Dear shareholder of Critical Elements Lithium Corporation,

Our vision is to be a global leading, responsible supplier of lithium hydroxide to the emerging electric vehicle and energy storage industries. The Corporation is well-positioned to play a significant role in the lithium market with one of the highest purity spodumene deposits in the world and a highly prospective land package of over 700 square kilometres with demonstrable lithium mineralization.

It is with pleasure that we provide you with latest update on the Rose Lithium-Tantalum Project.

Highlights

• Leading equity research firm “calls the bottom” on lithium pricing

• Lithium hydroxide demand is expected to outpace lithium carbonate demand past 2022, exceeding 200,000 Mt LCE according to Canaccord Genuity Research

• A sulphate-free lithium extraction process, similar to that recently announced by Tesla, was successfully tested by Critical Elements in 2017 and 2018 with a recovery rate of 93% from concentrate

• The European Commission’s raw material strategy and recent U.S. Executive Order urgently require critical raw materials supply from countries like Canada

• Critical Elements provided requested information to Provincial regulatory authorities as part of the environmental impact assessment process for Rose

• Quebec’s strong electric aspirations

Critical Elements Lithium is focused on achieving this vision with minimal environmental impact by leveraging low carbon electricity available through Québec’s established power grid and cooperating with the Cree Nation of Eastmain and other local Cree Nations communities, with whom relationships have been publicly formalized.

Listen to Chairman Eric Zaunscherb on Critical Elements Lithium’s competitive advantages and demand driven by energy storage

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Listen to President Steffen Haber on the Latest Macro Trends in the Critical Minerals Space

 

"We are confident that our responsibly sourced, high purity spodumene concentrate and battery quality lithium hydroxide will be highly marketable in the North American and European markets over the decade or more before recycling becomes a significant presence in the battery materials landscape."  - Dr. Steffen Haber, President of Critical Elements
 

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Latest Corporate Presentation

About Critical Elements Lithium Corporation

Primero Group recently completed the first phase of its Early Contractor Involvement agreement with the Corporation and provided a Guaranteed Maximum Price for the engineering, procurement and construction of the wholly-owned Rose Lithium-Tantalum project on a lump sum turnkey basis that is in line with the Project’s feasibility study published November 29, 2017. The project feasibility study is based on price forecasts of US $750/tonne for chemical-grade lithium concentrate (5% Li₂O), US $1,500/tonne for technical-grade lithium concentrate (6% Li₂O) and US $130/kg for Ta₂O₅ in tantalite concentrate, and an exchange rate of US $0.75/CA $. The internal rate of return (“IRR”) for the Rose Lithium-Tantalum project is estimated at 34.9% after tax, and net present value (“NPV”) is estimated at CA $726 million at an 8% discount rate. The estimated payback period is 2.8 years. The pre-tax IRR for the Rose Lithium-Tantalum Project is estimated at 48.2% and the pre-tax NPV at CA $1,257 million at an 8% discount rate (see press release dated September 6, 2017). The financial analysis is based on the Indicated mineral resource. An Indicated mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The life-of-mine (LOM) plan provides for the extraction of 26.8 million tonnes of ore, 182.4 million tonnes of waste, and 11.0 million tonnes of overburden for a total of 220.2 million tonnes of material. The average stripping ratio is 7.2 tonnes per tonne of ore. The nominal production rate is estimated at 4,600 tonnes per day, with 350 operating days per year. The open pit mining schedule allows for a 17-year mine life. The mine will produce a total of 26.8 million tonnes of ore grading an average of 0.85% Li₂O and 133 ppm Ta₂O₅, including dilution. The mill will process 1.61 million tonnes of ore per year to produce an annual average of 236,532 tonnes of technical and chemical grade spodumene concentrate and 429 tonnes of tantalite concentrate.

FOR MORE INFORMATION:

Jean-Sébastien Lavallée, P.Geo.
Chief Executive Officer
819-354-5146
jslavallee@cecorp.ca
www.cecorp.ca