E3 Lithium enters agreement to sell Saskatchewan assets

Mr. Chris Doornbos reports E3 LITHIUM ENTERS INTO AGREEMENT TO SELL NON-CORE SASKATCHEWAN ASSETS E3 Lithium Ltd. has entered into an asset purchase and sale agreement with an arm's-length private company (the purchaser) to sell the company's non-core, Saskatchewan-based, Estevan lithium district assets for a total cash consideration of $4,296,000 (U.S.) ($6.0-million at current U.S.-dollar/Canadian-dollar exchange rates). While E3 sees the long-term development potential of the Estevan lithium district, the company is prioritizing the commercial development of its Clearwater project, located in Alberta's Bashaw district. Proceeds from the transaction will further enhance the company's financial position and support the continuing advancement of the Clearwater project. "E3 Lithium remains focused on developing Canada's first fully integrated lithium production facility -- our Clearwater project," said Chris Doornbos, president and chief executive officer of E3 Lithium. "By monetizing these non-core lithium assets in Saskatchewan, we are unlocking value that bolsters our financial position and supports our Clearwater project's active development that will help us reach a final investment decision." The transaction is expected to close in late Q4 2025, and is subject to customary closing conditions, including, but not limited to, receipt of all third party consents as well as satisfactory regulatory, surface impediment and environmental due diligence being completed by the purchaser. About E3 Lithium Ltd. E3 Lithium is a development company with a total of 21.2 million tonnes of lithium carbonate equivalent (LCE) measured and indicated as well as 0.3 Mt LCE inferred mineral resources in Alberta and 2.5 Mt LCE inferred mineral resources in Saskatchewan. The Clearwater prefeasibility study outlined a 1.13 Mt LCE proven and probable mineral reserve with a pretax NPV (net present value) (8 per cent) of $5.2-billion (U.S.) with a 29.2-per-cent IRR (internal rate of return) and an after-tax NPV (8 per cent) of $3.7-billion (U.S.) with a 24.6-per-cent IRR. The Clearwater project NI 43-101 prefeasibility study, effective June 20, 2024, is available on the E3 Lithium's website and SEDAR+. The mineral resource NI 43-101 technical report for the Garrington district lithium resource estimate, effective June 25, 2025, identified 5.0 Mt LCE (measured and indicated) and 0.3 Mt LCE (inferred), and will be available on the E3 Lithium's website and SEDAR+ within 45 days of this news release. The mineral resource NI 43-101 technical report for the Estevan lithium district, effective May 23, 2024, identified 2.5 Mt LCE (inferred) and is available on the E3 Lithium's website and SEDAR+. Unless otherwise indicated, Kevin Carroll, PEng, chief development officer and a qualified person under National Instrument 43-101, has reviewed and is responsible for the technical information contained on this news release. We seek Safe Harbor.