Critical Elements Crystallizes Bourier Project Value BY Signing Option Agreement with Lomiko Metals
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PRESS RELEASE
CRITICAL ELEMENTS CRYSTALLIZES BOURIER PROJECT VALUE BY SIGNING OPTION
AGREEMENT WITH LOMIKO METALS
April 27 th , 2021 - M ONTRÉAL , QUÉBEC – Critical Elements Lithium Corporation (TSX-V: CRE) (US OTCQX:
CRECF) (FSE: F12) (" Critical Elements " or the " Company ") and Lomiko Metals Inc . (“ Lomiko ”) (TSX-V:
LMR) (OTC: LMRMF)(FSE: DH8C) are pleased to announce that Critical Elements and Lomiko have entered
into an option agreement (“Agreement”) that gives L omiko the right to acquire up to a 70% interest in the
Bourier project.
“Recent consumer interest in electric vehicles has increased investor interest in Lithium and Graphite , two
of the major components of a lithium-ion battery ”, stated A. Paul Gill, Lomiko’s Chief Executive Of ficer.
“Quebec is in a unique position of having ample sup ply of both commodities and now Lomiko has
opportunities in additional battery materials.”
“This option agreement with Lomiko will allow the B ourier property to be explored in detail for batter y
minerals discoveries, such as Lithium, Nickel, Copp er and Zinc. Critical Elements is currently focuse d on
the development of its Rose Lithium-Tantalum project. With Lomiko as a joint venture partner in the Bourier
project, shareholders of both companies will be abl e to benefit from successful exploration of a highl y
prospective project,” stated Jean-Sébastien Lavallée, Critical Elements’ Chief Executive Officer.
The Bourier project consists of 203 claims for a total ground position of 10,252.20 hectares (102.52 km 2) in
a region of Quebec that boasts other lithium deposi ts and known lithium mineralization, as shown in th e
maps and table below. The Bourier project is potentially a new lithium field in an established lithium district.
Figure 1 . Location of known lithium deposits and showing and Bourier (in gold) Showing in the James Bay
area of Quebec.
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TERMS OF THE TRANSACTION
Under the Agreement, Lomiko will earn its interest in Bourier project by way of a joint venture arrangement.
The key terms of the Agreement are detailed in the below:
GRANT OF FIRST OPTION
Critical Elements grants to Lomiko the exclusive ri ght and option to acquire, on or before
December 31, 2022, an initial 49% Earned Interest in the Bourier Property by issuing to Critical Eleme nts
an aggregate of 5,000,000 common shares of Lomiko, by making a cash payments to Critical Elements
totalling $50,000 and by incurring or funding Exploration Expenditures for a total amount of $1,300,000 on
the Property, in detail as follows:
making a cash payment to Critical Elements of $25, 000 within a delay of five (5) days following the
execution of the Agreement (non-refundable);
making a cash payment to Critical Elements of $25, 000 within a delay of five (5) days following the
receipt of the required approvals from the Exchange;
issuing to Critical Elements 5,000,000 common shar es immediately following the receipt of the
required approvals from the Exchange; and
incurring or funding Exploration Expenditures aggr egating not less than $1,300,000 on the Bourier
Property, of which an amount of $550,000 must be incurred or funded before December 31, 2021
and an amount of $750,000 before December 31, 2022.
GRANT OF SECOND OPTION
Subject to Lomiko having exercised the First Option, Critical Elements will also grant to Lomiko the exclusive
right and option to increase its undivided interest in and to the Bourier Property from 49% to 70% by making
a cash payment to Critical Elements of $250,000, by issuing to Critical Elements an aggregate of 2,500,000
common shares of Lomiko, by incurring or funding ad ditional Exploration Expenditures for an amount of
$2,000,000 and by delivering a resource prepared in compliance with NI 43-101 standards on the Bourier
Property prepared by a Qualified Person independent of Lomiko and Critical Elements, for a period
commencing on the delivery of the First Option Exer cise Notice and ending December 31, 2023, in
summary as follows:
making a cash payment to Critical Elements an amou nt of $250,000 and issuing 2,500,000
common shares of Lomiko, on or before the date of delivery of the First Option Exercise Notice;
incurring or funding additional Exploration Expend itures for an amount of $2,000,000 on or before
December 31, 2023; and
delivering the Resource Estimate to Critical Eleme nts on or before December 31, 2023.
MILESTONE PAYMENTS
Subject to Lomiko's right to withdraw from and terminate the First Option, Lomiko agrees to pay the following
milestone payments to Critical Elements, payable at any time following the exercise of the First Option upon
the occurrence of the following:
On the estimation of a drilled defined resource (N I 43-101 compliant) of 5,000,000 tonnes at a cut-
off grade of 0.6% Li2O (all categories) a payment o f $750,000, payable in cash or in common
shares of Lomiko at the sole discretion of Lomiko;
On the estimation of a drilled defined resource (N I 43-101 compliant) of 10,000,000 tonnes at a
cut-off grade of 0.6% Li2O (all categories) a payment of $1,000,000, payable in cash or in common
shares of Lomiko at the sole discretion of Lomiko;
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On the estimation of a drilled defined resource (N i 43-101 compliant) of 15,000,000 tonnes at a cut-
off grade of 0.6% Li2O (all categories) a payment o f $1,500,000, payable in cash or in common
shares of Lomiko at the sole discretion of Lomiko; and
On the estimation of a drilled defined resource (N I 43-101 compliant) of 20,000,000 tonnes at a
cut-off grade of 0.6% Li2O (all categories) a payment of $2,000,000, payable in cash or in common
shares of Lomiko at the sole discretion of Lomiko.
ROYALTY
Following the exercise of the First Option by Lomiko, and in addition to the amounts paid, common shares
issued and Exploration Expenditures incurred or funded by Lomiko under the First Option and thereafter
under the Second Option, as applicable, Critical Elements shall receive a royalty equal to 2% net smelter
returns resulting from the extraction and production of any Minerals on the Bourier Property.
The Royalty including the right of Lomiko to purchase a portion thereof (1%) by paying to Critical Elements
a total cash amount of $2,000,000.
OPERATOR
During the agreement, Critical Elements shall act a s the operator and as such, shall be responsible fo r
carrying out and administering the Exploration Expe nditures on the Property, in accordance with a work
program approved by the Parties regarding the Property.
LITHIUM MARKETING RIGHTS
In the event of a Lithium discovery, Critical Eleme nts will retain Lithium Marketing Rights meaning th e
exclusive right of Critical Elements to market and act as selling agent for any and all Lithium produc ts,
including Lithium ore, concentrate and chemical, resulting from the extraction and production activities on
the Bourier Property, including transformation into chemical products.
A NI 43-101 compliant Technical Report has been performed by InnovExplo in 2012 on the Bourier Property
for Monarques Resources Inc.
The area is characterized by metasedimentary rocks, mainly biotite paragneiss containing minerals typical
of regional amphibolite metamorphic facies, and amphibole–plagioclase gneisses (amphibolites) of olcanic
origin (Valiquette,1975). The northern boundary of the property is marked by intrusive pink granite. T he
metasedimentary rocks in the centre of the property are intruded by mafic and ultramafic rocks, granit es,
pegmatites, and late diabase dykes, the youngest rocks of the area. The amphibolites contain numerous
lenses of ultramafic tremolite schist that follow the foliation of these amphibolites.
The biotite paragneiss crops out mainly in the low-lying ground. The paragneiss incorporates sills of mafic
rock (amphibolites) and ultramafic rocks, metavolca nic layers, granite stocks and dykes, and pegmatite
masses. These rocks dip on average 35° to the southwest (Valiquette 1975). The ultramafic rock in outcrop
is mainly serpentinite, although narrow sills of ul tramafic amphibole rocks are also present. These ro cks
may be crosscut by pegmatite dykes. Several granite intrusions cut the metasedimentary rocks. In some
areas the granite intrudes the biotite gneisses. Th is granite is usually massive with very weak gneiss ic
texture. The pegmatite dykes or sills cross-cut all the other rocks with the exception of the diabase. The
pegmatites occur as two (2) sorts: pink, associated with oligoclase gneisses and granite, and white,
associated with metasedimentary rocks. White pegmatites are generally fine to coarse grained containing
muscovite, almandine garnet, black tourmaline (schorl), magnetite and biotite. Muscovite grains can be up
to a few centimetres in size. The pink pegmatite ranges from fine to a very coarse grained variety comprising
very large microcline crystals reaching up to 30 cm long. Besides quartz, microcline and plagioclase, the
pegmatites also contain magnetite as large crystals up to 15 cm in length. Accessory minerals are apatite
and garnet with trace amounts of spodumene.
Outside of work program complete between 2010 and 2 012 for Zinc-Copper and Gold by Monarques
Resources Inc., there has been very limited lithium exploration undertaken at Bourier Property. Based on
other lithium deposits around the world, it is a common occurrence for pegmatites to exist in “swarms”.
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The Bourier property is adjacent and North-East to the Lemare Lithium property, wholly owned by Critic al
Elements.
Initial exploration at Lemare was undertaken in 201 2 by Monarques Resources Inc. who discovered a
“granite pegmatite dyke containing a considerable a mount of spodumene”. The pegmatite ranges in
apparent thickness from 4.8 to 14.2 metres and was followed for close to 200 metres in length on surface.
Between 2016 and 2018, Lepidico Ltd. carried out two drilling programs on the Lemare Lithum project within
the scope of an option agreement that expired on July 27, 2018.
The best Lithium results from drilling programs at Lemare Lithium project included:
41.5 m at 1.71% Li 2O, including 15 m at 2.18% Li 2O and 6 m at 3.6% Li 2O in Hole
LE-16-14
21 m at 2.65% Li 2O in Hole LE-16-13
18.85 m at 1.35% Li 2O, including 8.4 m at 2.26% Li2O in Hole LE-16-07
23 m at 1.61% Li 2O, including 10.5 m at 2.51% Li2O in Hole LE-16-03.
This transaction is subject to the approval of the TSX Venture Exchange.
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 Lithium Corporation aspires to be come a large, responsible supplier of lithium to th e
flourishing electric vehicle and energy storage system industries. To this end, Critical Elements Lith ium is
advancing the wholly owned, high purity Rose lithium project in Quebec. Rose is our first lithium project to
be advanced within a highly prospective land portfo lio of over 700 square kilometers. In 2017, the
Corporation completed a robust feasibility study on Rose Phase 1 for the production of high quality
spodumene concentrate. The internal rate of return for the Project is estimated at 34.9% after tax, wi th a
net present value estimated at C$726 million at an 8% discount rate. Capital and operating cost parameters
were confirmed in 2019 by Primero Group in the cont ext of a Guaranteed Maximum Price under an Early
Contractor Involvement agreement, as a prelude to a n Engineering, Procurement and Construction
process. Detailed engineering for Phase I is expect ed to conclude this year as we also deliver technic al
studies for Phase II, the conversion of spodumene concentrate to high quality lithium hydroxide. In our view,
Quebec is strategically well-positioned for US and EU markets and boasts exceptional infrastructure
including a low-cost, low-carbon power grid featuri ng 93% hydroelectricity. We have a strong, formaliz ed
relationship with the Cree Nation.
For further information, please contact:
Jean-Sébastien Lavallée, P. Géo.
Chief Executive Officer
819-354-5146
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.