Critical Elements Lithium Corporation’s Rose Lithium-Tantalum Project

Project Update - Seite 2

The PDA also confirmed the parties’ commitment to pursuing their discussions to develop and sign an impact and benefit agreement (“IBA”) in respect of the development and operation of the Rose Lithium-Tantalum Project. The negotiations leading to the IBA allowed the Parties to gain an understanding of each other’s values and to share preferred approach for the development of the Rose Lithium-Tantalum Project. The Cree Nation of Eastmain, the Grand Council of the Crees (Eeyou Istchee), the Cree Nation Government and Critical Elements announced the signing of the IBA, referred to as the Pikhuutaau Agreement (the "Pikhuutaau Agreement"), in July 2019.

The Pikhuutaau Agreement marked a significant milestone in the fostering of a long-term working relationship between the parties while respecting Cree traditional activities and ensuring the promotion of Cree economic and social development based on mutual trust and respect during all phases of the Project through a sustainable development approach. It provides for training, employment and business opportunities for the Crees and particularly the Crees of Eastmain at the Project, as well as for the cooperation and involvement of the Cree parties with Critical Elements in the environmental monitoring during all phases of the Project. The Pikhuutaau Agreement also ensures financial benefits for the Cree parties on a long term basis, consistent with the Cree Nation Mining Policy and with Critical Elements’ approach to develop the Project while ensuring the promotion of Cree economic and social development in a mutually beneficial manner.

Collaboration between Critical Elements and local communities is also effected in the Eastmain River Lake Sturgeon Spawning Ground Enhancement Project, which was proposed in the environmental impact study filed by Critical Elements with the COMEX and the Canadian Environmental Assessment Agency (now the Impact Assessment Agency of Canada) to compensate the potential impacts of the Rose Lithium-Tantalum Project on fish habitat (the “Fish Habitat Project”). The Fish Habitat Project aims at bringing back the lake sturgeon in the Eastmain River. In February 2018, Critical Elements announced the execution of an agreement with the Cree Nation of Eastmain and the Niskamoon Corporation which provides for the implementation of the Fish Habitat Project by the Niskamoon Corporation and contemplates consultation with and participation of the Cree Nation of Eastmain, including potentially employment and business opportunities for the Cree Nation of Eastmain with a view to promote maximum participation of local manpower and other resources.