E-Tech Resources Inc. Provides a Project Update on Its 100% Owned Eureka Rare Earths Project in Namibia

Halifax, Nova Scotia--(Newsfile Corp. - February 1, 2022) - E-Tech Resources Inc. (TSXV: REE) (FSE: K2i) ("E-Tech" or the "Corporation") is pleased to provide an update on its exploration work on E-Tech's Eureka Rare Earth Elements (REE) Project. This fully funded exploration program will support further resource definition as well as mineralogical and metallurgical test work.

The Project has sound project fundamentals because of its favorable geology, simplistic ore beneficiation and proximity to infrastructure. The Project is situated in the heart of the Erongo Region of Namibia, the "mining corridor of Namibia", and is favorably located within 2km of the Trans-Kalahari tarmac highway, which provides tarred road links between the Namibian port of Walvis Bay on the Atlantic coast and Namibia's capital city Windhoek. Neighboring mines include Rossing Uranium and Navachab Gold.

The corporation's exploration program is geared towards fast-tracking exploration and development study work leading to the publication of an updated NI 43-101 compliant mineral resource estimate (MRE).

Elbert Loois, CEO of E-Tech Resources Inc., commented:

"We are pleased with advancing he Eureka Project and have a unique opportunity to build value at Eureka through further exploration and development work during an exciting time in the REE market. The Corporation is well poised to execute on its work plans with a strong technical team supported by strong management and our experienced Board."

EXPLORATION HIGHLIGHTS OF THE LAST QUARTER

The corporation has continued to make significant strides in advancing the Eureka Project since 2020, with the exploration program designed to expand the current MRE (Independent Technical Report, Eureka Rare Earth Project, Namibia effective as of 2 August 2021 and released on 15 September 2021). In the first exploration campaign, a total of 2,450 meters of trenching, 3,306 meters of Reverse Circulation drilling ("RC") and 5,761 meters of Diamond Drilling ("DD") has been completed.

Assay results of the first 7 out of 20 DD holes were released on 10 November 2021, which highlighted the intersection of monazite bearing dykes up to 160 meters below surface and importantly more than 100 meters below the current MRE. Highlighted intersections are shown in Figure 1.

RC assay results, released on 1 December 2021, further confirmed the increased depth and lateral extent of the project's surface footprint in Zones 1 and 3 towards the south and to the west, as depicted in Figure 2.

The complete set of DD assay results from the first drilling campaign is expected within the next weeks, dependent on lab processing time.

FIGURE 1: Plan view of historic drilling at Eureka, Namibia, and assays received status of diamond drilling to date, as of the press release dated 10 November 2021. The red dots are RC drill holes completed in 2017, while the purple areas represent the current 2021 Mineral Resource Estimate (MRE). Blue diamonds refer to DD assay results received from the first drilling campaign and previously released.

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/6102/112303_cec4d244b41d1bea_001full.jpg

FIGURE 2: Plan view of drill hole positions at Eureka illustrating all assay results received to date, as of the press release dated 1 December 2021. The red dots are RC drill holes completed in 2017, while the purple areas represent the current 2021 Mineral Resource Estimate (MRE). The blue dots refer to the RC assay results received from the first drilling campaign in 2021.

To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/6102/112303_cec4d244b41d1bea_002full.jpg

The second 5000m of RC and DD exploration in Zones 1, 2, 3 and 4 started in December 2021 and is planned to run until end February 2022 as announced in the company's press release dated December 2, 2021.

The program consists of:

• 12 DD holes totaling 2,000 meters, across Zones 1, 2 and 3
• 34 RC holes totaling 3,000 meters, across Zones 1, 2, 3; and Zone 4 for the first time
• Further trenching of the wider exploration area.

This second campaign has been designed to confirm areas with monazite mineralization and further increase the project's surface expression along strike and to depth. The DD pattern has been focused on delivering proof of resource mineralization at depth. The RC drilling and trenching are aimed at extending the current known surface trends.

The assay results of the DD and RC holes from the second exploration campaign are expected towards the end of Q1 2022, dependent on lab processing time.

The targets across Zones 1 to 4 are presented in Figure 3 with these drill targets prioritized according to surface geophysical, trenching, RC and DD exploration results.

The corporation has engaged LightDeepEarths (Pty) Ltd, South Africa, to conduct further mineralogical test work for assessing the optimal beneficiation route to provide a monazite concentrate. Earlier beneficiation test work, based on outcrop material, as performed by SGS Mineral Services in Q4 2016, has shown an optimum liberation of the monazite at a coarse fraction, with a 65% recovery of monazite by gravity separation alone. The concentrate was further upgraded by removal of magnetite by low intensity magnetic separation ("LIMS") to a grade of 59.2% Total Rare Earth Oxide (TREO).

The geological and resource block modeling as a basis for the following MRE update are expected to be accomplished during H1 2022.

Eureka Technical Disclosure

The Corporation produced its current Mineral Resource Estimate ("MRE") for the Eureka Project with an effective date of 2 August 2021. The MRE was prepared by SRK Consulting (UK) ("SRK"). An Independent Technical Report titled: "Independent Technical Report: Eureka, Rare Earth Project, Namibia" was released on the 15 September 2021 prepared by SRK, supporting the disclosure of the MRE, and is available on SEDAR and the Corporation's website.

Quality Assurance / Quality Control

All E-Tech sample assay results have been independently monitored through a quality assurance / quality control ("QA/QC") program including the insertion of certified standards, blanks and duplicate samples. QA/QC samples make up 10% of all samples submitted. Drill core is sawn in half on site and half drill-core samples are securely transported to Activation Laboratories Ltd. sample preparation facility in Windhoek, Namibia. The core is dried, crushed to 90% passing 2 mm, riffle splitting a 250 g sub-sample and pulverizing to 95% passing 105 µm. Sample pulps are sent to Activation Laboratories Ltd. in Ontario, Canada for analysis. REE analysis is by method 8-REE. The sample is milled to 95% -200 mesh. To ensure complete fusion of resistate minerals; lithium metaborate/tetraborate fusion is used with analysis by ICP-OES and ICP-MS. Mass balance is calculated as an additional quality control technique to ensure complete analysis.

FIGURE 3: Plan view of drill hole positions at Eureka illustrating all historic and planned RC and DD holes, as of the press release dated 2 December 2021. The red dots are RC drill holes completed in 2017. The blue dots are the RC holes completed during the first campaign in 2021. Yellow dots and diamonds refer to RC and DD holes planned for drilling in the second campaign.

To view an enhanced version of Figure 3, please visit:
https://orders.newsfilecorp.com/files/6102/112303_cec4d244b41d1bea_003full.jpg

Qualified Person

Pete Siegfried, BSc. (Hons), M.Sc., is a Consulting Geologist and director of GeoAfrica Prospecting Services cc and has reviewed and approved the scientific and technical information in this news release. Mr. Siegfried is a member of The Australasian Institute of Mining and Metallurgy (AusIMM) membership number: 221116 (CP Geology), and a Qualified Person for the purposes of National Instrument 43-101. Mr. Siegfried consents to the inclusion of this information for the announcement.

About E-Tech Resources Inc.

E-Tech Resources Inc. (TSXV: REE) (FSE: K2i) is a rare earth exploration and development company focused on developing its Eureka Rare Earths Project in Namibia. The Eureka Project is located approximately 250 km north-west of Namibia's capital city Windhoek and 140km east of Namibia's main industrial port Walvis Bay. The project is situated next to the national B2 highway in the Erongo Region of Namibia. The Eureka deposit lies in the Southern Central Zone of the Neoproterozoic Damara Belt within Exclusive Prospecting Licence ("EPL") number EPL 6762, which covers Eureka Farm 99 and Sukses Farm 90. Namibia is recognized as one of Africa's most politically stable jurisdictions, with an extremely well-established national infrastructure and a clear and transparent mining law. The Corporation continues to assess new project opportunities and expand its Southern African portfolio.

Further details are available on the Corporation's website at www.etech-resources.com or contact
Elbert Loois, CEO of E-Tech Resources Inc., at +1 (902) 334 1949.

Cautionary Statements

This press release may contain forward-looking information, such as statements regarding the completion of the work in Namibia by E-Tech Resources and future plans and objectives of E-Tech Resources. This information is based on current expectations and assumptions (including assumptions in connection with the continuance of the applicable company as a going concern and general economic and market conditions) that are subject to significant risks and uncertainties that are difficult to predict, including risks relating to the ability to satisfy the conditions to completion of exploration programs and work in Namibia. Actual results may differ materially from results suggested in any forward-looking information. E-Tech Resources assumes no obligation to update forward-looking information in this release, or to update the reasons why actual results could differ from those reflected in the forward-looking information unless and until required by applicable securities laws. Additional information identifying risks and uncertainties is contained in filings made by E-Tech Resources with Canadian securities regulators, copies of which are available at www.sedar.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/112303