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E3 Lithium Submits Directive 056 Facility Licence Application as Next Step in Clearwater Project Development An approved Directive 056 and EPEA from the AER are the key permits required from the provincial government authority to construct and operate the central processing facility for the Clearwat

Mine Development & Operations Permits & Approvals Metallurgy & Processing

Suite 1520 – 300 5th Ave SW

Calgary, AB T2P 3C4

Tel: +1 (587) 324-2775

Email: [email protected]

Website: e3lithium.ca

E3 Lithium Submits Directive 056 Facility Licence Application as Next

Step in Clearwater Project Development

An approved Directive 056 and EPEA from the AER are the key permits required from the provincial government

authority to construct and operate the central processing facility for the Clearwater Project

CALGARY, ALBERTA, January 20, 2026 – E3 LITHIUM LTD. (TSXV: ETL) (FSE: OW3) (OTCQX: EEMMF), “E3 ”,

“E3 Lithium” or the “Company,” a leader in Canadian lithium development, has formally submitted an

application to the Alberta Energy Regulator (“AER”) in accordance with Directive 056: Energy Development

Applications and Schedules (“D56”), for its Clearwater Project’s Central Processing Facility (“CPF”).

“Today E3 reached a major milestone for our flagship Clearwater Project in Alberta, with the submission of the

D56 facility licence,” said Chris Doornbos, President and CEO of E3 Lithium . "Paired with the EPEA application

previously submitted this past November , w e are working closely with our local stakeholders through the

permitting process, and we appreciate all the feedback we have received on the submission. At full capacity, this

one facility could create hundred s of jobs, both on and off -site, and the construction is estimated to employ

thousands of drillers, pipefitters, welders, machinists, professionals, etc., all from Alberta's workforce."

In late 2025, the Company submitted its Environmental Protection and Enhancement Act (“EPEA”) application.

The Company’s submission of D56 application is submitted in conjunction with the EPEA application, following

formal consultation and notification of stakeholders in the area surrounding the CPF initiated in late 2025 .

These two applications, the Central Process Facility D56 and EPEA, are the critical permits required to build

and operate the facility. Additional applications for the wells, pipeline and scheme approval, along with a few

others referenced in the Company's corporate presentation, will be applied for through the balance of 2026 ,

and together will give E3 the required provincial government authority to construct and operate the CPF . An

approved D56 licence will demonstrate that the CPF meets Alberta’s safety, environmental, and land -use

standards, and that E3 Lithium has completed meaningful engagement with stakeholders.

E3 Lithium continues to progress the development of its Clearwater Project , including significant

advancements made to its technical, regulatory and commercial plans to date. The Company recently delivered

battery-grade lithium carbonate to global partners and off-takers which was made through the Demonstration

Program being conducted with in E3’s flagship Clearwater Project. The Company has proposed a staged

development plan with a capacity of 12,000 tonnes of lithium carbonate per year as first stage of production.

ON BEHALF OF THE BOARD OF DIRECTORS

Chris Doornbos, President, CEO & Chair

E3 Lithium Ltd.

Suite 1520 – 300 5th Ave SW

Calgary, AB T2P 3C4

Tel: +1 (587) 324-2775

Email: [email protected]

Website: e3lithium.ca

E3 Lithium - Investor Relations

[email protected]

587-324-2775

E3 Lithium - Media Inquiries

[email protected]

587-324-2775

About E3 Lithium

E3 Lithium is a development company with a total of 21.2 million tonnes (Mt) of lithium carbonate

equivalent (LCE) Measured and Indicated 1 as well as 0.3 Mt LCE Inferred mineral resources 2 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).

Unless otherwise indicated, Kevin Carroll, P. Eng., Chief Development 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: approvals for permits and licences; the Company’s

expectations regarding the production of lithium carbonate; plans and objectives of management for the

Company’s operations of the Demonstration Facility ; and the inherent 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 expectati ons; that the current exploration, development, environmental and

Suite 1520 – 300 5th Ave SW

Calgary, AB T2P 3C4

Tel: +1 (587) 324-2775

Email: [email protected]

Website: e3lithium.ca

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.

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 reas onable 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.