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

MONTREAL, QUEBEC--(Marketwired - May 13, 2014) - Critical Elements Corporation (TSX VENTURE:CRE)(OTCQX:CRECF) (FRANKFURT:F12) is pleased to announce that it has completed the sale of its 50% interest in the Croinor property to Monarques Resources Inc. ("Monarques") in exchange for a 100% interest in the Amiral, Arques, Bourier, Caumont, Dumulon, Duval, Lemare, Nisk, Rosebay and Valiquette properties (the "James Bay Properties") and 500,000 common shares of Monarques. This transaction, which closed today, was initially announced by the parties on December 17, 2013.

The common shares of Monarques issued the Company pursuant to this transaction will be subject to voluntary hold periods as follows: 250,000 common shares to be released six months after closing of the transaction and 250,000 to be released 12 months after closing of the transaction.

The James Bay Properties cover a total area of 520 km² near the Company's Rose project. Below is a brief description of the properties the Company considers the most promising.

Nisk Property

The Nisk Property is composed of one block totaling 190 claims covering an area of 9,920 ha for over 20 kilometers in length. The route du Nord from Chibougamau runs within the South border of the property. The property is also traversed in a NE direction by a Hydro-Québec power line and a road that heads North to the Eastmain River and further to the La Grande River areas.

The Lac des Montagnes volcano-sedimentary formation crosses the property in a NE direction. The geology covered by the property is mainly composed of biotite, sillimanite, staurotide and garnet-bearing gneisses and granites, pegmatites, amphibolites and ultramafic intrusive rocks. Geophysical surveys show the signature and extent of ultramafic intrusions, some of which have been historically confirmed by drilling. 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 granites.

The property is currently known for its magmatic nickel-copper sulphide deposits associated with ultramafic intrusion potential. It notably holds the Nisk-1 Ni-Cu-PGE deposit. The Nisk-1 deposit is located at UTM coordinates 459,950 mE / 5,728,500 mN. It is hosted in an elongated body of serpentinized ultramafic rocks that intrude the Lac des Montagnes paragneiss and amphibolite sequence. The ultramafic rock intrusion is a sill bordered by paragneisses and amphibolites. Quite similar on either side of the ultramafic sill, they still can be subdivided into a lower paragneiss sequence ("LPS") to the NW of the sill (stratigraphically older) and an upper paragneiss sequence ("UPS") to the SE of the sill (stratigraphically younger).