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E3 Metals Corp. Begins Development of a Field Pilot Plant to Test Its Rapid Lithium Extraction

Exploration Programs Metallurgy & Processing

E3 Metals Corp. Begins Development of a

Field Pilot Plant to Test Its Rapid Lithium

Extraction

HIGHLIGHTS

Development of E3 Metals' ion-exchange and extraction technology underway at

commercial facilities

Development of flow sheet will utilize E3's lithium extraction technology combined with

existing lithium production technology

CALGARY

,

Sept. 26

2018 /CNW/ - E3 METALS CORP. (TSXV: ETMC) (FSE: OU7A) (OTC:

EEMMF) (the "Company" or "E3 Metals") is pleased to announce it has begun the development of its

field pilot plant which will incorporate E3's proprietary concentration technology to further validate the

lithium extraction component of the process flow sheet. This technology has the potential to unlock

significant value from E3's expansive lithium resources of 6.7 Mt LCE (inferred)

1

in the Leduc

Reservoir in

Alberta

. E3 Metals owns 76 Alberta Metallic and Industrial Minerals Permits totalling

over 596,000 hectares, or over 1.47 million acres. Our current resources cover only 34% of the total

Leduc Reservoir that E3 Metals currently holds.

The further development of E3's lithium production step involved in the generation of lithium hydroxide

and lithium carbonate will occur at commercial facilities and with partnering EPC firms. This allows

E3 to continue to de-risk its proposed lithium production flowsheet (Figure 1) and advance towards

technical disclosure through a pre-feasibility study of its direct-brine process.

Pilot Plant Design and Timeline

E3 Metals has recently partnered with both GreenCentre Canada and the

National Research Council

of Canada, with support from Alberta Innovates (GCC – AI) and the NRC's Industrial Research

Assistance Program (NRC – IRAP) respectively. These partnerships are to advance E3's ion-

exchange technology developed by the Alessi Lab at the

University of Alberta

to commercial

readiness. These facilities are working towards developing a commercially scalable lithium

extraction process. The results of this work are expected to provide a commercial chemical sorbent.

They will also determine the design parameters for the mechanical equipment required for the ion-

exchange process that should provide all of the inputs required for the design of E3 Metals' pilot

plant. The development plan for E3 Metals for the next 6 months includes:

1

.

Demonstrating repeatability of the

University of Alberta's

extraction technology development at

commercial facilities (GCC – AI and NRC – IRAP)

2

.

Increasing the performance efficiencies of the ion-exchange process by increasing recovery,

concentration factor and lithium uptake

3

.

Developing a commercially scalable ion-exchange sorbent material

4

.

Constructing ion-exchange equipment in a lab environment to refine the mass balance and

generate volumes of concentrate

5

.

Producing lithium hydroxide at the lab scale

6

.

Finalizing the lithium production process flow sheet

7

.

Finalizing the design of the pilot plant

Figure 1: Overview of E3’s Proposed Process Flow Sheet (CNW Group/E3 Metals Corp.)

Lithium Production Process Flow Sheet

E3's proposed lithium production flow sheet, outlined in Figure 1, breaks into three main steps. The

first step involves pumping the lithium enriched brine from the

Leduc

reservoir to the surface. The

second step is creating a higher-grade lithium concentrate that utilizes E3's proprietary ion-exchange

process. The third step generates the final lithium product (lithium hydroxide or carbonate) by further

purification, electrolysis and crystallization.

Step 1: Brine Production and Injection

One of the differentiators that sets E3's project apart is the Leduc Reservoir's ability to produce vast

quantities of lithium-enriched brine. Unique to this reservoir, a single well could produce more than

10,000 m3/d (116 l/s). In the Clearwater Resource area alone, the reservoir contains enough brine

to produce 50,000 tonnes LCE/yr for over 35 years

1

. In

Alberta

, lithium enriched brine is currently

being produced at surface and is subsequently re-injected back into the reservoir through oil and gas

production facilities. E3 plans to use this produced water at surface for the pilot project and avoid

the capital costs associated with drilling a well.

Step 2: Lithium Extraction

The development of the lithium extraction technology by E3 Metals, chemically filters the lithium from

the brine to form a concentrate, with the lithium void waste stream being re-injected back into the

reservoir via a sealed ("closed-loop") system. E3's technology utilizes ion-exchange, a well

understood process capable of treating large volumes of water. E3 has developed a proprietary

chemical sorbent for use in the ion-exchange process that is highly selective for lithium and

consequently has very low selectivity for other metals such as Mg and Ca (

see E3 Metals

May 29, 2018

announcement

). This process happens rapidly, in about 3 hours, as

opposed to 18-24 months for conventional evaporative solars. As such, E3 has demonstrated that it

has the ability to rapidly concentrate and clean the brine in one step. This produces a relatively clean

and high-grade concentrate feedstock for the third step of the lithium production process.

Step 3: Lithium Production

E3 Metals is working with several commercial facilities and EPC firms who have infrastructure and

expertise in place to take E3's concentrate feedstock and generate a lithium product. One of the

benefits of E3's process flow sheet is the flexibility to produce either lithium hydroxide or lithium

carbonate. E3 is focusing its efforts on developing a high purity lithium hydroxide due to the premium

paid for the product by battery cathode manufacturers. This process involves electrolysis and

crystallization to generate lithium hydroxide and is similar to processes utilized by other lithium

companies globally. There are potential capital and operating cost benefits associated with the

production of lithium carbonate and E3 is therefore exploring both alternatives in tandem.

Other Development Goals

The planned operation of the pilot plant and the subsequent testing of E3's concentrate feedstock in

conventional lithium extraction process facilities at this scale will allow E3 to complete the front-end

engineering design (FEED) for a process facility. During this time, E3 plans to upgrade a portion of

its 6.7Mt (million tonne) Inferred resource to Measured and Indicated and complete a full cycle

project economics analysis to pre-feasibility study (PFS) level. At this point, E3 intends to produce a

compliant PFS 43-101 report outlining this information to the market.

The spot price for lithium carbonate is between

USD 12,100

to

USD 13,000

and for lithium hydroxide

between

USD 18,100

to 18,800

2

.

About E3 Metals Corp

.

E3 Metals is a Petro-Lithium company rapidly advancing the development of direct recovery lithium

brine projects in

Alberta

. E3 Metals holds lithium resources at 6.7 Mt LCE (inferred)

1

. The Company

has a compelling competitive advantage by virtue of having access to extensive infrastructure built by

the Oil and Gas industry in

Alberta

. This has provided E3 Metals with low finding costs, as the

Company has been able to sample existing wells to define its resource. This infrastructure may also

provide wells and pipelines for a future lithium production operation, potentially reducing the

Company's future capital requirements. The Company's goal is to develop a commercially viable

lithium extraction and production process and to demonstrate the economic viable of commercial

production of its Alberta Petro-Lithium brine resource. More information about E3 Metals can be

found on our website by visiting:

www.e3metalscorp.com

.

ON BEHALF OF THE BOARD OF DIRECTORS,

Chris Doornbos

, President & CEO

E3 METALS CORP.

Chris Doornbos

(P.Geo), CEO and Director of E3 Metals Corp., is a Qualified Person as defined by

NI 43-101 and has read and approved the technical information contained in this announcement.

1:

E3 Metals has released information on three 43-101 Technical Reports totalling a resource of 6.7 Mt LCE. The Central Clearwater Resource Area (CCRA) Technical Report,

identifying 1.9Mt LCE (inferred), is dated effective October 27, 2017, and the North Rocky Resource Area (NRRA) Technical Report was dated effective October 27, 2017,

identifies 0.9Mt LCE (inferred). A third report for the Exshaw West Resource Area (EWRA), identifies 3.9Mt LCE (inferred) and was filed on June 15

th

2018, effective June 4

th

2018. All reports are available on SEDAR (

www.sedar.com

)

2:

Argus Media: https://www.argusmedia.com/

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.

This news release includes certain forward-looking statements concerning the potential of the

Company's projects to produce saleable lithium byproducts, including LCE, the future performance of

our business, its operations and its financial performance and condition, 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.

SOURCE

E3 Metals Corp.

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/September2018/26/c2767.html

%SEDAR: 00011471E

For further information:

205 - 227 10th St NW, Calgary, AB T2N 1V5, +1 (587) 324-2775,

[email protected], e3metalscorp.com

CO: E3 Metals Corp.

CNW 03:05e 26-SEP-18