E3 Lithium Successfully Commissions Phase 2 of its Demonstration Facility

Executive Summary

• E3 Lithium successfully commissioned Phase 2 of its Clearwater Project Demonstration Facility and is actively conducting a reservoir production test to de-risk the project.
• Independent laboratory analysis confirmed a consistent lithium brine concentration of 75.8 mg/L, validating the chemistry across the Clearwater and greater Bashaw District.
• Operations are maintaining a steady-state flow rate of 1,400 m³/day, with collected data directly supporting the update of the Reservoir Development Plan, Front-End Engineering Design (FEED), and Feasibility Study.

Key Details

• Commissioned Phase 2 of the Clearwater Project Demonstration Facility (Demo Facility).
• Confirmed lithium concentration of 75.8 mg/L in produced brine, verified by an independent third-party laboratory.
• Maintained targeted flow rate of 1,400 m³/day at steady state using an Electrical Submersible Pump (ESP).
• Implemented a closed-loop system where brine is pumped from the production well and immediately disposed in the injection well within the Demo Facility for rapid assessment.
• Operations are planned to continue over the next 24 months to gather extended reservoir, brine chemistry, and process performance data.
• Data collection will directly support the Reservoir Development Plan update, Front-End Engineering Design (FEED), and Feasibility Study for the Clearwater Project.
• Next operational phase will focus on brine:gas analysis to inform front-end plant design.
• Project financial context: The Clearwater Pre-Feasibility Study (effective June 20, 2024) outlines a 1.13 Mt LCE proven and probable mineral reserve, with a pre-tax NPV(8%) of USD 5.2 Billion and a 29.2% IRR.

Notable Quotes

• “With Phase 2 operations underway, E3 has begun a series of project-scale de-risking activities for the Clearwater Project. We have already moved more brine through these two wells than E3 has handled through all its previous testing combined, and we expect to continue to operate the pump as needed over the coming 24 months. The confirmation of the initial reservoir response and the lithium grade at these new wells further bolsters the consistency and predictability of the Leduc Aquifer and the lithium resource base held by E3.” – Chris Doornbos, CEO & Chair, E3 Lithium Ltd.