Canada Lithium Corp.

Canada Lithium Corp.

September 07, 2010 07:22 ET

Canada Lithium Announces Closing of Sale of Tully Gold Prospect

TORONTO, ONTARIO--(Marketwire - Sept. 7, 2010) - Canada Lithium Corp. (TSX:CLQ)(OTCQX:CLQMF) ("Canada Lithium") announced today that it has closed its previously announced sale of its 100% interest in 18 mineral claims located in Tully Township, Porcupine Mining Division of northern Ontario (the "Tully Gold Prospect") to San Gold Corporation ("San Gold") and SGX Resources Inc. ("SGX").

The consideration paid for the Tully Gold Prospect by San Gold and SGX consists of $200,000 in cash paid by SGX, 600,000 common shares of SGX and 150,000 common shares of San Gold. San Gold and SGX shall each acquire a 50% interest in the Tully Gold Prospect.

The sale of the Tully Gold Prospect is subject to receipt of all necessary approvals of regulatory, stock exchange and securities authorities.

About Canada Lithium Corp.

Canada Lithium Corp. is a Canadian-based "clean tech" mine developer trading under the symbol CLQ on the TSX and on the U.S. OTCQX market under the symbol CLQMF. The Company is in the midst of a definitive Feasibility Study (FS) by engineering firm BBA Inc. of Montreal on its Quebec Lithium Project near Val d'Or, the geographical heart of the Quebec mining industry. A positive FS would lead to construction of an open pit mine and processing plant capable of producing by late 2012 approximately 43 million pounds of battery-grade lithium carbonate to meet the growing needs of the emerging global market for electric and hybrid electric vehicles. 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.

Please visit the Canada Lithium website at

Corporate Office: 401 Bay St., Suite 2010, P.O. Box 118, Toronto, Ont. M5H 2Y4

Forward-looking Information

The statements made in this press release may contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of Canada Lithium Corp. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of Canada Lithium Corp. management as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the Company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the Company. Canada Lithium Corp. disclaims any obligation to update information contained in any forward-looking statement.

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