Scaling Up Direct Lithium Extraction in Alberta - E3 Lithium Pursues Sustainable Domestic Production

• E3 Lithium is developing direct lithium extraction technology and resources in Alberta, Canada. They aim to establish a lithium production hub there.
• They have successfully piloted their extraction technology and achieved high lithium recovery rates, concentrate purity and flow rates. This de-risks scaling up.
• E3 has very large lithium brine resources, 5x larger than others in North America. This scale attracts partners and project financing.
• They are focused on starting commercial production in 2026 to meet demand from electric vehicle battery makers who need lithium.
• Rising lithium prices should offset capital cost inflation for their pre-feasibility study. Strategic partners can provide capital to accelerate development.

About E3 Lithium

E3 Lithium is a Calgary-based lithium development company focused on advancing one of the largest lithium resources in Canada located in Alberta. The company is currently piloting its proprietary direct lithium extraction (DLE) technology to produce high-purity lithium concentrates from the lithium-rich brines in the Leduc Reservoir, the source of E3's resource. With over 27 million tonnes of lithium carbonate equivalent, E3 has the largest measured and indicated lithium resource in Canada, making the company a potential major contributor to domestic lithium supply.

Interview with Chris Doornbos, President & CEO of E3 Lithium Ltd.

Modular and Efficient DLE Technology

A key focus for E3 has been optimizing its DLE process, which leverages standard oil and gas expertise and equipment to selectively extract lithium. By flowing brine through a solid absorbent material, the lithium ions are selectively captured, leaving behind other ions in the brine. This approach avoids the intensive evaporation ponds used in conventional brine processing.

Recent results from E3's pilot plant validate the technology's potential, achieving lithium concentrate purity over 80%, concentrations over 900 mg/L lithium, and recoveries exceeding 94%. Importantly, E3 has also demonstrated the ability to achieve high flow rates, which allows for smaller, modular equipment and reduced capex. The company is now focused on scaling up toward initial commercial production of 20,000-30,000 tonnes per year of lithium hydroxide by 2026.

Strong economics and ESG benefits

A prefeasibility study slated for release in Q1 2024 will provide greater clarity on potential economics, but E3 believes its DLE approach provides inherent benefits. The modular design enables phased expansions to match market demand, while leveraging standard oil and gas expertise minimizes risk. DLE also offers substantial ESG benefits, eliminating evaporation ponds and intensive water use while enabling lithium production with a very small surface footprint.

Strategic backing accelerates development

E3 is targeting 2026 for initial production due to strong demand signals from auto OEMs and battery manufacturers looking to shore up future lithium supply. The company's large resource and ESG-friendly production profile have already attracted government and industry partnerships to help accelerate development. This includes investment from the Korean battery manufacturing Hanwa Corporation and funding under the US Defense Production Act.

Conclusion

With lithium demand surging, E3 Lithium represents a potential major new supplier focused on sustainable domestic production. Backed by strong partners and utilizing innovative technology, E3 offers exposure to the rapidly growing lithium market combined with significant resource upside as the company continues advancing Canada's premier lithium brine asset. Pending feasibility study results will further demonstrate E3's commercial potential.