Critical Elements Corporation Reports a Partial Closing of its Financing

MONTREAL, QUEBEC--(Marketwire - March 4, 2011) - Critical Elements Corporation (TSX VENTURE:CRE)(OTCQX:FGEXF)(FRANKFURT:F12) is pleased to announce that it has closed on a portion of a non-brokered private placement, for an amount of $1,077,900.

The Company has issued 3,592,999 units of common shares at a price of $0.30 per share for gross proceeds of $1,077,900. Each unit consists of one common share priced at $0.30 and half a warrant to purchase a common share of the Company. Each warrant entitles its holder to purchase one common share of the Company at $0.45 for a 12-month period after closing of the private placement. 

The Company has paid $60,072 in commissions on the private placement, along with 200,240 compensation options, each entitling its holder to acquire one common share at $0.45 for a 12-month period after closing of the private placement.

The common shares are subject to a four-month hold period from the date of closing.

The Company is pursuing its efforts to complete this private placement for up to $2,000,000.

Proceeds of the private placement will be used for property development and/or working capital purposes.

Company insiders subscribe for 7% of the total amount of the financing.