ExecutingPhase 2 of the Demonstration Facility will advance critical design and engineering for the Clearwater Project&s commercial facility while enabling continued production of battery-grade lithium carbonate
E3 LITHIUM LTD. (TSXV: ETL) (FSE: OW3) (OTCQX: EEMMF), “E3&, “E3 Lithium& or the “Company,& a leader in Canadian lithium development, provides an update on its Demonstration Facility Progress and outlines employee equity incentives for 2026.
Demonstration Facility Progress Update
In late 2025, the Company successfully completed the drilling of two wells at its Demonstration Facility located east of Olds, Alberta. The well pair consists of one well designed to produce brine and the other designed for injection. The wells were drilled to collect additional reservoir and brine chemistry data and to complete a reservoir characterization test. These two wells were drilled next to each other on surface, targeting the Leduc reservoir roughly 2,500 meters below the surface, with the wells approximately 200 meters apart at depth. Flow results will provide additional data for reservoir development planning, including the placement of commercial wells and expected production profile for the commercial development plan.
Earlier this year, E3 ordered the required surface equipment for Phase 2 of the Demonstration Facility, prepared the pad site, and mobilized the completions equipment. A service rig is currently on site finishing the completion of the wells and installing a downhole brine pump. Surface equipment will be installed to enable the reservoir testing as well as data collection and analysis. Samples will be collected for the duration of the operation to analyze the brine and entrained gasses, which will provide essential data to refine the inlet equipment design of the commercial facility. E3 expects to be operating the facility in April 2026.
The data collected through Phase 2 of the Demonstration Facility will enable the completion of the Company's Front End Engineering and Design (FEED) and Feasibility Study for the Clearwater Project.
Following the successful execution of the Global Partnerships Initiative (GPI) contribution agreement for up to C$36.5 million, announced on March 2, 2026 (E3 Lithium - News Releases), (the "Agreement"), E3 will begin ordering the required equipment for the third and final phase of the Demonstration Facility. This includes re-deploying the 30 column Direct Lithium Extraction (DLE) skids and producing battery-grade lithium carbonate at the new site. The Company will also procure and construct a larger, commercial scale single column (1:1 on a per column basis) DLE system for commercial testing and validation. E3 expects to execute Phase 3 in stages through the second and third quarter of 2026, starting with the 30-column unit, with the goal of being fully operational within six months of executing the Agreement. The detailed plan for the work contemplated under the Agreement will be published once executed.
Successful Achievement of 2025 Goals and 2026 Objectives
E3 had a successful 2025 achieving major project development and organizational milestones. In recognition of its 2025 accomplishments, E3&s Board of Directors has approved the grant of 738,000 restricted share units (“RSUs&), under its Omnibus Equity Incentive plan (the “Plan&), as a form of noncash compensation, to officers and employees, helping maintain the Company&s financial strength by supporting the staff without using the company's cash reserves.
In support of its strategic objectives, the Company&s Board of Directors has also approved the grant of Performance Share Units (“PSUs&) to officers and employees. The PSUs may be settled through the issuance of up to 613,500 common shares upon vesting. No PSUs will vest earlier than one year from the date of grant.
The PSUs will vest upon the achievement of the following performance goals during a 24-month performance period:
- Successful Completion of Phase 2 of the Demonstration Facility
- Completion of Clearwater Project to "Shovel Ready"
- Continued financing, including grant funding, of the Company
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, Chris Doornbos, P.Geo., 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 and perception of historical trends, but such statements are not guarantees of future performance. In particular, this news release contains forward-looking information relating to: the anticipated use, and impacts, of results from the reservoir characterization test; expected timing for installation of surface equipment and operation of brine production test; plans in respect of Phase 3 of the Demonstration Facility, including the ordering of equipment therefor and re-deployment of 30 column DLE skids, and plans to publish a full and detailed plan for the work contemplated under the Agreement; and plans and objectives of management for the Company&s operations of the Demonstration Facility. In preparing the forward-looking information in this news release, the Company has applied several material assumptions, including, but not limited to, that all conditions precedent to provision of GPI funding under the Agreement will be satisfied in a timely manner and on reasonable terms; results of the reservoir characterization test will align with management&s expectations; the necessary equipment will be available on time and on reasonable commercial 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.
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