Mountain Capital Inc.

Mountain Capital Inc.

February 27, 2009 08:30 ET

Mountain Capital Acquires Second Lithium Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 27, 2009) - Mountain Capital Inc. ("MCI" or the "Company") (TSX VENTURE:MCI)(FRANKFURT:MHN) is pleased to announce the acquisition of 44 MAIM permits, covering a number of Lithium showings in basinal brines of the Western Canada Sedimentary Basin, in Alberta. These permits mostly cover an area outlined by the Alberta Research Council (1995-01-31) as having potential for very large resources of Lithium within formation waters. The Alberta Research Council provides an "historical resource estimate" (1995-01-31, page 41) which is not NI 43-101 compliant, of about 0.5 x 106 Mt of Lithium; or about 2.8 Billion lbs LiO2. Our properties cover a majority of the area described in the report, as follows:

North Property - 7 permits (161,000 acres)

Central Property - 9 permits (207,360 acres)

South Property - 28 permits (645,000 acres)

The projects are within areas considered to have: 1) Formation waters with anomalous elemental concentrations of Lithium (greater than 50 mg/l); 2) Thicknesses of greater than 10 mm; 3) Porosity of greater than 5%; 4) Permeability of greater than 10-14m2. The properties were acquired to cover those areas deemed 'producible' for Lithium by previous government studies (Bull 62, Hitchon et al.); and which had the greatest concentrations of Lithium in formation waters from the Leduc aquifer. Estimates of potentially economic Li in formation waters for the Leduc Reefs in our Southern Property vary from 10 to 570 g/m2; and for the Beaverhill Lake Formation (a property held by an adjacent company) vary from 11 to 918 g/m2. These values compare favourably to the known US Lithium brine deposits in Nevada.

The above data is historical and not National Instrument 43-101-compliant, as it was completed prior to the implementation of these requirements. In addition, a qualified person has not done sufficient work to classify the historical estimate as a current mineral resource and the issuer is not treating the historical estimate as current. Hence, the historical estimate should not be relied upon. Full historical data will be made available on the company's website shortly.

President Blair Naughty states: "We are very excited to have procured a property that compares favourably with the Nevada brine deposits. Trends strongly favour continually increasing demand for lithium, as virtually all major automobile producers currently are, or will be involved in production of hybrid vehicles using lithium-ion battery technology."

The terms of the option agreement require that The Company, upon exchange acceptance of this agreement;

1. make a one time cash payment of $90,000 to the Optionor;

2. make a one time payment of 1.2 million common shares in the capital of the company to the Optionor; and

3. make a one time payment of 1.2 million share purchase warrants exercisable at $0.25 each with a term of 2 years to the Optionor.

A 7-per-cent finder's fee comprising both cash and shares will be paid on the transaction to an arm's-length third party within seven business days after exchange acceptance of the lithium option agreement.

It should be noted by the investor that lithium is not traded on the public market and is sold directly to end-use markets for a negotiated price per ton or pound of (Li2, K) Cl or carbonate compounds. This makes price data difficult to confirm, but some recent deals have reached $5,500 (U.S.) per ton driven by high demand from end-use buyers and relatively low global production. The property is seen as a potential source of lithium minerals for use in the glass and ceramics industry, and specialty composite materials and is also a potential source of lithium chemicals for the growing rechargeable battery market.

The technical content of this release has been reviewed and approved by J. W. Murton, P.Eng., a qualified person as defined by National Instrument 43-101.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

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