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E3 Lithium Outlines Demonstration Program Objectives to Advance Lithium Production in Alberta

Exploration Programs

Suite 1520 – 300 5th Ave SW

Calgary, AB T2P 3C4

Tel: +1 (587) 324-2775

Email: [email protected]

Website: e3lithium.ca

E3 Lithium Outlines Demonstration Program Objectives to Advance

Lithium Production in Alberta

CALGARY, ALBERTA, October 31, 2024 – E3 LITHIUM LTD. (TSXV: ETL) (FSE: OW3) (OTCQX: EEMMF), “E3

Lithium” or the “Company,” a leader in Canadian lithium, outlines the main objectives of its Demonstration

Facility Project (the “Demo Project”), aimed at producing battery-grade lithium carbonate from E3 Lithium’s

brine and lithium minerals resource1, located in Alberta. The Demo Project is supported by Emissions

Reduction Alberta (“ERA”), providing $5M CAD to support this important advancement for Alberta’s lithium

industry. The facility and equipment will be completed over the winter and in operation in mid-2025.

Overview of the Demonstration Program

The Demo Project will encompass the full suite of process operations, from brine production, pretreatment

and lithium carbonate production. The overarching goal is to replicate the functionality of the E3 Lithium

commercial system at a smaller scale, to test the cohesiveness of each unit when operated simultaneously.

The project will be divided into six main systems, each designed to operate as close to a commercial

system as possible.

1. Brine Production: likely to occur in two stages, the brine will be sourced from the aquifer to feed the

production equipment to generate lithium carbonate. A second stage will increase brine production

volume to emulate a commercial production well, testing the reservoir properties at this scale.

2. Pre-DLE Brine Treatment: separate the entrained gas in the brine, this step will remove these gases

using conventional petroleum industry two-phase separation equipment, producing a brine that can

be fed directly into the DLE system.

3. Scaled-up DLE system: A larger scale, fully automated, DLE system will be deployed to mimic, as

closely as possible, the same process operations that will be deployed in the commercial facility.

This includes the numbers of vessels per module, how brine enters and exits the vessels and the

sequence of rinse and desorption steps. The sorbent will be sourced from a third-party vendor for

the DLE system in line with our Pre-Feasibility Study (“PFS”).

4. Post- DLE Treatment: This step further concentrates and refines the lithium chloride from the DLE

system, optimized to produce battery-grade lithium as the final step.

5. Carbonation equipment: Sodium carbonate, sourced from a commercial supplier, will be added to

the lithium chloride in a reactor to produce battery-grade lithium carbonate. As outlined in E3

Lithium’s PFS, the byproduct of this step is sodium chloride (table salt), which can be added back

into the brine for disposal.

6. Water recovery: process water streams from the post-DLE treatment will be collected, where

appropriate, to be used as strip fluid for desorbing the lithium from the sorbent in the DLE step.

Suite 1520 – 300 5th Ave SW

Calgary, AB T2P 3C4

Tel: +1 (587) 324-2775

Email: [email protected]

Website: e3lithium.ca

As outlined, E3 Lithium is Commissioning the Carbonation Equipment in the laboratory in Calgary. The goal

is to operate the equipment at demonstration scale in the lab to build the necessary skill set and confirm

the operational parameters to enable the Company to produce consistent battery-grade lithium carbonate.

The remainder of the equipment is being sourced from manufacturers as per the E3 Lithium commercial

design specifications and requirements.

The Demo Project will be built and subsequently operated in defined phases:

1. The engineering and design of the equipment are well underway, with the focus on a design that

closely resembles a commercial operating unit.

2. Equipment manufacturing is set to begin in the new year, with an expected four to five months to

delivery on site.

3. Commissioning will occur on-site with brine that has already been produced, accelerating the

commissioning process.

4. Once the system is operating to the designed specifications, the live brine stream will be

connected, enabling end-to-end operations to produce battery-grade lithium carbonate.

The lithium carbonate can be further converted to lithium hydroxide with one of our partner equipment

vendors to define the process operations for that final step.

The success of our Demo Project, operated from our field location in Alberta, will achieve two essential

objectives:

Confirm the process to achieving battery-grade lithium carbonate under commercial conditions.

Provide consistent product to our potential customers over an extended period produced by E3

Lithium

Similar to the Field Pilot Project, further details on the specific operating objectives will be outlined for the

Demo Project closer to its operational start.

“The success of the demonstration project will provide critical data and validation to our processes, while

enabling our commercial initiatives,” said Chris Doornbos, President and CEO of E3 Lithium. “Completing

these milestones and reducing technical risks for the Clearwater Project—and the lithium industry in Alberta

as a whole—will strengthen our path to commercial operations and reinforces E3 Lithium’s long-term growth

strategy.”

ON BEHALF OF THE BOARD OF DIRECTORS

Chris Doornbos, President & CEO

E3 Lithium Ltd.

E3 Lithium - Investor Relations

Suite 1520 – 300 5th Ave SW

Calgary, AB T2P 3C4

Tel: +1 (587) 324-2775

Email: [email protected]

Website: e3lithium.ca

Alexis de la Renaudiere

Investor Relations

[email protected]

587-324-2775

About E3 Lithium

E3 Lithium is a development company with a total of 16.2 million tonnes of lithium carbonate equivalent

(LCE) Measured and Indicated 1 as well as 0.9 million tonnes LCE Inferred mineral resources2 in Alberta and

2.5 million tonnes LCE Inferred mineral resources3 in Saskatchewan. The Clearwater Pre-Feasibility Study

outlined a 1.13 Mt LCE proven and probable mineral reserve with a pre-tax NPV8% of USD 5.2 Billion with a

29.2% IRR and an after-tax NPV8% of USD 3.7 Billion with a 24.6% IRR1. E3 Lithium’s goal is to produce high

purity, battery-grade lithium products to power the growing electrical revolution. 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.

1: The Clearwater Project NI 43-101 Pre-Feasibility Study, effective June 20, 2024, is available on the E3

Lithium’s website (https://e3lithium.ca/our-assets/technical-reports/) and SEDAR+ (www.sedarplus.ca).

2: The mineral resource NI 43-101 Technical Report for the North Rocky Property, effective October 27,

2017, identified 0.9 Mt LCE (inferred) and is available on the E3 Lithium’s website (e3lithium.ca/technical-

reports) and SEDAR+ (www.sedarplus.ca).

3: The mineral resource NI 43-101 Technical Report for the Estevan Lithium District, effective May 23, 2024,

identified 2.5 Mt LCE (inferred) and is available on the E3 Lithium’s website (e3lithium.ca/technical-reports)

and SEDAR+ (www.sedarplus.ca).

Forward-Looking and Cautionary Statements

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

strategies, beliefs and intentions or forward-looking information within the meaning of applicable securities

laws. Forward-looking statements are frequently identified by such words as “believe”, “may”, “will”, “plan”,

“expect”, “anticipate”, “estimate”, “intend”, “project”, “potential”, “possible” and similar words referring to

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

estimates and assumptions of management in light of its experience, perception of historical trends, and

results of the PFS, but such statements are not guarantees of future performance. In particular, this news

release contains forward-looking information relating to: the estimated mineral resources and mineral

resources at the Clearwater Project; expectations regarding the PFS, including statements regarding the

results of the PFS and interpretations thereof; expectations concerning the Clearwater Project, including

extraction, production, pretreatment, purification, volume reduction and conversion process and features

and the expected outcomes thereof; the expected economic performance of the Clearwater Project,

including capital costs, operating costs, water usage, land use and carbon emissions; statements regarding

the Company’s strategy for minimizing environmental impact and liquid waste and maximizing water reuse,

with no planned tailings or waste piles; the potential for a secondary revenue stream should the Company

be able to sell the calcium carbonate generated during the production of lithium hydroxide; plans and

objectives of management for the Company’s operations and the Clearwater Project; and the inherent

Suite 1520 – 300 5th Ave SW

Calgary, AB T2P 3C4

Tel: +1 (587) 324-2775

Email: [email protected]

Website: e3lithium.ca

hazards associated with mineral exploration and mining operations. In preparing the forward-looking

information in this news release, the Company has applied several material assumptions, including, but not

limited to, that any additional financing needed will be available on reasonable terms; the exchange rates

for the U.S. and Canadian currencies will be consistent with the Company’s expectations; that the current

exploration, development, environmental and other objectives concerning the Clearwater Project can be

achieved and that its other corporate activities will proceed as expected; that the current price and demand

for lithium will be sustained or will improve; that general business and economic conditions will not change

in a materially adverse manner and that all necessary governmental approvals for the planned activities on

the Clearwater Project will be obtained in a timely manner and on acceptable terms; the continuity of the

price of lithium.

All forward-looking information (including future-orientated financial 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, risks related to the availability of financing on commercially reasonable terms and the

expected use of proceeds; operations and contractual obligations; changes in estimated mineral reserves or

mineral resources; future prices of lithium and other metals; availability of third party contractors;

availability of equipment; failure of equipment to operate as anticipated; accidents, effects of weather and

other natural phenomena and other risks associated with the mineral exploration industry; the Company’s

lack of operating revenues; currency fluctuations; risks related to dependence on key personnel; estimates

used in financial statements proving to be incorrect; competitive risks and the availability of financing, as

described in more detail in our recent securities filings available under the Company’s profile on SEDAR+ at

www.sedarplus.ca. 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.