Critical Elements (TSXV

CRE) and Natan (TSXV: NRL) to Explore Duval Lithium Property in Quebec - Seite 2

The property covers a large part of the regional volcano-metasedimentary unit, known to be the host for Nemaska Lithium's Wabouchi deposit and the Lemarre showings. The presence of this favorable lithology within the Company's claims and being along strike from Nemaska's successful exploration, increases the potential for the discovery of similar significant mineralization.

To view Figure 1. Location of known lithium deposits and showings and location of Duval claims in the James Bay area of Quebec: http://media3.marketwire.com/docs/Figure%201%20CEC.pdf

Terms of the transaction

Under the Agreement, Natan will earn its interest in Duval by way of a farm-in arrangement. The key terms of the Agreement are detailed below:

Grant of first option

Critical Elements hereby grants to Natan the exclusive right and option to acquire, on or before December 31, 2017 an initial 50% Earned Interest in the Property (the "First Option") by issuing to Critical an aggregate of 19.9% of the common shares of Natan, by paying $15,000 cash and by incurring or funding Exploration Expenditures for a total amount of $750,000 on the Property, as follows:

1. paying to Critical $15,000 cash within a delay of five (5) days following the execution of this Agreement (non-refundable);

2. issuing to Critical 19.9% common shares of Natan Resources Ltd immediately following the receipt of the required approvals from the Exchange; and

3. incurring or funding Exploration Expenditures aggregating not less than $750,000 on the Property, of which an amount of $350,000 must be incurred or funded before December 31, 2016 and an amount of $400,000 before December 31, 2017.

Grant of second option

Subject to Natan having exercised the First Option in accordance with the Agreement, Critical hereby also grants to Natan the exclusive right and option to increase its undivided interest in and to the Property from 50% to 70% by paying to Critical an additional amount of $350,000, incurring or funding additional Exploration Expenditures of $1,250,000 and by delivering a NI 43-101 compliant resource estimate on the Property prepared by a Qualified Person independent of Natan and Critical, for the period commencing on the delivery of notice of the exercise of the First Option by Natan (the "First Option Exercise Notice") and ending December 31, 2018, as follows: