Canada Lithium completes Quebec Lithium Project resource estimate

Canada Lithium Corp. (TSXV: CLQ) announced that its 100%-owned Quebec Lithium Project contains a measured and indicated mineral resource of 31.6 million tonnes grading 1.11% Li2O, with an additional 38.9 million tonnes grading 1.12% Li2O classified as an inferred mineral resource.

This is well in excess of both the previously announced original "historical" estimate of approximately 15 million tonnes grading 1.14% Li2O and the conceptual target of approximately 29-30 million tonnes grading between 1.1% and 1.2% Li2O.

"In less than two years we have advanced the Quebec Lithium deposit into a project that could potentially sustain battery-grade lithium carbonate production, of some 40 million pounds annually, for a period in excess of 30 years," said Peter Secker, Canada Lithium President and CEO.

The resource estimate undertaken by Caracle Creek International Consulting Inc. (CCIC) used all data available from the historic exploration and mining, as well as the results from the 2009 drill program to complete a detailed 3D geological model of the spodumene-bearing dykes using Surpac (v6.1.3). Data was drawn from a total of 506 drill holes (39 from the 2009 program, and 410 and 57 historic underground and surface drill holes, respectively).

The resource comprises a series of parallel, steeply dipping spodumene-bearing pegmatite dykes. The surface extent of the resource as outlined by CCIC is approximately 1 km long on a northwest-southeast axis and 550 metres wide. Recent drilling has demonstrated that mineralization continues to depths of at least 430m. The deposit is amenable to open-pit mining.

The Company anticipates its engineering consultant, BBA of Montreal, will complete a Pre-Feasibility Study (PFS) before the end of the current month. The Pre-Feasibility Study is examining the economics of reopening this historic mine as an open pit, mining approximately 2,900 tonnes per day and processing the ore into approximately 40 million lbs of lithium carbonate per year.

Canada Lithium has commenced processing a bulk sample at a pilot plant assembled by SGS Lakefield. In addition to fine-tuning the metallurgical process developed by SGS Lakefield, the bulk sample will produce battery-grade lithium carbonate samples for marketing purposes.

A Definitive Feasibility Study (DFS) now under way is scheduled for completion by the end of Q1, 2011. In addition, a program of extensional and infill resource definition drilling will be carried out in mid-2010. The focus of the extensional drilling will be to better define the location of spodumene-bearing pegmatites to both the northwest and southeast, on strike with the current resource.

Lithium carbonate is used in a wide variety of applications, including most lithium-ion batteries for electric vehicles. Production of large lithium batteries is expected to become far more prevalent in the next few years, according to several manufacturers.

Most of the large automobile manufacturers have plans for plug-in electric vehicles over the next 2-3 years, with the first electric cars, such as the Nissan Leaf and GM’s Volt, expected to be released later this year or early next. Other future uses for large lithium-ion batteries include power grid stabilization systems and home and office backup power units.

Canada Lithium has negotiated a marketing arrangement with Mitsui and Company of Tokyo, Japan, which covers the marketing rights for Japan, Korea and China over a 6-year period.

The mineral resource estimate above has been prepared by CCIC’s Michelle Stone, Ph.D., P. Geo., an independent Qualified Person as defined by NI 43-101. Ms. Stone has read and approved the contents of this release. A Technical Report compliant with National Instrument 43-101 standards describing the resource estimation and providing details of the 2009 drill program, as well as the associated QA/QC review, will be filed on SEDAR ( within 45 days of this release.

Mitch Lavery, P.Geo., is the Qualified Person for the Quebec Lithium Project in accordance with NI 43-101. Mr. Lavery has read and approved the contents of this news release.

*The mineral resource estimates in this press release were prepared in accordance with the CIM "Definition Standards on Mineral Resources and Mineral Reserves" adopted by the CIM Council on December 11, 2005, and the CIM "Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines," adopted by CIM Council on November 23, 2003, in compliance with NI 43-101 guidelines, using the polygonal method.

Canada Lithium Corp. is a Canadian-based resource and exploration company trading under the symbol CLQ on the TSX-V. The Company is currently finalizing a prefeasibility study on the Quebec Lithium Project, located 60 km north of Val d’Or, Quebec, which will include environmental, metallurgical, geological and engineering studies.

The Company has an agreement with Japanese metals trading firm, Mitsui and Co. Ltd., to market a portion of Canada Lithium Corp.’s product in China, Korea and Japan. The mine previously operated between 1955 and 1965, producing both spodumene concentrates and lithium carbonate. Recent metallurgical tests completed in 2009, have produced battery-grade lithium from deposit samples.