Canada Lithium Corp. project update

The program, aimed primarily at testing extensions of the known resource both at depth and along strike, also includes some infill drilling for increased resource definition within the initial pit design. The program was initiated in late April and 49 holes totalling 6,724 meters have been completed to date. The assay results for the program will be completed by August 2010 and an updated NI 43-101 resource report will be available in October 2010.

Samples were analyzed by ALS Laboratory Group in Vancouver using their ME-MS61 method (4-acid digest with an ICP finish). CLQ’s quality control checks are in progress, and analyses received to date indicate that the accuracy and precision of the data are high.

As reported in a press release dated March 4, 2010, the Deposit contains Measured and Indicated Mineral Resources of 31.6Mt at 1.11% Li2O and an additional Inferred Mineral Resource of 38.9Mt at 1.12% Li2O (exclusive of the results from the current drill program noted above).

Geotechnical Drilling:

Golder Associates has commenced supervision of the geotechnical drilling of the sites for the tailings management facility, process plant location and open pit area.

Pilot Plant Metallurgical Testwork:

SGS Laboratories at Lakefield has completed pilot plant flotation testwork. Material from this programme has undergone test-roasting and SGS has commenced pilot plant hydro-metallurgical testing. Upon completion of the hydro-metallurgical pilot plant testwork, marketing samples will be sent to potential end users in Asia, Europe and North America.

Engineering:

BBA Inc. in Montreal has commenced the engineering design, site layouts and infrastructure stages of the FS. Mine design work will commence once the updated NI 43-101 resource report is completed.

Corporate:

The Company is pleased to announce the appointment of Chris Irwin as the Company’s Interim Chief Financial Officer following the departure of William Jupp. Mr. Irwin will act in the interim capacity until the appointment of a new CFO.

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.

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Canada Lithium Corp. is a Canadian-based resource and exploration company trading under the symbol CLQ on the TSX and CLQMF on OTCQX in the U.S. The Company is currently preparing a definitive Feasibility Study on the Quebec Lithium Project, which will include environmental, metallurgical, geological and engineering studies. It 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. Metallurgical tests have produced battery-grade lithium from deposit samples. The Project is 60km north of Val d’Or.

www.canadalithium.com