E3 Lithium Receives Approvals for Clearwater Project Phase 2 Demo Plant

09/11/2025 – 03:15 AM

CALGARY, Alberta – E3 Lithium (TSXV: ETL), a frontrunner in Canadian lithium development, has secured key permits from the Alberta Energy Regulator (AER) to proceed with Phase 2 of its Clearwater Project Demonstration Facility. This milestone signals significant progress for the company as it aims to validate its direct lithium extraction (DLE) technology and establish a commercial-scale lithium production operation in Alberta.

Phased Approach to the Clearwater Demonstration Facility

The Clearwater Demonstration Facility is structured in three phases. Phase 1, involving the commissioning of a 30-column DLE system and purification units, commenced on September 2, 2025. Phase 2 focuses on drilling a production and injection well to meticulously analyze the flow rates and reservoir properties of the Leduc Aquifer. This data is crucial for informing the design of E3 Lithium’s commercial well scheme, gathering infrastructure, and treatment processes.

Upon completion of the wells, they will be integrated with the Phase 1 infrastructure, creating a complete, end-to-end system capable of processing brine into battery-grade lithium carbonate. E3 Lithium anticipates initiating its drill program in early to mid-October, pending the finalization of Phase 1 commissioning.

The AER has granted E3 Lithium the following permits, considered essential to advancing the demonstration facility:

• Directive 065: Authorization for a mineral scheme, encompassing subsurface injection of produced fluids.
• Directive 056: Approval for mineral wells, including adherence to technical and licensing requirements.
• Directive 056: Approval for a mineral facility, ensuring compliance with technical and licensing standards.

Significantly, these very permits are requisite for operating a commercial lithium facility in Alberta, positioning E3 Lithium favorably ahead of potential competitors. The company is now preparing a Directive 056 application for its commercial facility, which will be accompanied by an Environmental Protection and Enhancement Act (EPEA) application.

Chris Doornbos, President and CEO of E3 Lithium, commented on the permit approvals, stating, “We are pleased with the permits granted for Phase 2 of our Demonstration Facility, including the recently approved Directive 065, and look forward to launching the drill program to kick off the next phase of technology demonstration. We appreciate the AER’s timely and thorough review in issuing these permits.”

ON BEHALF OF THE BOARD OF DIRECTORS

Chris Doornbos, President, CEO & Chair

E3 Lithium Ltd.

About E3 Lithium

E3 Lithium holds a substantial lithium resource base, totaling 21.2 million tonnes of lithium carbonate equivalent (LCE) measured and indicated, and 0.3 Mt LCE inferred in Alberta (NI 43-101 Technical Report for the Garrington District Lithium Resource Estimate) and 2.5 Mt LCE inferred in Saskatchewan (NI 43-101 Technical Report for the Estevan Lithium District). A Pre-Feasibility Study for the Clearwater Project detailed a proven and probable mineral reserve of 1.13 Mt LCE, projecting a pre-tax NPV(8%) of USD 5.2 billion with a 29.2% IRR, and an after-tax NPV(8%) of USD 3.7 billion with a 24.6% IRR.

The company’s focus on DLE technology is noteworthy. DLE promises a more environmentally friendly and efficient extraction method than traditional lithium mining techniques. The integration of a closed-loop system, as envisioned by E3 Lithium, minimizes water usage and reduces the surface footprint, addressing key environmental concerns associated with lithium extraction.

Industry analysts are closely watching E3 Lithium’s progress. Securing the permits is not only a regulatory win but also a crucial step toward de-risking the project and attracting further investment. The ability to reliably extract and process lithium from brine resources in Alberta could significantly impact the North American lithium supply chain, particularly as demand for electric vehicle batteries continues to surge.

Kevin Carroll, P. Eng., Chief Development Officer and a Qualified Person under National Instrument 43-101, has reviewed and is responsible for the technical information contained on this news release.

Forward-Looking and Cautionary Statements

This news release contains forward-looking statements that involve risks and uncertainties. These statements are based on current expectations, estimates, and assumptions, which are subject to change. Actual results may differ materially due to various factors, including the speculative nature of mineral exploration and development, commodity price fluctuations, the success of DLE technologies, financing availability, and regulatory approvals. Investors are cautioned not to place undue reliance on these forward-looking statements. The company assumes no obligation to revise or update these statements, except as required by law.