Critical Elements Announces the Closing of a Non -B Rokered Private Placement of $3,000,000
PRESS RELEASE
CRITICAL ELEMENTS ANNOUNCES THE CLOSING OF A
NON -B ROKERED PRIVATE PLACEMENT OF $3,000,000
August 24, 2020 – Montréal, Québec – Critical Elements Lithium Corporation
(the “Corporation ” or “Critical Elements ”) (TSX-V: CRE) (US OTCQX: CRECF) (FSE: F12) is
pleased to announce the closing of a non-brokered private placement of 10,000,000 common share
units (the “Units ”) of the Corporation at a price of $0.30 per Unit for aggregate gross proceeds of
$3.0 million (the “Offering ”).
Each Unit is comprised of one common share of the C orporation and one-half of one common
share purchase warrant of the Corporation (each ful l warrant, a “ Warrant ”). Each Warrant will
entitle the holder thereof to purchase one common share of the Corporation at a price of $0.45 per
common share at any time on or before that date which is 24 months after the closing date of the
Offering.
The Corporation paid $71,164.80 in finder’s fees un der the Offering and an insider of the
Corporation also participated in the Offering for an amount of $30,000.
The net proceeds of the Offering will be used by th e Corporation to advance the Rose Lithium-
Tantalum project as well as for working capital and general corporate purposes.
The Offering is subject to TSX Venture Exchange approval and all securities issued will be subject
to a four-month hold period expiring on December 21, 2020.
ABOUT CRITICAL ELEMENTS LITHIUM CORPORATION
Primero Group recently completed the first phase of its Early Contractor Involvement agreement
with the Corporation and provided a Guaranteed Maximum Price for the engineering, procurement
and construction of the wholly-owned Rose Lithium-Tantalum project on a lump sum turnkey basis
that is in line with the Project’s feasibility study published November 29, 2017. The project feasibility
study is based on price forecasts of US $750/tonne f or chemical-grade lithium concentrate (5%
Li2O), US $1,500/tonne for technical-grade lithium con centrate (6% Li 2O) 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
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.