MAY 17, 2011 – LAVAL, QUEBEC – Critical Elements Corporation (TSX.V: CRE) (US OTCQX: CRECF) (FSE: F12) is pleased to announce that GENIVAR Inc. (TSX: GNV) (“GENIVAR”) will undertake a pre-project characterization program beginning in May to establish a baseline for the planned project area. Characterization will be carried out in two stages, during the spring runoff period (May) and the low water period (July-August). The initial work will take place in the areas most likely to be affected by the project, and will consist of characterization of water and sediment, quantification of fish habitats and a qualitative benthic survey of the beds of local water bodies. A witness zone outside the area to be affected by the project will be characterized at the same time as the other stations.
This environmental characterization study is being carried out in parallel with the prefeasibility study, also being conducted by GENIVAR, one of the largest engineering firms in Canada. The prefeasibility study on the Rose Lithium-Tantalum deposit will comply with National Instrument 43-101 on standards of disclosure for mineral projects. The prefeasibility study will look at mining and milling operations, as well as metallurgical processing facilities. It will also cover the entire infrastructure required to develop the Rose deposit. Financial analysis and cost estimation for the project should be completed by the fourth quarter of 2011.
The main elements of the prefeasibility study are mine design, general infrastructure and integration of the other study areas, including metallurgy, environment, market and transportation. The study will also include capital and operating cost estimates, a financial analysis and cash flow model, and a project development timetable. Finally, the environmental assessment portion of the study will provide Critical with a baseline environmental study for its Rose property.
In keeping with its local approach, GENIVAR intends to involve the local Cree community in the field activities.
GENIVAR’s services in the environmental area include impact studies and environmental assessments, ecosystem studies, monitoring, surveys and characterization, management systems, permitting, compliance checks, geomatics, mapping and risk management. Clients in the environmental market include clients from all other market segments in which GENIVAR is active. Typical projects include contaminated site rehabilitation, waste management and habitat rehabilitation. GENIVAR has developed an integrated project approach that has led to the involvement of its environmental specialists in the start-up and execution of most projects where the environment is a key consideration.
About Critical Elements Corporation
Critical Elements is actively developing its 100%-owned Rose Lithium-Tantalum flagship project located in Quebec. The project hosts a current Indicated resource of 11.4 million tonnes of 1.34% LI2O and 165 ppm Ta2O5 and Inferred resource of 2.1 million tonnes of 1.27% LI2O and 138 ppm Ta2O5.
Critical Elements has commissioned a prefeasibility study for the project from Genivar, one of the largest independent engineering firms in Canada. Genivar is also doing an environmental study, and Acme Metallurgical Ltd. of Vancouver is carrying out project metallurgy.
Critical Elements’ portfolio also includes rare-earth and Tantalum-Niobium projects in the Rocky Mountains of British Columbia and in Quebec, as well as a 50% interest in the Croinor project, which is located in Quebec and contains a measured and indicated resource of 814,228 tonnes at 9.11 g/t Au, for 238,414 ounces of gold at a 5 g/t cut-off.
Jean-Sebastien Lavallee (OGQ #773), geologist, shareholder and President and Chief Executive Officer of the Corporation and a Qualified Person under NI 43-101, has reviewed and approved the technical content of this release.
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