Discovery of a Pegmatite Traced Over More Than 700 Metres on Surface Returns Up To 3.04% Li2O and 248 ppm Ta2O5 From Six Grab Samples(1) Averaging 1.61% Li2O and 142 ppm Ta2O5 at Helico-South...

MONTREAL, QUEBEC--(Marketwired - Aug. 8, 2016) - Critical Elements Corporation (the "Corporation" or "Critical Elements") (TSX VENTURE:CRE)(CRECF)(F12.F) is pleased to report the results of sampling on a pegmatite south of the Helico showing (Table 1). The samples were collected while the camp was being upgraded for future work as part of the planned feasibility study and drilling on the Rose tantalum-lithium project.

During the upgrade of the Rose lithium-tantalum project camp, a quick visit to two showings located south of the Helico showing (Helico Sud) and south of the Lac Eli-Ouest showing (Lac Eli-Sud) identified high-grade zones within the Helico Sud pegmatite. A total of nine chip samples were collected on the showings in areas of outcropping spodumene pegmatites (Photos 1 and 2). The results confirm high levels of lithium, up to 3.04% Li₂O and 248 ppm Ta₂O₅, at Helico Sud. The location of the Helico Sud showing is shown on the map below (Figure 1 and 2).

Table 1. Results for Chip Samples from the Helico Sud and Lac Eli-Ouest-Sud¹ Showings, July 2016

Year	Area	Sample No.	Location		Li20	Ta2O5
			Easting	Northing	(%)	ppm (g/t)
2016	Lac Eli-Ouest	669451	420577	5764168	0.01	89
2016	Lac Eli-Ouest	669452	420574	5764152	0.02	117
2016	Lac Eli-Ouest	669453	420572	5764140	0.01	93
2016	Helico Sud	669454	422545	5765693	0.22	72
2016	Helico Sud	669455	422563	5765684	2.45	92
2016	Helico Sud	669456	422759	5765748	1.46	118
2016	Helico Sud	669457	422809	5765715	3.04	173
2016	Helico Sud	669458	422870	5765700	2.14	150
2016	Helico Sud	669459	423211	5765656	0.33	248

¹ Chip samples are selective by nature, and cannot be considered representative of the mineralization

To view Photo 1. Pegmatite outcrop and the Helico Sud showing: http://media3.marketwire.com/docs/1065152_e1.pdf

To view Photo 2. Close-up photo of the Helico-Sud pegmatite showing large spudomene crystals, as well as sample 669456: http://media3.marketwire.com/docs/1065152_e_2.pdf

To view Figure 1. Location map of the various showings on the Rose lithium-tantalum project: http://media3.marketwire.com/docs/1065152e_fig1.pdf

To view Figure 2. Location map of the grab samples from Helico-South: http://media3.marketwire.com/docs/1065152e_fig2.pdf

Given these very promising results, Critical Elements has decided to prepare an exploration drilling program for September, including drilling on the Helico Sud sector, the JR showing and other spodumene pegmatites identified during previous work in the Pivert sector. The exploration drilling program will also include condemnation drilling to test for possible resources at the planned site of the various Rose lithium-tantalum project installations.

"These results are not only positive for the Corporation, they also once again demonstrate the quality and strong discovery potential on the Rose lithium-tantalum project for new near-surface lithium mineralized zones that could increase resources and extend the project mine life," said Jean-Sébastien Lavallée, President and Chief Executive Officer of Critical Elements Corporation. "The coming months will be particularly exciting given the drilling planned on the various project showings and the feasibility study on the Rose lithium-tantalum project."

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.