Name of the Project
Clearwater lithium project.

Location
The Clearwater project is located in the Bashaw district, between Red Deer and Calgary, with the demonstration programme and proposed first-stage commercial development about 15 km east of Olds, Alberta, Canada.

Project Owner/s
Canadian lithium brine developer E3 Lithium.

Project Description
A prefeasibility study (PFS) has outlined the detailed process to produce battery-grade lithium hydroxide, and has reported the first lithium-in-brine proven mineral reserves in Canada.

The Clearwater project is planned as a closed-loop brine operation using deep wells and pipelines to extract and reinject brine from the Leduc reservoir, a central processing facility and direct lithium extraction (DLE) technology.

The project has estimated proven and probable lithium brine mineral reserves of 1.29-million tonnes lithium hydroxide monohydrate (1.13-million tonnes lithium carbonate equivalent, or LCE). The mineral reserve is contained within the Bashaw district measured and indicated lithium mineral resource, totalling 18.4-million tonnes lithium hydroxide monohydrate (16.2-million tonnes LCE).

The 2024 PFS projected initial production of 32 250 t/y of lithium hydroxide monohydrate and average production of 25 850 t/y over a 50-year operating life. The mine life is based on only a portion of the total Bashaw district.

E3’s current staged commercialisation plan targets Stage 1 production of about 12 000 t/y of battery-grade lithium. Its update on October 22, 2026, describes the central processing facility (CPF) licence application as scalable to 30 000 t/y of lithium carbonate.

E3 has said process water is expected to be sourced from recycling and make-up water from waste brine streams, with no evaporation ponds required.

Potential Job Creation
At full capacity, the Clearwater Central Processing Facility could create hundreds of on- and off-site jobs, while construction could employ thousands of Alberta workers. The June 2026 federal funding agreement also supports E3’s current technical team and a commitment to hire up to 25 additional technical staff and operators.

Net Present Value/Internal Rate of Return
The 2024 hydroxide PFS estimates a pretax net present value (NPV), at an 8% discount rate, of $5.18-billion and an internal rate of return (IRR) of 29.2%, with a payback of 4.25 years. The PFS also estimates an after-tax NPV, at an 8% discount rate, of $3.72-billion and an IRR of 24.6%.

Capital Expenditure
The 2024 hydroxide PFS estimates initial capital expenditure of $2.47-billion, including water recycling and contingency. An updated Stage 1 carbonate capital estimate remains to be completed with the feasibility study.

Planned Start/End Date
E3 is progressing front-end engineering design (FEED) and targets completion of the Clearwater Stage 1 feasibility study and a Class 3 cost estimate in the first quarter of 2027. A commercial operations date has not been stated.

Latest Developments
As at October 22, 2026, E3 Lithium was nearing the completion of Phase 2 of its demonstration facility, which serves as an important engineering milestone required to complete the design of a commercial facility for the project, with the resource being located in the Leduc oilfield reservoir region.

The demonstration facility is helping to derisk the group's technology, as well as advance permit applications for a commercial-scale processing facility and offtake discussions with international partners.

Phase 1 of the facility was commissioned in 2025 and successfully produced battery-grade lithium carbonate using a 30-column DLE system. Phase 2 has involved drilling and operating a full-sized producer and injector well pair to test the reservoir and collect data for the Clearwater project's feasibility study.

Now nearing completion, Phase 2 has confirmed sustained production from the Leduc reservoir, having moved more than 60 000 m³ to date. Phase 2 has also validated consistent brine chemistry across the broader resource and generated valuable gas-water data to support commercial facility design.

Phase 3 of the demonstration facility will restart the 30-column DLE system in the fourth quarter of 2026, shortly after Phase 2 concludes. E3 is finalising the design and procurement of a commercial-scale DLE column for operation from 2027. This is aimed at providing robust operational data required by project financiers, strategic partners and offtakers.

An extended operation of Phase 3 will enable E3 to train operations staff, continue producing battery-grade lithium carbonate and further optimise key process metrics.

Phase 3 of the demonstration facility and front-end engineering design works are supported by up to C$36.5-million in nonrepayable funding from Natural Resources Canada’s Global Partnerships Initiative. The contribution agreement allows for claims for eligible costs and does not constitute full construction funding.

The company is evaluating strategic and diversified financing options to advance Clearwater to a fully funded final investment decision, including project-level debt and equity.

Commercial CPF permit applications remain under review, and binding offtake agreements remain a development objective. The demonstration facility’s permit status does not establish approval of the commercial project.

Key Contracts, Suppliers and Consultants
Sproule Associates; Matrix Solutions; Sedgman Canada; and Stantec (PFS). Sedgman (FEED); Axens (nonbinding memorandum of understanding covering potential lithium carbonate offtake and lithium-selective sorbent supply); and ABB (collaboration referenced in the federal funding workstream). Epsilon CAM (nonbinding potential offtake arrangement); Tees Valley Lithium (nonbinding arrangement for potential toll conversion of carbonate to hydroxide).

Contact Details for Project Information
E3 Lithium, tel +1 587 324 2775 or email investor@e3lithium.ca.