E3 Lithium begins construction on phase 2 demo plant

Mr. Chris Doornbos reports E3 LITHIUM BEGINS SITE CONSTRUCTION FOR PHASE 2 OF THE CLEARWATER DEMONSTRATION FACILITY E3 Lithium Ltd. has commenced construction on its phase 2 demonstration facility site, located east of the town of Olds, Alta., in E3 Lithium's Clearwater project area. Since receiving approval of its required permits from the Alberta Energy Regulator, announced on Sept. 11, 2025, the company has been advancing preparation activities and is actively grading the site to be ready for the planned drilling program as part of phase 2 of the demonstration facility. Pad construction work will include road access improvements, pad construction, and environmental and safety preparations in advance of mobilizing the drilling rig to site. As is standard for drilling and operations activities in Alberta and as part of E3's commitment to environmental best practices, the topsoil and subsoil are stripped from the site and stored on either side. Once the planned operations on this site are complete, the site will be reclaimed. Disturbed soil will be put back into place and the land will be returned to its original use. E3 Lithium expects the drilling rig to be mobilized to the site in the coming weeks. The wells to be drilled are a key component of phase 2 of the demonstration facility as the data captured during testing will confirm Leduc reservoir flow rates and reservoir characteristics. Production data will be used to further inform the well scheme and the gathering and gas handling system for E3 Lithium's planned commercial facility. "Commencing drill site preparation is an important step towards advancing phase 2 of the demonstration facility," said Chris Doornbos, president and chief executive officer of E3 Lithium. "Our team is focused on executing this program safely, efficiently with a strong commitment to environmental stewardship. We look forward to providing further updates as drilling operations begin." E3 Lithium continues to engage closely with local stakeholders, landowners and regulatory authorities to ensure operations are carried out responsibly and in alignment with industry best practices. About E3 Lithium Ltd. E3 Lithium is a development company with total mineral resources of 21.2 million tonnes of lithium carbonate equivalent (LCE) measured and indicated as well as 300,000 tonnes LCE inferred in Alberta and mineral resources of 2.5 million tonnes LCE inferred in Saskatchewan. The Clearwater prefeasibility study outlined a 1.13-million-tonne-LCE proven and probable mineral reserve with a pretax net present value (discounted at 8 per cent) of $5.2-billion (U.S.) with a 29.2-per-cent internal rate of return and an after-tax NPV (discounted at 8 per cent) of $3.7-billion (U.S.) with a 24.6-per-cent IRR. 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 in this news release. We seek Safe Harbor.