Critical Elements Corporation

Further High-Grade Lithium at Lemare - Seite 2

Platypus will implement a work program comprising mapping and prospecting in conjunction with two phases, of approximately 2,000 metres each, of diamond drilling, with the aim of defining an initial Inferred Resource at Lemare by December 31, 2016. As mentioned above, a drilling rig is expected on site in mid-August 2016 to commence the first phase of drilling.

To view Figures 3. Close up of Lemare pegmatite showing large spodumene crystals: http://media3.marketwire.com/docs/1064684_3.pdf

Platypus, through Lepidico, is earning up to 75% of the Lemare project. Under agreed terms, Platypus has issued to Critical Elements $500,000 worth of Platypus shares, being 18,514,939 shares issued at the 5-day VWAP post May 30, 2016 of 2.8355 cents.. To complete the initial earn of a 50% interest in the project, Platypus is to make a cash payment to Critical Elements of $35,000 by September 9, 2016, and fund exploration expenditure of $800,000 by December 31, 2016, and a further $1.2 million by December 31, 2017.

Platypus can then proceed to earn an additional 25% interest in Lemare by paying to Critical Elements $2,500,000 and delivering a definitive feasibility study and environmental study by June 30, 2020.

To view Figure 4. Summary geology of a portion of the James Bay region, Quebec, Canada, showing similarity of geological setting of Whabouchi and Lemare on the northern edge of a belt of metamorphosed greenstones (green and yellow) wrapping around a zone of high-grade granulite and migmatite (dark grey). (After Quebec Ministry of Energy and Natural Resources, 2016). Lemare sits 25 km from Whabouchi: http://media3.marketwire.com/docs/1064684_4.pdf

Jean-Sébastien Lavallée (OGQ #773), geologist, shareholder and President and Chief Executive Officer of the Company and a Qualified Person under NI 43-101, has reviewed and approved the technical content of this release.

About Critical Elements Corporation

A recent financial analysis (Technical Report and Preliminary Economic Assessment (PEA) on the Rose lithium-tantalum Project, Genivar, December 2011) of the Rose project, 100% owned by Critical Elements, 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 are not mineral reserves and do not have demonstrated economic viability). (The preliminary economic assessment is preliminary in nature). (See press release dated November 21, 2011.)

The conclusions of the PEA indicate the operation would support a production rate of 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Jean-Sebastien Lavallee, P.Geo
President and Chief Executive Officer
819-354-5146
[e-mail]
www.cecorp.ca

Investor Relations:
Paradox Public Relations
514-341-0408