Critical Elements Corporation

Corporate Update and Strategic Partner Discussions

MONTREAL, QUEBEC--(Marketwired - Feb. 7, 2018) - Critical Elements Corporation (the "Company" or "Critical Elements") (TSX VENTURE:CRE)(OTCQX:CRECF)(FRANKFURT:F12) is pleased to provide an update to its shareholders on the most recent discussions with strategic partners and a review of 2017 accomplishments and recent lithium market developments.

Strategic Partner and Project Financing Discussion

Critical Elements continues to work closely with its financial advisor, Canaccord Genuity Corp., to evaluate ongoing interest from global strategic partners that seek to accelerate the Rose Lithium-Tantalum project to production.

The process is organized, competitive and the interest is strong, in parallel we are working with banks and financial institutions to accelerate the debt financing portion of the project.

In a recent trip to Asia, the company met with several OEMs, cathode manufacturers, trading houses and cell manufacturers. More than 12 non-disclosure agreements with strategic parties are now in place and currently in the process of reviewing the data room, illustrating the competitive tension in the lithium market.

The end-users recognize our management abilities to successfully deliver lithium products, and our development strategy gives the flexibility to meet all major end-users current and future needs.

Lithium Market Update

Global demand for lithium products has recently intensified with the aggressive launch of OEM Electric Vehicle platforms and government mandates for vehicle electrification. This has been accompanied by significant equity and project financings as well as strategic investment and merger and acquisition activities in the lithium sector.

2017 has certainly been an exciting year in the lithium sector. Regulators across the globe continue to make strides to curb greenhouse emissions and pave the way for electric vehicles by establishing plans to phase-out internal combustion engines and instead rely on lithium-ion batteries as an energy alternative. Of particular note, some of the world's largest car markets, most notably China, have announced significant policy changes and target dates to stop the production and sales of traditional energy vehicles within their borders. Automakers are responding to this movement by repurposing their manufacturing platforms in preparation for significant electric vehicle sales. In fact, over the past twelve months major automakers collectively announced that they would spend over US$100 billion on establishing electric vehicle platforms by 2030 to keep pace with forecast demand.