E3 Lithium Reports Inferred Mineral Resources of 23.4 Mt LCE in the Consolidated Bashaw District

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“This increase clearly establishes E3 Lithium, and the Leduc Aquifer in this region, as a globally significant source of lithium,” commented Chris Doornbos, CEO of E3. “Thanks to the combination of the resource and the company’s direct ion exchange extraction technology, E3 continues to be the leader alberta on its way to becoming a major lithium-producing jurisdiction. With E3’s significant resources, established social license to operate, supportive government policy, low-risk and transparent regulatory processes, and stable tax and royalty systems, E3 is well positioned to achieve commercial production of battery grade lithium. »

The increase in resource is the result of significant work by E3 Lithium’s Geology and Subsurface team to improve and increase E3’s understanding of the highly saline Leduc Aquifer in the Bashaw District. The work included extensive reviews and analyzes of the available core samples, the addition of hundreds of digital wireline logs, 2D seismic data, additional brine sampling results, and an updated interpretation of the The Duke facies, brine and reservoir properties. This work has provided E3 with a better understanding of the reservoir and improved the Company’s confidence in resource volumes. Based on this analysis, the resource area has now been defined as:

  • the combination of published precedents Clear water and the Exshaw Resource Areas;
  • expansion of the resource area to include an additional area of ​​the Bashaw reef trend (3,033 km2 additional aquifer) for a new total of 5,931 km2.

Additionally, E3 has removed the production factor included in previous reports. The factor of production cut-off method applied in previous resource estimates is considered a “modifying factor” and has been removed from the updated resource estimate in accordance with NI 43-101. Modifying factors will be addressed as part of future reserve estimation 2.

When estimating the current resource, a 2% porosity threshold was used, so areas of the aquifer at or below 2% porosity were not included in the total volume used. in the calculation of the resource. The effective porosity for the above-threshold intervals was estimated by applying the average net-to-gross ratio to the total porosity measurements available from petrophysical logs and core. It has also been independently estimated through petrophysical analysis using shale volume with consistent results. Consistent with previous E3 Lithium resource estimates, the NI The Bashaw District 43-101 Technical Report is in preparation and will be filed on SEDAR and on the Company’s website within 45 days.

Data collected from E3’s ongoing and previously announced drill program will be incorporated into a potential upgrade of part of the Bashaw District resource from “Inferred” to “Measured and Indicated”, as defined by NI 43-101.2. This upgrade will largely focus on the Clearwater Project area, which is the target location for E3 Lithium’s initial commercial production facility.

Mineral Resource Estimate

The resource estimate was carried out by E3’s multidisciplinary team and supervised by Daron Abbey,P. Geo and Alex HaluszkaP. Geo of Matrix Solutions Inc. acting as a Qualified Person (QP) required by National Instrument 43-101 (NI 43-101) standards2. The estimate was made using volumetric analyzes based on geological parameters: aquifer geometry, porosity, permeability, pressure and lithium concentrations. The mineral resource estimate has benefited from a considerable amount of data compiled by the oil and gas industry and made public by the Government of Alberta.

The main data sets used to determine aquifer brine parameters in the resource area include drill pipe tests (pressure, water quality and permeability), core analyzes (porosity and permeability) , core logging and facies description (aquifer geometry), bottom cable logging (lithology, total porosity, effective porosity and permeability), sample composition analysis (lithium concentration) and volumes of historical hydrocarbon and water production (context of aquifer pressure and continuity).

The lithium concentration in the Bashaw Consolidated District is reasonably constant and evenly distributed in the aquifer, ranging from 53.5 mg/L to 93 mg/L lithium, with a P50 value of 74.5 mg/L. The wells included in the sampling program are located throughout the Bashaw District, concentrated in the Clear water and the Exshaw resource areas (Figure 1). Since 2017, E3 has analyzed a total of 75 brine samples from Bashaw District. This included samples from 42 individual wells, with 4 or more replicate samples taken from different locations. All analytical results are within the acceptable limits prescribed by ISO 3 certificationrd party laboratory and followed a strict chain of custody throughout all sampling programs. The results indicate that lithium concentrations remain stable in a relatively narrow distribution from P90 (70.4 mg/L) to P10 (79.9 mg/L).

The methodology used to estimate resource volumes is as follows:

  • Step 1: Calculate rock volume (area x average net thickness) [5931 km2 x 193m = 1,146×109 m3]
  • Step 2: Calculate the total pore volume (net rock volume x estimated effective porosity) [(Step 1) x 6.63%]
  • Step 3: Calculate the brine resource volume ((total effective pore volume – hydrocarbon pore volume) x brine saturation [((Step 2) – (OOIP*+OGIP*)) x 99%]
  • Step 4: Calculate the mass of lithium by multiplying the volume of brine by the concentration of P50. E3 called this value the Original Lithium In Place (OLIP). [(Step 3) x 74.5 mg/L]

*OOIP: Original oil in place, *OGIP: Original gas in place

Based on the calculated total of 59 km3 of brine volume at an average grade of 74.5 mg/L, the mineral resource estimate for the Bashaw district is 4,398,000 tonnes of Li, equivalent to 23,400,000 tonnes of lithium carbonate equivalent (ECL)3. This resource estimate is classified as inferred because there is sufficient geological evidence to imply, but not to verify, geological continuity, grade or grade. Inferred Mineral Resource estimates can be upgraded to Indicated and Measured Mineral Resources with continued exploration. E3 Lithium is currently drilling several wells which will be cored and sampled. Cores will be analyzed for reservoir parameters such as effective porosity. Lithium samples will be taken from various aquifer intervals and aquifer pressure tests will be carried out. It is believed that this additional data will be sufficient to increase the portions of the resource to Indicated and Measured in the Bashaw District. At that time, additional analysis and modifying factors may be applied to Indicated and Measured Mineral Resources to classify Mineral Reserves.

The Company would like to thank its personnel and contractors for their diligent and safe work in achieving this significant corporate milestone, as well as the cooperation of the oil and gas producing partners in its sample permit areas. brine.

Daron Abbey,P. Geo and Alex HaluszkaP. Geo of Matrix Solutions Inc. are the qualified persons responsible for the preparation of the technical information relating to the Bashaw District resource contained in this news release and have reviewed and approved the use and disclosure of this information in this press release. . Daron Abbey and Alex Haluszka are a “qualified person”, as that term is defined in NI 43-101.

About E3 Lithium

E3 Lithium is a development company with a total of 24.3 million tonnes of lithium carbonate equivalent (LCE) inferred mineral resources1 in Alberta. As noted in E3’s Preliminary Assessment, the Clearwater Lithium Project has an 8% NPV of $1.1 billion with an IRR of 32% before tax and $820 million with an after-tax IRR of 27%1. Through the successful scale-up of its DLE technology to commercialization, E3 Lithium’s goal is to produce battery-grade, high-purity 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 DoornbosPresident and CEO
Lithium E3

1: The Preliminary Economic Assessment (PEA) of the NI 43-101 Technical Report for the Clearwater Lithium Project is effective September 17, 2021. 2017, identified 0.9 Mt LCE (inferred). The Bashaw District resource estimate is described in the news release titled “E3 Lithium Outlines 23.4 Mt LCE Inferred Mineral Resource in Consolidated Bashaw District” dated July 11, 2022, the full technical report will be available within 45 days of release. date of press release. All reports are available on the Company’s website (e3lithium.ca/technical-reports) and SEDAR (www.sedar.com)


2: NI 43-101 Disclosure Standards for Mining Projects, Form 43-101F1 Technical Report and Related Consequential Amendments (cim.org); cim-definition-standards_2014.pdf


3: tons LCE = tons Li x 5.323

Forward-Looking Statements and Cautions

This press release includes certain forward-looking statements as well as management’s objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by words such as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to to future events and results. Forward-looking statements are based on management’s current beliefs and expectations. 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, fluctuation in commodity prices, efficiency and feasibility of emerging lithium mining technologies that have not yet been tested or proven at commercial scale or on the Company’s brine, competitive risks and availability of financing, as further described in our recent filings titles available on www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and we caution you not to place undue reliance thereon. We undertake 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.

For further information: E3 Lithium – Investor and Media Relations: Robin Boschman, Director, External Relations, 403-612-9498, [email protected]

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