Critical Elements Lithium - Advancing One of North America's Most Advanced Lithium Projects

• Critical Elements Lithium is focused on advancing The Rose Project, a high-purity hard rock lithium project in North America.
• Project at an advanced stage with Impact and Benefits Agreement, federal and Quebec permitting, assembling financial package for final investment decision (FID).
• Rose Project's feasibility study indicates robust economics with 82% after-tax IRR, US$1.9 billion NPV8, targeting technical grade lithium sales for premium.
• Lithium market variations, impact of spot prices on contract pricing, balance between debt and equity financing, exploration plans, market sentiment, and investor communication discussed.

About Critical Elements Lithium Corp

Critical Elements Lithium Corp is focused on advancing The Rose Project, one of the most advanced undeveloped lithium projects in North America. The Rose Project is a high-purity, hard rock lithium deposit located in James Bay, Quebec. With key permits and agreements in place, the company is now focused on financing and engineering to advance towards production.

Interview with Chairman Eric Zaunscherb

Progressing Towards Production

The Rose Project is nearing the final steps required for a construction decision. As CEO Eric Zaunscherb outlines, “There are very few projects in North America at this advanced stage with all the key elements in place - an Impact and Benefits Agreement with the local Cree First Nation community, federal and provincial permits, a completed feasibility study.”

With permits in hand and feasibility study completed, the company is focused on three key areas:

• Detailed Engineering - With detailed engineering 60-65% complete, this critical work will support the start of construction.
• Long Lead Time Items - Orders need to be placed soon for certain equipment and items like the electrical substation transformer required for the mine.
• Financing - Assembling the financing package is a top priority. The goal is to have debt, equity and off-take partnerships in place concurrently to mitigate risk and ensure favorable terms.

Zaunscherb emphasizes that while lithium prices have softened recently, the long-term EV demand trend remains very strong. The high purity of The Rose Project's lithium concentrate allows for sales into the more profitable glass and ceramics sector.

Moving Additional Projects Forward

Beyond the flagship Rose Project, Critical Elements has exploration upside at additional projects like the Lamar Discovery. The company is working to delineate a resource estimate for Lamar and plans to conduct exploration drilling this fall over multiple target areas. As Zaunscherb explains, “In this market environment, exploration success can be an important catalyst for developers like us.”

With advanced engineering and permitting progress on Rose, untapped exploration potential, and management focused on securing financing, Critical Elements Lithium represents a compelling lithium development story. For investors looking to capitalize on the rising lithium demand driven by electric vehicles, it's a company to watch closely.

Risks & Opportunities

Risks

• Commodity price volatility - Lithium prices have been soft recently, creating uncertainty around future pricing.
• Financing risks - Securing project financing on favorable terms is critical for the Rose Project. Any issues finalizing funding could delay development.
• Operational risks - Typical risks associated with constructing and operating a new mining project. Delays or cost overruns could negatively impact returns.

Opportunities

• Favorable supply/demand outlook - Strong electric vehicle growth should drive lithium demand higher long-term. Limited new projects coming online creates a positive supply backdrop.
• Strategic asset - The Rose Project is a high-quality lithium deposit in a tier-1 mining jurisdiction. This could attract potential partners or acquirers.
• Exploration upside - The company has additional exploration projects that could provide upside if resources are delineated.
• Potential re-rating - Advanced permitting de-risks the story. Progress on financing and engineering could catalyze re-rating of the shares.

Conclusion

Critical Elements Lithium is advancing one of the most advanced hard rock lithium projects in North America. With permitting in place and engineering underway on the high-purity Rose Project, the company offers leverage to rising lithium demand with lower risk than early stage explorers. As it works to finalize financing and plans new exploration drilling, Critical Elements presents an opportunity for investors seeking lithium exposure.