E3 METALS CORP. (TSXV: ETMC) (FSE: OU7A) (OTCQX: EEMMF) (the "Company" or "E3 Metals"), an emerging lithium developer and leading direct lithium extraction ("DLE") technology innovator, is pleased to announce that it has filed its Consolidated Financial Statements for the for the year ended December 31, 2021 and the accompanying Management Discussion and Analysis on its SEDAR profile at www.sedar.com. The financial statements and MD&A will also be posted on the Company's website at www.e3metalscorp.com.

At the end of 2020, E3 Metals Corp released its first economic analysis considering the development of its inferred mineral resource and the application of its ion-exchange direct lithium extraction process. The positive results from this analysis were a catalyst for the Company to complete the first of two significant capital raises starting with $5.0 million at the end of the year.

At the beginning of 2021, E3 Metals and FMC Lithium USA Corp ("Livent") completed the separation of its Joint Development Agreement. E3 Metals retained full ownership and rights to its technology, and the Company commissioned its development facility with the goal of commercializing the technology. With the additional raise of $8.1 million, the Company has been able to establish itself as a global market leader in Direct Lithium Extraction ("DLE") technology and is committed to progressing the development of its 100% owned Clearwater Lithium Project.

The Clearwater Preliminary Economic Assessment ("PEA") outlined a project producing 20,000 tonnes per year of lithium hydroxide ("LHM") over 20 years. The robust project economics showed a pre-tax value of USD $1.1 billion NPV8% and an IRR of 32%, using an average LHM sales price of approximately USD $14,000/tonne. Spot market pricing has seen LHM trading at over USD $75,000/tonne in 2022 and has provided a strong incentive for E3 Metals to accelerate the project without compromise to meet the growing demand, and supply the global market with carbon neutral, battery grade lithium.

E3 Metals is proud to highlight the following 2021 achievements:

• Progression of its DLE technology: The Company commissioned its Calgary-based lab facility in February 2021 and has been able to accelerate the development of its ion-exchange process. The facility delivered strong results from a scaled-up lab pilot prototype completed in October 2021 which delivered up to 97% lithium recoveries from genuine Leduc brines. The fully automated lab pilot prototype operates with two trains and has been processing up to 18 bbl/d of brine. This has been providing the team with significant amounts of data to assist in the design and engineering work of the upcoming field pilot plant.
  
  
• Progression of the Company's Resources: Leveraging on existing data provided on the backbone of the Alberta oil and gas industry, the Company has been able to build and complete its geological model to provide the optimal locations for its lithium test wells. This provides the basis to upgrade portions of the 7.0 million tonnes of Inferred Resource to Measured and Indicated, as defined by National Instrument 43-101.
  
  
• Regulatory Clarity: In consultation with stakeholders including E3 Metals, the Alberta government passed Bill-82, which centralized all critical minerals regulatory functions with the Alberta Energy Regulator ("AER") who already oversees the oil & gas industry. This provides regulatory certainty and a well-established framework for E3 Metals to permit and license its future commercial developments.
  
  
• Securing Sources of Non-dilutive Financing: The Company continues to deliver shareholder value through the utilization of new and existing government grants. In April 2021, E3 Metals received a non-dilutive grant from Alberta Innovates of $1.8 million to provide financing for the lab-pilot prototype and the upcoming field pilot. The Company continues to pursue other sources of grant funding from provincial and federal organizations.
  
  
• Corporate Expansion: The Company upgraded to Tier 1 on the TSX Venture Exchange and up listed to the OTCQX during 2021. The resulting additional trading volume, interest and value enhancing opportunities have helped contribute to the 270% year-over-year return based on the appreciation of the closing share price on the last trading day in 2021 from 2020.

At the end of 2021, E3 Metals ended with a strong balance sheet of $17.6 million in working capital. Potential source of funds includes $10 million of 'in-the-money' warrants expiring by February 2023. This provides significant financial flexibility for the Company to deliver on its next major milestones:

1. De-risk and Upgrade the Clearwater Resource: Drilling Alberta's first lithium test wells into the Leduc Aquifer.
   
   
2. De-risk and Scale-up the Ion-Exchange Technology: Constructing and operating a modularized ion-exchange field pilot in the Clearwater Area.
   
   
3. Production of Battery Grade LHM Samples: Using commercially available technology to upgrade lithium concentrate from the Ion-Exchange technology to battery grade LHM for potential offtake partners.

The Company is well positioned to take advantage of the current market environment with a business plan aimed at generating substantial returns to our shareholders by advancing our project. We continue to pursue our corporate initiatives while advancing our strategy to develop the lithium industry in Canada.

ON BEHALF OF THE BOARD OF DIRECTORS,

Chris Doornbos, President & CEO

E3 Metals is a lithium development Company with 7.0 million tonnes of lithium carbonate equivalent (LCE) inferred mineral resources¹ in Alberta and an NPV_8% on its Clearwater Lithium Project 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 Metals' goal is to produce high purity, battery grade, lithium products. With a significant lithium resource and innovative technology solutions, E3 Metals has the potential to deliver lithium to market from one of the best jurisdictions in the world.

For more information about E3 Metals, visit http://www.e3metalscorp.com.

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.