Western Lithium USA Corporation

Western Lithium USA Corporation

May 27, 2009 11:02 ET

Western Lithium Engages Major Engineering Firm URS Corporation to Complete Scoping Study on its Lithium Deposit in Nevada

Laboratory Production of 99% Commercial Quality Lithium Carbonate from Nevada Clay will form Basis of Scoping Study

RENO, NEVADA--(Marketwire - May 27, 2009) - Western Lithium Canada Corporation ("Western Lithium") (TSX VENTURE:WLC) is pleased to announce that it has engaged URS Corporation ("URS") to complete scoping studies at its lithium deposit in Nevada, USA. As a major international engineering firm, URS has been chosen for its mining and chemical engineering expertise to advance what is potentially a significant lithium deposit in North America. Laboratory production of 99% commercial quality Lithium Carbonate achieved from the Nevada hectorite clay will form the basis of the scoping study. The results of the scoping study, if positive, are intended to attract international and domestic attention from major off-take partners and financial institutions.

Western Lithium has been testing two potentially economic processes that were first developed in the 1980's by Chevron Resources and the U.S. Bureau of Mines ("USBM"). Western Lithium achieved laboratory production of 99.2% purity lithium carbonate from the Nevada clays in 2008, based on the leaching process developed by Chevron. In addition, a USBM pilot plant project produced 99% purity lithium carbonate from the Nevada clays based on a simple thermal treatment process. For this phase of economic studies, URS will advance the USBM pilot plant results and recent testing by Western Lithium to develop a thermal treatment process that uses conventional technology.

Western Lithium's target is to meet production specifications for high quality, low impurity lithium carbonate to sell to major manufacturers of lithium-ion batteries. It also expects to produce co-products such as potassium sulphate, widely used for agricultural fertilizer, which is anticipated to significantly enhance project economics and competitiveness. The scoping study results are targeted for the end of Q3 or early Q4, 2009.

URS is a leading global provider of engineering, construction and technical services with more than 50,000 employees in 30 countries. URS will complement work presently underway at metallurgical test facilities located at Kappes, Cassidy & Associates in Reno, and Hazen Research, Inc. in Denver.

Western Lithium is developing the Kings Valley, Nevada lithium deposit into potentially one of the world's largest strategic, scalable and reliable sources of battery grade lithium carbonate. The company is positioning itself as a major U.S.-based supplier to support the rising global demand for lithium carbonate that is expected from the increased use of mobile electronics and hybrid/electric vehicles.

Forward Looking Statements

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Ontario Securities Act. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, risks and uncertainties relating to risks inherent in mining including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; uncertain political and economic environments; changes in laws or policies, delays or the inability to obtain necessary governmental permits; results from the scoping study may not indicate positive economics for the Kings Valley project; Western Lithium may not be able to secure off-take partners or other financing to develop the project as envisioned; the company may not be able to meet its targeted product specifications; co-product production may not be sufficient to enhance project economics as anticipated and other risks and uncertainties, including those described in each management discussion and analysis. Forward-looking information is in addition based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of lithium; appropriate equipment and sufficient labour and that the political environment where the Company operates will continue to support the development and operation of mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking information. Accordingly, readers are advised not to place undue reliance on forward-looking information.

On behalf of Western Lithium Canada Corporation

Jay Chmelauskas, President

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

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