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Critical Elements Successfully Produces Battery Grade Lithium Hydroxide IN Pilot Plant Testing

Metallurgy & Processing

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PRESS RELEASE

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES

OR FOR DISSEMINATION IN THE UNITED STATES

CRITICAL ELEMENTS SUCCESSFULLY PRODUCES BATTERY GRADE LITHIUM HYDROXIDE

IN PILOT PLANT TESTING

May 17, 2022 - M ONTRÉAL , QUÉBEC – Critical Elements Lithium Corporation (TSX-V: CRE ) (US OTCQX:

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

the Corporation’s pilot plant program recently comp leted at the Metso Outotec Research Center,

successfully converting spodumene concentrate from the Rose Project (“ Rose ”) into battery grade lithium

hydroxide using a thermal leaching process.

The pilot plant conversion process from spodumene concentrate to lithium hydroxide was further optimized

and confirmed the previous strong results with extraction and conversion rates of 92 %. In addition, the

pilot plant produced battery grade lithium hydroxide . A summary of impurity levels is provided below:

The two critical steps of the process to recover the lithium from spodumene are the conversion from alpha

spodumene to beta spodumene where the piloting work achieved 98% conversion rate and the separation

of the lithium hydroxide from the calcined spodumene by soda-leaching (98% efficiency) and conversion to

lithium hydroxide (96% efficiency).

 Battery grade lithium hydroxide with a further imp roved quality profile

 High spodumene alpha/beta conversion / leaching / conversion rates of combined 92%

o Efficiency for the calcination 98%

o Efficiency for the soda-leaching 98%

o Efficiency for the lithium hydroxide conversion 96 %

PILOT PLANT WORK DETAILS

The pilot plant work program was conducted at Metso Outotec’s Research Center in Finland:

 Test work campaign, related to Metso Outotec’s lithium hydroxide production process, was

carried out for Critical Elements Lithium Corporation at the Metso Outotec Research Center in

Finland and Germany.

 Varying concentrate grades were tested during the test work campaign.

 Two different North American lime sources have been qualified and approved.

 Process parameters have been modified and adapted.

 Concentrate used for pilot plant testing was provided from sample taken from Critical Elements

Rose and Rose South zones.

 During the test campaign, the process flowsheet was optimized.

 The main unit operations in the pilot process were:

o Calcination of alpha spodumene

o Slurry preparation for soda leach

o Soda leach of calcined spodumene

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o Soda leach residue filtration and washing

o Lithium hydroxide conversion by lime

o Conversion residue filtration and washing

o Solution purification by ion exchange

o Lithium hydroxide crystallisation

o Crystallization mother liquor recycling

 High, 92% Li extraction from alpha spodumene and after calcination/soda leach and lithium

hydroxide conversion.

 Test work results produced lithium hydroxide with the following impurity profile:

LiOH analyses – impurity levels in LiOH

Successful results using a thermal leaching process demonstrate that Critical Elements can deliver a

battery grade lithium hydroxide to the electric veh icle market. Additional tests may need to be conduc ted

by the Corporation in order to meet customer specific requirements.

To date Critical Elements has completed the following testing and piloting work:

 Piloting of the chosen concentrator plant design ( see Critical Elements press release dated April 5,

2017).

 Piloting of the thermal conversion of the ore from α-spodumene to β-spodumene (See Critical

Elements press release dated April 13, 2017).

 Piloting of the Thermal Leaching Process + bicarbo nization for lithium carbonate (See Critical

Elements press release dated May 29, 2017).

 Piloting of the Thermal Leaching + Lime Process to produce lithium hydroxide (See Critical

Elements press release dated October 29, 2018).

Metso Outotec is a leading technology company in mu ltiple mining and extraction industries, including the

lithium industry, with a global presence and owned R&D facilities in in Frankfurt, Germany and Pori, Finland,

as well as other locations.

They offer competent knowledge of the various proce ssing options for both beneficiating spodumene, as

well as converting spodumene into saleable lithium salts. Their lithium expertise includes multiple years of

research into various lithium processing options, including the understanding and optimizing of the process

Critical Elements has chosen for lithium extraction.

Next Steps

Following this successful lithium hydroxide process optimization campaign, Critical Elements will finalize its

feasibility study for a lithium hydroxide conversion facility.

As the study is still underway, it is important to note that the Corporation is not in a position to c onfirm as

of the date hereof if the hydroxide chemical plant to produce high quality lithium hydroxide monohydra te

will ever be implemented or that it will form part of the Rose project.

Qualified persons

Paul Bonneville, Eng., is the qualified person that has reviewed and approved the technical contents of this

news release on behalf of the Corporation.

CO 2 Cl SO 4 Mg Al Cr Mn Fe Ni Cu Pb Na Si K Ca Zn

% ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm Ppm ppm ppm ppm

<0.2 <20 <150 <2 <3 <1 <1 <3 <1 <1 <1 <20 <20 <10 <10 <5

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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, hi gh

purity Rose lithium project in Québec. Rose is the Corporation’s first lithium project to be advanced within

a land portfolio of over 700 square kilometers. In 2017, the Corporation completed a feasibility study on

Rose for the production of spodumene concentrate. T he internal rate of return for the Project is estim ated

at 34.9% after tax, with a net present value estima ted at C$726 million at an 8% discount rate. In the

Corporation’s view, Québec is strategically well-po sitioned for US and EU markets and boasts good

infrastructure including a low-cost, low-carbon pow er grid featuring 93% hydroelectricity. The project has

received approval from the Federal Minister of Envi ronment 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; The Corporation is working to obtain similar approval under the

Québec environmental assessment process. The Corporation also has a good, formalized relationship with

the Cree Nation.

For further information, please contact:

Patrick Laperrière

Director of Investor Relations and Corporate Development

514-817-1119

[email protected]

www.cecorp.ca

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 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 completion of the provincial permit ting process and its potential positive effects on the Corporation and

the Project, the completion of engineering study fo r a chemical plant to produce high quality lithium hydroxide

monohydrate, and continued positive discussions and relationships with local communities and stakeholders. Forward-

looking information is based on assumptions management believes to be reasonable at the time such stat ements are

made. There can be no assurance that such statement s will prove to be accurate, as actual results and future events

could differ materially 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: results of the engineering study for a chemical

plant to produce high quality lithium hydroxide mon ohydrate, Critical Elements’ ability to secure suff icient financing to

advance and complete the Project, uncertainties reg arding global supply and demand for lithium and tan talum and

market and sales prices, uncertainties with respect to social, community and environmental impacts, uncertainties with

respect to optimization opportunities for the Project, as well as those risk factors set out in the Co rporation’s year-end

Management Discussion and Analysis dated August 31, 2021 and other disclosure documents available unde r 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.