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E3 Lithium Awarded $3.5M in Funding from Government of Canada

Corporate Updates

E3 Lithium Awarded $3.5M in Funding from

Government of Canada

Highlights:

E3 Lithium awarded

$3.545M

in funding through Natural Resources Canada's Critical Minerals

Research, Development and Demonstration program

The non-dilutive and non-repayable funds will be used to support the construction and operation

of E3 Lithium's 2023 field pilot plant

CALGARY, AB

,

March 7, 2023

/CNW/ - E3 LITHIUM LTD. (TSXV: ETL) (FSE: OW3) (OTCQX:

EEMMF),

Alberta's

leading lithium developer and extraction technology innovator, today announced it

has been awarded

$3.545M

CAD in funding from Natural Resources Canada's Critical Minerals

Research Development and Demonstration (CMRDD) program.

Funds for the CMRDD program were allocated under the Government of

Canada's

federal Budget

2021 to support the development of Canadian critical minerals in recognition of the crucial role they

play in the energy transition. E3 Lithium (E3) was one of six organizations selected from applicants

from across

Canada

.

"Canadian innovators are leading the way towards a cleaner future. Today's investment of more than

$3.5 million

in E3 Lithium will help to advance the development of a dynamic and competitive critical

minerals sector through the development and demonstration of innovative processing technologies.

This means good jobs for workers, more investment in Canadian innovation, and lower emissions

across the country - all part of our plan to build a cleaner

Canada

and a prosperous, sustainable

economy that works for everyone."

- The Honourable Jonathan Wilkinson, Minister of Natural Resources Canada

The

$3.545M

in funding will be allocated in its entirety towards the design, construction and

operation of E3's field pilot plant, which is on track

to begin operations in Q3 2023

. Natural

Resources Canada joins Alberta Innovates and the Government of

Canada's

Innovation, Science and

Economic Development's (ISED) Strategic Innovation Fund in providing support to E3 for the

development of the lithium industry in

Western Canada

.

"We are ecstatic to receive funding from Natural Resources Canada to support the work we are

doing to produce battery-grade lithium. Receiving support from all levels of government to develop

our lithium resource speaks volumes to the importance placed on commercializing critical minerals

from

Alberta

and the progress E3 has made in developing this industry."

-

Chris Doornbos

, President and CEO, E3 Lithium

The funding from the Government of

Canada

is non-share dilutive and is not required to be repaid.

E3 shall submit and be reimbursed for eligible expenses on an ongoing basis throughout the term of

the agreement. Additional and previously announced funding to support E3's pilot plant includes a

$1.8M

grant from Alberta Innovates

and a

$27M

conditionally repayable investment from the Strategic Innovation Fund

to support a breadth of

development costs towards E3's commercial operations.

About E3 Lithium

E3 Lithium is a development company with total of 24.3 million tonnes of lithium carbonate equivalent

(LCE) inferred mineral resources1 in

Alberta

. As outlined in E3's Preliminary Economic Assessment,

the Clearwater Lithium Project has an NPV8% of

USD 1.1 Billion

with a 32% IRR pre-tax and

USD

820 Million

with a 27% IRR after-tax

1

. Through the successful scale up its DLE technology towards

commercialization, E3 Lithium's goal is to produce high purity, battery grade lithium products. With a

significant lithium resource and innovative technology solutions, E3 Lithium has the potential to deliver

lithium to market from one of the best jurisdictions in the world.

ON BEHALF OF THE BOARD OF DIRECTORS

Chris Doornbos

, President & CEO

E3 Lithium Ltd.

1: The Preliminary Economic Assessment (PEA) for the Clearwater Lithium Project NI 43-101 technical report is effective Sept 17, 2021. The mineral resource NI 43-101 Technical

Report for the North Rocky Property, effective October 27, 2017, identified 0.9Mt LCE (inferred). The mineral resource NI 43-101 Technical Report for the Bashaw District Project,

effective July 11, 2022, identified 23.4Mt LCE (inferred). All reports are available on the E3 Lithium's website (e3lithium.ca/technical-reports) and SEDAR (

www.sedar.com

).

Forward-Looking and Cautionary Statements

This news release includes certain forward-looking statements as well as management's objectives,

strategies, beliefs and intentions. Forward looking statements are frequently identified by such

words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring

to future events and results. Forward-looking statements are based on the current opinions and

expectations of management. All forward-looking information is inherently uncertain and subject to a

variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration

and development, fluctuating commodity prices, the effectiveness and feasibility of emerging lithium

extraction technologies which have not yet been tested or proven on a commercial scale or on the

Company's brine, competitive risks and the availability of financing, as described in more detail in our

recent securities filings available at

www.sedar.com

. Actual events or results may differ materially

from those projected in the forward-looking statements and we caution against placing undue

reliance thereon. We assume no obligation to revise or update these forward-looking statements

except as required by applicable law.

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.

SOURCE

E3 Lithium Ltd.

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/March2023/07/c6023.html

%SEDAR: 00011471E

For further information:

E3 Lithium - Investor and Media Relations: Robin Boschman, Director,

External Affairs, [email protected], 403-612-9498

CO: E3 Lithium Ltd.

CNW 13:00e 07-MAR-23