Critical Elements Lithium: Rose Drilling Results and Corporate Update
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PRESS RELEASE
CRITICAL ELEMENTS LITHIUM: ROSE DRILLING RESULTS
AND CORPORATE UPDATE
May 16 th , 2023 - M ONTRÉAL , QUÉBEC – Critical Elements Lithium Corporation (TSX-V: CRE) (US OTCQX:
CRECF) (FSE: F12) (" Critical Elements " or the " Corporation ") is pleased to report results from the recent
infill drill program completed on the Rose Lithium- Tantalum Project ("Rose Project", "Rose" or "Project").
The Corporation completed a 2,382-meter drill progr am, encompassing thirteen drillholes. The program
was designed to collect more geotechnical information for the optimization of mining engineering and at the
same time to better tighten the drilling resolution in the eastern part of the deposit. The best intercepts are
presented in Table 1 and Figure 1.
Selected drill intersection highlights include:
LR-22-188A: 1.33% Li 2O and 66.41ppm Ta 2O5 over 13.20 m
LR-22-189: 1.79% Li 2O and 220.39 ppm Ta 2O5 over 4.10 m and 1.66% Li2O and 85.91 ppm
Ta 2O5 over 5.20 m
LR-22-190: 1.78% Li 2O and 205.62 ppm Ta 2O5 over 7.60 m and 1.52% Li2O and 119.22 ppm
Ta 2O5 over 6.90 m
LR-22-192: 1.41% Li 2O and 216.49 ppm Ta 2O5 over 8.70 m
LR-22-193: 1.05% Li2O and 197.10 ppm Ta 2O5 over 14.20 m
LR-22-194: 1.06% Li2O and 137.81 ppm Ta 2O5 over 9.30 m
LR-22-195: 1.05% Li2O and 226.53 ppm Ta 2O5 over 5.00 m
LR-22-196: 1.12% Li2O and 60.04 ppm Ta 2O5 over 12.90 m
LR-22-197: 1.10% Li2O and 63.64 ppm Ta 2O5 over 21.70 m
Table 1: Rose Project – Summary of lithium results from the recent drilling program
Hole #
UTM NAD 83 ZN18 Length Azimuth Dip Number From To Interval * Li 2O Ta 2O5
Easting Northing (m) (°) (°) of
samples (m) (m) (m) (%) (ppm)
LR-22-188 420671 5763650 81.00 195 -80 10 25.10 28.00 2.90 0. 72 243.46
36.80 39.40 2.60 1.22 252.89
LR-22-188A 420671 5763650 180.00 195 -70 34 33.70 36.70 3.00 0 .94 261.15
133.40 146.60 13.20 1.33 66.41
LR-22-189 420770 5763687 180.00 195 -70 37 22.60 26.70 4.10 1 .79 220.39
155.10 166.50 11.40 0.90 74.83
including 160.20 165.40 5.20 1.66 85.91
LR-22-190 420782 5763522 210.00 200 -70 32 51.80 59.40 7.60 1 .78 205.62
126.70 133.60 6.90 1.52 119.22
including 129.40 133.60 4.20 1.85 147.75
LR-22-191 420828 5763610 192.00 200 -70 37 71.40 80.00 8.60 0 .76 191.48
including 73.80 76.30 2.50 1.63 194.94
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148.00 154.50 6.50 0.85 82.29
including 149.10 151.00 1.90 1.79 83.07
LR-22-192 420939 5763642 183.00 195 -70 42.00 50.70 8.70 1.41 216.49
including 43.90 50.00 6.10 1.91 207.71
101.00 109.00 8.00 1.09 128.09
LR-22-193 420883 5763535 171.00 195 -70 43 51.90 66.10 14.20 1.05 197.10
including 53.80 58.40 4.60 1.35 225.00
including 59.10 64.70 5.60 1.45 188.76
LR-22-194 420940 5763534 150.00 195 -70 24 20.90 27.70 6.80 0 .78 196.62
76.50 85.80 9.30 1.06 137.81
including 77.40 85.20 7.80 1.25 148.81
LR-22-195 420975 5763579 180.00 195 -70 27 37.30 42.30 5.00 1 .05 226.53
78.40 85.30 6.90 0.80 155.12
LR-22-196 420734 5763625 180.00 195 -70 58 19.60 23.50 3.90 1 .56 249.48
57.40 60.50 3.10 0.78 266.99
138.00 150.90 12.90 1.12 60.04
LR-22-197 420648 5763696 225.00 160 -50 49 27.70 30.50 2.80 1 .07 182.45
159.50 181.20 21.70 1.10 63.64
LR-22-198 420381 5763684 225.00 70 -52 19 195.30 199.80 4.50 0.49 100.63
LR-22-199 420904 5763728 225.00 310 -53 84 Pending results
* Interval length are all along drill core.
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Figure 2: Localisation map of Drill Results of Rose Property
This phase of drilling has been valuable in providi ng more geotechnical data that will be incorporated into
the final mine plan. The tightened drill resolution has provided greater confidence in the resource bl ock
model on the eastern portion of the Rose deposit. A dditional drilling is planned later this year to te st the
northern extension of the deposit, as well as poten tial satellite spodumene-bearing pegmatites within 10
km.
A 5,554-meter, 31-hole winter drill program was conducted on the Lemare zone and data is being compiled.
Critical Elements intends to pursue further work on Lemare over the summer with surface mapping and a
sampling program follow by drilling. Lemare is well-situated within 3 km of road access and is an excellent
candidate for initial technical studies.
Quality assurance/quality control
Quality assurance and quality control procedures were implemented to ensure best practices in sampling
and analysis of the core samples. The drill core was logged and then split, with one-half sent for assay and
the other retained in the core box as a witness sam ple. Duplicates, standards, and blanks were regular ly
inserted into the sample stream. The core samples w ere delivered, in secure tagged bags, directly to t he
ALS Minerals laboratory facility in Val-d'Or, Quebe c. 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 analyzed using sodium peroxide fusion ME-MS-89L, with full analysis for
52 elements. Value over 25,000 ppm Li were re-assays using Li-ICP-82b and value over 2,500 ppm Ta 2O5
were re-assays using Ta-XRF10.
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Rose Lithium-Tantalum Project update:
The Corporation is pleased to report that the front-end engineering design (“FEED”) and value engineering
studies for the process plant and associated infrastructure were completed during the first quarter of 2023.
Bumigeme Inc. performed a gap analysis of the process plant, focusing on design review, optimization, and
risk mitigation for any potential issues with the p rocess flowsheet developed during the feasibility s tudy.
During the same period, WSP completed the FEED study for the infrastructure, surface water management,
mine water treatment plant, installation of the fin al effluent, main electrical station, 25 kV distrib ution,
utilities, service buildings and mining support facilities. Bumigeme Inc. and WSP completed these mandates
on schedule and within budget.
On completion of the gap analysis, Bumigeme Inc., B BA, WSP and other specialists in planning and
industrial processes commenced a new study with the aim of improving and freezing the 3D model layout
for all equipment and defining data sheets to fulfi ll long lead time equipment orders. WSP-Golder was
mandated to complete the detailed engineering design of the co-disposal facility for the filtered mill tailings
and waste rock from the open pit. Over 40% of WSP-Golder's mandate has been completed with completion
expected by the end of Q2 2023. Engineering work in cludes hazard classification, laboratory testing of
tailings, staging and placement, water management design, hydrogeological modeling, seepage collection,
stability assessment and an instrumented monitoring plan.
Furthermore, the Corporation announces the awarding of the detailed engineering mandate for the process
plant and the main electrical station to the BBA te am. It is important to note that BBA is very famili ar with
the Rose lithium and tantalum concentrator project. They carried out several audit and optimization
mandates on our project originally developed by Bumigeme Inc. and WSP. Thus, BBA will be able to ensure
a smooth transition to the execution of the detaile d engineering phases. In addition, BBA has extensiv e
multidisciplinary experience on previous mining pro jects, including several projects in northern Quebe c.
BBA will be an important player in the success of our project.
The Corporation is also proud to announce that all detailed engineering mandates have now been granted
to our partners WSP, BBA and InnovExplo. Critical E lements has all the necessary funds to complete the
detailed engineering phase. Overall engineering is progressing well, and we are over 35% complete. Key
engineering deliverables will be completed during t he summer period to allow, if project financing and
building permits are in place, to begin deforestation and initial preparation work by the end of the year.
Project Financing update:
As noted earlier this year ( see press release dated February 1 st , 2023 ) Critical Elements commenced a
formal process to receive and analyze multiple expressions of interest in participating in the financing and
development of the Rose Project. This process has a dvanced such that multiple parties have provided
comprehensive, non-binding expressions of interest to participate that compare favourably to the initi al
capital estimate outlined in the Project’s 2022 Fea sibility Study ( see press release dated June 13, 2022 ).
Critical Elements will continue to progress discuss ions with the leading parties, subject to negotiati ng
acceptable financing terms and conditions, as well as satisfactory due diligence and entering into the
required definitive documentation. Updates on this matter will be provided as appropriate.
The Corporation’s long-term strategy of avoiding Memorandum of Understandings for offtake arrangements
leaves the Rose Project’s planned production unencumbered in a tight market for spodumene concentrate,
both for chemical conversion for the burgeoning EV battery market and for the higher margin glass and
ceramics industry. Despite the recent correction in spot lithium markets, underlying market demand remains
robust in the face of supply-side sovereign, financ ial, and execution risks over the next several year s.
Conventional lithium concentrate projects in a top tier mining jurisdiction with major environmental permits
and an existing Impact and Benefits Agreement remain exceedingly rare.
Québec is recognized as a top mining jurisdiction with access to excellent infrastructure, as well as strong
financial and human capital. This makes the Rose Pr oject’s metallurgically attractive spodumene
concentrate highly desirable. Management is activel y engaged in identifying the optimal strategic part ner
or partners to maximize benefits for all the Corpor ation’s stakeholders, but at this time, there can b e no
guarantees as to the timing and outcome of this process.
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Federal Budget:
Critical Elements expresses its satisfaction that t he Government of Canada has acknowledged the
significance of clean technology manufacturing by introducing a 30% investment tax credit (ITC) in its 2023
Budget, which can be refunded. The Corporation beli eves that a significant portion of the equipment
included in the 2022 Feasibility Study capital expenditures will be qualified for the newly introduced federal
tax credit.
Qualified persons
Yves Perron, Eng. MBA, Vice-President Engineering, Construction and Reliability and Paul Bonneville,
Eng , are the qualified persons that have 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, the Corporat ion’s first lithium project to be advanced within a land
portfolio of over 1,000 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 estimated at 82.4%, with an esti mated 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 infrastructure including a low-cost, lo w-carbon power grid featuring 94% hydroelectricity. The
project has received approval from the Federal Mini ster of Environment and Climate Change on the
recommendation of the Joint Assessment Committee, c omprised of representatives from the Impact
Assessment Agency of Canada and the Cree Nation Gov ernment and also 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.
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.
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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 limita tion, statements
relating to the results and completion of the 2023 exploration program, the permitting process, the results and outcome
of the Front-End Engineering Design Study, eligibility of equipment required for the Rose Project to the 30% investment
tax credit (ITC) announced by the Federal government in its last budget, as well as the outcome of the formal process
launched by the Corporation in connection with the Project financing. Forward-looking information is b ased 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 mater ially from those
anticipated in such statements. Accordingly, readers should not place undue reliance on forward-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
anticipated, estimated or intended. Factors that ma y cause actual results to differ materially from ex pected results
described in forward-looking information include, but are not limited to: final and complete results o f the Corporation’s
2023 exploration program, the final outcome of the permitting process and the Corporation’s ability to meet all conditions
imposed thereunder, the final results of the Front-End Engineering Design Study and its effects on the development of
the Rose Project, the formal process launched in co nnection with the Project financing not producing t he anticipated
and expected results, the criteria for eligibility to the 30% investment tax credit (ITC) announced in the last federal
budget not being those expected, as well as those r isk factors set out in the Corporation’s Management Discussion
and Analysis for its most recent quarter ended February 28, 2023 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 u pdate any forward-looking information, whether as a result of new
information, future events or results or otherwise, except as required by applicable securities laws