New World Resource Corp.

New World Resource Corp.

February 18, 2009 15:41 ET

New World Acquires Pastos Grande Lithium Brine Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 18, 2009) - New World Resource Corp. (the "Company") (TSX VENTURE:NW) announces that the letter of intent with Gonzalo Miranda Salles regarding the Pastos Grande Lithium project has been finalized into a joint venture agreement ("Joint Venture"). The Joint Venture has a term of 20 years and the initial participation interests are 99% for the Company's subsidiary, New World Bolivia S.A. ("New World Bolivia") and 1% for Gonzalo Miranda Salles.

A US$10,000 payment due upon signing of the Joint Venture and the 'Patentes Mineras' payment to the government to keep the concession in good standing have been paid.

John Lando states, "We are extremely pleased to have secured our first Lithium Brine project in Bolivia. Our due diligence relating to this project is very encouraging. The Company continues to assess other similar lithium brine opportunities within the region."

Upon formalizing the Joint Venture the concession was reviewed and the project concession size has been adjusted. The project area covers approximately 60 square kilometres and is located in the Sud Lipez Province, Department of Potosi within the Bolivian Altiplano.

The Bolivian Altiplano is host to many alkaline and saline lakes and salars including the Salar de Uyuni which hosts the world's largest known lithium reserve. Pastos Grande is located approximately 113 kilometres south southwest from Salar de Uyuni, within the same geological and geographical setting.

Pastos Grande Concession

Pastos Grande is a hyper saline lake/salar basin that is fed by several intermittent rivers and thermal springs which discharge into the salar. The Pastos Grandes concession is elliptical in shape, with the major axis trending NW - SE. The salar contains a thick sequence of sediments with a shallow water table. The central lake is fed by a surficial river from the north and at least 12 thermal springs originating on the western side of the basin. Chemical analysis indicate that Pastos Grandes has an alkaline makeup (sodium-calcium-sulfate-chlorine) with high concentrations of lithium, potassium and boron. Minerals identified in the crust include halite, gypsum, clay, ulexite and calcite.

The Bolivian Geological Survey and the University of La Paz, Bolivia have sampled many of the countries salars. The following table displays these sample results from the Pastos Grandes salar and from the infamous lithium rich salar of Uyuni. The Uyuni salar is under a fiscal reserve and is currently being explored by the government. The table shows that the brine samples from Pastos Grandes are rich in lithium and compare very favourably to the brines of Uyuni.

Historical Chemical Data of Pastos Grandes and Uyuni

Lithium Potassium Boron Lithium Potassium Boron
(ppm) (ppm) (ppm) (ppm) (ppm) (ppm)
Average 697.00 10,702.94 345.19 Average 688.42 15,911.58 434.92
Minimum 0.02 1.50 0.01 Minimum 80.00 3,600.00 32.61
Maximum 1,720.00 81,000.00 945.00 Maximum 1,680.00 28,200.00 1,154.70
Median 710.00 5,800.00 405.00 Median 520.00 14,150.00 366.01
Number Number
of of
Samples 13 Samples 38

While the Company has no reason to doubt the accuracy of the historical results, they should not be relied upon until they have been confirmed by the Company's own exploration. In addition, the historical results and the work that generated them pre-date the enactment of National Instrument 43-101, and accordingly may not meet the requirements of that policy.

Lithium - Potash Brine Deposits

There are two main types of lithium deposits currently in production, pegmatites and brines. The pegmatites contain the lithium bearing hard rock silicate mineral spodumene. Brines occur in closed basins in high evaporation environments. Lithium, potassium and boron may be concentrated in these subsurface brines or in specific clay minerals. Lithium generally occurs as lithium carbonate or lithium chloride in these brines. Exploitation involves pumping the brines into a series of evaporation ponds which concentrates lithium chloride, from which lithium carbonate is precipitated by the addition of soda ash. By-products include potash and/or boron. Generally potash is extracted by conventional underground mining methods, however a significant amount of potash is also derived from the evaporation of brines, usually as a by-product of lithium production.

Hard rock exploitation of lithium carbonate is a more costly and energy demanding process. Grinding, crushing and a flotation circuit are required, followed by a sulfuric acid process and then the addition of sodium carbonate.

The size of major brine deposits worldwide generally ranges from 200 million to 1.3 billion tonnes, and the grade ranges from 0.015 to 0.125 percent lithium, (150 to 1,250 ppm). The historical sampling from Pastos Grandes returned 0.17% (1,720 ppm). Virtually all of the world's brine produced lithium comes from Chile and Argentina within the Altiplano basin. Major companies involved in lithium production include Sociedad Quimica y Minera de Chile - SQM.N and FMC Corp. - FMC.N in Argentina.

Lithium Supply and Demand

Demand for lithium-ion batteries is increasing dramatically along with the demand of hybrid electric vehicles and portable energy sources. That demand growth is projected to continue significantly as these lightweight and reliable batteries have become mainstays in a variety of new battery driven industrial applications. Electric vehicles, cell phones and handheld computers are just a few examples of the rapidly growing industry uses for the power generating capability of lithium. Though traded internationally, lithium is not currently traded on a public market but rather through a direct negotiated price per ton with end users. Rising prices are reflecting the tightening supply demand equation.

Joint Venture Agreement Terms

To keep the Joint Venture in good standing New World Bolivia must make the following payments:

US$10,000 on signing of the Joint Venture (paid)

US$1,000 per month for the first 12 months

US$2,000 per month for the next 12 months

US$150,000 on the 3rd anniversary of the Joint Venture

US$100,000 on the 4th anniversary of the Joint Venture

US$150,000 on the 5th anniversary of the Joint Venture

At any time during the term of the Joint Venture, New World Bolivia has the right to pay to the Gonzalo Miranda Salles US$250,000 to acquire the profits generated by the 1% interest of Gonzalo Miranda Salles.

New World Bolivia will be the Operator of the Joint Venture and the board of the Joint Venture will be under New World Bolivia's control.

About New World

New World Resource Corp. is a Canadian based mining exploration company focused on building a strong, diversified project portfolio within the Americas.


John Lando, President

This news release includes "forward-looking information", as such term is defined in applicable securities laws. The forward-looking information includes, without limitation, the success of exploration activities and other similar statements concerning anticipated future events, conditions or results that are not historical facts. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward-looking information is inherently uncertain and that actual results may vary from the forward-looking information. A number of material factors, many of which are beyond the Company's control, could cause actual results to differ materially from the forward-looking information. Such factors include, among others, risks and uncertainties relating to exploration and development; the ability of the Company to obtain additional financing; the Company's limited operating history; the need to comply with environmental and governmental regulations; political and economic instability and general civil unrest in Bolivia; potential defects in title to the properties; fluctuations in currency exchange rates; fluctuating prices of commodities; operating hazards and risks; competition; and other risks and uncertainties. Accordingly, actual future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and the Company is under no obligation to update or alter any forward-looking information.

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

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