Critical Elements Discovers Multiple New Mineralized Zones at Rose Grading Up to 806 ppm Ta2O5 and 2.27% Li2O

MONTREAL, QUEBEC--(Marketwire - Oct. 27, 2011) - Critical Elements Corporation (TSX VENTURE:CRE)(OTCQX:CRECF)(FRANKFURT:F12) ("Critical Elements") is pleased to announce the most recent results of summer exploration work on its Rose tantalum-lithium project. The work done during the brief 15-day prospecting program identified at least five new zones that returned grades of up to 806 ppm Ta₂O₅ and 2.27% Li₂O in grab samples. All samples were taken from an area of approximately 10 square kilometres, at spacings of from a few metres to a few kilometres. The most significant results are shown in the table below. (Grab samples are selective by nature and are unlikely to represent average grades of the deposits).

UPDATE

Prefeasibility Study:

The Company also wishes to provide an update on the ongoing prefeasibility study. A Lidar airborne topographic study is now underway. This survey will be very useful in the final assessment of where to locate the various elements of the mine site, as well as for the impact study. The Company has also retained Les services d'ingénierie Mine-Concept to carry out a geotechnical study on the entire deposit and mine site. Six oriented core holes (630 metres of drilling) have been drilled to carry out various geotechnical tests (constraints, fracture orientation, etc.). These tests will all be incorporated into the final prefeasibility study, scheduled for completion at the end of the fourth quarter.

Impact Study:

The Company confirms that it has filed a notice of project with the environment ministry and the COMEV regarding its intention to open and operate a mine producing 1,500,000 tonnes per year, with an initial resource of 26,500,000 tonnes, an expected mine life of 20 years and production of approximately 225,000 tonnes per year of spodumene (lithium oxide, Li₂O) concentrate to produce 30,000 tonnes per year of lithium carbonate (Li₂CO₃). The final figures will be determined by under the prefeasibility study. The environmental impact study will be completed during the month of September 2012 under the supervision of Genivar, a Montreal-based engineering firm.

The best results obtained from the summer exploration program on the Rose tantalum-lithium project are:

"I am really very pleased, because these latest results once again show the strong potential for substantially increasing the tantalum and lithium resource at the Rose project," said Jean-Sébastien Lavallée, President and Chief Executive Officer of Critical Elements Corporation.

ABOUT CRITICAL ELEMENTS CORPORATION

Critical Elements is actively developing its 100%-owned Rose lithium-Tantalum flagship project in Quebec. The project hosts a current new NI 43-101 compliant Indicated resource of 26.5 million tonnes of 1.30% Li₂O Eq. or 0.98% Li₂O and 163 ppm Ta₂O₅ and Inferred resource of 10.7 million tonnes of 1.14% Li₂O Eq. or 0.86% Li₂O and 145 ppm Ta₂O₅.

Critical Elements has commissioned a prefeasibility study for the project from Genivar, one of the largest independent engineering firms in Canada. Genivar is also doing an environmental study, and Acme Metallurgical Ltd. of Vancouver is carrying out project metallurgy.

Critical Elements' portfolio also includes rare-earth and tantalum-niobium projects in the Rocky Mountains of British Columbia and in Quebec, as well as a 50% interest in the Croinor project, which is located in Quebec and hosts a current NI 43-101-compliant measured and indicated resource of 814,228 tonnes at 9.11 g/t Au, for 238,414 ounces of gold at a 5 g/t cut-off.

Jean-Sebastien Lavallee (OGQ #773), geologist, shareholder and president and chief executive officer of the Company and a Qualified Person under NI 43-101, has reviewed and approved the technical content of this release.