Critical Elements drills 1.1% Li2O over 21.7 metres at Rose, Quebec

Critical Elements Lithium Corp. [CRE-TSXV; CRECF-OTCQX; F12-FSE] reported results from the recent infill drill program completed on the Rose lithium-tantalum project, James Bay region, northern Quebec. The corporation completed a 2,382-metre drill program, encompassing 13 drill holes.

The program was designed to collect more geotechnical information for the optimization of mining engineering and at the same time to better tighten the drilling resolution in the eastern part of the deposit.

Selected drill intersection highlights include: LR-22-188A that returned 1.33% Li₂O and 66.41ppm Ta₂O₅ over 13.20 metres. LR-22-189: 1.79% Li₂O and 220.39 ppm Ta₂O₅ over 4.10 metres and 1.66% Li₂O and 85.91 ppm Ta₂O₅ over 5.20 metres. LR-22-190: 1.78% Li₂O and 205.62 ppm Ta₂O₅ over 7.60 metres and 1.52% Li₂O and 119.22 ppm Ta₂O₅ over 6.90 metres.

LR-22-192: 1.41% Li₂O and 216.49 ppm Ta₂O₅ over 8.70 metres. LR-22-193: 1.05% Li₂O and 197.10 ppm Ta₂O₅ over 14.20 metres. LR-22-194: 1.06% Li₂O and 137.81 ppm Ta₂O₅ over 9.30 metres. LR-22-195: 1.05% Li₂O and 226.53 ppm Ta₂O₅ over 5.00 metres. LR-22-196: 1.12% Li₂O and 60.04 ppm Ta₂O₅ over 12.90 metres. LR-22-197: 1.10% Li₂O and 63.64 ppm Ta₂O₅ over 21.70 metres.

This phase of drilling has been valuable in providing more geotechnical data that will be incorporated into the final mine plan.

A 5,554-meter, 31-hole winter drill program was conducted on the Lemare zone and data is being compiled. Critical Elements intends to pursue further work on Lemare over the summer with surface mapping and a sampling program follow by drilling. Lemare is well-situated within 3 km of road access and is an excellent candidate for initial technical studies.

Rose Lithium-Tantalum Project update: The corporation is pleased to report that the front-end engineering design (FEED) and value engineering studies for the process plant and associated infrastructure were completed during the first quarter of 2023.

Bumigeme Inc. performed a gap analysis of the process plant, focusing on design review, optimization, and risk mitigation for any potential issues with the process flowsheet developed during the feasibility study.

On completion of the gap analysis, Bumigeme Inc., BBA, WSP and other specialists in planning and industrial processes commenced a new study with the aim of improving and freezing the 3D model layout for all equipment and defining data sheets to fulfill long lead time equipment orders.

Critical Elements awarded the detailed engineering mandate for the process plant and the main electrical station to the BBA team.

All detailed engineering mandates have now been granted to partners WSP, BBA and InnovExplo. Critical Elements has all the necessary funds to complete the detailed engineering phase. Overall engineering is progressing well, and we are over 35% complete. Key engineering deliverables will be completed during the summer period to allow, if project financing and building permits are in place, to begin deforestation and initial preparation work by the end of the year.

As noted earlier this year, Critical Elements commenced a formal process to receive and analyze multiple expressions of interest in participating in the financing and development of the Rose Project. This process has advanced such that multiple parties have provided comprehensive, non-binding expressions of interest to participate that compare favourably to the initial capital estimate outlined in the Project’s 2022 Feasibility Study (see press release dated June 13, 2022.

Critical Elements will continue to progress discussions with the leading parties, subject to negotiating acceptable financing terms and conditions, as well as satisfactory due diligence and entering into the required definitive documentation.

Critical Elements is advancing the wholly owned, high purity Rose lithium project in Quebec, the corporation’s first lithium project to be advanced within a land portfolio of over 1,000 km². On June 13th, 2022, the corporation announced results of a feasibility study on Rose for the production of spodumene concentrate. The after-tax internal rate of return for the Project is estimated at 82.4%, with an estimated after-tax net present value of US$1.9 B at an 8% discount rate.

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