E3 Metals Closes Fully Oversubscribed Private Placement of over $8,000,000

- February 8th, 2021

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES . E3 METALS CORP. an emerging lithium developer and leading lithium extraction technology innovator, is pleased to announce it has closed the “bought deal” brokered private placement with Echelon Wealth Partners Inc. and Canaccord Genuity Corp. as previously announced on January 21, 2021 for a total of over $8M . The …

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES ./

E3 METALS CORP. (TSXV: ETMC) (FSE: OU7A) (OTC: EEMMF) (the “Company” or “E3 Metals“), an emerging lithium developer and leading lithium extraction technology innovator, is pleased to announce it has closed the “bought deal” brokered private placement with Echelon Wealth Partners Inc. (“Echelon”) and Canaccord Genuity Corp. (collectively, the “Underwriters”) as previously announced on January 21, 2021 for a total of over $8M .

The Company received subscriptions for 6,793,300 units of the Company, which includes the exercise of the Underwriters’ full 15% over-allotment option, for total proceeds of $8,050,060.50 . Each unit of the Company is comprised of one common share and one common share purchase warrant, on the terms previously announced.  The securities issued under the offering will be subject to a hold period expiring four months and one day following the issue date.

The Company has engaged Echelon as an advisor going forward, and in consideration has paid to Echelon an advisory fee of $100,000 and will issue 92,400 non-transferrable common share purchase warrants. Each warrant shall be exercisable to acquire one common share at a price of $1.65 for a period of 24 months.

“E3 saw incredible support from institutional investors as we closed the full option at just over $8M .” commented Chris Doornbos , E3 Metals‘ President and CEO. “This clear demonstration of support for E3 Metals continues as we move towards the pilot of our DLE technology and continue on the path commercialization. The company is now fully capitalized to complete our major milestones for 2021 and beyond.”

The company anticipates providing further information to the market in the coming month on the development plans and use of proceeds.

About E3 METALS CORP.

E3 Metals is a lithium development Company with 7.0 million tonnes of lithium carbonate equivalent (LCE) inferred mineral resources 1 in Alberta and an NPV 8% on its Clearwater Lithium Project of USD 1.1B with a 32% 1 IRR pre-tax and USD 820M with a 27% IRR after-tax. Through the successful scale up its DLE technology towards commercialization, E3 Metals‘ goal is to produce high purity, battery grade, lithium products. With a significant lithium resource and innovative technology solutions, E3 Metals has the potential to deliver lithium to market from one of the best jurisdictions in the world. E3 Metals also continues to work with partners at the University of Alberta and at GreenCentre Canada. For more information about E3 Metals, visit http://www.e3metalscorp.com .

ON BEHALF OF THE BOARD OF DIRECTORS,
Chris Doornbos , President & CEO
E3 METALS CORP.

1: The Preliminary Economic Assessment (PEA) of the Clearwater Lithium Project NI 43-101 technical report is effective Dec 21, 2020. E3 Metals has also released three NI 43-101 Technical Reports providing a total resource of 7.0 Mt LCE. The Clearwater Lithium Project PEA resource estimate, identifying 2.2Mt LCE (inferred) effective December 21, 2020; the North Rocky Resource Area (NRRA) Technical Report effective October 27, 2017 identifying 0.9Mt LCE (inferred); and the Exshaw West Resource Area (EWRA) indentifying 3.9Mt LCE (inferred) dated June 4, 2018. All reports are available on the Company’s website ( e3metalscorp.com/technical-reports ) and SEDAR (www.sedar.com)

Forward-Looking and Cautionary Statements

This news release includes certain forward-looking statements concerning the use of the net proceeds from the Offering, as well as management’s objectives, strategies, beliefs and intentions. Forward looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, the effectiveness and feasibility of emerging lithium extraction technologies which have not yet been tested or proven on a commercial scale or on the Company’s brine, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com . Actual events or results may differ materially from those projected in the forward-looking statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements except as required by applicable law.

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.

SOURCE E3 METALS CORP.

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