Interview with Eric Zaunscherb, Chairman, Critical Elements Lithium Our previous interview: https://www.cruxinvestor.com/posts/critical-elements-lithium-tsxvcre-high-value-rose-project-on-the-path-to-fid-3510 Recording date: 16th June 2026 Critical Elements Lithium is positioning itself as a standout developer in the recovering lithium sector, anchored by its fully permitted Rose Lithium-Tantalum project in Quebec. Unlike many peers, the company has already cleared two major development hurdles: environmental approvals and a formal agreement with the Cree Nation. This significantly shortens its path to production and reduces execution risk. A 2023 feasibility study outlines robust project economics, including annual production of 200,000 tonnes of spodumene concentrate, a net present value of US$2.2 billion, a 66% internal rate of return, and a rapid 1.8-year payback period. These estimates are based on conservative pricing assumptions below current market levels, suggesting additional upside as lithium prices recover. Beyond its flagship asset, Critical Elements is actively advancing exploration at the nearby Rose West discovery. Early drilling has already expanded the deposit footprint multiple times, and ongoing work is expected to further grow the resource. Importantly, Rose West can be integrated into the existing project without requiring separate permitting, potentially enhancing long-term production and project value. The company also holds a strategic 20% carried interest in the Nisk Joint Venture, alongside equity in partner Power Metallic. This exposure provides additional upside through a polymetallic discovery that is not fully reflected in Critical Elements’ current valuation. Despite its strong fundamentals, the company trades at a significant discount to peers and analyst targets, largely due to uncertainty around project financing. However, with a well-defined asset, supportive infrastructure, and multiple growth drivers, Critical Elements is positioned for a potential re-rating as the lithium market improves and financing clarity emerges. Learn more: https://www.cruxinvestor.com/companies/critical-elements-lithium Sign up for Crux Investor: https://cruxinvestor.com

Critical Elements Lithium (TSXV:CRE) - 'Undervalued?' Investment Series, with Eric Zaunscherb

Company Interviews

# Full Transcript

**Podcast:** Company Interviews

## Transcript

Hi, my name is Eric Zaunscherb. I am the chair of the board of directors of Critical Elements Lithium. I'm sure you've heard it before. Every company believes that they are fully undervalued and the market should be appreciating what they've got more. I'd like to tell you why I believe that Critical Elements is indeed undervalued and should be worthy of your attention. First off, Basic Shares Outstanding $232 million. This is a company that's been actively exploring and advancing

the Rose Lithium Hard Rock project in Quebec for a number of years from Discovery in 2008-2009, and yet has maintained a very good capital structure with 232 million shares outstanding. As you can see, it's trading in a $0.33-$0.58 range very consistently, has good coverage from across the street, and decent 4% exposure for insiders on the management structure.

The Rose Lithium Tantalum project is wholly owned by the company. There are no options or payments or debts. It's one of the top jurisdictions globally in Quebec. Quebec is recognized as one of the top jurisdictions because of its policies. An extremely clean grid with 98% hydropower and the rest renewable. The company has a formalized agreement with the Cree and has all major environmental permits.

We're not waiting for a permit from Quebec or from the federal government. That's all in place already. 2023, there's a feasibility study that was done at just over 2,100 US life of mine average per tonne for 5% chemical grade spodumine. And that studied a mine and production of 200,000

tons per annum of spodumine concentrate. And that delivered a very robust NPV 8% of US $2.2 billion internal rate of return of around 66% and a payback of 1.8. Now that price that was used in that feasibility study is exceeded by today's spot price of $2,500 per tonne US for 6% chemical grade. And that's

up four times since June of last year. Right. And I mean, just to say, if I may interrupt briefly, and clearly, you know, the feasibility study lays out quite a big project, quite a, you know, good returns as well. Where's the kind of misalignment in terms of what people's perception of, you know, what you've got or what they think you could do? Is it

simply come down to the kind of financing uncertainty around this? Or is it really the kind of legacy of what happened with lithium over the last three, four years? I think it's a combination of things. So of course, lithium came off quite dramatically. And so people are just discovering now that spodumine is up on fourfold. So it's an amazing thing when I tell people that they weren't aware of that happening. There's still this sense, especially in North

America, that the EV theme is dead, given the Trump administration removing subsidies, things like that. But the reality is that across the world, EV penetration into the auto market is up dramatically. And that's true, whether we're talking about Europe or China. I...

Critical Elements Lithium (TSXV:CRE) - 'Undervalued?' Investment Series, with Eric Zaunscherb

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

Critical Elements Lithium (TSXV:CRE) - 'Undervalued?' Investment Series, with Eric Zaunscherb

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.