Critical Elements Receives Positive Material Testing Results From Multiple Glass and Ceramic Manufacturers - Seite 2

Management is also planning to return to Japan in September to expedite negotiations aimed at securing an off-take agreement(s) for its lithium carbonate and tantalum concentrate. In addition, management will meet with glass and ceramic manufacturers who tested the material to advance discussion for off-take agreements.

"We are very enthusiastic about the quality of the materials produced from the Rose lithium-tantalum deposit. To date, high-value material has tested positively by leading end-users, which is an important endorsement of our product. Furthermore, our recently-announced high-purity lithium carbonate results were very well received by end-users," said Jean-Sébastien Lavallée, President and Chief Executive Officer.

About Critical Elements Corporation

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

A recent financial analysis (Technical Report and preliminary economic assessment (PEA) on the Rose Lithium-Tantalim project, Genivar, December 2011) 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 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.