Critical Elements Lithium Corporation provided a corporate update regarding its exploration, engineering, permitting activities. The Corporation is fully funded for these preparatory activities leading to a potential final investment decision for its wholly-owned Rose Lithium-Tantalum project (Rose Project or Project) in the James Bay Region of Northern Québec (the Final Investment Decision). Critical Elements is pleased to be working closely with the Cree Nation of Eastmain, the Grand Council of the Crees (Eeyou Istchee), and the Cree Nation Government under the Pikhuutaau Agreement signed in July 2019.

Exploration Update: Critical Elements has commenced a drilling program on it's wholly owned Lemare Lithium project, located within a portion of the Corporation's highly prospective 1,050 km2 exploration portfolio. The objective of the drilling program is to confirm and expand the known Lemare zone identified by drilling in 2016-2017. The Corporation plans to drill approximately 7,000 meters during its winter program on Lemare with the objective of delivering an initial mineral resource estimate later this year.

During the summer of 2022, Critical Elements conducted a prospecting program over the Lemare property and several areas of the Corporation's Nemaska belt property portfolio. Prior to the prospecting campaign, EarthLabs, through its GoldSpot Discoveries division, generated and ranked LCT pegmatite targets using its in-house "SmartTarget" methodology that combines both expert-driven and machine-learning data-driven targeting approaches. The objective of the field program was the identification of new pegmatite bodies using systematic rock geochemical sampling of all pegmatite bodies to refine the geological interpretation of the properties for further exploration work.

Sample results confirming the extension of the LCT pegmatite trend on the Lemare property had also extended the strike potential for future drilling on the Lemare property. The LCT pegmatite trend on the Lemare property now has a potential strike length of over 5 kilometres. The winter 2023 drill program will test some of this potential strike extension.

Additional drilling is expected following the Lemare program, as part of the total 25,000m program announced in 2022. Front-End Engineering Design Study: The Corporation is pleased to provide a progress update on the front-end engineering design ("FEED") studies for the process plant and related infrastructure. Bumigeme Inc. has been mandated to conduct a gap analysis on the process plant focusing on design review, optimization, and mitigation of potential risks related to the flowsheet developed during the feasibility study released by the Corporation in 2022 (the 2022 Feasibility Study), a copy of which is available on the Corporation website and on SEDAR under its issuer profile.

The gap analysis informs the FEED study to optimize and freeze the design of the process plant and produce an updated capital cost estimate. As of now, 98% of this mandate has been completed. On completion of the processing plant FEED study, a value engineering study will finalize this optimization, freeze the 3D layout for all equipment and define datasheet for long-lead equipment orders.

WSP has been conducting the FEED study for process and non-process infrastructure such as the main electrical station and 25 kV distribution, utilities, water management, final effluent facility, and mining support facilities. This infrastructure FEED study will optimize and freeze the design and produce an updated capital cost estimate. The infrastructure FEED study consists of optimizing the design and producing preliminary engineering documents to reduce some risks for the infrastructure project estimate.

WSP will be responsible for consolidating all estimates from other consultants and producing the overall project estimate. As of today, more than 80% of the WSP mandate has been completed and the completion of the WSP mandate is scheduled for the end of February 2023. Golder is now part of WSP.

WSP-Golder has been mandated to complete the detailed engineering design of the stack tailings facility (STF) for filtered mill tailings in co-disposal with a pit waste rock disposal facility (WRF). Engineering works include STF and WRF hazard classification, tailings laboratory testing, staging and placement, water management design, hydrogeological modelling and seepage collection, stability assessment, and an instrumented monitoring plan. As of now, more than 50% of the Golder mandate been completed and completion of this mandate is expected by the end of second quarter - 2023.

Detailed engineering is expected to follow value engineering and take 12 to 14 months. The Corporation is fully funded to complete all detailed engineering. Assuming project financing and specific construction permits are in place, tree clearing and site preparation may commence with detailed engineering being approximately 60% to 75% completed and a Final Investment Decision having been made.

Based on the 2022 Feasibility Study, the construction period is expected to be approximately 20 months.