Highlights:

• E3 Lithium awarded $3.545M in funding through Natural Resources Canada's Critical Minerals Research, Development and Demonstration program
• The non-dilutive and non-repayable funds will be used to support the construction and operation of E3 Lithium's 2023 field pilot plant

CALGARY, AB, March 7, 2023 /CNW/ - E3 LITHIUM LTD. (TSXV: ETL) (FSE: OW3) (OTCQX: EEMMF), Alberta's leading lithium developer and extraction technology innovator, today announced it has been awarded $3.545M CAD in funding from Natural Resources Canada's Critical Minerals Research Development and Demonstration (CMRDD) program.

Funds for the CMRDD program were allocated under the Government of Canada's federal Budget 2021 to support the development of Canadian critical minerals in recognition of the crucial role they play in the energy transition. E3 Lithium (E3) was one of six organizations selected from applicants from across Canada.

"Canadian innovators are leading the way towards a cleaner future. Today's investment of more than $3.5 million in E3 Lithium will help to advance the development of a dynamic and competitive critical minerals sector through the development and demonstration of innovative processing technologies. This means good jobs for workers, more investment in Canadian innovation, and lower emissions across the country - all part of our plan to build a cleaner Canada and a prosperous, sustainable economy that works for everyone."
- The Honourable Jonathan Wilkinson, Minister of Natural Resources Canada

The $3.545M in funding will be allocated in its entirety towards the design, construction and operation of E3's field pilot plant, which is on track to begin operations in Q3 2023. Natural Resources Canada joins Alberta Innovates and the Government of Canada's Innovation, Science and Economic Development's (ISED) Strategic Innovation Fund in providing support to E3 for the development of the lithium industry in Western Canada.  

"We are ecstatic to receive funding from Natural Resources Canada to support the work we are doing to produce battery-grade lithium. Receiving support from all levels of government to develop our lithium resource speaks volumes to the importance placed on commercializing critical minerals from Alberta and the progress E3 has made in developing this industry."
- Chris Doornbos, President and CEO, E3 Lithium  

The funding from the Government of Canada is non-share dilutive and is not required to be repaid. E3 shall submit and be reimbursed for eligible expenses on an ongoing basis throughout the term of the agreement. Additional and previously announced funding to support E3's pilot plant includes a $1.8M grant from Alberta Innovates and a $27M conditionally repayable investment from the Strategic Innovation Fund to support a breadth of development costs towards E3's commercial operations.

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.