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Critical Elements Files NI-43-101 Technical Report FOR the Rose Lithium-Tantalum Feasibility Study

Technical Reports (NI 43-101) Economic Studies

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PRESS RELEASE

CRITICAL ELEMENTS FILES NI-43-101 TECHNICAL REPORT FOR THE

ROSE LITHIUM-TANTALUM FEASIBILITY STUDY

July 27, 2022 - MONTRÉAL, QUÉBEC – Critical Elements Lithium Corporation (TSX-V: CRE) (US OTCQX:

CRECF) (FSE: F12) (" Critical Elements " or the " Corporation") is pleased to announce the filing on

SEDAR of a National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101 ”)

compliant technical report representing the qualifying report for the recently-announced Feasibility Study

at the Rose Lithium-Tantalum Project located in James Bay, Québec. For more information, please refer

to Critical Elements’ press release dated June 13, 2022. Highlights of the Feasibility Study are as follows:

Highlights

 Average production, Year 2 to Year 16 of 173,317 tonnes of chemical grade 5.5% spodumene

concentrate;

 Average production, Year 2 to Year 16 of 51,369 tonnes of technical grade 6.0% spodumene

concentrate;

 Average production, Year 2 to Year 16 of 441 tonnes of tantalum concentrate

 Expected life of mine of 17 years;

 Average operating costs of US $74.48 per tonne milled, US$540 per tonne of concentrate (all

concentrate production combined);

 Estimated initial capital cost US$357 million before working capital;

 100% equity basis for project;

 Average gross margin of 68.3%;

 After-tax NPV of US$1,915 million (at 8% discount rate), after-tax IRR of 82.4% and average

price assumptions of US$4,039 per tonne techni cal grade lithium concentrate, US$1,852 per

tonne chemical grade lithium concentrate, US$130 per kg tantalum pentoxide (Ta2O5); and

 Anticipated construction time to start of production of 21 months.

A copy of the technical report, which was filed on SEDAR on July 27, 2022, will be available on the

Critical Elements’ website at https://www.cecorp.ca/en/rose-43-101/.

Qualified Persons for NI 43-101 compliant report

The Feasibility Study was prepared in accordance to NI 43-101 standards by WSP Canada Inc (“WSP”),

Bumigeme Inc., and InnovExplo Inc. InnovExplo Inc. wa s responsible for the resource estimate and the

mine plan, Bumigeme Inc. was responsible for the mi neral processing, and WSP was responsible for the

environmental study, project infrastructure, financ ial modelling, and report integration. Information

regarding the outlook for lithium comes from a mark et study prepared by Mr. Gerrit Fuelling on behalf of

the Corporation. Mr. Fuelling is an independent consultant specializing in the lithium market.

The qualified persons for the study are:

InnoExplo Inc.;

‐ Carl Pelletier, P.Geo, Geologist

‐ Simon Boudreau, P.Eng, Mining Engineer

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Bumigeme Inc.;

‐ Florent Baril, Eng, Metallurgical Engineer

WSP;

‐ Eric Poirier, Eng, PMP, Project Manager

‐ Rick McBride, P.Eng., Mining Engineer

‐ Olivier Joyal, Geologist

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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 Québec. Ro se is the Corporation’s first lithium project to be

advanced within a land portfolio of over 700 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 esti mated at 82.4%, with an estimated 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 infras tructure including a low-cost, low-carbon power

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 As sessment Agency of Canada and the Cree Nation

Government; The Corporation is working to obtai n similar approval under the Québec 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 information” 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 statements that certai n actions, events or results “may”, “could”, “would”,

“might” or “will be taken”, “occur” or “be achieved”. Forward-looking information contained herein include, without

limitation, statements relating to t he completion of the 2022 exploration pr ogram and its related objectives, the

completion of the provincial permitting process and its poten tial positive effects on the Corporation and the Project,

the completion of engineering study for a chemical plant to produce high quality lithium hydroxide monohydrate, the

preparation of the front-end engineering design work for the process plant and related infrastructure, the announce,

on June 13 th, 2022, of results of a feasibility study on Rose for the production of spodumene concentrate, off-take

agreements and purchasers for the Corporation’s produc ts, securing sufficient financing on acceptable terms and

continued positive discussions and relationships with lo cal 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 from those anticipated in such statements. Accordingly, readers should not place undue reliance on

forward-looking information.

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Although Critical Elements has attempted to identify impo rtant factors that could caus e 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 information include, but are not limited to: results of the Cor poration’s 2022 exploration

program and effects on the Corporation’s stated objectives, results of the engineering study for a chemical plant to

produce high quality lithium hydroxide monohydrate, issues encountered in connection with the front-end engineering

work, impact of the Updated Feasibility St udy on the Project, Critical Elements’ ability to secure sufficient financing to

advance and complete the Project, uncertainties associated with the Corporation’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 op timization opportunities for the Project, as well as those

risk factors set out in the Corporat ion’s year-end Management Discussion and Analysis dated August 31, 2021 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 release a nd Critical Elements disclaims any obligation to update any

forward-looking information, whether as a result of new informa tion, future events or results or otherwise, except as

required by applicable securities laws.