E3 Lithium Releases Q2 2026 Results and Advances Key Strategic Milestones Continued strategic, operational and partnership progress in Q2 driving the Clearwater Project toward commercialization
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Website: e3lithium.ca
E3 Lithium Releases Q2 2026 Results and Advances Key Strategic
Milestones
Continued strategic, operational and partnership progress in Q2 driving the Clearwater Project toward
commercialization
CALGARY, ALBERTA, August 20, 2026 – E3 LITHIUM LTD. (TSXV: ETL) (FSE: OW3) (OTCQX: EEMMF), “E3 ”,
“E3 Lithium” or the “Company,” a leader in Canadian lithium development, filed its unaudited consolidated
financial statements for the three-month period ended June 30, 2026, and the accompanying Management
Discussion and Analysis (“MD&A”) on SEDAR (www.sedarplus.ca).
"The second quarter of 2026 built on the momentum established earlier in the year, with continued
execution across our technical, strategic, and organizational priorities," said Chris Doornbos, CEO & Chair
of E3 Lithium. "We successfully commissioned Phase 2 of our Demonstration Facility, confirmed funding
of up to $36.5 million from Natural Resources Canada, progressed strategic partnership with Germany’s
TKMS, advanced our European market access strategy, and further strengthened our leadership team as
we move closer to construction. Taken together, the quarter reflected disciplined execution across every
pillar of our strategy, partnerships, technical de-risking, growth strategy, and leadership, as we advance
Clearwater toward commercial production."
Key Highlights During Q2 2026
Signed Teaming Agreement with TKMS to Support Critical Minerals Supply
• In April 2026, E3 entered into a Teaming Agreement with Germany's TKMS, a leading provider of
naval vessels, surface ships, and submarines, establishing a strategic framework to support the
Canadian Patrol Submarine Project (“CPSP”), with potential financial contribution to E3 aligned
with Canada's Industrial and Technological Benefits (“ITB”) policy.
Commenced and Successfully Commissioned Phase 2 of the Demonstration Facility
• During the quarter, E3 completed its well pair development and commissioned Phase 2 of the
Demonstration Facility. The Company’s reservoir production test confirmed lithium
concentrations of 75.8 mg/L and a steady-state flow rate of 1,400 m³/day, independently
validated and consistent with brine chemistry across the Clearwater and greater Bashaw District.
Provided an Update on the Company’s Strategic Growth and Direction for Long-Term Value Creation
• In May 2026, E3 outlined its long-term growth strategy, reaffirming the Clearwater Project as its
top priority, targeting Stage 1 production of 12,000 tonnes of lithium carbonate per year with
potential to scale to 150,000 tonnes annually. The Company also initiated a strategic review of its
non-core Garrington District asset (5.0 million tonnes LCE M&I resource) and outlined plans to
pursue global development opportunities and battery vertical integration, including potential
cathode partnerships.
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Email: [email protected]
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Welcomed Tom Gear as Chief Operating Officer
• In June 2026, E3 appointed Tom Gear as Chief Operating Officer, bringing nearly three decades of
large-scale industrial development and operations experience including senior roles at MEG
Energy and Suncor.
Executed Contribution Agreement Underpinning up to $36.5 Million in Federal Support
• On June 8, 2026, E3 executed its contribution agreement confirming up to $36.5 million in non-
repayable funding through Natural Resources Canada’s (“NRCan”) Global Partnerships Initiative
(“GPI”). The funding covers 75% of the Company's approximately $48 million project to complete
Phase 3 of the Demonstration Facility and the Clearwater Project Feasibility Study.
Significant Undrawn Government Grants of $51.3 million
• As of June 30, 2026, the Company had $51.3 million of undrawn Government grants which will
support E3’s ongoing activities, including completion of the Demonstration Facility, as the
Company advances toward FID and commercialization.
Key Highlights Subsequent to Q2 2026
Canadian Government Confirmed TKMS as Preferred Bidder for CPSP
• Subsequent to the quarter, the Canadian Government confirmed TKMS as the preferred supplier
for the CPSP.
Advancing European Market Strategy Through Collaboration Agreement with Tees Valley Lithium
• On July 9, 2026, E3 entered into a non-binding Collaboration Agreement with Tees Valley Lithium
Ltd. (“TVL”), a wholly owned subsidiary of Alkemy Capital Investments plc. This agreement
establishes a framework for E3 to utilize TVL's UK refinery to convert lithium carbonate produced
from its Clearwater Project into battery-grade lithium hydroxide, contemplating up to 50,000
tonnes over an initial 10-year term to support European offtake relationships.
E3 expects continued advancement of its Clearwater Project throughout 2026. Key priorities include
ongoing operations and developing the final phase of the Demonstration Facility, advancing the
Feasibility Study, and continuing engagement with strategic partners, potential offtake counterparties,
and government stakeholders as it advances Clearwater Project commercialization and evaluates broader
opportunities across the battery supply chain.
Additionally, the Company’s Board of Directors (the "Board") has approved the grant of incentive stock
options ("Options"), restricted share units ("RSUs"), and performance share units ("PSUs") to certain
directors, officers, and new employees of the Company in accordance with the Company's Omnibus
Equity Incentive Plan (the "Plan") and subject to the policies of the TSX Venture Exchange. The Company
granted an aggregate of 2,390,000 Options to purchase common shares of the Company ("Shares"),
comprised of Options exercisable to acquire up to 1,940,000 Shares granted on August 7, 2026 at an
exercise price of $1.07 per Share, and Options exercisable to acquire up to 450,000 Shares granted on
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August 14, 2026 at an exercise price of $1.08 per Share, in each case exercisable for a period of five years
from the date of grant and vesting of 25% on each of the first, second, third and fourth anniversaries of
the date of grant. The Company also granted an aggregate of 570,000 RSUs, vesting over periods ranging
from one to four years from the date of grant, as determined by the Board for each recipient and an
aggregate of 166,000 PSUs (which may be settled through the issuance of up to a maximum of 249,000
Shares upon vesting assuming achievement of all maximum performance multipliers), which will vest
upon achievement of the following performance goals during a 24-month performance period:
• Successful completion of phase 2 of the demonstration facility;
• Completion of Clearwater project to shovel ready;
• Continued financing, including grant funding, of the Company.
No RSUs or PSUs will vest earlier than one year from the date of grant.
ON BEHALF OF THE BOARD OF DIRECTORS
Chris Doornbos, CEO & Chair
E3 Lithium Ltd.
E3 Lithium - Investor Relations
587-324-2775
E3 Lithium - Media Inquiries
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About E3 Lithium
E3 Lithium is a development company with a total of 21.2 million tonnes of lithium carbonate equivalent
(LCE) Measured and Indicated1 as well as 0.3 Mt LCE Inferred mineral resources2 in Alberta. The Clearwater
Pre-Feasibility Study outlined a 1.13 Mt LCE proven and probable mineral reserve with a pre -tax NPV(8%)
of USD 5.2 Billion with a 29.2% IRR and an after-tax NPV(8%) of USD 3.7 Billion with a 24.6% IRR1.
1: The Clearwater Project NI 43-101 Pre-Feasibility Study, effective June 20, 2024, identified 16.2 Mt LCE
(measured and indicated) and is available on the E3 Lithium’s website (www.e3lithium.ca/technical-
reports/) and SEDAR+ (www.sedarplus.ca).
2: The mineral resource NI 43-101 Technical Report for the Garrington District Lithium Resource Estimate,
effective June 25, 2025, identified 5.0 Mt LCE (measured and indicated) and 0.3 Mt LCE (inferred) and
is available on the E3 Lithium’s website (www.e3lithium.ca/technical-reports/) and SEDAR+
(www.sedarplus.ca).
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Calgary, AB T2P 3C4
Tel: +1 (587) 324-2775
Email: [email protected]
Website: e3lithium.ca
Unless otherwise indicated, Chris Doornbos, P. Geo., Chief Executive Officer and a Qualified Person under
National Instrument 43-101, has reviewed and approved the technical information contained on this news
release.
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: E3's plans
to advance the Clearwater Project toward commercial production and a Final Investment Decision
("FID"); the timing and completion of Phase 3 of the Demonstration Facility; the advancement and
completion of the Clearwater Project Feasibility Study; the Company's plans to draw on its undrawn
government grants, including the $51.3 million available as of June 30, 2026, to support its ongoing
activities, including completion of the Demonstration Facility; the use and sufficiency of the up to $36.5
million in non-repayable funding from Natural Resources Canada's Global Partnerships Initiative ("GPI")
to complete Phase 3 of the Demonstration Facility and the Clearwater Project Feasibility Study; the
anticipated total cost of approximately $48 million for the Phase 3 and Feasibility Study project, and the
expectation that GPI funding will cover 75% of such costs; the anticipated benefits to E3 arising from its
Teaming Agreement with Germany's TKMS, including any potential financial contribution and its
alignment with Canada's Industrial and Technological Benefits ("ITB") policy; the strategic collaboration
between TKMS and E3 following the Canadian Government's confirmation of TKMS as the preferred
bidder for the Canadian Patrol Submarine Project ("CPSP"), and any resulting benefits to E3; the potential
outcomes of the non-binding Collaboration Agreement with Tees Valley Lithium Ltd. ("TVL"), including
the contemplated conversion of up to 50,000 tonnes of lithium hydroxide over an initial 10-year term,
and E3's ability to support offtake relationships in the European market; E3's plans to continue
engagement with strategic partners, potential offtake counterparties, and government stakeholders; E3's
plans to evaluate broader opportunities across the battery supply chain; and the continued advancement
of the Clearwater Project throughout 2026.
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 Demonstration Facility can be achieved and that its other corporate activities will proceed
as expected; 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 Demonstration
Facility will be obtained in a timely manner and on acceptable terms.
Suite 1520 – 300 5th Ave SW
Calgary, AB T2P 3C4
Tel: +1 (587) 324-2775
Email: [email protected]
Website: e3lithium.ca
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+ (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.