Critical Elements Lithium Announces Exploration Plans FOR 2022 Including up to 25,000 Meters of Drilliing
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PRESS RELEASE
CRITICAL ELEMENTS LITHIUM ANNOUNCES EXPLORATION PLANS FOR 2022
INCLUDING UP TO 25,000 METERS OF DRILLIING
April 6, 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 an exploration
program for 2022.
The Corporation is preparing an aggressive exploration program for 2022 with the following objectives:
- Expand the main Rose Lithium-Tantalum (“ Rose ”, “ Project”, “Rose Project ”) deposit by drilling
- Drill test several satellite showings proximal to the Rose deposit
- Drill the Lemare Lithium project targeting deline ation leading to an initial Mineral Resource Estimate
- Conduct an extensive surface exploration program including compilation, artificial intelligence (AI)
targeting, prospecting, mapping, rock sampling, and soil sampling with the goal of finding new
lithium mineralization warranting follow up drilling
- Prospect and sample the targets identified by the Goldspot Discoveries AI system in 2021 (see
press release dated September 7, 2021 for more details)
The Corporation is working to secure diamond drill rigs for the full year with a program of up to 25,0 00
meters divided between the Corporation’s projects:
- 10,000 meters for the expansion of the Rose Lithi um-Tantalum deposit
- 7,000 meters to delineate an initial Mineral Reso urce Estimate at the Lemare Lithium project
- 8,000 meters to explore for and test new targets identified
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Figure 1: James Bay projects location map
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Figure 2: Goldspot probability Li-Ta, Cu-Ni, Au target map
CORPORATE UPDATE
Permitting
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 (see press release dated August 11, 2021 for more details).
The Rose Project is also subject to the provincial environmental and social impact assessment and review
procedure pursuant to the Québec Environment Quality Act in accordance with Chapter 22 of the James
Bay and Northern Québec Agreement (“ JBNQA ”). This process runs parallel to the federal proce ss. The
review of the impact study is conducted jointly by the Cree Nation Government and the Government of
Québec under the Environmental and Social Impact Review Committee (“ COMEX ”).
As noted in the Press Release of February 17, 2022, the provincial assessment is well advanced and has
undergone several rounds of questions from COMEX that have been answered by Critical 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 outc ome given the stated support for lithium project
development in the Province of Québec. Global recog nition of Québec’s appeal is manifest in the recent
announcements of significant investments in the EV battery supply chain by BASF and General Motors –
POSCO Chemical in the Province.
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Once a recommendation decision is made by the COMEX, the recommendation is then transmitted to the
Minister of the Environment and the Fight Against C limate Change of Québec, who may then issue a
Certificate of Authorization allowing the Rose Project to proceed. This process may yet take several weeks
if a decision was made without further questions.
First Nations Relationship
In July 2019, Critical Elements announced that the Cree Nation of Eastmain, the Grand Council of the Crees
(Eeyou Istchee), the Cree Nation Government and the Corporation had signed an impact and benefit
agreement, referred to as the Pikhuutaau Agreement (the “ Pikhuutaau Agreement “), concerning the
development and operation of the Rose Project.
The Pikhuutaau Agreement is a binding agreement that governs the long-term working relationship between
the parties while respecting Cree traditional activ ities and ensuring the promotion of Cree economic a nd
social development based on mutual trust and respect during all phases of the Project through a sustainable
development approach. It provides for training, employment, and business opportunities for the Crees and
particularly the Crees of Eastmain at the Project, as well as for the cooperation and involvement of the Cree
parties with Critical Elements in the environmental monitoring during all phases of the Project. The
Pikhuutaau Agreement also ensures financial benefits for the Cree parties on a long-term basis, consistent
with the Cree Nation Mining Policy and with Critica l Elements’ approach to develop the Project while
ensuring the promotion of Cree economic and social development in a mutually beneficial manner.
Despite the isolation imposed by the COVID-19 pandemic, Critical Elements has maintained its relationship
with the Cree community. Certain initiatives contem plated in the Pikhuutaau Agreement have already
commenced. We are proud of this relationship and look forward to working with the Cree community through
project development and operation.
Engineering Studies
As announced in the Press Release of June 7, 2021, Critical Elements retained the services of Metso
Outotec and WSP in Canada (“WSP”) to prepare an engineering study for a chemical plant to produce high
quality lithium hydroxide monohydrate for the electric vehicle and energy storage system battery industries.
The end-product of the plant would be battery grade lithium hydroxide monohydrate (LMH, >56.5%). It is
anticipated that the plant capacity would be approx imately 27,000 tpa of LMH, as Lithium Carbonate
Equivalent (LCE). Supportive pilot plant work has been ongoing, processing samples from the Rose Project.
It is expected that the results of the chemical plant engineering study will be released in the second quarter
of 2022.
In the Press Release of February 17, 2022, Critical Elements announced the retention of Bumigeme Inc.,
WSP, and Golder Associates Ltd 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 Project. In addition, an update to the 2017 Feasibility Study for the Rose Project mine an d
concentrated will be completed. The Updated Feasibi lity Study will include a review of pricing for
spodumene concentrates, and a review of the capital and operating costs. We expect results from the
Updated Feasibility Study to be released in the second quarter of 2022.
Potential Catalysts
Looking forward, Critical Elements recognizes the i mportance of a timely and positive recommendation
from COMEX and the receipt of a Certificate of Authorization from the Québec Minister of the Environment
and the Fight Against Climate Change. We expect tha t these events may catalyze long-standing
discussions regarding offtake and concurrent strategic project and/or corporate investments, which may in
turn catalyze completion of project financial engin eering. Delivery in the second quarter of 2022 of t he
engineering studies referenced above, may support a Final Investment Decision by the Corporation and
commencement of construction for the Rose Project m ine and concentrator targeting commencement of
production in 2024, based on the timeline outlined in the 2017 Feasibility Study.
Critical Elements is committed to communicating material events to the market in a timely manner. Through
the first quarter of 2022, the Corporation has been actively participating in multiple face-to-face and virtual
initiatives reaching thousands of shareholders and investors, highlighting the competitive advantages of the
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Rose Project and its home jurisdiction, Québec. Mar ket participants also recognize the importance of t he
completion of the Québec permitting process and its potential as a market catalyst.
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, hi gh
purity Rose lithium project in Québec. 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 estim ated
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, Québec 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
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
www.cecorp.ca
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.
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 2022 exploration program and its related objectives, the completion of the provincial
permitting process and its potential 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 t he front-end
engineering design work for the process plant and related infrastructure, the update to the 2017 Feasibility Study, off-
take agreements and purchasers for the Corporation’s products, securing sufficient financing on acceptable terms and
continued positive discussions and relationships with local 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. Accordin gly, readers should not place undue reliance on for ward-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
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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: results of the Corporation’s 2022 exploration
program and effects on the Corporation’s stated obj ectives, results of the engineering study for a che mical plant to
produce high quality lithium hydroxide monohydrate, issues encountered in connection with the front-end engineering
work, impact of the Updated Feasibility Study on the Project, Critical Elements’ ability to secure sufficient financing to
advance and complete the Project, uncertainties ass ociated 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 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 information 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 otherwise, except as required by
applicable securities laws.