Q3 Highlights:
Demonstration facility Phase 1 successfully produces 99.7% pure battery-grade lithium carbonate
- During the quarter, E3 Lithium completed construction of Phase 1 of its demonstration facility, with occupancy beginning on September 2, 2025. E3 Lithium achieved a major milestone with the successful conversion of lithium chloride produced from the demonstration equipment to battery-grade lithium carbonate with an average purity of 99.7%, validating the operational functionality of the company’s Direct Lithium Extraction (“DLE”) system and polishing and purification equipment throughout the process flow.
Sale of non-core assets from Saskatchewan strengthens balance sheet
- On September 30, 2025, E3 Lithium entered into an asset purchase and sale agreement with a corporate private company, to sell the company’s non-core assets, based in Saskatchewan, in the Estevan Lithium District for a total cash consideration of US$4.3 million (C$6.0 million at current USD/CAD exchange rates). The transaction is expected to close at the end of Q4 2025.
Next events
- In October, E3 Lithium closed a fully subscribed and expanded supply of units at a price of C$1.20 per unit for total gross proceeds of $13.4 million. Each unit consists of one common share of the Company and one-half of one common share purchase warrant. A total of 11,150,000 ordinary shares and 5,836,250 warrants were issued.
- On October 16, 2025, E3 Lithium signed a non-binding Memorandum of Understanding (the “MOU”) with Axens, a global provider of clean energy solutions and technologies including Direct Lithium Extraction (“DLE”) from brine, which contemplates both the sale of lithium carbonate by E3 Lithium to Axens (the “Offtake”) and Axens supplying E3 Lithium with a lithium-selective sorbent (the ‘Sorbent’).
Demonstration Facility Phase 2 Site construction and drilling underway
- On October 29, 2025, E3 Lithium began drilling a lithium development well. This is E3 Lithium’s third lithium well drilled in the Leduc Formation and will provide additional technical data to support the engineering and permitting of E3 Lithium’s upcoming commercial facility.
“Starting the demonstration facility began in 2024 and now having tangible operational results provides significant confidence in our ability to execute our designs,” said Chris Doornbos, President and CEO. “With the commencement of Phase 2 of the Demonstration Facility and the financial flexibility added by our recent public offering, we are moving confidently toward delivering our feasibility study and advancing the Clearwater Project to a shovel ready phase in 2026. We remain committed to disciplined execution as we continue to de-risk the project and build long-term value for our shareholders.”
Financial results third quarter 2025
- Net loss for the third quarter of 2025 was $2.4 million, consistent with last year’s third quarter loss of $2.6 million.
- Capital expenditures totaled $2.2 million in Q3 2025 and $5.6 million YTD, primarily to fund demonstration facility operations and advance feasibility studies.
- Working capital at September 30, 2025 was $6.8 million (December 31, 2024 – $18.1 million)
- The following October funded a further strengthening of liquidity with working capital of $18.1 million at October 31, 2025.
- Undrawn government grants of $24.8 million available from a previously announced total of $41.9 million in provincial and federal government grants awarded to E3 Lithium to support additional investments in demonstration and engineering design.
ON BEHALF OF THE BOARD OF DIRECTORS
Chris Doornbos, President, CEO & Chairman
E3 Lithium Ltd.
About E3 Lithium
E3 Lithium is a development company with a total of 21.2 million tonnes of lithium carbonate equivalent (LCE), measured and indicated 1 resources and 0.3 million tonnes of LCE inferred mineral resources 2 in Alberta and 2.5 million tonnes of LCE inferred mineral resources 3 in Saskatchewan. The Clearwater Pre-Feasibility Study outlined a proven and probable mineral reserve of 1.13 million tonnes of LCE with a pre-tax NPV (8%) of USD 5.2 billion with an IRR of 29.2% and an after-tax NPV (8%) of USD 3.7 billion with an IRR of 24.6% 1 .
Unless otherwise indicated, Kevin Carroll, P. Eng., Chief Development Officer and a qualified person under National Instrument 43-101, has reviewed and is responsible for the technical information contained in this press release.
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.
Forward-looking and cautionary statements
This press release contains certain forward-looking statements, as well as management’s objectives, strategies, beliefs and intentions, or forward-looking information within the meaning of applicable securities laws. Forward-looking statements are often identified by words such as “believe,” “may,” “will,” “plan,” “expect,” “anticipate,” “estimate,” “intend,” “project,” “potential,” “possible” and similar words that refer to future events and results. Forward-looking statements are based on management’s current opinions, expectations, estimates and assumptions in light of its experience, perception of historical trends and results of the PFS, but such statements are not guarantees of future performance. In particular, this press release contains forward-looking information relating to: the estimated mineral resources and mineral resources at the Clearwater Project; expectations regarding the PFS, including statements about the results of the PFS and interpretations thereof; expectations regarding the Clearwater Project, including the extraction, production, pretreatment, purification, volume reduction and conversion processes and their characteristics and expected outcomes; the expected economic performance of the Clearwater Project, including capital costs, operating costs, water use, land use and carbon emissions; statements about the company’s strategy for minimizing environmental impact and liquid waste and maximizing water reuse, without planned tailings or waste piles; the potential for a secondary revenue stream if the company can sell the calcium carbonate generated during lithium hydroxide production; management’s plans and objectives for the Company’s operations and the Clearwater Project; and the inherent dangers associated with mineral exploration and mining activities. In preparing the forward-looking information in this press release, the Company has applied various material assumptions, including, but not limited to, that all necessary additional financing will be available on reasonable terms; the exchange rates for the U.S. and Canadian currencies will be consistent with the Company’s expectations; that the current exploration, development, environmental and other objectives relating to the Clearwater Project can be achieved and that other business activities will proceed as expected; that the current exploration, development, environmental and other objectives relating to the Demonstration Facility can be achieved and that other business activities will proceed as expected; that general business and economic conditions will not change in a materially adverse manner and that all necessary governmental approvals for the planned activities at the demonstration facility will be obtained in a timely manner and on acceptable terms; the continuity of the lithium price.
All forward-looking information (including forward-looking financial 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 that have not yet been tested or proven on a commercial scale or in the Company’s brine, risks associated with the availability of financing on commercially reasonable terms and the expected use of proceeds; operations and contractual obligations; changes in estimated mineral reserves or mineral resources; future prices of lithium and other metals; availability of external contractors; availability of equipment; failure of the equipment to operate as expected; accidents, weather effects and other natural phenomena and other risks associated with the mineral exploration industry; the company’s lack of operating revenue; currency fluctuations; risks associated with dependence on key personnel; estimates used in financial statements that turn out to be incorrect; competitive risks and the availability of financing, as described in more detail in our recent securities filings available under the company profile on SEDAR+ at www.sedarplus.ca . Actual events or results may differ materially from those projected in the forward-looking statements and we caution not to place undue reliance thereon. We undertake no obligation to revise or update these forward-looking statements, except as required by applicable law.
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E3 Lithium – Investor Relations
Rob Knowles
VP Investor Relations
investor@e3lithium.ca
587-324-2775
E3 Lithium – Media Questions
External relations
communications@e3lithium.ca
587-324-2775
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