E3 Lithium Ltd V.ETL

private placement

[Beaubie]

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES.
CALGARY, AB, October 16, 2020 - E3 METALS CORP. (TSXV: ETMC) (FSE: OU7A) (OTC: EEMMF) (the "Company" or "E3 Metals") is pleased to announce a non-brokered private placement (the "Offering") of 3,336,750 common shares ("Shares") of the Company at a price of $0.40 per Share for gross proceeds of $1,334,700.  The Offering has been fully subscribed and will close immediately upon conditional acceptance of same by the TSX Venture Exchange.
In connection with the Offering, the Company has agreed to pay finder's fees to certain finders of between 3.5% and 7% of the gross proceeds derived from investors identified by such finders under the Offering, to be paid at closing out of the gross proceeds raised from the Offering.
The net proceeds received by the Company from sale of the Shares will be used for the accelerated development of the Company's direct lithium extraction technology, completion of a preliminary economic assessment on E3's Leduc lithium bearing brine reservoir and for general working capital purposes.
The Offering will be made by way of private placement exemptions in Canada, the United States and certain offshore jurisdictions and is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including the approval of the TSX Venture Exchange.
All securities issued pursuant to the private placement will be subject to resale restrictions of 4 months and 1 day from their date of issuance.