Canadian Orebodies Inc.
TSX VENTURE : CO

Canadian Orebodies Inc.
Ultra Lithium Inc.
TSX VENTURE : ULI

Ultra Lithium Inc.

December 22, 2010 07:00 ET

Canadian Orebodies Assays High Grade Tantalum on Zigzag Property and Commences Drilling on Falcon Property

TORONTO, ONTARIO--(Marketwire - Dec. 22, 2010) - Canadian Orebodies Inc. (TSX VENTURE:CO) ("Orebodies") is pleased to announce assay results from the channel sampling program on the Dempster East showing on its Zigzag Lithium/Rare Metals property (the "Property") under option from Ultra Lithium Inc. (TSX VENTURE:ULI) ("Ultra"). The Property is subject to an Option Agreement with Ultra and the underlying property owners to acquire an 80% legal and beneficial interest (subject to a 2% NSR retained by the Owners, 50% of which can be purchased by Orebodies for $1,000,000).

Highlights

  • Channel #3 on Dempster East assayed 543.9 ppm Ta2O5 over 1.95 meters, including 794.9 ppm Ta2O5 over 0.96 meters

  • Channel #7 on Dempster East assayed 421.1.9 ppm Ta2O5 and 1.54 % Li2O over 2.02 meters.

  • Channel #12 on Dempster East assayed 1.87% Li2O over 0.99 meters.

  • 80% or 12 of the 15 channels cut on the Dempster East showing had samples that exceeded the upper detection limits for Tantalum (>100 ppm) of which 3 also had samples that exceeded the upper detection limits for Cesium (>500 ppm).

  • Drilling has commenced on Orebodies 100% owned Falcon property

Zigzag Property Overview

The Property in total consists of 129 claim units comprising 2,064 hectares, located approximately 60 km northeast of Armstrong, Ontario. The property is host to 5 historical lithium and rare metal showings of consequence.

Historical highly anomalous tantalum and cesium values are notably widespread on the property and indicate a high potential for zoned, complex-type pegmatites enriched in tantalum and cesium. Complex-type pegmatites are excellent targets for economic deposits of lithium, tantalum, cesium and rubidium such as the Tanco pegmatite in Manitoba.

Zigzag Sampling Overview

There were a total of 15 channels cut across the Dempster East showing on the Zigzag property during Orebodies fall program. Results from 12 of the channels on the property indicate there is a zone of strong tantalum enrichment with highly anomalous values for other rare metals.

TABLE 1 – HIGHLIGHTED CHANNEL ASSAYS FOR DEMPSTER EAST SHOWING

Channel Width Ta2O5 Li2O Be Cs Ga Nb Rb Sn
# (m) (ppm) (%) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm)
3 1.95 543.9 0.08 101.4 901 64 54 2353.8 84.6
Including 0.96 794.9 0.14 97.1 1640 60.8 48.8 3090 92.1
6 1.00 416.4 1.15 117.0 228 57.3 155 2240 70.4
7 2.02 421.1 1.54 167.8 1119 63.5 55.2 2542.7 97.4
8 0.51 869.4 0.06 144.5 226 41.3 32.9 1850 91.7
9 0.95 438.4 0.84 116 557 51.6 29.4 4370 101.5
10 1.09 125.8 1.60 123 224 63 79.6 1960 63.9
11 1.04 101.8 1.15 177 255 60.7 67.3 2550 66.9
12 0.99 198.4 1.87 85.5 435 54.9 28.6 3040 54.3
13 1.05 254 1.59 138 486 55.7 64.1 2570 46.2

Drilling Commences On Falcon Property

Orebodies is also pleased to announce that a drilling program has commenced on its Falcon property which has demonstrated high grade, wide spread zones of lithium/rare metals that stretch over 60 meters on surface. Orebodies initial drilling will consist of 3 to 4 short holes designed to test the lithium rich zones successfully outlined on surface by Orebodies at depth. Results from this program will be used to assess the potential of the Falcon property and if favourable aid in further drilling on the property.

Highlights from work completed to date on the Falcon property include the following (for full results please see Orebodies Press Releases dated March 11 and 18, 2010):

  • Channel #3 on the Falcon Property assayed 1.54% Li2O over 6.98 meters, including 2.06% Li2O over 1 meters
  • Channel #9 on the Falcon Property which assayed 2.63% Li2O over 1.5 meters, including 3.19% Li2O over 0.56 meters
  • Individual grab samples which assayed 2.82% Li2O, 2.45% Li2O, 2.30% Li2O, 2.26% Li2O

(Grab samples are selective by nature and are unlikely to represent future average grades on the property.)

Tantalum Information

Tantalum is a specialty metal which is highly corrosion resistant and has the highest ability to hold and release electricity. These characteristics make it essential for electronic devices (tantalum capacitors) and specialty applications such as jet engines. Several events in the global market have caused the price of tantalum to increase significantly as of late, mainly the fact that two of the largest producers have shut down (Tanco deposit in Canada and Talison Tantalum in Australia) which represents nearly half of the world market. These shutdowns have led to a global supply that has fallen behind demand and the market now requires additional production from new projects.

Orebodies Zigzag property is very interesting for the fact that besides high grade lithium, tantalum could have one of the most considerable economic benefits as historically there have been a significant amount of samples collected that demonstrate widespread, high grade results. Breaks (2003) stated that individual analysis from the Tebishogeshik Lens 3 exceeded 80 wt % Ta2O5 and were amongst the highest documented in lithium-rich pegmatite of Ontario.*

*(historical in nature and not 43-101 compliant and therefore should not be relied upon.)

It should be noted that typically samples with higher tantalum values tend to have low lithium values as is representative of sodic aplite and albitite-rock units that represent significant host- rocks for tantalum mineralization. This is demonstrated by the Tanco Mine in Manitoba and the Wodgina and Greenbushes Mines of Western Australia. However, there are samples with high lithium values that also carry strong anomalous tantalum.

A thorough quality control program is in effect which includes inserting standards and blanks alternating every 10 samples. All samples were submitted to ALS and analyzed using four acid digestion and ICP-MS. For more information on assay methodology please visit the ALS Laboratory Group. Website at http://www.alsglobalcom.

This press release has been prepared under the supervision of Mr. Don Hains (P.Geo.)., who is an independent consultant to the Company and a "qualified person" (as such term is defined in National Instrument 43-101). Mr. Hains has verified the technical data disclosed in this press release.

Forward-Looking Information:

This press release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to mineral resources, potential mineralization, exploration results and the Company's plans with respect to the exploration and development of the Properties) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, changes in commodity prices, changes in equity markets, failure to establish mineral resources, changes to regulations affecting the Company's activities, delays in obtaining or failures to obtain required regulatory approvals, uncertainties relating to the availability and costs of financing needed in the future, the uncertainties involved in interpreting drilling results and other ecological data, and the other risks involved in the mineral exploration and development industry. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.

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