Critical Elements Lithium Corp.

Critical Elements Lithium Corp. is a junior lithium development company headquartered in Blainville, Canada, operating primarily in Canada. The company's portfolio consists of 1 development project. Key assets include Rose. The business model centers on the acquisition, exploration, and development of critical mineral properties, with a primary focus on advancing a flagship asset to production. The operational approach is based on a conventional open-pit truck and shovel mining method coupled with a standard froth flotation process to produce multiple grades of mineral concentrates. Processing capabilities are designed for high recovery rates and include multi-stage crushing, grinding, magnetic separation, and flotation circuits. A key operational advantage is the planned use of low-carbon electricity from an established power grid, supporting a low environmental impact profile. The enterprise aims to position itself as a low-cost producer by leveraging proven, conventional technologies and efficient processing flowsheets. Tailings management incorporates a dry-stacking method to minimize environmental footprint and water usage, with significant process water recycling integrated into the plant design. This operational framework is intended to deliver responsibly sourced materials for sustainable energy applications through strategic partnerships with all stakeholders.

The corporate strategy is centered on advancing the flagship development project to full operational status while concurrently unlocking value through systematic exploration across an extensive land package of over 1,050 square kilometers. A primary objective is to secure the necessary financing to complete construction and commissioning, a process initiated by ordering long-lead time equipment such as main power station transformers. Exploration efforts are a key pillar of the strategy, with recent programs involving systematic geochemical rock sampling, prospecting, and mapping to identify new pegmatite bodies and prioritize drilling targets. A recently completed 3,670-meter drill program successfully tested newly discovered showings, demonstrating continuity of mineralization and expanding the known mineralized footprint. The organization's vision is to establish itself as a leading low-cost producer, contributing positively to global decarbonization efforts. This is pursued through a partnership-based approach with communities, governments, investors, and customers. Financial management involves securing capital for development and utilizing instruments like non-redeemable guaranteed certificates of deposit to back financial assurance obligations required for project advancement.

The governance framework is structured to comply with Canadian securities regulations, including Rule 51-102A and National Instrument 52-109, with the Chief Executive Officer and Chief Financial Officer providing basic certifications of annual filings. The board of directors maintains oversight on key corporate matters, including dividend policy and conflict of interest management. The corporate policy requires directors to disclose any personal interest in projects or opportunities and to abstain from voting on such matters to ensure decisions are made in the best interest of the corporation. Executive leadership includes a Vice-President of Engineering, Construction, and Operations, who serves as the qualified person responsible for reviewing and approving technical disclosures. The Chief Executive Officer has a disclosed interest in a related-party entity that provides development services to the corporation and holds a net smelter return royalty on certain claims. Executive and director compensation includes share-based components such as restricted and deferred share units, with grants timed to comply with internal trading policies and blackout periods. This structure aims to align management and board interests with long-term shareholder value while adhering to established governance protocols.

The sustainability approach is anchored in achieving minimal environmental impact and fostering strong community partnerships. A key environmental strategy involves leveraging low-carbon electricity from an established power grid to reduce the operational carbon footprint. The enterprise has received a favorable federal environmental decision statement and a provincial certificate of authorization, following the submission of a final environmental impact assessment. A comprehensive mine closure and restoration plan has been formally accepted by regulatory authorities, with financial assurance secured through bonding. Water management practices are designed to be robust, incorporating the collection of site water into an equalization pond for treatment before release and using wells to manage the local water table. Waste management includes the co-disposal of waste rock and filtered tailings in a dry-stack facility, a method chosen to enhance stability and minimize land disturbance. Social engagement is formalized through an impact and benefits agreement, known as the Pihkuutaau Agreement, signed in 2019 with the Cree Nation of Eastmain, the Grand Council of the Crees, and the Cree Nation Government. This agreement ensures ongoing consultations and shared benefits throughout the project's lifecycle. The organization has also secured essential land use leases for infrastructure, tailings facilities, and a workers' camp.

The corporate structure includes 2 key joint ventures established through option agreements. In March 2024, a joint venture was formed with Power Nickel Inc. to advance an exploration property, with the organization retaining a 20% non-dilutive interest until the delivery of a feasibility study. Power Nickel earned its 80% interest by making cash payments, issuing 12,051,770 of its common shares, and funding significant exploration expenditures. A second joint venture was formed in April 2024 with Lomiko Metals Inc. for a different exploration asset, where the corporation holds a 51% interest. Lomiko earned its 49% stake by issuing 5,000,000 of its shares, making cash payments, and funding exploration work. As part of these arrangements, the company holds equity positions in both Power Nickel Inc. and Lomiko Metals Inc. The agreements also grant the corporation retained economic interests, including a 2% net smelter return royalty on future production from both properties, with specific buy-back provisions. Furthermore, the company retains exclusive marketing and selling agent rights for certain mineral products that may be discovered and produced from these joint venture properties.