Critical Elements Corporation Signs an Agreement for the Sale of the Croinor Property in Exchange 520 km2 of Ground Near the Rose Project in James Bay, Quebec

MONTREAL, QUEBEC--(Marketwired - Dec. 17, 2013) - Critical Elements Corporation (TSX VENTURE:CRE)(OTCQX:CRECF) (FRANKFURT:F12) is pleased to announce that it has signed an offer from Monarques Resources Inc. ("Monarques") in relation to the sale of a 50% undivided interest in the Croinor property near Val-d'Or. Monarques is offering to purchase the Croinor property from Critical Elements Corporation in exchange for the Amiral, Arques, Bourier, Caumont, Dumulon, Duval, Lemare, Nisk, Rosebay and Valiquette properties in James Bay and 500,000 common shares of Monarques Resources Inc. at a deemed price of $0.15 per common share. The common shares will be subject to voluntary hold periods as follows:

• 250,000 common shares for a six-month period following closing; and
• 250,000 common shares for a 12-month period following closing.

This offer is subject to regulatory approval of the transaction and rendering of a final judgment under the Act allowing Monarques Resources Inc. to acquire control of X-Ore Resources Inc.

About Critical Elements Corporation

Critical Elements is actively developing its 100%-owned Rose lithium-tantalum flagship project located in Quebec.

A recent financial analysis of the Rose project based on price forecasts of US$260/kg ($118/lb) for Ta₂O₅ contained in a tantalite concentrate and US$6,000/t for lithium carbonate (Li₂CO₃) showed an estimated after-tax Internal Rate of Return (IRR) of 25% for the Rose project, with an estimated Net Present Value (NPV) of CA$279 million at an 8% discount rate. The payback period is estimated at 4.1 years. The pre-tax IRR is estimated at 33% and the NPV at $488 million at a discount rate of 8%. (Mineral resources that are not mineral reserves and do not have demonstrated economic viability). (See press release dated November 21, 2011.)

The operation is scheduled to produce 26,606 tons of high purity (99.9% battery grade) Li₂CO₃ and 206,670 pounds of Ta₂O₅ per year over a 17-year mine life.

The project hosts a current NI 43-101-compliant Indicated resource of 26.5 million tonnes of 1.30% Li₂O Eq. or 0.98% Li₂O and 163 ppm Ta₂O₅ and an Inferred resource of 10.7 million tonnes of 1.14% Li₂O Eq. or 0.86% Li₂O and 145 ppm Ta₂O₅.

Cautionary Statement Concerning Forward-Looking Statements

This news release contains "forward-looking information" including without limitation statements relating to realization of resource estimates, reduction of capital and operating costs, success of mining operations and the ranking of the project in terms of production. Readers should not place undue reliance on forward-looking statements.