Critical Elements Corporation Closes the Sale of the Croinor Property in Exchange for 520 km2 of Land Holdings Near the Rose Project in James Bay, Quebec - Seite 2

The ultramafic sill is not a single intrusion. At least two distinct lithological units can be identified. The first, a grey serpentinized peridotite with magnetite veinlets, does not contain any sulphide minerals. The second is a black serpentinized peridotite with chrysotile veinlets. The Ni-Cu-Co-Fe sulphide mineralization is invariably associated with this black serpentinite.

In summary and on average, the sequence intersected by drilling, (striking N164°E with a 50° to 70° plunge to the SE) in the ultramafic body is as follows: (i) 35 meters of unmineralized grey serpentinite; (ii) 4 meters of unmineralized black serpentinite; (iii) 12 meters of massive to disseminated sulphides in black serpentinite; and (iv) 27 meters of unmineralized black serpentinite, sometimes alternating with the grey serpentinite, also unmineralized.

The Nisk-1 deposit is the only mineralized zone with estimated resources on the property.

Lemare Property

The Lemare Property is composed of one block totaling 195 claims covering an area of 9,171 ha for over 20 kilometers in length in a SW-NE direction. It is contiguous to the Nisk property on its North West border. Secondary roads running from a Hydro-Québec power line and permanent gravel roads that run along its North West boundary give access all through the property.

The Lac des Montagnes volcano-sedimentary formation crosses the Lemare Property in a NE direction. It is composed of paragneiss (gneiss formed of metamorphosed sediment), amphibolites and granitic intrusives. The North of the Lac des Montagnes formation is mainly composed by orthogneisses intruded by granites, while the South area of this formation is composed principally of paragneisses, also intruded by felsic to intermediate intrusives.

The possibility of nickel-copper-PGE mineralization is confirmed by the presence of Nisk-1 deposit, located close to the Lemare property. Several magnetic anomalies are present on the property and these have not been drill tested.

In December 2012, Monarch announced the discovery of a lithium pegmatite with 1.96% Li₂O over 12.0 m on the property. Exploration work carried out in the summer of 2012 had identified a granitic pegmatite dyke (GRAAB index) containing a significant amount of spodumene. Six trenches dug in October 2012 exposed the spodumene pegmatite. The dyke, which has an apparent thickness of 5 to 14 metres, was traced over almost 200 metres on surface. Its depth has not been tested, but it outcrops over 5 to 6 m in an escarpment. A total of 43 samples were collected from a total of 62 metres of channelling. Eleven of these samples returned an Li₂O content of over 2%. The channelling program results are shown in the following table: