E3 Metals Corporation NI 43-101 Inferred Lithium Resource Estimate NI 43-101 TECHNICAL REPORT LITHIUM RESOURCE ESTIMATE for the CENTRAL CLEARWATER PROPERTY SOUTH-CENTRAL ALBERTA, CANADA Prepared for E3 METALS CORPORATION #205 - 227 10th St NW Calgary, AB T2N 1V5 Prepared by: Raymond P. Spanjers MS, P.Geo, QP, Independent Consultant Gordon MacMillan, P.Geo, QP, Fluid Domains Wayne Monnery, P.Eng, QP, Independent Consultant Report Date: December 8, 2017 Effective Date: October 27, 2017 1 Alberta Petro-Lithium Project, Alberta, Canada E3 Metals Corporation NI 43-101 Inferred Lithium Resource Estimate Table of Contents LIST OF FIGURES .................................................................................................................................5 LIST OF TABLES ..................................................................................................................................6 1 SUMMARY ......................................................................................................................................7 2 INTRODUCTION ............................................................................................................................. 10 2.1 TERMS OF REFERENCE .......................................................................................................................... 10 2.2 SOURCES OF DATA ............................................................................................................................... 10 2.3 SITE VISIT ........................................................................................................................................... 10 3 RELIANCE ON OTHER EXPERTS ....................................................................................................... 10 4 PROPERTY DESCRIPTION AND LOCATION ....................................................................................... 11 4.1 LOCATION .......................................................................................................................................... 11 4.2 PROPERTY DESCRIPTION ....................................................................................................................... 12 4.3 ROYALTIES .......................................................................................................................................... 14 4.4 ENVIRONMENTAL ISSUES ....................................................................................................................... 15 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY .................... 15 5.1 ACCESSIBILITY ..................................................................................................................................... 15 5.2 CLIMATE ............................................................................................................................................ 16 5.3 LOCAL RESOURCES ............................................................................................................................... 17 5.4 INFRASTRUCTURE................................................................................................................................. 17 5.5 PHYSIOGRAPHY ................................................................................................................................... 18 6 HISTORY........................................................................................................................................ 18 6.1 OIL DRILLING HISTORY .......................................................................................................................... 18 6.2 WELL LOGS ........................................................................................................................................ 19 6.3 DRILL STEM TESTS ............................................................................................................................... 19 6.4 PRODUCTION, INJECTION AND DISPOSAL .................................................................................................. 20 6.5 HISTORICAL LITHIUM DATA ................................................................................................................... 20 7 GEOLOGICAL SETTING AND MINERALIZATION ................................................................................ 21 7.1 GEOLOGICAL SETTING ........................................................................................................................... 21 7.2 PRECAMBRIAN BASEMENT..................................................................................................................... 26 7.3 PHANEROZOIC STRATA ......................................................................................................................... 26 7.4 QUATERNARY GEOLOGY........................................................................................................................ 27 7.5 STRUCTURAL HISTORY .......................................................................................................................... 28 7.6 MINERALIZATION ................................................................................................................................. 28 7.6.1 Occurrence ............................................................................................................................... 28 8 DEPOSIT TYPES .............................................................................................................................. 29 9 EXPLORATION ............................................................................................................................... 29 2 Alberta Petro-Lithium Project, Alberta, Canada E3 Metals Corporation NI 43-101 Inferred Lithium Resource Estimate 9.1 SAMPLE WELLS ................................................................................................................................... 30 9.2 FIELD SAMPLING .................................................................................................................................. 30 10 DRILLING ..................................................................................................................................... 32 11 SAMPLE PREPARATION, ANALYSES AND SECURITY ....................................................................... 32 11.1 SAMPLE PREPARATION AND SECURITY ................................................................................................... 32 11.2 ANALYSES......................................................................................................................................... 33 11.2.1 Standards and Blanks ............................................................................................................. 33 11.2.2 Duplicate Analysis .................................................................................................................. 33 11.2.3 Sampling Program Results ..................................................................................................... 35 12 DATA VERIFICATION .................................................................................................................... 37 13 MINERAL PROCESSING AND METALLURGICAL TESTING ................................................................. 38 13.1 METALLURGICAL TESTING ................................................................................................................... 38 13.1.1 Extraction Technology Summary ............................................................................................ 38 13.2 NA2CO3 PRE-TREATMENT ................................................................................................................. 39 13.3 SUMMARY OF THE TENOVA PROCESS..................................................................................................... 40 13.4 ASSUMPTIONS AND RISKS.................................................................................................................... 41 14 MINERAL RESOURCE ESTIMATE.................................................................................................... 41 14.1 RESERVOIR GEOLOGY ......................................................................................................................... 42 14.1.1 Reservoir Geometry ................................................................................................................ 42 14.1.2 Hydrostratigraphic Units ........................................................................................................ 43 14.1.3 Structure and Thickness ......................................................................................................... 44 14.2 RESERVOIR PROPERTIES ...................................................................................................................... 47 14.2.1 Reservoir Pressure .................................................................................................................. 47 14.2.2 Reservoir Permeability ........................................................................................................... 48 14.2.3 Reservoir Porosity................................................................................................................... 50 14.2.4 Storage Estimates of Reservoir ............................................................................................... 51 14.3 ESTIMATE OF WATER PRODUCTION .....................................................................................................