the detailed engineering and for the procurement of long lead equipment.

WSP will conduct the FEED of process and non-proces s infrastructure such as the main electrical station

and 25 kV distribution, utilities, final effluent f acility, and mining support facilities. The FEED wi ll advance

the engineering to 30% to 40% completion, develop e ngineering documents to proceed with execution of

the earthworks, develop engineering and commercial documents to proceed with the procurement of long-

lead items, and produce an updated construction cost estimate for the areas concerned.

Golder will complete the detailed engineering desig n of the stack tailings facility (“STF”) for filter ed mill

tailings in co-disposal with a pit waste rock disposal facility (“WRF”). The engineering work will include STF

and WRF hazard classification, tailings laboratory testing, staging and placement, water management

design, hydrogeological modelling and seepage colle ction, stability assessment, and an instrumented

monitoring plan.

Bumigeme is a Montréal based multidisciplinary engineering firm offering services in geotechnical, mining

operations, ore processing, mechanical, civil and e lectrical engineering. Bumigeme has executed severa l

prefeasibility and feasibility studies as well as d etailed engineering and construction activities on mining

projects in Canada, South America and West Africa. The company conducted the original mineral

processing portion 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 & Infrastructure, Property & Buildings, Environment, Power & Energ y,

Resources and Industry sectors. The company has pre viously conducted the infrastructure portion of the

2017 Feasibility Study and environmental impact assessment for the Rose Project .

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 se ctors. Golder is a member of the WSP family of

companies.

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Updated Feasibility Study for the spodumene process plant, infrastructure, and mine

The Corporation is also planning to prepare an upda te of the 2017 Feasibility Study (the “Updated

Feasibility Study”) on the Rose Project. The Update d Feasibility Study will include a review of pricin g for

spodumene concentrates, and a review of the capital and operating costs.

Patiently awaiting the conclusion of the permitting process

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.

The final remaining step in the Rose Project’s approval process is the completion of the provincial permitting

process, which runs parallel to the federal process . Pursuant to the James Bay and Northern Quebec

Agreement (JBNQA), the provincial environmental ass essment is conducted jointly by the Cree Nation

Government and the Government of Quebec under the E nvironmental and Social Impact Review

Committee (“COMEX”). The provincial assessment is a lready well advanced and has undergone several

rounds of questions from COMEX and answered by Crit ical Elements in the normal course of the

assessment process. At this time, Critical Elements has received no further questions from COMEX and

remains confident in a positive outcome given the s tated support for lithium project development in th e

Province of Québec.

Designing exploration program

The Corporation is currently planning the details for a 2022 exploration program. The program's objectives

will include:

1. Expand the Rose deposit, following the primary d eposit down dip to the north and testing nearby

satellite deposits.

2. Confirm and expand the known Lemare zone identif ied by drilling in 2016-2017.

3. Demonstrate the potential of the project portfol io by surface exploration focusing on priority targets

identified by Goldspot Discoveries.

Details on the exploration program will be provided in an upcoming news release.

Qualified persons

Paul Bonneville, Eng., is the qualified person 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, high

purity Rose lithium project in Quebec. Rose is the Corporation’s first lithium project to be advanced within

a land portfolio of over 700 square kilometers. In 2017, the Corporation completed a feasibility study on

Rose for the production of spodumene concentrate. The internal rate of return for the Project is estimated

at 34.9% after tax, with a net present value estima ted at C$726 million at an 8% discount rate. In the

Corporation’s view, Quebec is strategically well-po sitioned for US and EU markets and boasts good

infrastructure including a low-cost, low-carbon pow er grid featuring 93% hydroelectricity. The project has

received approval from the Federal Minister of Environment and Climate Change on the recommendation

of the Joint Assessment Committee, comprised of representatives from the Impact Assessment Agency of

Canada and the Cree Nation Government; The Corporation is working to obtain similar approval under the

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Quebec environmental assessment process. The Corporation also has a good, formalized relationship with

the Cree Nation.

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 i nformation contained herein include, without limitation, statements

relating to the completion of the Project’s approval process, the completion of the provincial permitting process, capital

and operating costs estimates, costs of production, success of mining operations, the ranking of the project in terms of

cash cost and production, permitting, economic retu rn estimates, power and storage facilities, life of mine, social,

community and environmental impacts, lithium and ta ntalum markets and sales prices, off-take agreement s and

purchasers for the Corporation’s products, environmental assessment and permitting, securing sufficient financing on

acceptable terms, opportunities for short and long term optimization of the Rose Project, and continue d positive

discussions and relationships with local communitie s 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 mater ially from those

anticipated in such 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, b ut are not limited to: Critical Elements’ ability t o secure sufficient

financing to advance and complete the Project, uncertainties associated with the Corporation’s resource and reserve

estimates, uncertainties regarding global supply an d demand for lithium and tantalum and market and sa les 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 Corporation’s year-end Management Discussion and Analysis dated August 31, 2021

and other disclosure documents available under the Corporation’s SEDAR profile. Forward-looking inform ation

contained herein is made 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 o therwise, except

as required by applicable securities laws.