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ETL.V ·

E3 Metals Corp. News Announcement

Corporate Updates

DATE

July 18, 2017

TITLE

E3 Metals Corp. News

Announcement

HIGHLIGHTS

Vancouver, BC – July, 18 2017 – E3 METALS CORP. (TSX-V: ETMC, FSE: OU7A) (the “ Company ” or

“E3 Metals ”) is pleased to announce that it has initiated the first round of sampling (the “ Sampling Program ”)

for lithium at active oil and gas wells across the Company’s Alberta Lithium Project permit areas. The Company

has also arranged a non-brokered private placement to raise gross proceeds of up to $902,000 (the “ Offering ”).

The initial Sampling Program will begin this week a nd is expected to continue on an on-going basis for the next

2 to 3 months. The Company is focused on sampling areas to confirm the historic results reported in E 3 Metals’

Technical Report dated May 18, 2017 Geological Introduction to E3 Metals Corp. Clearwat er and Exshaw

Lithium-Brine properties In South Central Alberta, authored by Apex Geoscience Ltd. (available on SEDA R and

on the Company’s website at e3metalscorp.com). This will be an important component of the information

required to assist E3 Metals with completing an ini tial Mineral Resource estimate, as defined by Natio nal

Instrument 43-101. E3 Metals will also be sampling portions of the Leduc Reservoir that are not proxi mal to

historic results and have yet to tested for lithium.

E3 Metals Corp. Begins Well Sampling

Program Testing for Lithium and Announces

Non-Brokered Private Placement of up to

$902,000

DIRECTORS

Chris Doornbos

Paul Reinhart

Jeremy Read

Mike O’Hara

Peeyush Varshney

CONTACT INFORMATION

PO BOX 61187

Calgary AB T2N 4S6

+1 (877) 319-7634

[email protected]

e3metalscorp.com

o E3 Metals has initiated the first round of sampling of

Petro-Brine for lithium at active oil and gas producing

wells across the Alberta Lithium Project permit area

o E3 Metals is collaborating with multiple oil and gas

producers who have provided access and their assistance

in the collection of the samples

o Details of the Private Placement:

o Up to 670,000 flow-through common shares of the Company (“ Flow-

Through Shares ”) at a price of $.60 per Flow-Through Share.

o Up to 1,000,000 non flow-through common shares of the Company

(“ Common Shares ”) at a price of $.50 per Common Share.

TSXV: ETMC

FSE: OU7A

The Company has been provided access by several ope rators to wells and batteries for collection of pet ro-brine

samples to determine the concentration of lithium c ontained within. The Sampling Program is occurring at

multiple locations within the Company’s Metallic and Industrial Minerals (MIM) Permit area. After the samples

are collected in the field, they will be transporte d to accredited laboratories for analytical tests. The first results

from the Sampling Program are expected to be availa ble within 6 to 8 weeks. E3 Metals would like to th ank the

operators collaborating with the Company in relation to the Sampling Program.

The Offering will consist of a combination of (a) u p to 670,000 Flow-Through Shares at a price of $.60 per

Flow-Through Share and (b) up to 1,000,000 Common S hares at a price of $.50 per Common Share. The

Company has reserved a 15% oversubscription option.

In connection with the Offering, the Company has ag reed to pay finders (“ Finders ”) a cash fee in an amount up

to 7.0% of the gross proceeds of the Offering (the “ Finder’s Fee ”), to be paid at closing out of the gross

proceeds raised from the non flow-through portion o f the Offering. As additional consideration, the Co mpany

will grant to the Finders common share purchase war rants (the “ Finder’s Warrants”) entitling the Finders to

subscribe for up to that number of common shares eq ual to 10.0% of the aggregate number of Flow-Throug h

Shares and Common Shares sold in the Offering. Subj ect to regulatory approval, each Finder’s Warrant w ill be

exercisable to acquire one common share of the Comp any at a price equal to $.50 for a period of 12 mon ths after

the closing date of the Offering, subject to accele ration. If at any time between the Finder’s Warrant s’ expiry

date and the date that is four months and one day f rom the closing date, the closing price of the Comp any’s

common shares on the TSX Venture Exchange is equal to or greater than $.80 for 20 consecutive trading days,

then the Company may, at its sole option, elect to provide notice (the “ Acceleration Notice ”) to the holders of

the Finder’s Warrants by news release that the Find er’s Warrants will expire at 4:00pm Pacific Time on the date

that is 30 days from the Acceleration Notice (the “ Accelerated Expiry Date ”). In such instance, all Finder’s

Warrants that are not exercised prior to the Accele rated Expiry Date shall expire on such date. This acceleration

provision matches the acceleration provision applic able to share purchase warrants issued under the Co mpany’s

last private placement.

The net proceeds received from the Offering will be used, in part, to advance the timing of the Compan y’s plans

to complete a Mineral Resource estimate and for the research and development of potential lithium extr action

technology. The gross proceeds received by the Comp any from sale of the Flow-Through Shares will be us ed to

incur Canadian Exploration Expenses that are “flow- through mining expenditures” (as such terms are def ined in

the Income Tax Act (Canada)) on the Company’s mineral properties in t he aggregate amount equal to the total

amount of the gross proceeds raised from the issue of Flow-Through Shares (the “ Commitment Amount ”). The

Company will renounce these expenses pursuant to su bsection 66(12.6) in conjunction with subsection 66 (12.66)

of the Income Tax Act (Canada) to the subscribers in an amount equal to the Commitment Amount with an

effective date no later than December 31, 2017. The net proceeds from the sale of the Common Shares wi ll be

used to finance the Company’s petro-brine propertie s in south-central Alberta and for general working capital

purposes. All securities issued under the Offering will be subject to a four-month hold period from th e date of

issue in accordance with applicable securities laws . The Offering is subject to acceptance of the TSX Venture

Exchange.

ON BEHALF OF THE BOARD OF DIRECTORS,

Chris Doornbos, President & CEO

E3 METALS CORP.

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 use of proceeds of the Of fering,

the future renunciation of Canadian Exploration Exp enses that are flow-through mining expenditures, th e tax

treatment of the Flow-Through Shares, the future pe rformance of our business, its operations and its f inancial

performance and condition, as well as management’s objectives, strategies, beliefs and intentions. For ward-

looking statements are frequently identified by suc h words as “may”, “will”, “plan”, “expect”, “antici pate”,

“estimate”, “intend” and similar words referring to future events and results. Forward-looking stateme nts are

based on the current opinions and expectations of m anagement. All forward-looking information is inher ently

uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of

mineral exploration and development, fluctuating co mmodity prices, the future tax treatment of the Flo w-

Through Shares, competitive risks and the availabil ity of financing, as described in more detail in ou r 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 ag ainst placing undue reliance thereon. We assume no

obligation to revise or update these forward looking statements except as required by applicable law.