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ETL.V ·

E3 Metals Corp. News Announcement o E3 Metals completes a non-brokered private placement:  Fully subscribed raising with gross proceeds of $903,200  738,666 flow through common shares (the “Flow Through Shares ”) at a price of $0.60 per Flow

Financings

DATE

August 21, 2017

TITLE

E3 Metals Corp. News

Announcement

o E3 Metals completes a non-brokered private placement:

 Fully subscribed raising with gross proceeds of

$903,200

 738,666 flow through common shares (the “Flow

Through Shares ”) at a price of $0.60 per Flow

Through Share

 920,000 non-flow through common shares (the

“Common Shares”) at a price of $0.50 per

Common Share

o

HIGHLIGHTS

Vancouver, BC – August 21, 2017 – E3 METALS CORP. (TSX-V: ETMC, FSE: OU7A) (the “Company”

or “E3 Metals”)”) is pleased to announce it has completed a fully subscribed private placement, raising gross

proceeds of $903,200 . The non-brokered priv ate placement (the " Offering") includes a combination of (a)

920,000 non-flow through common shares (the “ Common Shares”) at a price of $0.50 per Common Share and

(b). 738,666 flow through common shares (the “ Flow Through Shares ”) at a price of $0.60 per Flow Through

Share

Chris Doornbos, President and CEO of the Company, st ated: “We are very pleased to have closed this

oversubscribed common share private placement and welcom e our new shareholders to the Company. Inclusive

of the Offering, the Company has raised approximately $1,760,000 over the past 6 months and after closing the

Offering, has only 15,404,687 shares issued and outstandi ng. The completion of this financing will allow us to

progress the development of our Alberta Lithium Project (the “ Project”) at a quicker pace. The flow-through

shares will be employed directly to fund lithium sampling, leading to a potential NI 43-101 resource, and lithium

extraction test work (metallurgical testing). We are particul arly pleased with the fact that we have been able to

attract sophisticated high net worth investors who have invested for the potential of our Project and, in part, to

leverage to the market capitalisation upside. We look forward to keeping our investors apprised of our progress.”

The gross proceeds from the 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 defined in the Income Tax Act

(Canada) on the Company’s mineral properties in the 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

E3 Metals Corp. Closes Fully Subscribed Non-

Brokered Private Placement

DIRECTORS

Chris Doornbos

Paul Reinhart

Jeremy Read

Mike O’Hara

Peeyush Varshney

CONTACT INFORMATION

205 – 227 10th St NW Calgary,

AB T2N 1V5

+1 (877) 319-7634

[email protected]

e3metalscorp.com

TSXV: ETMC

FSE: OU7A

renounce these expenses pursuant to subsection 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.

All securities issued under the Offering are subject to a four-month hold period from the date of issue in

accordance with applicable securities laws. In conn ection with the Offering, the Company has paid finders' fees

of $51,254 and issued 131,866 non-transferable finders' warrants (the “ Finder’s Warrants”) to certain finders

in accordance with app licable securities laws and the policies of the TSX Venture Exchange. Each Finder’s

Warrant entitles the holder acquire one Common Share at a price equal to $0.50 for a period of 12 months from

the closing date of the Offering, subj ect to acceleration as more particular ly described in the Company’s news

release of July 18, 2017.

Mike O’Hara, director of the Company, subscribed for 10,000 Flow Through Shares under the Offering. The

subscription by Mr. O’Hara constitutes a related-part y transaction under Multilateral Instrument 61-101

Protection of Minority Security Ho lders in Special Transactions (“ MI 61-101 ”). Because the value of the

subscription is less than 25 per cent of the Company’ s market capitalization, it is exempt from the formal

valuation and minority shareholder approval requirements of MI 61-101.

ON BEHALF OF THE BOARD OF DIRECTORS

Chris Doornbos, P.Geo

President & CEO

Neither the TSX Venture Exchange nor its Regulation Servi ces Provider (as that term is defined in the policies

of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.