E3 Lithium Successfully Commissions Phase 2 of its Demonstration Facility

Phase 2 operations delivering critical reservoir production and confirming lithium brine concentrations to advance final engineering design work

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, has successfully commissioned Phase 2 of its Clearwater Project Demonstration Facility (the “Demo Facility”) and continues to operate the reservoir production test.

Lithium analysis of the brine produced from the production test confirmed 75.8 mg/L lithium, demonstrating the continued consistency of the brine chemistry across the Clearwater and greater Bashaw District. The current operations at the Demo Facility are facilitating a reservoir test to confirm flow parameters over an extended period. Brine is being pumped from the production well and immediately disposed in the injection well, all within the Demo Facility, enabling rapid assessment. The Demo Facility operations have achieved stable brine production and injection through the well-pair. During initial operations, the wellbore, through the Electrical Submersible Pump (“ESP”), maintained the targeted flowrate of 1,400 m³/day at steady state. The data collected from this part of the operations will support the Reservoir Development Plan update, supporting the Feasibility Study. Following the production test, the next planned operation will focus on brine:gas analysis, supporting the design of the front end of the plant.

E3 collects and analyzes brine samples at regular intervals during operations and has confirmed lithium concentrations of 75.8 mg/L. The brine chemistry analyses have been completed by an independent third-party laboratory. These results and independent validation support the Company’s confidence in the technical foundation for its planned commercial development.

“With Phase 2 operations underway, E3 has begun a series of project-scale de-risking activities for the Clearwater Project,” said Chris Doornbos, CEO & Chair of E3 Lithium. “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."

The data collected from these operations will support E3’s ongoing engineering work, including the completion of Front-End Engineering Design (“FEED”) and the Feasibility Study for the Clearwater Project. The Company will continue to operate the Demo Facility to collect additional reservoir, brine chemistry, and process performance data required to support commercial facility design and future development decisions.

ON BEHALF OF THE BOARD OF DIRECTORS

Chris Doornbos, 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, Chris Doornbos, P.Geo., Chief Executive 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: the ongoing operation of the Demonstration Facility and reservoir production test; the collection, analysis and use of reservoir, brine chemistry and process performance data from the Demonstration Facility; the Company's expectations regarding continued operation of the pump and Demonstration Facility over the 24 months; the assessment of reservoir flow rates, flow paths and reservoir response characteristics; the use of data generated from the Demonstration Facility to update the reservoir development plan; the completion and timing of the Front-End Engineering Design ("FEED") and Feasibility Study for the Clearwater Project; the use of Demonstration Facility results to support engineering studies, commercial facility design and future development decisions; the consistency, predictability and performance of the Leduc Aquifer, lithium grades and brine chemistry across the Clearwater Project area and greater Bashaw District; the Company's confidence in the technical foundation for planned commercial development; the advancement and de-risking of the Clearwater Project; the Company's planned commercial development of its lithium resources; expectations regarding the significance of the Demonstration Facility as a de-risking event for the Clearwater Project; and the anticipated contribution of Demonstration Facility operations to supporting future commercial development.

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.