E3 Metals Corp. Closes Fully Subscribed Non-Brokered Private Placement

Vancouver, BC (FSCwire) - E3 Metals Corp. (TSX-V: ETMC, FSE: OU7A) (the “Company” or “E3 Metals”) ”) is pleased to announce it has completed a fully subscribed private placement, raising gross proceeds of $903,200. The non-brokered private placement (the "Offering") includes a combination of (a) 920,000 non-flow through common shares (the “Common Shares”) at a price of $0.50 per Common Share and (b). 738,666 flow through common shares (the “Flow Through Shares”) at a price of $0.60 per Flow Through Share

Chris Doornbos, President and CEO of the Company, stated: “We are very pleased to have closed this oversubscribed common share private placement and welcome our new shareholders to the Company. Inclusive of the Offering, the Company has raised approximately $1,760,000 over the past 6 months and after closing the Offering, has only 15,404,687 shares issued and outstanding.  The completion of this financing will allow us to progress the development of our Alberta Lithium Project (the “Project”) at a quicker pace. The flow-through shares will be employed directly to fund lithium sampling, leading to a potential NI 43-101 resource, and lithium extraction test work (metallurgical testing). We are particularly pleased with the fact that we have been able to attract sophisticated high net worth investors who have invested for the potential of our Project and, in part, to leverage to the market capitalisation upside. We look forward to keeping our investors apprised of our progress.”

The gross proceeds from the sale of the Flow Through Shares will be used to incur Canadian Exploration Expenses that are “flow-through mining expenditures” (as such terms are defined in the Income Tax Act (Canada) on the Company’s mineral properties in the aggregate amount equal to the total amount of the gross proceeds raised from the issue of Flow Through Shares (the “Commitment Amount”). The Company will renounce these expenses pursuant to subsection 66(12.6) in conjunction with subsection 66(12.66) of the Income Tax Act (Canada) to the subscribers in an amount equal to the Commitment Amount with an effective date no later than December 31, 2017.

All securities issued under the Offering are subject to a four-month hold period from the date of issue in accordance with applicable securities laws. In connection with the Offering, the Company has paid finders' fees of $51,254 and issued 131,866 non-transferable finders' warrants (the “Finder’s Warrants”) to certain finders in accordance with applicable securities laws and the policies of the TSX Venture Exchange. Each Finder’s Warrant entitles the holder acquire one Common Share at a price equal to $0.50 for a period of 12 months from the closing date of the Offering, subject to acceleration as more particularly described in the Company’s news release of July 18, 2017.

Mike O’Hara, director of the Company, subscribed for 10,000 Flow Through Shares under the Offering. The subscription by Mr. O’Hara constitutes a related-party transaction under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Because the value of the subscription is less than 25 per cent of the Company’s market capitalization, it is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101.

ON BEHALF OF THE BOARD OF DIRECTORS

Chris Doornbos, P.Geo

President & CEO

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

DIRECTORS

Chris Doornbos

Paul Reinhart

Jeremy Read

Mike O’Hara

Peeyush Varshney

CONTACT INFORMATION

205 – 227 10^th St NW

Calgary, AB T2N 1V5

+1 (877) 319-7634
admin@e3metalscorp.com
e3metalscorp.com

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