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CRE.V ·

Critical Elements Lithium Obtains Its First Environmental Authorization to Prepare Rose Lithium-Tantalum Site FOR Construction

Mine Development & Operations Permits & Approvals

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PRESS RELEASE

CRITICAL ELEMENTS LITHIUM OBTAINS ITS FIRST ENVIRONMENTAL

AUTHORIZATION TO PREPARE ROSE LITHIUM-TANTALUM

SITE FOR CONSTRUCTION

February 26, 2025 - MONTRÉAL, QUÉBEC – Critical Elements Lithium Corporation (TSX -V: CRE) (US

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

receipt of the first environmental authorization required for the construction and implementation of its Rose

Lithium-Tantalum project ("Rose" or "Project"), in accordance with section 22 of the Environment Quality

Act (Québec).

This environmental authorization is the next essential step for site preparation leading to construction of the

Project and permits Critical Elements to carry out the activities described below:

- stripping of an equipment and materials storage area (in the area of the future pit);

- stripping and developing part of the future overburden pile;

- stacking of organic matter and overburden on the overburden pile; and

- building temporary water management infrastructure.

In accordance with the terms of the environmental authorization received by the Corporation, wetland site

preparation activities must begin within two years of the date of issue of the authorization. Furthermore, the

Corporation expects to be in a position to commence the activities subject to this authorization once all the

conditions mentioned in the Federal and Provincial Project approvals have been met (see news releases

of the Corporation dated August 11, 2021, November 2, 2022 and August 14, 2024 for more information

relating to these project approvals), the required Project financing has been obtained and a Final Investment

Decision is made.

Yves Perron, Vice President of Engineering, Construction and Operations said: " Today's news represents

one of the important steps to allow construction to begin at our Rose Lithium-Tantalum site. To date, we

can say that the application process for authorization is well underway. This work will be carried out in

compliance with current environmental standards, thus guaranteeing responsible and sustainable

management of the Rose Lithium-Tantalum site."

Qualified Person

Yves Perron, P.Eng., is the Qualified Person who has reviewed and approved the technical content of this

press 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, 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%

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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 representatives 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”. Forward -looking

information contained herein include, without limitation, statements relating to expectations regarding Rose

project-level activities, notably, (i) completion of the permitting and authorization process, and completion

of the work related thereto (ii) securing a strategic partnership and project financing leading to a Final

Investment Decision and (iii) respecting the Rose project ramp up and commissioning timeline, expectations

regarding potential value creation from ongoing and future exploration activities on the Corporation’s

projects, and the Corporation’s ongoing business plan. 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 lithi um / 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 Company’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, t here 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:

negative operating cash flow and dependence on third party financing, uncertainty of 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 being 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 governmental 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 (www.sedarplus.ca).

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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 Com pany 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.