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Critical Elements Lithium Corporation Obtains Conditional $20 Million IN Federal Funding FOR Critical Minerals Infrastructure Project

Corporate Updates

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PRESS RELEASE

CRITICAL ELEMENTS LITHIUM CORPORATION OBTAINS CONDITIONAL $20 MILLION IN

FEDERAL FUNDING FOR CRITICAL MINERALS INFRASTRUCTURE PROJECT

February 6th, 2025 - MONTRÉAL, QUÉBEC – Critical Elements Lithium Corporation (TSX -V: CRE) (US

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

has been conditionally approved for up to $20 million funding from the Government of Canada to relocate

4.2 kilometres of power transmission line infrastructure and build a new electrical sub -station to supply

Critical Elements ’ Rose Lithium -Tantalum Project in Eeyou Istchee James Bay, Québec (the “ Rose

Lithium-Tantalum Project”).

This funding comes from the Critical Minerals Infrastructure Fund ( the “ CMIF”), Natural Resources

Canada's flagship program under the Canadian Critical Minerals Strategy to support transportation and

clean energy infrastructure projects needed to increase the supply of critical minerals in Canada, as well

as the development of national and global value chains in support of a green and digital economy. Subject

to final due diligence , settlement of definitive documentation, and other customary conditions , Natural

Resources Canada has approved a conditionally repayable funding of up to $20 million under the CMIF for

this infrastructure project that will support the development of Rose Lithium-Tantalum Project.

Jean-Sébastien Lavallée, CEO of Critical Elements, expressed his excitement about th is funding during

this important phase of the Rose Lithium -Tantalum Project : “On behalf of Critical Elements Lithium

Corporation and its shareholders, I would like to thank Natural Resources Canada and Innovation, Science

and Economic Development Canada , and Quebec’s Ministry of Natural Resources and Forests for their

support of the Rose Lithium-Tantalum Project. Critical Elements Lithium has been steadily advancing and

derisking the Rose Lithium-Tantalum Project and the provision of these funds is an important step in this

process. We would also like to note the importance of our strong relationship with our Cree neighbours,

embodied by the Pihkuutaau Agreement of July 2019 and based on mutual trust and respect, resulting in a

sustainable development approach. It is clear from our ongoing discussions with end -users of the high

quality spodumene concentrate to be produced from the Rose Lithium-Tantalum Project, that a great value

is placed on the demanding standards of sustainability and governance honed by the rigorous permitting

processes at the Provincial and Federal levels, as well as our relationship with the Cree. We remain

confident that our Nation’s natural resource endowment, high standards of production, and proximity to two

of the most important global markets, will support our drive to be an industry leader in the ongoing global

energy transition.”

“This project, under the Canadian Critical Minerals Strategy, will help expand Quebec’s sustainable critical

minerals production, notably rare earths that are used in electronics, clean energy, aerospace, automotive

and defence”, said the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources Canada.

“Developments like this help mines get built faster, and they are a key element in seizing the generational

opportunity before us. The Government of Canada is supporting projects that strengthe n Canada’s supply

chains, enhance our ability to be a reliable supplier of the critical minerals the world is demanding and foster

economic growth while creating good jobs.”

This support and funding from the Government of Canada reflects the importance of Indigenous

engagement and collaboration in developing key infrastructure in Northern Québec. It also recognizes the

role this infrastructure project will play in supporting Critical Elements ’ vision to become a large -

scale, sustainable and reliable supplier of lithium for the emerging electric vehicle and energy storage

industries through valuable partnerships with the Corporation’s stakeholders based on care, respect,

accountability, integrity & collaboration to the growing EV and energy storage markets.

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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-Tantalum project in Québec, the Corporation’s first lithium project to be advanced within

a land portfolio of over 1,050 km 2. On August 29, 2023, the Corporation announced results of a new

Feasibility Study on Rose for the production of spodumene concentrate. The after-tax internal rate of return

for the Project is estimated at 65.7%, with an estimated after -tax net present value of US$2.2B at an 8%

discount rate. In the Corporation’s view, Québec is strategically well-positioned for US and EU markets and

boasts good infrastructure including a low-cost, low-carbon power grid featuring 94% 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 represen tatives from the Impact

Assessment Agency of Canada and the Cree Nation Government, received the Certificate of Authorization

pursuant to section 164 of Québec’s Environment Quality Act from the Québec Minister of the Environment,

the Fight against Climate Change, Wildlife and Parks, and the project mining lease from the Québec

Minister of Natural Resources and Forests under the Québec Mining Act.

For further information, please contact:

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 certain actions, events

or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forwa rd-looking

information contained herein should not be read as guarantees of future performance or results, and will

not necessarily be accurate indications of whether, or the times at or by which, such future events or

performance will be achieved. No assurance can be given that any events anticipated by the forward -

looking information will transpire or occur, including, if CMIF and Natural Resources Canada will be satisfied

with their final due diligence on the Corporation’s Rose Lithium-Tantalum Project and the two infrastructure

projects that will be subject to the funding (the “Infrastructure Projects”), if the Corporation will enter into

a written funding agreement with Natural Resources Canada (the “ Funding Agreement”) on terms

acceptable to it , as well as the timing to enter into such Funding Agreement, if the Corporation will incur

eligible expenditures in connection with the Infrastructure Projects and if the Corporation will receive any

funds under the CMIF and timing to receive them, if any. Such forward-looking information and statements

are based on numerous assumptions, including that general business and economic conditions will not

change in a material adverse manner, that fundamentals of lithium / spodumene demand and EV market

growth and capacity will continue to be strong, that project financing will be available on reasonable terms,

and that governmental and other approvals required to conduct the Co rporation’s development activities

and planned exploration will be available on reasonable terms and in a timely manner. Although the

assumptions made by the Corporation in providing forward -looking information or making forward -looking

statements are considered reasonable by management at the time, there can be no assurance that such

assumptions will prove to be accurate.

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, estimat ed 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:

changes to the Infrastructure Projects or to the development plans of the Corporation’s Rose Lithium -

Tantalum Project, negative operating cash flow and dependence on third party financing, uncertainty of

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additional financing, reliance on key management and other personnel, potential downturns in (i) general

economic conditions, (ii) demand for lithium / spodumene and (iii) EV market growth, capacity and demand,

actual results of exploration activities bein g different than anticipated, changes in exploration programs

based upon results, risks generally associated with the mineral exploration industry, environmental risks,

changes in laws and regulations, community relations and delays in obtaining government al or other

approvals, as well as those risk factors set out in the Corporation’s Management Discussion and Analysis

for its most recent quarter ended November 30, 2024 and other disclosure documents available under the

Corporation’s SEDAR+ profile at www.sedarplus.ca.

Forward-looking information contained herein is made as of the date of this news release. Although the

Corporation has attempted to identify important factors that could cause actual results to differ materially

from those contained in the forward -looking information or implied by forward -looking information, there

may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers

should not place undue reliance on forward-looking statements or information. The Corporation undertakes

no obligation to update or reissue forward -looking information as a result of new information or events

except as required by applicable securities laws.