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June 20^th, 2023 – Montréal, Québec – Critical Elements Lithium Corporation (TSX-V: CRE) (US OTCQX: CRECF) (FSE: F12) (“Critical Elements” or the “Corporation“) is pleased to report results from the winter drill program completed on the Lemare Project in the James Bay region, Eeyou Istchee, Québec. During winter 2023, the Corporation completed a 5,554-meter drill program, encompassing thirty-one drillholes to test the known lithium bearing zone on the East-West extension, as well at depth. The best intercepts are presented in Table 1 and Figure 2.

Selected drill intersection highlights include:

• LE-23-32: 1.04% Li₂O and 67.91 ppm Ta₂O₅ over 33.85 m, including
  • • 1.42% Li₂O and 74.24 ppm Ta₂O₅ over 18.8 m
• LE-23-33: 0.88% Li₂O and 113.92 ppm Ta₂O₅ over 12.90 m
• LE-23-35: 1.63% Li₂O and 104.30 ppm Ta₂O₅ over 5.25 m
• LE-23-44: 1.51% Li₂O and 54.15 ppm Ta₂O₅ over 4.95 m
• LE-23-48: 0.89% Li₂O and 48.89 ppm Ta₂O₅ over 7.10 m
• LE-23-49: 0.97% Li₂O and 64.43 ppm Ta₂O₅ over 8.85 m, including   
  • • 1.59% Li₂O and 61.34 ppm Ta₂O₅ over 2.40 m.

Critical Elements controls one of the largest hard rock lithium exploration land positions in North America, totalling 1,050 square kilometres specifically assembled for their geological setting and proximity to roads and Québec’s 100% renewable energy grid. For example, its land position includes the Corporation’s advanced Rose lithium-tantalum project (“Rose”) and covers the extrapolated northeast and southwest structural extensions of the Nemaska Belt, which hosts the Whabouchi mine being developed by Nemaska Lithium.

Critical Elements has outlined its exploration plans in several news releases, most recently on February 1, May 16, and May 31. In addition to demonstrating the value inherent in the Corporation’s exploration land package, there are three goals:

1. 1. Extend the life of the primary Rose project;
   2. Advance the Lemare project toward an initial resource estimate and technical studies if warranted; and
   3. Demonstrate the potential of new targets highlighted via machine learning, or artificial intelligence.

Figure 1: Location of the Lemare spodumene project in the James Bay region in Québec

Figure 2: Drill results from the Lemare Property

The winter 2023 drilling program on the Lemare spodumene project confirmed the 400-metre extension to the southwest and the 500-metre extension to the northeast of the main known spodumene-bearing pegmatite with variable width and spodumene content. At least two different types of sub-parallel pegmatites were intersected by the drilling. The main spodumene-bearing pegmatite features coarse quartz-feldspar-muscovite, while the second pegmatite is aphanitic quartzo-feldspathic, is generally lower grade, and is only sporadically mineralized. The main spodumene-bearing pegmatite is controlled by a northeast-southwest structure that is recut by at least two north-south oriented faults. The information collected during the winter drilling program will be useful to better define the 3D model and better understand the pinch-and-swell character of the pegmatites at Lemare. The confirmed spodumene-prospective pegmatite strike length at Lemare now exceeds 2.2 kilometres. However, based on Goldspot Discoveries’ machine learning methodology and surface sampling results, the LCT pegmatite trend on the Lemare property has been estimated to extend for over 5 kilometres.

Critical Elements intends to pursue further work on Lemare over the summer with surface mapping and a sampling program followed by incremental drilling. Lemare is well-situated within 3 kilometres of road access and is an excellent candidate for initial technical studies. At the moment, the Corporation has temporarily suspended exploration activities on the Nemaska Belt projects in the Eeyou Istchee-James Bay region of Québec in accordance with a directive from the Ministère des Ressources Naturelles et des Forêts, which has banned forest access on Crown land and closed roads to help combat forest fires across the province.

Quality assurance/quality control

Quality assurance and quality control procedures have been implemented to ensure best practices in sampling and analysis of the core samples. The drill core was logged and then split, with one-half sent for assay and the other retained in the core box as a witness sample. Duplicates, standards and blanks wereregularly inserted into the sample stream. The core samples were delivered, in secure tagged bags, directly to the ALS Minerals laboratory facility in Val-d’Or, Quebec. The samples are weighed and identified prior to sample preparation. The samples are crushed to 70% minus 2 mm, then separated and pulverized to 85% passing 75 μm.  All samples are analyzed using sodium peroxide fusion ME-MS-89L, with full analysis for 52 elements. Value over 25,000 ppm Li were re-assays using Li-ICP-82b and value over 2,500 ppm Ta₂O₅ were re-assays using Ta-XRF10. 

Qualified persons

Paul Bonneville, Eng, is the qualified persons that have reviewed and approved the technical contents of this news release on behalf of the Corporation.

About Critical Elements Lithium Corporation

Critical Elements aspires to become a large, responsible supplier of lithium to the flourishing electric vehicle and energy storage system industries. To this end, Critical Elements is advancing the wholly owned, high purity Rose lithium project in Québec, the Corporation’s first lithium project to be advanced within a land portfolio of over 1,050 square kilometers. On June 13^th, 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. In the Corporation’s view, Québec is strategically well-positioned for US and EU markets and boasts good infrastructure including a low-cost, low-carbon power grid featuring 94% hydroelectricity. The project has received approval from the Federal Minister of Environment and Climate Change on the recommendation of the Joint Assessment Committee, comprised of representatives from the Impact Assessment Agency of Canada and the Cree Nation Government and also received the Certificate of Authorization pursuant to section 164 of Québec’s Environment Quality Act from the Québec Minister of the Environment, the Fight against Climate Change, Wildlife and Parks.

For further information, please contact:

Patrick Laperrière
Director of Investor Relations and Corporate Development
514-817-1119

www.cecorp.ca

Jean-Sébastien Lavallée, P. Géo.
Chief Executive Officer
819-354-5146

www.cecorp.ca

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is described in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary statement concerning forward-looking statements

This news release contains “forward-looking information” within the meaning of Canadian Securities legislation. Generally, forward-looking information 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 statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information contained herein include, without limitation, statements relating to the results and completion of the 2023 exploration program, the permitting process, the results and outcome of the Front-End Engineering Design Study, eligibility of equipment required for the Rose Project to the 30% investment tax credit (ITC) announced by the Federal government in its last budget, as well as the outcome of the formal process launched by the Corporation in connection with the Project financing. Forward-looking information is 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 information.

Although Critical Elements has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, 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 information include, but are not limited to: final and complete results of the Corporation’s 2023 exploration program, the final outcome of the permitting process and the Corporation’s ability to meet all conditions imposed thereunder, the final results of the Front-End Engineering Design Study and its effects on the development of the Rose Project, the formal process launched in connection with the Project financing not producing the anticipated and expected results, the criteria for eligibility to the 30% investment tax credit (ITC) announced in the last federal budget not being those expected, as well as those risk factors set out in the Corporation’s Management Discussion and Analysis for its most recent quarter ended February 28, 2023 and other disclosure documents available under the Corporation’s SEDAR profile. Forward-looking information contained herein is made as of the date of this news release and Critical Elements disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.