Lithium One Inc.
TSX VENTURE : LI

Lithium One Inc.

November 18, 2010 08:00 ET

Lithium One Reports Indicated and Inferred NI 43-101 Resource for James Bay Lithium Project, Quebec

VANCOUVER, CANADA--(Marketwire - Nov. 18, 2010) -

Highlights

  • 11.75 Million Tonnes Grading 1.30% Li2O in the Indicated Category

  • 10.47 Million Tonnes Grading 1.20% Li2O in the Inferred Category

  • Open-pit amenable

  • Potential to increase resources along strike and depth

Lithium One Inc. (the "Company") (TSX VENTURE:LI), is pleased to report that SRK Consulting (Canada) Inc. ("SRK") has issued a NI 43-101 compliant mineral resource statement for the Company's 100% controlled James Bay Lithium Project in Quebec that includes indicated resources of 11.75 million tonnes grading 1.30% Li2O and inferred resources of 10.47 million tonnes grading 1.20% Li2O.

The James Bay Lithium Project hosts a swarm of outcropping spodumene-bearing pegmatite dykes ranging in width from two to more than 50 metres over a corridor stretching almost five kilometres. This resource includes data from only the two kilometre span of dykes drill tested by Lithium One in 2008 and 2009.

The block model indicates that the resource is amenable to open pit extraction. Furthermore, there are opportunities to increase the grade and tonnage of the resources with additional drilling. The model and pit optimization indicate that the grade of the resources can be increased through the better definition gained by drilling the dykes at closer spacing. In addition, the entire resource occurs in pit shells that bottom at 220 metres, which is near the limit of the existing drilling. SRK therefore also reports that there is considerable potential to increase the tonnage with additional delineation of the dykes at depth.

Lithium One President and CEO Patrick Highsmith commented, "The James Bay Project hosts a considerable sized deposit with excellent infrastructure in one of the best mining jurisdictions in the world. This first resource statement, while conservative, supports our view that the James Bay Project has the potential to be a significant producer of high quality lithium products. We know from our metallurgical studies earlier this year that the James Bay deposit yields high quality spodumene concentrates that can be processed into lithium carbonate. These milestones add substantial value to the Company and we look forward to leveraging that value for our shareholders."

Table 1. James Bay Lithium Project Mineral Resource Statement

Resource Category Quantity Grade
(tonnes) Li2O (%)
Indicated 11,750,000 1.30
Inferred 10,470,000 1.20
All figures rounded to reflect the relative accuracy of the estimates. Mineral resources are not mineral reserves and do not have demonstrated economic viability.

The resources are reported at a cut-off grade of 0.75 percent Li2O inside conceptual pit shells optimized using a lithium carbonate price of US$6,000 per tonne, metallurgical and process recovery of 70%, overall mining and processing costs of US$64 per tonne milled, and overall pit slopes of forty-five degrees. The optimization parameters were selected based on experience and benchmarking against similar spodumene projects.

Methodology

The construction of the mineral resource model for the James Bay Lithium Project was an interactive process involving Lithium One and personnel from SRK. The resource modeling used data from surface NQ core drilling samples collected by Lithium One in 2008 (eighteen holes) and 2009 (eighty-four holes) totalling 3,724 assay intervals from 13,475 metres of drilling. The sample database also includes forty-six diamond saw channel cuts collected by Lithium One in 2009 and 2010, totalling 540 assay samples. Samples were prepared by TJCM (Table Jamésienne de Concertation Minière) in Chibougamau and assayed by COREM in Québec City for Li2O.

SRK constructed three-dimensional wireframes of the pegmatite dikes on 50 metre sections provided by Lithium One as a guide. A total of thirty-one pegmatite wireframes were constructed and used as resource domains for constraining grade estimation; where applicable, each of these pegmatite domains was capped individually to remove high-grade outliers.

A block model with 10m blocks was generated using Datamine software; and Li2O grades were estimated using ordinary kriging. Block model quantities and grade estimates for the James Bay Lithium Project were classified according to the CIM Definition Standards for Mineral Resources and Mineral Reserves (December 2005). The specific gravity used was 2.70 gms/cm3 based on metallurgical testing completed by Hazen Research Laboratory in Denver.

The mineral resources are reported in accordance with National Instrument 43-101 and have been estimated in conformity with generally accepted CIM "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines. Resource evaluation work was completed by Mr. Sébastien Bernier, P.Geo (OGQ#1034, APGO#1847) an independent Qualified Person as defined by NI 43-101. Mr. Bernier has read and approved the content of this news release. A Technical Report compliant with NI 43-101 standards describing the resource estimation will be filed on SEDAR within 45 days of this release.

The contents of this press release have been reviewed and approved by Mr. A. James McCann. Mr. McCann is a licensed Professional Geologist in Quebec P.Geo (OGQ#332) and a qualified person as defined by NI 43-101.

About Lithium

Lithium is a light, highly reactive metal with use in a variety of industrial applications including ceramics, lubricants and pharmaceuticals. The fastest growing market for lithium is as lithium carbonate for use in batteries, including those in cell phones, computers and new generations of electric and hybrid vehicles. Lithium from spodumene is in silicate form and following mining and production of a concentrate, requires processing to be converted to lithium carbonate. Technology for the conversion of spodumene concentrate to lithium carbonate has been in use for over 20 years.

About Lithium One:

Lithium One Inc. is a Canadian-based explorer and developer of mineral properties with a specific focus on lithium. The Company has two major lithium projects: the brownfields Sal de Vida lithium brine project in Argentina and the James Bay bulk tonnage spodumene project in Quebec. The consortium of KORES, LG International and GS Caltex is earning a 30% interest in the Sal de Vida project by funding up to US$15 million to complete a Definitive Feasibility Study and has also agreed to provide a completion guarantee for Lithium One's share of the debt portion of project development costs. Lithium One believes that lithium demand will grow as its value as a preferred battery material is fully realized. The Company's strategy is to draw upon its quality team and employ best-practice to fully develop its portfolio of top-tier lithium assets.

ON BEHALF OF THE BOARD OF DIRECTORS,

Patrick Highsmith, M.Sc., President and Chief Executive Officer

Lithium One Inc.
1238-200 Granville Street
Vancouver, BC V6C 1S4 Canada
Email: info@lithium1.com

Website: www.lithium1.com

Forward-Looking Statements

This document may contain "forward-looking information" within the meaning of Canadian securities legislation (hereinafter referred to as "forward-looking statements"). All statements, other than statements of historical fact, included herein including, without limitation statements relating to; the completion of a Feasibility Study, the entering into of marketing and off-take agreement, the timing for completion of the equity quota registration, the satisfaction of conditions of the Agreement, the provision of a Completion Guarantee, and other matters related to the exploration and development of the Project, are forward-looking statements. These forward-looking statements are made as of the date of this document and the Company does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements relate to future events or future performance and reflect management's expectations or beliefs regarding future events. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include unsuccessful exploration results, changes in metals prices, changes in the availability of funding for mineral exploration, unanticipated changes in key management personnel and general economic conditions, title disputes as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements.

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 release.

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