E3 Lithium receives approval for Clearwater demo plant

Mr. Chris Doornbos reports E3 LITHIUM RECEIVES REGULATORY APPROVALS FOR PHASE 2 OF THE CLEARWATER PROJECT DEMONSTRATION FACILITY E3 Lithium Ltd. has received approval of its required permits from the Alberta Energy Regulator (AER) to advance phase 2 of its Clearwater project demonstration facility. The demonstration facility is being completed in three phases, with phase 1 currently being commissioned, as announced on Sept. 2, 2025. Phase 2 of the demonstration facility involves drilling a production and injection well to confirm Leduc aquifer flow rates and reservoir characteristics, which will support the commercial well scheme design, gathering system and treatment equipment for E3 Lithium's commercial facility. Once the wells are completed, they will be tied into the existing 30-column DLE (direct lithium extraction) system and purification units commissioned in phase 1 to create a fully integrated brine-to-battery-grade lithium carbonate process system. Upon the completion of phase 1 commissioning, E3 Lithium will initiate final preparations to commence its drill program, which is expected to begin in early to mid-October. E3 has now received the following permits from AER that are required to advance its demonstration facility: Directive 065: approval for a mineral scheme, including subsurface injection of produced fluids; Directive 056: approval for mineral wells, including technical and licensing requirements; Directive 056: approval for mineral facility, including technical and licensing requirements. In Alberta, the same permits listed above are required to operate a commercial facility. These are the first facility permits issued under the brine-hosted mineral resources regulations. E3 Lithium is in the process of completing the Directive 056 application for the commercial facility, which will be accompanied by an Environmental Protection and Enhancement Act (EPEA) application. "We are thrilled to see the permits granted for phase 2 of our demonstration facility, including the recently approved Directive 065, and look forward to launching the drill program to kick off the next phase of technology demonstration," said Chris Doornbos, president and chief executive officer. "We appreciate the AER's timely and thorough review in issuing these permits." 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 300,000 tonnes LCE inferred mineral resources in Alberta and 2.5 million tonnes LCE inferred mineral resources 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.