E3 Lithium Announces Acquisition of Clearwater Royalty

CALGARY, Oct. 4, 2022 - E3 Lithium Ltd. (TSXV: ETL) (FSE: OW3) (OTCQX: EEMMF), Alberta's leading lithium developer and Direct Lithium Extraction (DLE) technology innovator is pleased to announce it has acquired the Clearwater Project Gross Overriding Royalty (the "Royalty").

The Royalty was negotiated in 2016 during the original amalgamation of E3 Lithium's (E3) permits in the Clearwater Project Area within the Bashaw District. As part of the original agreement, E3 had the option to purchase the Royalty by September 30, 2022. The Royalty would have provided the original owner with 2.25% of gross revenue from any metallic and industrial mineral production.

Based on E3's Preliminary Economic Assessment released in 2020, the value of the Royalty would have been approximately $8.5M CAD per year. Using recent lithium prices, the Royalty would be significantly higher, outlining the clear economics behind deciding to acquire the Royalty for $0.8M CAD.

"The purchase of this royalty outlines the confidence we have in the value and timeframe of our project," said Chris Doornbos, President and CEO of E3 Lithium. "The royalty burden using today's prices that E3 has now eliminated provides improved economics in the Clearwater Project and significant shareholder value."

E3 Lithium is a development company with total of 24.3 million tonnes of lithium carbonate equivalent (LCE) inferred mineral resources1 in Alberta. As outlined in E3's Preliminary Economic Assessment, the Clearwater Lithium Project has an NPV8% of USD 1.1 Billion with a 32% IRR pre-tax and USD 820 Million with a 27% IRR after-tax¹. Through the successful scale up its DLE technology towards commercialization, E3 Lithium's goal is to produce high purity, battery grade lithium products. With a significant lithium resource and innovative technology solutions, E3 Lithium has the potential to deliver lithium to market from one of the best jurisdictions in the world.

ON BEHALF OF THE BOARD OF DIRECTORS

Chris Doornbos, President & CEO
E3 Lithium Ltd.

This news release includes certain forward-looking statements as well as management's objectives, strategies, beliefs and intentions. Forward looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking 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, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. 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.

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.

SOURCE E3 Lithium Ltd.