Talison Lithium Limited: Notice to Holders of Exchangeable Shares Issued on the Acquisition of Salares Lithium Inc.

PERTH, WESTERN AUSTRALIA--(Marketwire - June 1, 2012) - Talison Lithium Limited (TSX:TLH) ("Talison") announces that all of the exchangeable shares that were issued to Canadian resident shareholders of Salares Lithium Inc. ("Salares") in September 2010 on the acquisition of Salares by Talison, and that remained outstanding as of May 31, 2012, have now been exchanged for ordinary shares of Talison.

By way of background, the exchangeable shares were issued by Talison Lithium Exchangeco Limited ("Exchangeco"), a wholly owned subsidiary of Talison, only to Canadian resident shareholders of Salares who elected to receive such exchangeable shares in connection with the acquisition of Salares by Talison in September 2010. The terms and conditions of the exchangeable shares permitted their redemption prior to September 22, 2013 if certain conditions were met. Such conditions have now been met and the board of directors of Exchangeco established May 31, 2012 as the redemption date for all outstanding exchangeable shares.

Holders of exchangeable shares outstanding on May 31, 2012 will automatically receive one ordinary share in the capital of Talison for each exchangeable share held. After May 31, 2012, former holders of exchangeable shares no longer have any rights as holders of exchangeable shares other than the entitlement to receive ordinary shares of Talison.

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 is doubling its production capacity at the Greenbushes Lithium Operations and also 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 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 statements that certain actions, events or results "may", "could", "would", "should", "might", or "will" be taken, occur or be achieved or other similar expressions concerning matters that are not historical facts. 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 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 and Exchangeco disclaim 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.