Critical Elements Lithium Provides a Corporate Update
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PRESS RELEASE
CRITICAL ELEMENTS LITHIUM PROVIDES A CORPORATE UPDATE
HIGHLIGHTS
• Critical Elements confirms ongoing interest and progress in the Rose Project financing
negotiations with potential strategic partners.
• Critical Elements continues to work towards a Rose Project timeline that targets
commencement of production of high quality spodumene concentrate in 2026.
• Management continues its procurement program to purchase long lead time items to protect
the Rose Project timeline.
• Detailed engineering continues to advance with a high degree of confidence consistent with
the Rose Project timeline.
• Programs to meet extensive pre -construction requirements under governmental
authorizations and the 2019 Pihkuutaau Agreement are on-target.
• An initial drill program to test the new Rose West discovery and other targets is expected
to commence in early 2024.
• While the market for lithium and lithium equities has corrected over the past year,
management views the future positively.
December 20th, 2023 - MONTRÉAL, QUÉBEC – Critical Elements Lithium Corporation (TSX-V: CRE) (US
OTCQX: CRECF) (FSE: F12) ( "Critical Elements" or the "Corporation") is pleased with the progress
being made to advance the unique Rose Lithium -Tantalum Project ( “Rose Project” ) in Eeyou Istchee,
Québec and, ultimately, achieve its vision to become a large -scale, sustainable, and reliable vertically
integrated supplier of lithium for the emerging electric vehicle and energy storage industries .
The Rose Lithium-Tantalum project (“Rose or the “ Project”) is situated within the Rose and Rose South
property blocks (Figure 1), which constitute 395 km2, or only 38% of the Corporation’s highly prospective
1,050 km2 exploration portfolio in Québec.
Summer 2023 Prospecting Results
During the summer of 2023, Critical Elements conducted a prospecting program over several areas,
including the Rose, Rose South, Rose North and Nemaska belt properties. The objective of the field
program was to identify new pegmatite bodies using systematic rock geochemical sampling of all pegmatite
bodies in order to refine the geological interpretation of the properties and prioritize further exploration work
including drilling. A total of 774 rock samples were collected (866 samples including QA/ QC) during the
exploration campaign with 95 samples reporting value s over 100 ppm Ta 2O5 and/or values over 0.10%
Li2O.
As reported on September 12 th, 2023 and in October 17th, 2023, the press releases state several new
outcrop discoveries have been identified in the Rose pegmatite swarm. To date, 4 spodumene -bearing
pegmatite outcrops have been identified in this New Discovery Area. At this early stage, the exact strike
length, width and orientations of these dykes is unknown, but the apparent strike length along the outcrops
exceeds 400m. All results from the summer program have now been received with selected results over
3% Li2O including 3.18% Li2O, 3.00% Li2O, 3.98% Li2O, 3.91% Li2O, and 5.10% Li2O. Full table of best
results is shown in Table 1. The reader is cautioned that grab samples are selective by nature and may not
represent average grades of the mineralization in the pegmatites. Table 1 provides all sample results with
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values over 100 ppm Ta2O5 and/or values over 0.10% Li2O. Remaining samples did not return significant
values.
Table 1: Best new results from summer program 2023
Property Sample UTM NAD 83 ZN18 Li2O T a2O5 Type number Easting Northing (%) (ppm)
Rose H873531 421352 5768890 0.01 185 Grab
Rose H873532 421268 5768886 1.69 72 Boulder
Rose H873533 421093 5768907 1.66 86 Boulder
Rose H873536 420412 5768913 0.63 69 Grab
Rose H873538 420723 5768722 0.00 164 Grab
Rose H873539 421393 5768515 0.01 167 Boulder
Rose H873542 421543 5767658 0.99 107 Boulder
Rose H873675 421414 5768519 1.65 105 Boulder
Rose H873677 421332 5768427 0.01 298 Boulder
Rose H873679 421290 5768348 0.00 258 Grab
Rose H873681 420588 5768104 0.01 170 Grab
Rose H873684 421233 5767712 0.84 116 Boulder
Rose H873685 421314 5767757 1.88 76 Boulder
Rose H873686 421505 5768053 1.54 167 Boulder
Rose H873697 421495 5767336 0.93 136 Boulder
Rose H873698 421498 5767337 1.24 135 Boulder
Lemare H873721 471869 5735655 0.01 110 Grab
Lemare H873736 472499 5734797 0.01 124 Grab
Rose H874055 422629 5767034 0.01 195 Grab
Rose H874238 412188 5763913 0.01 365 Boulder
Rose H874242 416007 5759675 1.07 50 Boulder
Rose H874307 419413 5764506 1.69 57 Grab
Rose H874312 417940 5761003 0.01 108 Boulder
Rose H874317 411112 5763622 2.92 338 Grab
Rose H874404 420826 5765183 2.19 136 Boulder
Rose H874408 420600 5764228 0.01 471 Grab
Rose H874409 420604 5764235 0.01 183 Grab
Rose H874411 420576 5764152 0.01 123 Grab
Rose H874413 420511 5764032 0.08 410 Grab
Rose H874423 419508 5761920 3.18 204 Boulder
Rose H874425 411269 5763692 0.03 447 Grab
Rose H874427 411110 5763619 2.79 277 Grab
Rose H874428 411129 5763660 2.61 80 Grab
Rose H874429 411188 5763702 1.84 371 Grab
Rose H874431 411201 5763699 3.00 274 Grab
Rose H905009 411110 5763619 1.09 911 Grab
Rose H905011 411153 5763748 0.46 170 Grab
Rose H905013 411060 5763918 3.62 551 Grab
Rose H905204 411111 5763618 2.95 116 Grab
Rose H905205 411112 5763617 3.98 214 Grab
Rose H905206 411112 5763617 3.91 225 Grab
Rose H905207 411112 5763620 1.45 107 Grab
Rose H905208 411112 5763620 1.60 114 Grab
Rose H905209 411113 5763621 2.40 105 Grab
Rose H905211 411019 5763971 1.36 116 Grab
Rose H905212 411007 5763963 1.03 245 Grab
Rose H905213 411081 5763942 2.36 307 Grab
Rose H905214 411082 5763942 1.32 308 Grab
Rose H905215 411083 5763945 1.61 330 Grab
Rose H905216 411085 5763945 5.10 449 Grab
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Rose H905241 411073 5763933 3.37 49 Grab
Rose H905242 411076 5763934 4.17 374 Grab
Rose H905243 411067 5763926 1.39 20 Grab
Rose H905244 411054 5763920 4.52 413 Grab
Rose H905245 411155 5763753 1.88 178 Grab
Rose H905246 411161 5763741 0.76 130 Grab
Rose H905247 411156 5763751 1.08 150 Grab
Rose H905248 411159 5763744 3.88 287 Grab
Rose H905249 411159 5763748 1.10 203 Grab
Rose H905256 410993 5763895 1.56 207 Boulder
Rose H905257 410985 5763961 3.39 314 Grab
Rose H905258 410987 5763959 0.71 151 Grab
Rose H905259 410992 5763958 0.02 226 Grab
Rose H905261 410991 5763960 1.15 3 Grab
Rose H905262 411047 5764028 0.21 85 Grab
Rose H905263 411047 5764026 0.02 177 Grab
Rose H905264 411188 5763703 2.17 142 Grab
Rose H905265 419289 5764026 1.13 137 Boulder
Rose H905266 419421 5764507 0.02 106 Grab
Rose H905267 419415 5764510 0.67 267 Grab
Rose H905268 410562 5763243 1.85 98 Boulder
Rose H905269 410562 5763243 5.19 98 Boulder
Rose H905271 410563 5763243 3.57 189 Boulder
Rose H905272 419431 5764492 0.95 68 Grab
Rose H905351 419576 5763409 1.85 423 Grab
Rose H905352 419596 5763391 0.93 155 Grab
Rose H905353 419596 5763388 1.60 254 Grab
Rose H905354 419594 5763453 1.15 158 Grab
Lemare H905377 470949 5734033 0.78 178 Grab
Note: Grab samples are selective by nature and may not represent average grades
of the pegmatite
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Figure 1: Rose Lithium-Tantalum and Nemaska Belt Projects - Location Map
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Figure 2: Rose Lithium-Tantalum - New Discovery Sample
Location Map
Note: Grab samples are selective by nature and may not represent average grades of the pegmatite
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Figure 3: Rose Lithium-Tantalum - Sample
Location Map
Note: Grab samples are selective by nature and may not represent average grades of the pegmatite
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Figure 4: Lemare Sample
Location Map
Note: Grab samples are selective by nature and may not represent average grades of the pegmatite
Project Financing and Strategic Partner Negotiations
Critical Elements is pleased to provide investors with an update on the ongoing assessment of expressions
of interest for financing and developing the Rose Project in collaboration with potential strategic partners.
Despite expectations for a conclusion ea rlier this year, the Corporation recognizes the intricacy of these
negotiations and due diligence, requiring time and thorough consideration. Investors can be assured of a
continued interest from potential partners, and that the Corporation believes that the process is progressing
positively. Management is committed to securing an optimal outcome for the Rose Project's financing and
development. We appreciate your continued support and patience as we work towards a mutually beneficial
partnership. Additionally, it is crucial to note that this process is progressing in tandem with the overall
development of the Rose Project, as detailed below.
The Rose Project Timeline
Critical Elements continues to work towards a Rose Project timeline that targets commencement of
production of high quality spodumene concentrate for chemical conversion and high purity technical
concentrate for the glass and ceramics industry in 2026. Furthermore, protecting the Rose Project’s timeline
has been a primary objective for management . Significant steps include the change in project scope to
incorporate the construction of our own 500 -worker camp 4km from the proposed mine site (see the
Feasibility Study filed on SEDAR + October 11, 2023 ). In addition, Critical Elements has commenced its
procurement program focused on ensuring long lead time items are available as needed, advanced detailed
engineering, and continued delivery of construction pre-conditions. These pre-conditions are required under
the Pihkuutaau Agreement signed in July 2019, the favorable decision statement from the federal Minister
of the Environment and Climate Change announced August 11, 2021, the Certificate of Authorization under
Section 164 of Québec’s Environment Quality Act announced November 2, 2022, and the mining lease
granted under the Québec Mining Act and announced September 18, 2023. Critical Elements is proud to
have achieved these very important milestones, which collectively ensure that eventual production is
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achieved at the highest level s of environmental and cultural sustainability , an essential component in our
close relationship with our Cree neighbours in Eeyou Istchee and a unique quality highly valued input in the
global battery value chain.
Procurement Program
Critical Elements announces that following the order to purchase long lead time equipment (315 kV to 25
kV transformers – see press release October 12, 2023), the Corporation has now ordered several batches
of electrical equipment. These include 315 kV circuit breakers from industry -leading GEPR Energy
Canada Inc. (GE). These purchases will secure the start-up of the power station as quickly as possible.
Jean-Sébastien Lavallée, Chief Executive Officer of the Corporation stated: "Once again, Critical Elements
has taken action to reduce the risks related to the Rose Project schedule. We are getting closer and closer
to our goal of becoming a lithium producer for the electric car market."
Detailed Engineering and Construction Pre-Conditions
The Corporation has been working over the last several months to meet extensive pre -construction
requirements under governmental authorizations:
- The fish habitat compensation plan and the wetland compensation plan in Cree territory have been
updated in collaboration with stakeholders and are now submitted to federal and provincial
authorities for approval.
- The new camp location has been confirmed, and the environmental impact assessment with this
new camp and new borrow pits has been completed and filed to the authorities for approval.
- The summer monitoring program and field surveys have been completed.
Detailed engineering continues to progress well, while working to optimize the planned facilities of the Rose
Project:
- Detailed engineering continues to advance with a high degree of confidence consistent with the
Rose Project timeline.
- Following the LIDAR flyover, up to date topographical data was available, which allowed the
engineering team to further refine earthworks design.
- Site-wide water balance and water management strategy has been reviewed with updated data.
This has enabled design optimization of the water storage pond and mine water treatment plant.
- Design of the co -disposition stockpile progressed well, modelling of its phases over time is
completed. Stability analysis is underway.
- Technical specifications were issued for major process equipment, allowing the tendering process
to be initiated. Firm proposals have been received for the first set of equipment and are under
technical and commercial analysis.
- The procurement management program to purchase long lead items is on schedule to support the
Rose Project Concentrator detailed engineering.
Exploration Update
Critical Elements has recently received the required drilling permit and has initiated preparation for a drilling
program on the exciting new discovery discussed above located only 8km west of the Rose Project (see
press release s dated September 12th, 2023 and October 17 th, 2023 ), located within a portion of the
Corporation’s highly prospective 1,050 km 2 exploration portfolio. The objective of the drilling program is to
test, confirm and expand the new zone identified by prospection during the summer. The Corporation plans
to start with a program of approximately 5,000m during its winter program on the new discovery with the
objective to quickly test the dimension and grade of the new zone and assess the potential to expand the
Corporation’s mineral resource inventory. The drilling program will be adjust ed and, potentially, expanded
based on results of the initial drilling results on the new discovery.
Quality assurance/quality control
Quality assurance and quality control procedures have been implemented to ensure best practices in
sampling and analysis of the samples. Standards and blanks were regularly inserted into the sample
stream. The samples were delivered, in secure tagged bags, directly to the ALS Minerals laboratory facility
in Val-d'Or, Quebec. The samples are weighed and identified prior to sample preparation. The samples are
crushed to 70% minus 2 mm, then separated and pulverized to 85% passing 75 μm. All samples are