Essential Metals to Divest its 51% Interest in Non-Core Mavis Lake Lithium Project, Canada

The transaction will realise $1.6M in cash & shares + $1.5M cash linked to milestones for Essential, reinforcing its focus on the Pioneer Dome Lithium Project in WA


• Essential Metals Limited (“Essential”) and International Lithium Corporation

(“ILC”), Joint Venture partners in the Mavis Lake Lithium Project in Ontario,

Canada (the “Project”), have agreed to divest 100% of the Project to Critical

Resources Limited (ASX: CRR “Critical Resources”) under an Option Agreement.

Critical Resources will pay $175,000 for the right to acquire 100% of the Project,

exercisable by 4 January 2022. Upon electing to acquire the Project, Critical

Resources will pay/issue the following, with Essential and ILC will sharing the

proceeds equally:

o $1,500,000 cash; and

o 68 million shares in Critical Resources at a price of $0.022 per share (with

a deemed value of $1.5 million).

In addition, milestone payments totalling $3 million will be payable on the

definition of a lithium resource (refer below for further information).

• Essential is taking advantage of the current strong sentiment in the lithium

sector to divest a non-core, early-stage exploration asset located in Canada,

consistent with its focus on its WA lithium and gold projects.