JULY 27, 2011 – MONTREAL, QUEBEC – CRITICAL ELEMENTS CORPORATION (TSX.V: CRE) (US OTCQX: CRECF) (FSE: F12) is pleased to report an update to the independent resource estimate for its Rose deposit, James Bay, Quebec.

The Rose deposit now consists of 26,500,000 tonnes of indicated resources containing 1.30% LI2O Equivalent (Eq) or 0.98% LI2O (259,700 tonnes of LI2O or 642,238 tonnes of Li2CO3 Eq), 163 ppm of Ta2O5 (9,514,317 pounds of Ta2O5) and 10,700,000 tonnes of inferred resources containing 1.14% LI2O Equivalent (Eq) or 0.86% LI2O (92,020 tonnes of LI2O or 227,565 tonnes of Li2CO3 Eq), 145 ppm Ta2O5 (3,417,400 pounds of Ta2O5). The resource was compiled using a cut-off grade of 41$/t for the open pit model and 66$/t for the underground model (taKing Li and Ta recovery into consideration) based on the current estimation of the resource and market conditions. The NI-43-101 compliant technical report will be available on SEDAR within the next 45 calendar days.

This new indicated resource represents an increase of 131% in tonnage, 129% in Ta2O5 and 69% in LI2O. The new inferred resources represent an increase of 393% in tonnage, 418% in Ta2O5 and 234 % in LI2O.

The current resource estimate demonstrates that the Rose deposit is one of the more important resources of “ethical” tantaluM. The resources are contained in twenty-three (23) subhorizontal pegmatites, at and near surface. The thickness of the zones varies from 2m to 21M.

“With an indicated resource of 642,238 tonnes of lithium carbonate and 9,514,317 pounds “Conflict Free” of Ta2O5, Critical Elements have now the potential to become a major player at the global scale of supply of strategic elements. There is an excellent potential to increase the size of the deposit at Rose itself and at the nearby additional showings on the Rose property, considerably and quickly”, stated Jean-Sébastien Lavallée, President & CEO of Critical Elements Corporation.

Highlights of the 43-101 property report, prepared by InnovExplo Inc., independent consulting firm include the following:
MINERAL RESOURCE ESTIMATE – July 20th, 2011
Critical Elements Inc. – Rose Project

Rose Resource Estimate dated July 20th, 2011

 

Indicated Tonnes LI2O
équivalent
LI2O Ta2O5 Rb Cs Be Ga
(x 1,000) (%) (%) (ppm) (ppm) (ppm) (ppm) (ppm)
Open-pit model
Lithium zone 23 800 1,35 % 1,05 % 157 2 410 94 131 67
Tantalum zone 1 900 0,78 % 0,33 % 233 1 592 80 93 54
Underground model
Lithium zone 700 0,95 % 0,63 % 171 2 098 85 137 72
Tantalum zone 100 0,95 % 0,60 % 180 2 404 108 109 63
Total Indicated 26 500 1,30 % 0,98 % 163 2 343 92 128 66
Inferred
Open-pit model
Lithium zone 7 900 1,22 % 0,95 % 143 1 610 77 126 63
Tantalum zone 1 100 0,73 % 0,28 % 232 1 079 78 93 54
Underground model
Lithium zone 1 600 1,05 % 0,88 % 90 752 55 116 55
Tantalum zone 100 0,77 % 0,09 % 355 256 87 27 50
Total Inferred 10 700 1,14 % 0,86 % 145 1 418 74 121 61

 

  1. The Qualified People for the Mineral Resource Estimates as defined by National Regulation 43-101 were Pierre-Luc Richard, B.Sc., P.Geo. and Carl Pelletier, B.Sc., P.Geo. (InnovExplo Inc.), and the effective date of the estimate is July 20, 2011. National Regulation 43-101 and CIM definitions were followed.
  2. Mineral Resources are not Mineral Reserves having no demonstrated economic viability.
  3. Results are presented undiluted and in situ, and some resource blocks may be locked in pillars. The whole resource is included in a pit shell established by InnovExplo. The estimate includes twenty-three (23) zones (10 zones are categorized as lithium dominant and 13 are categorized as Tantalum dominant). The resource estimate covers the drilled area of the Rose as well as the JR and the Hydro showings Totals may not sum correctly due to rounding.
  4. The resource modeling used data from surface NQ core drilling samples collected by First Gold Exploration (now Critical Elements) in 2009 (10 DDH), in 2010 (148 DDH) and in 2011 (44 DDH) totalling 202 DDH including a total of 4,406 sampled assays from 25,201 metres of drilling. A fixed density of 2.71 g/cm³ was used based on the average density measured in mineralized lithologies. A minimum width of 2.0m was applied, using the grade of the adjacent material when assayed or value of zero when not assayed. Based on appropriate statistics, a capping of 15,000 was fixed for lithium, 650 for Tantalum, 10,000 for rubidium, 600 for cesium, 900 for beryllium, and 150 for Gallium, with all values in ppM. Raw assays were composited (after being capped) using 1.00 m drill hole intervals.
  5. The Resources were compiled using a cut-off grade established on a “tonne value” of 41$ (open-pit model) and 66$ (underground model) based on the current estimation of the resource and market conditions. The “tonne value” considers a 64% recovery for lithium and a 70% recovery for tantaluM. A price of 6,000$/t lithium carbonate (Li2CO3) and a price of 317$/kg Ta was considered (prices and opex produced by Genivar (internal study for Critical Elements; June 2011). No valuation was included for any of the other elements. The cut-off used must be re-evaluated in light of the present market pricing for lithium and Tantalum as well as exchange rates, recovery and mining cost. Possible recovery of other elements should also be considered. LI2O equivalent was determined based on lithium and Tantalum prices and their respective recovery ratio.
  6. No Measured Resources were estimated. Indicated and Inferred Resources were evaluated from drill holes results using a block model approach (inverse distance squared interpolation) with 5m blocks within GEMS software (version 6.2.4). The interpolation was constrained within twenty-four (24) individual 3D solids (one solid did not produce any tonnes at the established cut-off).
  7. Calculations used metric units (meters, tonnes and ppm). Results were rounded to reflect their estimated nature. Tonnes are rounded to 100,000. Grades reported in percent were rounded to two decimals while grades reported in part per million (ppm) were rounded to the closest integer.

 

EXTRACTS FROM THE NI 43-101 COMPLIANT REPORT:
“The mineralized pegmatitic dykes are oriented N296 and show a shallow dip to the northeast averaging 15 degrees (locally from 5 to 20 degrees). The deposit was identified over a strike of 1,800 metres and remains open along strike and at depth.”

“Based on lithium and Tantalum grades, the deposit is, so far, only limited by topography. It is open along strike to the southeast and to the northwest as well as at depth.”

“The block model indicates that the entire reported resource extends to a depth of 300 metres, which is limited by the existing drilling.”

“There is considerable potential to increase tonnage with additional drilling of the known pegmatitic dykes at depth and along strike. In addition, the current geological setting suggests that there is a reasonable potential to identify new zones in the immediate environment. The authors believe that the Gap between the “LR” drill holes and the “JR” drill holes exists because of the absence of drilling and that it should be drilled in order to link the two areas.”

“Different cut-offs were calculated. While the 41$/tonne cut-off is the official cut-off of this resource estimate for the open pit model and 66$/tonne is the official cut-off of this resource estimate for the underground model, other cut-offs are presented here:”

Open-pit model (Indicated resource)
Li
Zones
Cut-off
(BV $)
Tonnage
(X 1 000)
BV ($) Li Ta Rb Cs Be Ga LI2O
(%)
Ta2O5
(ppm)
LI2O
équ.(%)
$/tonne
(LI2O Ta2O5)
$26.00 24 300 126 4 775 128 2 387 93 129 67 1.03 % 156 1.33 $126.01
$31.00 24 100 127 4 811 128 2 398 93 130 67 1.04 % 157 1.34 $ 126.82
$36.00 24 000 127 4 833 129 2 404 93 130 67 1.04 % 157 1.34 $ 127.31
$41.00 23 800 128 4 867 129 2 410 94 131 67 1.05 % 157 1.35 $ 128.06
$46.00 23 400 130 4 938 129 2 414 94 132 67 1.06 % 158 1.36 $ 129.56
$51.00 23 000 131 4 994 130 2 421 94 132 68 1.08 % 158 1.38 $ 130.83
$56.00 22 600 132 5 057 130 2 423 94 133 68 1.09 % 159 1.39 $ 132.20
$61.00 22 400 133 5 090 130 2 428 94 133 68 1.10 % 159 1.40 $ 132.91
$66.00 21 900 134 5 164 130 2 436 95 134 68 1.11 % 159 1.42 $ 134.48
$71.00 21 400 136 5 245 130 2 444 95 134 68 1.13 % 159 1.43 $136.17
Ta
Zones
$26.00 2 700 62 1 142 172 1 480 74 88 51 0.25 % 210 0.65 $ 61.52
$31.00 2 400 66 1 260 180 1 525 77 91 52 0.27 % 220 0.69 $ 65.72
$36.00 2 200 69 1 358 185 1 528 78 91 52 0.29 % 226 0.73 $ 68.90
$41.00 1 900 74 1 530 191 1 592 80 93 54 0.33 % 233 0.78 $ 73.70
$46.00 1 600 79 1 741 198 1 664 81 92 55 0.37 % 241 0.84 $ 79.44
$51.00 1 500 82 1 816 201 1 700 82 94 55 0.39 % 245 0.86 $ 81.64
$56.00 1 300 87 1 959 210 1 757 84 94 56 0.42 % 256 0.91 $ 86.53
$61.00 1 100 92 2 087 223 1 841 87 95 58 0.45 % 273 0.97 $ 92.19
$66.00 900 98 2 335 228 1 862 91 98 60 0.50 % 279 1.04 $98.38
$71.00 700 105 2 634 231 1 828 94 96 62 0.57 % 282 1.11 $105.09
Open-pit model (Inferred resource)
Cut-off
(BV $)
Tonnage
(X 1 000)
BV ($) Li Ta Rb Cs Be Ga LI2O
(%)
Ta2O5
(ppm)
LI2O
équ.(%)
$/tonne
(LI2O Ta2O5)
Li
Zones
$26.00 8 100 113 4 277 117 1 601 76 124 62 0.92 % 143 1.19 $ 113.33
$31.00 8 000 114 4 321 117 1 606 76 125 62 0.93 % 143 1.20 $ 114.30
$36.00 8 000 115 4 355 117 1 609 77 126 63 0.94 % 143 1.21 $115.02
$41.00 7 900 116 4 400 117 1 610 77 126 63 0.95 % 143 1.22 $115.95
$46.00 7 700 117 4 455 118 1 612 77 128 63 0.96 % 143 1.23 $117.13
$51.00 7 600 118 4 496 118 1 616 77 128 63 0.97 % 144 1.24 $118.03
$56.00 7 500 119 4 552 118 1 616 78 129 63 0.98 % 144 1.26 $119.23
$61.00 7 300 121 4 618 118 1 615 78 130 64 0.99 % 144 1.27 $ 120.61
$66.00 7 100 122 4 693 118 1 622 78 131 64 1.01 % 145 1.29 $ 122.20
$71.00 7 000 123 4 754 119 1 629 78 132 64 1.02 % 145 1.30 $123.49
Ta
Zones
$26.00 1 700 57 999 164 1 008 71 92 50 0.22 % 200 0.60 $ 56.85
$31.00 1 500 60 1 095 171 1 043 75 96 52 0.24 % 209 0.64 $ 60.36
$36.00 1 200 65 1 231 182 1 082 76 94 53 0.26 % 222 0.69 $ 65.47
$41.00 1 100 69 1 313 190 1 079 78 93 54 0.28 % 232 0.73 $ 68.97
$46.00 1 000 72 1 374 197 1 051 79 92 55 0.30 % 241 0.76 $ 71.83
$51.00 900 75 1 439 205 1 068 80 93 56 0.31 % 250 0.79 $ 74.85
$56.00 700 79 1 526 217 1 074 83 93 58 0.33 % 265 0.83 $ 79.26
$61.00 600 84 1 614 231 1 065 89 97 60 0.35 % 282 0.89 $ 84.15
$66.00 500 87 1 666 237 1 040 90 100 61 0.36 % 289 0.91 $ 86.58
$71.00 400 90 1 782 241 1 008 91 104 61 0.38 % 295 0.95 $ 90.01
Underground model (Indicated resource)
Cut-off
(BV $)
Tonnage
(X 1 000)
BV ($) Li Ta Rb Cs Be Ga LI2O
(%)
Ta2O5
(ppm)
LI2O
équ.(%)
$/tonne
(LI2O Ta2O5)
Li
Zones
$41,00 1 300 72 1 955 143 1 911 89 110 64 174 0.75 $ 71.65
$46.00 1 100 76 2 108 147 2 000 87 116 67 0.45 % 179 0.80 $ 75.61
$51.00 1 000 79 2 266 147 2 078 87 122 68 0.49 % 180 0.83 $78.95
$56.00 800 85 2 640 138 2 104 88 131 71 0.57 % 169 0.89 $ 84.70
$61.00 800 86 2 733 136 2 115 86 133 71 0.59 % 167 0.91 $ 86.14
$66.00 700 90 2 909 140 2 098 85 137 72 0.63 % 171 0.95 $ 90.48
$71.00 600 94 3 073 141 2 076 84 139 72 0.66 % 172 0.99 $ 94.10
$76.00 500 100 3 522 125 2 023 84 139 71 0.76 % 152 1.05 $99.68
$81.00 400 102 3 679 119 1 999 80 140 71 0.79 % 145 1.07 $101.64
$86.00 300 108 3 961 123 2 124 83 142 72 0.85 % 150 1.14 $108.16
Ta
Zones
$41.00 400 57 1 049 159 1 712 75 106 54 0.23 % 195 0.60 $56.84
$46.00 200 75 2 114 145 2 016 92 95 57 0.46 % 177 0.79 $ 75.38
$51.00 100 80 2 351 146 2 153 97 100 59 0.51 % 178 0.85 $ 80.38
$56.00 100 84 2 548 144 2 282 103 104 61 0.55 % 176 0.89 $ 84.12
$61.00 100 88 2 692 147 2 377 107 108 63 0.58 % 179 0.92 $ 87.61
$66.00 100 90 2 801 148 2 404 108 109 63 0.60 % 180 0.95 $ 90.03
$71.00 100 93 2 912 150 2 423 110 111 65 0.63 % 183 0.98 $ 92.83
$76.00 100 96 3 089 148 2 404 108 113 65 0.67 % 181 1.01 $ 96.07
$81.00 100 102 3 411 147 2 253 103 115 66 0.73 % 179 1.08 $102.32
$86.00 0 106 3 596 147 2 215 102 117 66 0.77 % 179 1.12 $106.07
Underground model (Inferred resource)
Cut-off
(BV $)
Tonnage
(X 1 000)
BV ($) Li Ta Rb Cs Be Ga LI2O
(%)
Ta2O5
(ppm)
LI2O
équ.(%)
$/tonne
(LI2O Ta2O5)
Li
Zones
$41.00 2 500 83 3 252 75 738 57 102 51 0.70 % 92 0.88 $83.12
$46.00 2 300 87 3 435 77 762 56 108 52 0.74 % 94 0.92 $87.25
$51.00 2 100 90 3 550 77 760 56 110 53 0.76 % 95 0.95 $89.75
$56.00 1 900 93 3 779 73 758 56 113 53 0.81 % 89 0.98 $93.50
$61.00 1 800 96 3 897 73 753 56 114 54 0.84 % 89 1.01 $95.79
$66.00 1 600 99 4 066 74 752 55 116 55 0.88 % 90 1.05 $99.47
$71.00 1 400 105 4 336 72 739 54 117 55 0.93 % 88 1.10 $104.61
$76.00 1 200 108 4 519 72 733 53 119 56 0.97 % 88 1.14 $108.37
$81.00 1 100 111 4 684 70 680 51 119 56 1.01 % 86 1.17 $111.34
$86.00 1 000 115 4 884 69 645 50 119 56 1.05 % 84 1.21 $115.10
Ta
Zones
$41.00 400 50 623 168 586 53 95 47 0.13 % 205 0.53 $50.00
$46.00 200 57 1 015 164 612 64 87 47 0.22 % 200 0.60 $57.17
$51.00 200 60 914 186 686 67 78 48 0.20 % 228 0.63 $60.06
$56.00 100 70 724 247 477 79 41 48 0.16 % 301 0.73 $69.57
$61.00 100 72 568 272 402 84 33 50 0.12 % 332 0.76 $71.90
$66.00 0 73 425 291 256 87 27 50 0.09 % 355 0.77 $73.26
$71.00 0 75 394 300 162 89 23 49 0.08 % 366 0.79 $74.64
$76.00 0 81 533 317 18 50 31 55 0.11 % 387 0.85 $81.15
$81.00 0 88 2 372 179 137 56 88 60 0.51 % 219 0.93 $88.26
$86.00 0 92 2 778 160 248 43 72 60 0.60 % 195 0.97 $92.23


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 new NI 43-101 compliant Indicated resource of 26.5 million tonnes of 1.30% LI2O Eq. or 0.98% LI2O and 163 ppm Ta2O5 and Inferred resource of 10.7 million tonnes of 1.14% LI2O Eq. or 0.86% LI2O and 145 ppm Ta2O5 announced in this press release.

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 hosts a current NI 43-101 compliant 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  the Company and a Qualified Person under NI 43-101, has reviewed and approved the technical content of this release.
Form more information, contact:
Jean-Sébastien Lavallée, P.Geo
President and CEO
819 354-5146
president@cecorp.ca

Relations publiques Paradox
514 341-0408

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