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Imperial Oil Limited Forms Strategic Agreement with E3 Lithium on Lithium Pilot Project in Alberta June 23, 2022



RBC Dominion Securities Inc. Greg Pardy (Head of Global Energy Research) (416) 842-7848; greg.pardy@rbccm.com

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Imperial and E3 Lithium announced today a collaboration to advance a lithium-extraction pilot in Alberta, exploring the redevelopment of an historic oil field into a potential new leading source of lithium for Canada’s growing critical minerals industry.

Key Points:

  • Imperial has agreed to invest $6.35 million into E3 Lithium at a pre-paid price of $1.86 per warrant (8% premium to June 22 closing price), with a total of 3.4 million warrants issued as it continues to support the energy transition. Each warrant can be exercised into one common share of E3 Lithium.
  • The pilot will support E3 Lithium’s Clearwater project, which will draw lithium from under the Leduc oil field, Imperial’s historic discovery that first launched major oil and gas development in Western Canada.
  • Imperial will provide technical and development support to E3 Lithium in areas such as water and reservoir management, with E3 Lithium continuing to operate the Clearwater project. The agreement also includes access for E3 Lithium to freehold lands in the area, which are operated by Imperial.
  • The project includes drilling Alberta’s first lithium evaluation wells, planned for completion by the end of the third-quarter of this year, with a focus on scaling E3 Lithium’s proprietary technology which brings brine liquid to the surface where the lithium is removed and concentrated. E3 Lithium anticipates the first phase of development could produce approximately 20,000 tonnes of lithium hydroxide per year.

RBC Capital Markets is acting as financial advisor to Imperial Oil and ExxonMobil Canada in connection with its intention to market their interests in XTO Energy Canada.


RBC Dominion Securities Inc. Greg Pardy (Head of Global Energy Research) (416) 842-7848; greg.pardy@rbccm.com Joseph Rooney (Associate) (416) 842-9026; joseph.rooney@rbccm.com Robert Mann (Associate) (416) 842-7915; robert.mann@rbccm.com