SOURCE: Lithium Exploration Group, Inc.

September 10, 2014 08:15 ET

Lithium Exploration Group CEO Distributes September Newsletter

SCOTTSDALE, AZ--(Marketwired - Sep 10, 2014) - Lithium Exploration Group Inc. (OTCQB: LEXG) CEO Alex Walsh discusses ongoing business activity in his September 2014 newsletter:

Dear Shareholders,

We have had a very busy summer with the order of an oil-upgrading technology unit and we are preparing for its arrival in Q4. We continue to manage the expansion of both of our active disposal facilities in Alberta and to look at other opportunities that fit in with our overall strategy.

I have fielded a number of calls in the past few weeks from brokers and shareholders relating to stock price and the future of the company. I do not control (nor do I really comment) on our stock price. I can comment on our company and wholeheartedly say that we have never been in a stronger position than we are today. 

We began as a technology company looking to develop a lithium asset, and, through setbacks and delays, we have persevered. Our technology has tested successfully, firing on all cylinders with zero failures or setbacks. The original water unit is being outfitted with components that will allow the superheated fluid to flash off the water and release the suspended solids/impurities. All of these components are not being invented -- rather they are off-the-shelf parts that just need to be properly sized and put together (I call it playing with Legos, but I'm not an engineer) to ensure optimum performance. We have ordered a matching modified pump to handle the testing for oil upgrading, which will be tested in Alberta in Q4. The same manufacturer and machining group will be building this unit and it is already in process in Houston. The unit will plug in to our already existing operations at our disposal facility and has many fewer moving parts than the water unit, so it will be easier to test and monetize.

We have acquired interest in two disposal facilities in Alberta through our wholly-owned subsidiary company, Alta Disposal. The Alta Disposal Morinville facility is one of only a handful of active Class 1a wells in the entire province, and, once we complete our application process and expand the surface facility to meet today's requirements, we will literally be a leader in the space of industrial waste disposal. Tero Oilfield Services (Wardlow) is one of only 25 licensed Waste Management facilities in all of Alberta and has been in operation for 17 years. It is in a mature market with few competitors and is presently expanding its operations to add additional services to its clientele and will see expanded revenue and margins over the coming years. 

To evaluate our company, you should separate the company into "Technology" and "Disposal":

"Technology" - This is a patented and disruptive technology that has the potential to solve water and oil treatment issues across a number of industries and we are in the driver's seat for all of these applications in Canada. I am not going to talk about specific numbers or valuations until we have data that compares present technologies and a pricing structure to match the efficiency of the unit. I can assure you that research has been done and a model has been built, but the final inputs are incomplete. This could be a nice little distribution business adding 5 - 10MM per year in EBITDA or it could be something that is so impactful that we change the face of the Canadian oil and gas and mining industries. Either way it is a good business to be a part of. 

"Disposal" - We have two gems in our present portfolio. They are defensible and dynamic locations and have solid future opportunity for expansion of both businesses. There are start-up companies that have entered the space as public companies that trade at over 40 times earnings and others that trade at infinite earnings based on the growth prospects of their assets. We have real revenue coming in from these businesses, which are very stable and will help support our overall endeavors for years to come.

As I have said in the past, these two businesses have synergies, which is why they are part of our company. We have turned a significant corner coming out of our last fiscal year and are moving forward with all of our businesses aggressively. I am confident that the road ahead is clear, and I have a tremendous affection for our shareholders, who see how far we have come and want to see this company grow.

I know who else is out there and I know what we have in our arsenal. I will be aggressively connecting with analysts in major markets in the 4th quarter to take a look at the body of work we have built so that they can also preach the potential opportunity we have in front of us. 

Our market capitalization today is a joke compared to others that play in the same space and don't have any technology to bring to the fore. We have endeavored to grow this like a technology company and we stand by that strategy because that is where the huge upside lies in the future of Lithium Exploration Group. I see big things in our future and I hope that you do too. We will continue to execute on our strategies and will continue to update you all on our progress on all fronts.

Sincerely,
Alex Walsh
CEO
Lithium Exploration Group

About Lithium Exploration Group
Lithium Exploration Group is a US-based exploration and development company focused on the acquisition and development potential of lithium brines and other precious metals that demonstrate high probability for near-term production. Currently the company is focused on its Western Canada lithium assets, testing its Ultrasonic Generator Technology and the acquisition of oil and gas related assets in Western Canada. Lithium Exploration Group is a fully reporting company traded on the OTCQB under the symbol LEXG. Website: www.lithiumexplorationgroup.com.

Safe Harbor Statement
This news release contains "forward-looking statements". Statements in this press release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future testing of the ultrasonic technology.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of lithium prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements.

Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

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