E3 Lithium Provides an Update on its Strategic Growth and Direction for Long-Term Value Creation

Enhancing Strategic Value Through Portfolio Growth and Leveraging Technical Expertise

CALGARY, Alberta--(BUSINESS WIRE)--E3 LITHIUM LTD. (TSXV: ETL) (FSE: OW3) (OTCQX: EEMMF), “E3”, “E3 Lithium” or the “Company,” a leader in Canadian lithium development, outlines its long-term corporate growth strategy with a clear vision on shareholder value creation across its business. The Company’s top priority remains the accelerated development of its Clearwater Project, with Stage 1 aiming to produce 12,000 tonnes of lithium carbonate per year targeted for 2028-2029. Supported by strong long-term battery industry fundamentals, E3 plans to enhance shareholder value by optimizing its asset portfolio by reviewing its non-core assets, exploring inbound opportunities, and expanding its reach into the battery industry.

“As we accelerate the development of our Clearwater Project to commercialization, we have the scale and significant expansion opportunities within this single asset, which has the brine volume to produce up to 150,000 tonnes of lithium carbonate annually for 50 years,” said Chris Doornbos, Chair and CEO of E3 Lithium. “Our priority and focus remain firmly on Clearwater, however, there is value in exploring strategic opportunities that can create long-term value for E3, including optimizing our lithium asset portfolio and working on battery technology integration. Our goal is to create a pipeline of commercial initiatives for the future of E3 while focusing on our core business of producing battery-grade lithium carbonate at Clearwater.”

Asset Portfolio Review

At the district scale, E3’s Bashaw asset contains 16.2 million tonnes Lithium Carbonate Equivalent (LCE) of Measured and Indicated (M&I) resource, a globally significant lithium asset. The Bashaw District offers meaningful production upside and has the potential to scale to 150,000 tonnes of lithium carbonate per year, positioning E3 to be one of the largest lithium producers in North America. The Company remains focussed on executing its primary project, the staged development of the Clearwater, hosted within the greater Bashaw District. E3 also holds additional assets outside its core focus area, specifically the Company’s Garrington District which contains an additional 5.0 million tonnes LCE M&I resource. Similar to Bashaw, Garrington is hosted within the well-understood and historically proven and productive Leduc aquifer. E3 has initiated a strategic review of this asset to accelerate value creation that could include a potential joint venture, sale, or internal development. The Company sees meaningful underlying value in its Garrington asset with the potential to provide non-dilutive capital to advance the Clearwater Project and support broader growth.

Global Opportunities

E3 is gaining global recognition for its expertise in resource identification and reservoir development, as well as Direct Lithium Extraction (DLE) and overall lithium processing. At the same time, Western, European, and other trade friendly nations are accelerating efforts to secure critical mineral supply chains. E3 continues to receive inbound interest in global development opportunities and is actively exploring these to deploy its technical expertise and value-driven development approach in key strategic jurisdictions. To capitalize on long-term partnership potential, including its recent collaboration with Germany’s TKMS and France’s Axens, the Company is strategically evaluating its roster of opportunities. E3 aims to develop a pipeline of global projects that leverage its technical expertise to support the development of deep, geothermal lithium enriched brines, creating additional value beyond its core Alberta based business and assets. E3 will consider and evaluate joint ventures or acquisitions that diversify its asset portfolio and enhance market access for its lithium production.

Battery Vertical Integration

As battery technologies evolve, from improvements in energy density and cost reductions in current lithium-ion platforms, to the development of the next-generation lithium metal batteries, E3 believes significant opportunities will emerge to integrate lithium production into the battery manufacturing process. To date, no commercial battery has replaced the lithium-ion battery in its breadth of applications, and the majority of new battery facilities being planned are based on this platform. Recent advancements in cathode technology have seen a significant increase in the use of the lithium iron phosphate (LFP) chemistry and other newer cathode chemistries, such as lithium manganese rich (LMR), both utilizing lithium carbonate. These advancements were one of the main drivers for the Company's plan to evaluate the removal of the lithium hydroxide conversion equipment from the first phase of its Clearwater Project. With limited cathode production capacity in North America, E3 sees a strategic opportunity to partner with cathode developers to integrate the lithium-to-cathode value chain, reduce overall battery costs, and establish long-term industry partnerships. Local cathode production will be a critical component in enabling domestic battery manufacturing.

In the past, E3 has collaborated with Pure Lithium on their lithium metal battery platform. While Pure Lithium has undergone a significant transformation and recently opened its new facility in Chicago, the companies are reviewing the next steps to advance the commercialization of lithium metal production. In parallel, E3 is actively exploring cathode opportunities to position its lithium as a key contributor to the Canadian and broader G7+ battery ecosystem.

ON BEHALF OF THE BOARD OF DIRECTORS

Chris Doornbos, President, CEO & Chair
E3 Lithium Ltd.

About E3 Lithium

E3 Lithium is a development company with a total of 21.2 million tonnes of lithium carbonate equivalent (LCE) Measured and Indicated¹ as well as 0.3 Mt LCE Inferred mineral resources² in Alberta. The Clearwater Pre-Feasibility Study outlined a 1.13 Mt LCE proven and probable mineral reserve with a pre-tax NPV(8%) of USD 5.2 Billion with a 29.2% IRR and an after-tax NPV(8%) of USD 3.7 Billion with a 24.6% IRR¹.

1: The Clearwater Project NI 43-101 Pre-Feasibility Study, effective June 20, 2024, identified 16.2 Mt LCE (measured and indicated) and is available on the E3 Lithium’s website (www.e3lithium.ca/technical-reports/) and SEDAR+ (www.sedarplus.ca).

2: 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 is available on the E3 Lithium’s website (www.e3lithium.ca/technical-reports/) and SEDAR+ (www.sedarplus.ca).

Unless otherwise indicated, Kevin Carroll, P. Eng., Chief Development Officer and a Qualified Person under National Instrument 43-101, has reviewed and approved the technical information contained on this news release.

Forward-Looking and Cautionary Statements

This news release includes certain forward-looking statements as well as management’s objectives, strategies, beliefs and intentions or forward-looking information within the meaning of applicable securities laws. Forward-looking statements are frequently identified by such words as “believe”, “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend”, “project”, “potential”, “possible” and similar words referring to future events and results. Forward-looking statements are based on the current opinions, expectations, estimates and assumptions of management in light of its experience, perception of historical trends, and results of the PFS, but such statements are not guarantees of future performance. In particular, this news release contains forward-looking information relating to: accelerated development of E3’s Clearwater Project, with Stage 1 aiming to produce 12,000 tonnes of lithium carbonate per year targeted for 2028-2029; actively exploring opportunities to deploy technical expertise and value-driven development approach in key strategic jurisdictions; considering and evaluating joint ventures or acquisitions that diversify E3’s asset portfolio and enhance market access for its lithium production; E3’s belief that significant opportunities will emerge to integrate lithium production into the battery manufacturing process; majority of new battery facilities being planned being based on lithium-ion battery platform; recent advancements in cathode technology seeing a significant increase in the use of the lithium iron phosphate (LFP) chemistry and other newer cathode chemistries, such as lithium manganese rich (LMR), both utilizing lithium carbonate; E3 seeing strategic opportunity to partner with cathode developers to integrate the lithium-to-cathode value chain, reduce overall battery costs, and establish long-term industry partnerships; E3 and Pure Lithium reviewing the next steps to advance the commercialization of lithium metal production; E3 actively exploring cathode opportunities to position its lithium as a key contributor to the Canadian and broader G7+ battery ecosystem; and the inherent hazards associated with mineral exploration and mining operations.

In preparing the forward-looking information in this news release, the Company has applied several material assumptions, including, but not limited to, that any additional financing needed will be available on reasonable terms; the exchange rates for the U.S. and Canadian currencies will be consistent with the Company’s expectations; that the current exploration, development, environmental and other objectives concerning the Demonstration Facility can be achieved and that its other corporate activities will proceed as expected; that general business and economic conditions will not change in a materially adverse manner and that all necessary governmental approvals for the planned activities on the Demonstration Facility will be obtained in a timely manner and on acceptable terms.

All forward-looking information (including future-orientated financial information) is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, the effectiveness and feasibility of emerging lithium extraction technologies which have not yet been tested or proven on a commercial scale or on the Company’s brine, risks related to the availability of financing on commercially reasonable terms and the expected use of proceeds; operations and contractual obligations; changes in estimated mineral reserves or mineral resources; future prices of lithium and other metals; availability of third party contractors; availability of equipment; failure of equipment to operate as anticipated; accidents, effects of weather and other natural phenomena and other risks associated with the mineral exploration industry; the Company’s lack of operating revenues; currency fluctuations; risks related to dependence on key personnel; estimates used in financial statements proving to be incorrect; competitive risks and the availability of financing, as described in more detail in our recent securities filings available under the Company’s profile on SEDAR+ (www.sedarplus.ca). Actual events or results may differ materially from those projected in the forward-looking statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements except as required by applicable law.