MAY 14, 2014 – MONTREAL, QUEBEC – Critical Elements Corporation (TSX-V: CRE) (US OTCQX: CRECF) (FSE: F12) is pleased to announce that it has started shipping samples of lithium concentrate to a number of users for analysis and validation of the product specifications. The concentrate samples have a low IRon content, which is specifically required by certain users. Validation of the Rose project material by some of the largest consumers of lithium concentrate with low IRon content is part of the process of setting up long-term off-take contracts.
Concurrently, the Critical Elements Corporation team will launch a program over the coming months to produce a number of lithium carbonate samples. These samples will be shipped to battery manufacturers that the Company met with in the past year, for specification analysis and validation.
The Critical Elements Corporation team is also pursuing discussions with a number of potential users of lithium carbonate and Tantalum with the goal of entering into long-term sales contracts.
Critical Elements is also pleased to announce that its President & CEO, Jean-Sébastien Lavallée, has been invited to sPEAk at the 6th Lithium Supply & Markets Conference in Montréal on May 20-22, 2014, hosted by Industrial Minerals.
About Critical Elements Corporation
Critical Elements is actively developing its 100%-owned Rose Lithium-Tantalum flagship project located in Quebec.
A recent financial analysis of the Rose project based on price forecasts of US$260/kg ($118/lb) for Ta2O5 contained in a tantalite concentrate and US$6,000/t for lithium carbonate (Li2CO3) showed an estimated after-tax Internal Rate of Return (IRR) of 25% for the Rose project, with an estimated Net Present Value (NPV) of CA$279 million at an 8% discount rate. The payback period is estimated at 4.1 years. The pre-tax IRR is estimated at 33% and the NPV at $488 million at a discount rate of 8%.(Mineral resources that are not mineral reserves and do not have demonstrated economic viability). (See press release dated November 21, 2011.)
The operation is scheduled to produce 26,606 tons of high purity (99.9% battery grade) Li2CO3 and 206,670 pounds of Ta2O5 per year over a 17-year mine life.
The project hosts a current NI 43-101-compliant Indicated resource of26.5 million tonnes of 1.30% LI2O Eq. or 0.98% LI2O and 163 ppm Ta2O5 and an Inferred resource of 10.7 million tonnes of 1.14% LI2O Eq. or 0.86% LI2O and 145 ppm Ta2O5.
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This news release contains “forward-looking information”within the meaning of Canadian Securities legislation. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “scheduled”, “anticipates”, “expects”or “does not expect”, “is expected”, “scheduled”, “targeted”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”or “will be taken”, “occur”or “be achieved”. Forward-looking statements are based on assumptions management believes to be reasonable at the time such statements are made. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Although the Corporation has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Factors that may cause actual results to differ materially from expected results described in forward-looking statements include, but are not limited to those risk factors set out in the Corporation’s year-end Management Discussion and Analysis dated August 31, 2013 and other disclosure documents available under the Corporation’s profile atwww.sedar.com. Forward-looking statements contained herein are made as of the date of this news release and the Corporation disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.