Announcement • Jun 10
E3 Lithium Limited Executes the Contribution Agreement Confirming Up to $36.5 Million of Non-Repayable Funding Through Natural Resources Canada
E3 Lithium Ltd. announced that all conditions associated with the previously announced federal government funding have now been met. The Company has executed the contribution agreement confirming up to $36,507,091 of non-repayable funding through Natural Resources Canada (NRCan)'s Global Partnerships Initiative (GPI), to accelerate the development of its Clearwater Project. As previously announced on March 2, 2026, the Funding will support 75% of the approximately $48 million project, including E3's project staff, to complete the final Phase 3 of the Demonstration Facility and the Clearwater Project Feasibility Study. The Funding is retro-active to April 1, 2026, and the Company can claim eligible expenses from the start of the second quarter. This support through the GPI will enable E3 to accelerate the development of its Clearwater Project at a critical juncture as the Company looks to complete major technical deliverables for Stage 1 of commercial operations. The Funding provided through the GPI will also support 75% of the costs of the Company's current technical team, as well as the commitment to hire up to an additional 25 new technical staff and operators. The two key project-based components supported by the Funding include: 1. Completion of the Demonstration Facility Phase 3. With the execution of the contribution agreement, E3 has commenced equipment orders required to complete the third and final phase of the Demonstration Facility. Phase 3 includes operation of the previously commissioned 30-column Direct Lithium Extraction (DLE) and purification/carbonation skids, along with the construction and operation of a commercial size, single DLE column (the Single Commercial Column). Phase 3 of the Demonstration Facility will enable the operation of E3's DLE process at full commercial scale, further validating process performance, reliability, and scalability of the technology. In addition, the Company expects to have increased production volumes of battery-grade lithium carbonate, which will enable E3 to continue progressing product qualification with offtake partners and evaluate commercial battery supply chain value opportunities. The successful completion of Phase 3 of the Demonstration Facility is a major derisking milestone for the Company and will be a critical component in the evaluation of the Clearwater Project by potential strategic and offtake partners, project financers, and any potential additional government support. E3's goals for Phase 3 of the Demonstration Facility include: Construction of Phase 3, the Single Commercial Column, through the second half of 2026 with ongoing operations throughout the year; Demonstrating lithium recovery of greater than 85% through the Single Commercial Column, a milestone that supports project economics; Production of the lithium chloride at an equivalent rate of up to 100 tonnes of lithium carbonate per year; Continual validation of product quality by pre-qualifying the lithium chloride and/or lithium carbonate to potential customers at an increased scale. 2. Completion of the Feasibility Study. The GPI funding will support E3's completion of the Clearwater Project Feasibility Study, targeting 12,000 tonnes per year of battery-grade lithium carbonate in Stage 1. The internal and external engineering deliverables will be directly supported through the GPI funding. The engineering scope will include the final designs for the reservoir development, gas-handling system, lithium extraction and purification, and lithium carbonatation. While Phase 3 of the Demonstration Facility aims to support process validation and readiness for project financing, the Feasibility Study and related engineering represent the Company's final major technical milestones prior to detailed engineering and advancement toward a Final Investment Decision (FID). E3's goals for the Feasibility Study and related engineering include: Completion of Front-End Engineering Design (FEED) of the Clearwater Stage 1; Completion of the Feasibility Study and Class III cost estimate, aiming for First Quarter 2027; Readiness to begin ordering long-lead equipment for the commercial facility. The Company has retained Sedgman, a CIMIC Group Company and globally recognized engineering firm, to lead the FEED for the Clearwater Project. Sedgman's expertise in process plant design and project execution is expected to support advancement of the Clearwater Project toward final engineering, cost estimation, and FID. Sedgman is currently involved in the engineering and delivery of other advanced lithium processing facilities incorporating DLE technologies, including projects progressing toward commercial-scale implementation.
