E3 Lithium Announces $5.0 Million Bought Deal Public Offering

E3 LITHIUM LTD. (TSXV: ETL) (FSE: OW3) (OTCQX: EEMMF), “E3” or “the Company,” Alberta’s leading lithium developer and extraction technology innovator, today announced that it has entered into an agreement with Red Cloud Securities Inc. to act as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters (collectively, the “Underwriters”), pursuant to which the Underwriters have agreed to purchase for resale 2,222,222 common shares of the Company (each, an “Offered Share”) at a price of C$2.25 per Offered Share (the “Offering Price”) on a “bought deal” basis for gross proceeds of C$5,000,000 (the “Underwritten Offering”).

The Company has granted to the Underwriters an option (the “Over-Allotment Option”, and together with the Underwritten Offering, the “Offering”), exercisable for a period of 30 days after and including the closing date of the Offering, to purchase for resale up to an additional 333,333 Offered Shares at the Offering Price to raise additional gross proceeds of up to C$750,000 to cover over-allotments, if any, and for market stabilization purposes.

The net proceeds from the Offering will be used to for general corporate purposes, and towards the advancement of the Clearwater Project.

The Offered Shares will be sold by way of a prospectus supplement to be filed in all of the provinces of Canada, other than Québec, to supplement the Company’s short form base shelf prospectus dated April 18, 2022. The Offered Shares may also be sold in the United States on a private placement basis pursuant to one or more exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), and in such other jurisdictions outside of Canada and the United States, in each case in accordance with all applicable laws provided that no prospectus, registration statement or similar document is required to be filed in such jurisdiction.

The Offering is scheduled to close on or about June 8, 2023 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.

The Offered Shares have not been and will not be registered under the U.S. Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the U.S. Securities Act and applicable states securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.