Company Announcements

Phase 2 will collect the final data required for the completion of the Feasibility Study on the Clearwater Project, located in South-Central Alberta

CALGARY, Alberta--(BUSINESS WIRE)--Apr. 20, 2026-- E3 LITHIUM LTD. (TSXV: ETL) (FSE: OW3) (OTCQX: EEMMF), “E3”, “E3 Lithium” or the “Company,” a leader in Canadian lithium development, has completed well development and pump installation and is now ready to begin operations for Phase 2 of its Demonstration Facility (the “Demo”). The Company has developed a three-phase plan with multiple goals at each phase to demonstrate commerciality of producing battery-grade lithium carbonate.

As outlined on March 9, 2026, the two main goals of Phase 2 are to complete a reservoir production test to further delineate flow through the Leduc Reservoir and to collect water and gas chemistry data. The reservoir test will inform the Reservoir Development Plan (RDP) that is currently being completed and will result in a well and pipeline network design that informs well and pipeline permitting. Brine and gas data collected will inform the design of the inlet and gas separation for the commercial facility. Information collected from this work is some of the last technical data required for the Feasibility Study that E3 is working through for the Clearwater Project. As is standard in the industry, the Company submitted the Directive 51 application that occurs once the wells are completed. Upon receipt of its licence, the site will begin operations, which are expected to run for 8-12 weeks before moving to Demo Phase 3. Work completed at the Demonstration Facility to-date has been supported in part by the $5 million in funding provided by Emissions Reduction Alberta (ERA).

In parallel with Phase 2 operations, the team at E3 will be setting up for Phase 3 of its demonstration, which focusses primarily on the Direct Lithium Extraction (DLE) testing, and is the final phase of E3’s Demonstration Facility. Phase 3 consists of both the operation of the 30-column DLE, paired with the purification/carbonation equipment, that was successfully commissioned during Phase 1, and the construction and operation of a full commercial size single DLE column.

Over the course of the summer, E3 will procure the equipment for, and build out the single column unit, supported through the Government of Canada’s Global Partnerships Initiative (GPI) $36.5 million conditionally approved funding announced on March 2, 2026 (E3 Lithium – News Releases).

While Phase 2 of the Demonstration Facility focusses on acquiring necessary engineering data, Phase 3 provides a real-world proof of concept for brine to battery-grade lithium carbonate production. Phase 3 of the Demo will produce nearly 100 tonnes per year of lithium carbonate equivalent (LCE) in lithium chloride that the company will use to further its offtake discussions. Operating the DLE technology at 1:1 scale to a commercial system, with brine moving “live” through the process, validates the key parameters to financial institutions, strategic partners, off-takers and the government. This will form a critical component to secure project financing for the construction of the Clearwater Project’s first phase which will produce 12,000 tonnes per year of lithium carbonate.

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: the expected timelines for execution of offtake agreements, completion of Phase 2 of the Demonstration Facility, completion of FEED and FS, submitting all remaining licence applications, and commissioning and commercial operations of E3’s Clearwater Project; the Company’s expectations regarding the production of lithium carbonate; plans and objectives of management for the Company’s operations of the Demonstration Facility; 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.

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E3 Lithium - Investor Relations
investor@e3lithium.ca
587-324-2775

E3 Lithium - Media Inquiries
communications@e3lithium.ca
587-324-2775

Source: E3 Lithium Ltd.