First Lithium Resources Inc.

First Lithium Resources Inc.

May 25, 2012 09:00 ET

First Lithium Proposes Share Consolidation

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 25, 2012) - First Lithium Resources Inc. (the "Company") (TSX VENTURE:MCI)(PINKSHEETS:FLNTF)(FRANKFURT:MHN) announces that all Shareholders (of record date May 8, 2012) will be asked to consider and approve a consolidation of the Company's issued and outstanding Common Shares, along with other items of business to be presented at its Annual General & Special Meeting to be held on June 22, 2012 in Vancouver, B.C.

The Board proposes to consolidate the Company's issued and outstanding Common Shares on the basis of of one (1) "new" Common Share for every ten (10) "old" Common Shares outstanding or on the basis of such lesser consolidation ratio as may be approved by the Board of Directors and accepted by the TSX Venture Exchange (the "Exchange") in order to increase the Company's flexibility and competitiveness in the market place and to make the Company's securities more attractive to a wider audience of potential investors, thereby resulting in a more efficient market for the Common Shares.

The proposed maximum share consolidation would result in the number of issued and outstanding Common Shares of the Company being reduced from 59,435,502 Common Shares without par value to 5,943,550 Common Shares without par value.

The Company's Board believes that it is in the interest of Shareholders of the Company for the Board to have the authority to implement the share consolidation as the large issued capital may impact the desirability of purchasing the Common Shares and that it will be difficult for the Company to secure additional equity financings at current share prices and the ability to invest in the Company on a consolidated basis may prove to be a more attractive investment.

The effective date of the share consolidation will occur as soon as possible after Shareholder approval, subject to Exchange approval. At this time, the Company does not propose a name change, unless required by the Exchange and other regulatory authorities, and if required, will change its name and stock symbol subject to regulatory acceptance.

In connection with the consolidation, the Company will also seek shareholder approval to amend the exercise price of currently outstanding stock options to a price equal to the applicable market price, multiplied by the applicable consolidation ratio, subject to the approval of the Exchange.

For more information on the proposed consolidation, amendments to outstanding options and other matters to be addressed at the Meeting, Shareholders are encouraged to refer to the Company's Management Information Circular and proxy materials, copies of which will be mailed to Shareholders and filed under the Company's profile at on May 28, 2012.


Craig Naughty, President & CEO

"Neither 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 release."

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