MONTREAL, QUEBEC--(Marketwired - Dec. 20, 2017) - Critical Elements Corporation (the
"Company" or "Critical Elements") (TSX VENTURE:CRE)(OTCQX:CRECF)(FRANKFURT:F12) is providing an update on strategic partner
discussions, retention of a financial advisor and operations.
Update on Strategic Partner Discussions
As disclosed in the September 9, 2015 press release, in connection with their collaboration agreement (the "Agreement"),
Critical Elements and Helm AG ("Helm") had a maximum delay of 60 days from the completion of the Company's feasibility study,
filed October 20, 2017, to use their commercially reasonable efforts to finalize and execute a Take or Pay Off-take Agreement. As
this Take or Pay Off-take Agreement has not been agreed between the parties within this specified timeframe, Critical Elements
has elected not to grant any extension in this regard and has notified Helm of its decision to terminate the Agreement.
Retention of Financial Advisor
Global demand for lithium products has recently intensified with the aggressive launch of OEM Electric Vehicle platforms and
government mandates for vehicle electrification. This has been accompanied by significant equity and project financings as well
as strategic investment and merger and acquisition activities in the lithium sector.
Critical Elements' strong feasibility study results, published in September 2017, increased the Company's visibility and
profile within a robust lithium market. The Rose Lithium-Tantalum project (the "Rose Project" or the "Project") is a significant
lithium deposit in the stable jurisdiction of Québec, Canada.
The Company has engaged Canaccord Genuity Corp. as its strategic financial advisor to pursue, engage and evaluate global
strategic partners and investors to advance the Rose Project to production.
Operational Update
Since the filing of the feasibility study, the Company has put considerable effort into the next steps for the development for
the Rose Project including:
- Progressing on several fronts, including expanding the Company's operations team to prepare for the permitting and
construction phase of the Rose Project. The team is preparing to commence the definitive feasibility study for the carbonate
plant in Q1 2018
- Critical Elements is working very closely with the Eastmain community to finalize the Impact and Benefit Agreement in the
coming quarter. Also, multiple meetings and discussions have been completed between Eastmain representatives and the Critical
Elements team with the objective of implementing a plan and raising awareness within the Eastmain community on employment
opportunities, training programs available, and service contract opportunities that will be generated by the Project
- Meetings have been concluded with Hydro-Québec to advance the hydro power line displacement study. Discussions with
Hydro-Québec are progressing well, and we expect to have the new power line in place for our planned start-up in 2020
- Tendered proposals for the detailed engineering phase of the project and expect to award this contract in the first quarter
of 2018
About Critical Elements Corporation
The Company recently released a financial analysis for Critical Elements' wholly-owned Rose Lithium-Tantalum project (Rose
Lithium-Tantalum project feasibility study, WSP, October 20, 2017), which is based on price forecasts of US $750/tonne for
chemical-grade lithium concentrate (5% Li2O), US $1,500/tonne for technical-grade lithium concentrate (6%
Li2O) and US $130/kg for Ta2O5 in tantalite concentrate, and an exchange rate of US
$0.75/CA $. The internal rate of return ("IRR") for the Rose Lithium-Tantalum project is estimated at 34.9% after
tax, and net present value ("NPV") is estimated at CA $726 million at an 8% discount rate. The estimated payback period is 2.8
years. The pre-tax IRR for the Rose Lithium-Tantalum Project is estimated at 48.2% and the pre-tax NPV at CA $1,257 million at an
8% discount rate (see press release dated September 6, 2017). The financial analysis is based on the Indicated mineral
resource. An Indicated mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape
and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of
technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit.
The life-of-mine (LOM) plan provides for the extraction of 26.8 million tonnes of ore, 182.4 million tonnes of waste, and 11.0
million tonnes of overburden for a total of 220.2 million tonnes of material. The average stripping ratio is 7.2 tonnes per tonne
of ore. The nominal production rate is estimated at 4,600 tonnes per day, with 350 operating days per year. The open pit mining
schedule allows for a 17-year mine life.
The mine will produce a total of 26.8 million tonnes of ore grading an average of 0.85% Li2O and 133 ppm
Ta2O5, including dilution. The mill will process 1.61 million tonnes of ore per year to produce an annual
average of 236,532 tonnes of technical- and chemical-grade spodumene concentrate and 429 tonnes of tantalite concentrate.
Cautionary Statement Concerning Forward-Looking Statements
This news release contains "forward-looking information" within the meaning of Canadian Securities legislation. Generally,
forward-looking information can be identified by the use of forward-looking terminology such as "scheduled", "anticipates",
"expects" or "does not expect", "is expected", "scheduled", "targeted", or "believes", or variations of such words and phrases or
state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking information contained herein include, without limitation, statements relating to mineral reserve estimates,
mineral resource estimates, realization of mineral reserve and resource estimates, capital and operating costs estimates, the
timing and amount of future production, costs of production, success of mining operations, the ranking of the project in terms of
cash cost and production, permitting, economic return estimates, power and storage facilities, life of mine, social, community
and environmental impacts, lithium and tantalum markets and sales prices, off-take agreements and purchasers for the Company's
products, environmental assessment and permitting, securing sufficient financing on acceptable terms, opportunities for short and
long term optimization of the Project, and continued positive discussions and relationships with local communities and
stakeholders. Forward-looking information is based on assumptions management believes to be reasonable at the time such
statements are made. There can be no assurance that such statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on
forward-looking information.
Although Critical Elements has attempted to identify important factors that could cause actual results to differ materially
from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated,
estimated or intended. Factors that may cause actual results to differ materially from expected results described in
forward-looking information include, but are not limited to: Critical Elements' ability to secure sufficient financing to advance
and complete the Project, uncertainties associated with the Company's resource and reserve estimates, uncertainties regarding
global supply and demand for lithium and tantalum and market and sales prices, uncertainties associated with securing off-take
agreements and customer contracts, uncertainties with respect to social, community and environmental impacts, uncertainties with
respect to optimization opportunities for the Project, as well as those risk factors set out in the Company's year-end Management
Discussion and Analysis dated August 31, 2017 and other disclosure documents available under the Company's SEDAR profile at
www.sedar.com. Forward-looking information contained herein is made as of the
date of this news release and Critical Elements disclaims any obligation to update any forward-looking information, whether as a
result of new information, future events or results or otherwise, except as required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is described in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.