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CRE.V ·

Critical Elements Retains Cantor Fitzgerald as Financial Advisor

Corporate Updates

PRESS RELEASE

CRITICAL ELEMENTS RETAINS CANTOR FITZGERALD AS FINANCIAL ADVISOR

January 4, 2021 – Montréal, Québec – Critical Elements Lithium Corporation

(the “Corporation ” or “Critical Elements ”) (TSX-V: CRE) (US OTCQX: CRECF) (FSE: F12) is

pleased to announce it has engaged Cantor Fitzgeral d Canada Corporation ("Cantor Fitzgerald")

to pursue, engage and evaluate global strategic par tners and investors to advance the Rose

Project to production, and will receive fees contin gent upon the successful completion of such

financing transactions.

"With banking and institutional sales professionals located across the Americas, Europe and Asia,

Cantor Fitzgerald brings significant mining and min erals experience and a global full-service

investment banking suite that can assist us through out the process of evaluating our alternatives

and pursuing a thoughtful path forward," stated Jean-Sebastian Lavallée, Critical Elements’ Chief

Executive Officer. "We look forward to working with the experienced Cantor Fitzgerald team as we

prudently evaluate the strategic alternatives available to us."

Critical Elements’ President, Dr. Steffen Haber, re iterated the Corporation’s vision to become a

large responsible supplier of lithium to the flourishing electric vehicle and energy storage systems

industries. “Our Rose Project features one of the p urest lithium deposits globally. Quebec is

strategically well-positioned regarding the critica l transitioning energy and e-mobility markets in

Europe and the United States and boasts excellent i nfrastructure and human capital. Our

cooperative relationship with the Cree Nation of Eastmain, the Grand Council of the Crees (Eeyou

Istchee), and the Cree Nation Government has been formalized through the Pikhuutaau Agreement

signed in July 2019. We are excited by the anticipated receipt of Provincial and National Phase 1

permitting, detailed engineering and financing for the construction of the Rose mine and

concentrator, and the delivery of engineering studies for Phase II (a chemical plant for conversion

of Rose spodumene concentrate to high quality lithium hydroxide for use in lithium-ion batteries).

We believe that Cantor Fitzgerald is ideally suited and motivated to work with us to embrace the

opportunities apparent in today’s markets to maximize shareholder value.”

ABOUT CRITICAL ELEMENTS LITHIUM CORPORATION

Primero Group recently completed the first phase of its Early Contractor Involvement agreement

with the Corporation and provided a Guaranteed Maximum Price for the engineering, procurement

and construction of the wholly-owned Rose Lithium-Tantalum project on a lump sum turnkey basis

that is in line with the Project’s feasibility study published November 29, 2017. The project feasibility

study is based on price forecasts of US $750/tonne f or chemical-grade lithium concentrate (5%

Li2O), US $1,500/tonne for technical-grade lithium con centrate (6% Li 2O) and US $130/kg for

Ta2O5 in tantalite concentrate, and an exchange rate of US $0.75/CA $. The internal rate of return

(“IRR”) for the Rose Lithium-Tantalum project is estimated at 34.9% after tax, and net present value

(“NPV”) is estimated at CA $726 million at an 8% di scount rate. The estimated payback period is

2.8 years. The pre-tax IRR for the Rose Lithium-Tan talum Project is estimated at 48.2% and the

pre-tax NPV at CA $1,257 million at an 8% discount rate (see press release dated September 6,

2017). The financial analysis is based on the Indic ated mineral resource. An Indicated mineral

resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and

physical characteristics can be estimated with a le vel of confidence sufficient to allow the

appropriate application of technical and economic p arameters, to support mine planning and

evaluation of the economic viability of the deposit . The life-of-mine (LOM) plan provides for the

extraction of 26.8 million tonnes of ore, 182.4 mil lion tonnes of waste, and 11.0 million tonnes of

overburden for a total of 220.2 million tonnes of material. The average stripping ratio is 7.2 tonnes

per tonne of ore. The nominal production rate is es timated at 4,600 tonnes per day, with 350

operating days per year. The open pit mining schedule allows for a 17-year mine life. The mine will

produce a total of 26.8 million tonnes of ore grading an average of 0.85% Li2O and 133 ppm Ta2O5,

including dilution. The mill will process 1.61 mill ion tonnes of ore per year to produce an annual

average of 236,532 tonnes of technical and chemical grade spodumene concentrate and 429

tonnes of tantalite concentrate.

FOR MORE INFORMATION:

Jean-Sébastien Lavallée, P.Geo.

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 defined in the policies of the TSX

Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.