Western Lithium USA Corporation
TSX VENTURE : WLC

Western Lithium USA Corporation

May 06, 2009 15:07 ET

Western Lithium Completes $5.5 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 6, 2009) -

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Western Lithium Canada Corporation (the "Company") (TSX VENTURE:WLC) is pleased to announce that it has completed its previously announced private placement of 11,000,000 units (the "Units") at a price of $0.50 per Unit for gross proceeds of $5,500,000. Each Unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase an additional common share for a period of 2 years at a price of $0.60.

9,500,000 Units were sold on a brokered basis and 1,500,000 Units were sold on a non-brokered basis. Western Uranium Corporation, the Company's controlling shareholder, purchased 3,000,000 Units (included as part of the brokered units) for which no commission or agent's warrants was paid or issued.

Haywood Securities Inc. acted as the agent for the brokered portion of the offering and received a cash commission and a corporate finance fee totaling $155,000 and 310,000 agent's warrants. Each agent's warrant is exercisable to purchase one common share for a price of $0.60 for a period of 12 months. In addition, a finder's fee totaling $85,000 was paid and 170,000 finder's warrants, having the same terms as the agent's warrants, were issued to two parties, including RK Equity Capital Markets LLC.

Proceeds of the private placement will be used to fund ongoing engineering and development studies for the Company's lithium project in Nevada, including additional drilling of the lithium deposit to conform to National Instrument 43-101 requirements, and for general corporate purposes. All of the securities issued pursuant to the private placement are subject to a hold period expiring September 7, 2009.

Western Lithium is developing the Kings Valley, Nevada lithium deposit into potentially one of the world's largest strategic, scalable and reliable sources of battery grade lithium carbonate. The company is positioning itself as a U.S.-based supplier to support the rising global demand for lithium carbonate that is expected from the increased use of mobile electronics and hybrid/electric vehicles.

Forward Looking Statements

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Ontario Securities Act. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information. Accordingly, readers are advised not to place undue reliance on forward-looking information.

The TSX Venture Exchange has neither approved or disapproved of the contents of this press release. 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 press release.

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