Talison Lithium Announces Record Sales Volume and Price For Fiscal 2012 Year

PERTH, WESTERN AUSTRALIA--(Marketwire - July 9, 2012) - Talison Lithium Limited ("Talison" or the "Company") (TSX:TLH) today announced its preliminary sales volume and production results for the three months ended June 30, 2012 ("Q4 FY2012") and the fiscal 2012 year ("FY2012").

Peter Oliver, Chief Executive Officer and Managing Director, said, "The increase in average sales price during the fourth quarter reflected the 15% price increase that applied from January 2012. Together with the record sales volumes for the year, and the recent completion of the expansion at the Greenbushes Lithium Operations, this places Talison in a strong position as it moves towards an investment decision on its proposed lithium carbonate plant."

Preliminary Sales and Production Volume

• Talison sold 365,545 tonnes lithium concentrate during FY2012 (or approximately 54,000 tonnes lithium carbonate equivalent ("LCE")), an 8% increase compared to FY2011.

• In Q4 FY2012 Talison sold 98,113 tonnes lithium concentrate (or approximately 14,500 tonnes LCE), a 6% increase compared to Q4 FY2011.

• The average sales price of lithium concentrates sold during FY2012 was US$334 per tonne, a 9% increase compared to FY2011.

• The average sales price of lithium concentrates sold during Q4 FY2012 was US$351 per tonne, demonstrating the impact from the 15% price increase that applied from January 2012.

• Production of lithium concentrate for FY2012 and Q4 FY2012, was 357,128 tonnes of lithium concentrate (approximately 53,000 tonnes LCE) and 83,842 tonnes of lithium concentrate (approximately 12,500 tonnes LCE) respectively.

KEY OPERATING	TOTAL	FISCAL 2011				TOTAL	FISCAL 2012				TOTAL
STATISTICS(1)	2010	Q1 11	Q2 11	Q3 11	Q4 11	2011	Q1 12	Q2 12	Q3 12	Q4 12	2012
Sales Volume*	256,767	52,525	97,559	97,001	92,416	339,501	80,315	75,221	111,896	98,113	365,545
Production Volume*	262,539	80,729	83,548	88,315	89,505	342,097	90,708	89,015	93,563	83,842	357,128
Average Sales Price (US$/tonne)*	$281	$313	$315	$303	$302	$308	$330	$310	$340	$351	$334

	*	Tonnes of lithium concentrate
			(1)	From quarter to quarter sales volume and average sales price may vary as sales are made in large shipments that can be irregular in timing and in varying proportions of technical-grade and chemical-grade lithium concentrate.

ABOUT TALISON

Talison is a leading global producer of lithium and has been supplying a global customer network from the Greenbushes Lithium Operations in Western Australia for over 25 years. In anticipation of sustained growth in lithium consumption, driven primarily by the secondary lithium battery market, Talison has doubled its production capacity at the Greenbushes Lithium Operations and is advancing several growth projects including a lithium carbonate plant in Western Australia.

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this press release, including any information as to Talison's mineral reserve and mineral resource estimates, strategy, projects, plans, prospects, future outlook, anticipated events or results or future financial or operating performance, may constitute "forward-looking information" within the meaning of Canadian securities laws. All statements, other than statements of historical fact, constitute forward-looking information. Forward-looking information can often, but not always, be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "predicts", "potential", "continue" or "believes", or variations (including negative variations) of such words, or statements that certain actions, events or results "may", "could", "would", "should", "might", "potential to", or "will" be taken, occur or be achieved or other similar expressions concerning matters that are not historical facts. The purpose of forward-looking information is to provide the reader with information about management's expectations and plans. Readers are cautioned that forward-looking statements are not guarantees of future performance. All forward-looking statements made or incorporated in this press release are qualified by these cautionary statements.

Forward-looking statements are necessarily based on a number of factors, estimates and assumptions that, while considered reasonable by Talison, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Such factors, estimates and assumptions include, but are not limited to: anticipated financial and operating performance of Talison, its subsidiaries and their respective projects; Talison's market position; future prices of lithium or lithium concentrates; estimation of mineral reserves and mineral resources; realization of mineral reserve and mineral resource estimates; timing, amount and costs of estimated future production; grade, quality and content of concentrate produced; sale of production; capital, operating and exploration expenditures; costs and timing of the expansion of the Greenbushes Lithium Operations; exploration and development of the Salares 7 lithium project; costs and timing of future exploration; requirements for additional capital; government regulation of exploration, development and mining operations; environmental risks; reclamation and rehabilitation expenses; title disputes or claims; absence of significant risks relating to Talison's mining operations; the costs of Talison's hedging policy; sales risks related to China; currency; interest rates, and limitations of insurance coverage. While Talison considers these factors, estimates and assumptions to be reasonable based on information currently available to it, they may prove to be incorrect and actual results may vary.

Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Talison and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such risk factors include, amount others, those described in the unaudited condensed consolidated interim financial statements of Talison and the related notes thereto as at March 31, 2012 and for the nine months ended March 31, 2012 and under the heading "Risk Factors" in the annual information form of Talison for the year ended June 30, 2011 dated September 23, 2011, each of which can be found on Talison's SEDAR profile at www.sedar.com. While Talison considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect and actual results may vary.

Although Talison has attempted to identify statements containing important factors that could cause actual actions, event or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein is made as of the date of this press release based on the opinions and estimates of management on the date statements containing such forward-looking information are made. Except as required by law, Talison disclaims any obligation to update any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.