E3 Lithium signs offtake, supply MOU with Axens

Mr. Chris Doornbos reports E3 LITHIUM AND AXENS SIGN BILATERAL MOU FOR THE SALE OF LITHIUM CARBONATE AND SUPPLY OF LITHIUM SELECTIVE SORBENT E3 Lithium Ltd. and Axens, a global provider of clean energy solutions and technologies, including direct lithium extraction (DLE) from brines, have signed a non-binding memorandum of understanding that contemplates both the sale of lithium carbonate by E3 Lithium to Axens and for Axens to supply E3 Lithium with a lithium selective sorbent. This strategic collaboration aims to leverage E3 Lithium's leadership in lithium from brine development and Axens's advanced technologies to address the growing demand for secure supply chains for critical minerals. Under the terms of the MOU, each company will qualify the products with the goal of a mutually beneficial collaboration. Upon completion of the qualification, the MOU outlines the proposal to execute two separate agreements, where the intent is that neither agreement is dependent on the other. Under one agreement, E3 Lithium will supply lithium carbonate from its Clearwater project in Alberta, Canada, for use by Axens in Europe. Under the second agreement, Axens will supply its proprietary lithium selective sorbent for use in E3 Lithium's DLE processes. This MOU is an initial step toward binding definitive agreements with certain milestones set out for E3 Lithium and for Axens that will inform the definitive agreements for each the offtake and the sorbent. The milestones include: E3 Lithium to produce battery-grade lithium at its demonstration facility for review through Axens's qualification process; and E3 Lithium to validate Axens's sorbent through standard testing and qualification for use within E3 Lithium's DLE processes. Both companies are working in good faith to complete the qualification as quickly as possible. Both Axens and E3 Lithium have committed to working together on financing options that would be discussed and defined through the respective definitive agreements. "The MOU with Axens represents a mutually beneficial and symbiotic agreement that significantly derisks the Clearwater project," said Chris Doornbos, president and chief executive officer of E3 Lithium. "Axens has the proven capabilities to produce sorbent on a commercial scale and derisks E3 Lithium's supply chain for the critical reagent. E3 Lithium's ability to produce battery-grade lithium carbonate on site without secondary processing enables a direct sale into the European market, a key differentiator for the company. We are very excited to be collaborating with the team at Axens as we work through the mutual qualification objectives." "This agreement with E3 Lithium greatly supports Axens's efforts to develop a high-performance sorbent for direct lithium extraction," added Quentin Debuisschert, chief executive officer of Axens. "More generally, it shows the interest of industrial players in Axens's technologies and products in the field of low-carbon mobility. Axens is excited to continue moving forward with E3 Lithium to advance our respective projects on battery materials developments in the common interest of both companies." About E3 Lithium Ltd. E3 Lithium is a development company with 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. We seek Safe Harbor.