Western Lithium USA Corporation
TSX : WLC
OTCQX : WLCDF

Western Lithium USA Corporation

June 10, 2015 07:00 ET

Western Lithium to Expand Hectatone™ Products to Feedstock, Environmental and Industrial Markets

Hectatone Inc. Appoints VP of Operations

RENO, NEVADA--(Marketwired - June 10, 2015) - Western Lithium USA Corporation ("Western Lithium") (TSX:WLC)(OTCQX:WLCDF) is pleased to announce that its wholly owned subsidiary Hectatone Inc. ("Hectatone™", the "Company") is now a certified vendor with a Fortune 500 industrial group to sell Hectabind products internationally to the animal feed market as mycotoxin binders. The Hectabind products will be manufactured at the Company's new Hectatone™ organoclay facility in Fernley, Nevada. The first shipment of Hectabind product is planned for delivery in June, 2015.

Frank B. Wright, President of Hectatone™, stated that "Hectatone™ continues to innovate to target the entry into established markets for agriculture and industrial applications offering our clay and organoclay based products. In these higher value markets, potentially much larger than the oilfield market, we are planning to deploy products from our Fernley plant, which is now fully operational."

In addition to Hectabind, the Company has been targeting new markets for its clay and organoclay based products:

  • Hectatone™ is collaborating with a major clay producer on a specialty organophilic clay product for environmental applications. The product will service the existing market to remove organic compounds from industrial wastewater effluent.

  • The Company's hectorite based Hectagel product is now going through customer qualifications with a major European chemical supplier to be used for industrial applications. If successful, the Company expects to begin shipment in the third quarter of 2015.

  • The Company is developing high performance clay-based additives for industrial coatings, such as epoxy and alkyd coatings, and is working with distributors to introduce these new products.

During the first quarter of the Hectatone™ plant startup, the Company successfully completed manufacturing campaigns for its organophilic bentonite products B-91 and B-92, and its organophilic sepiolite products RM-99 and RM-100. The Company's B-91 product has now been approved by five drilling service companies, with one company expected to begin field trials. The Company plans to continue qualification of its product line and to manufacture and qualify its other products in the coming months.

Due to the recent downturn in the oilfield drilling market, current inventory of organoclay drilling additives held by energy service companies are being drawn down at a slower pace. Based on Company discussions with industry participants in the oilfield sector, these companies may again commence purchasing new supply starting in the next two quarters. Once the market begins restocking, the Company believes that its logistical cost savings, state-of-the-art manufacturing facility, product consistency and one week lead time, will have a tremendous advantage over imported products from China, Africa and Europe.

Hectatone Inc. is also pleased to announce the appointment of Jerry McNamara as Vice President of Operations for Hectatone Inc. Jerry successfully oversaw the recent construction and startup of the Company's Hectatone™ plant. Jerry and his team were instrumental in delivering innovative process improvements to the operation to realize a state-of-the-art facility. Jerry has a manufacturing and business background and was recently involved with the lithium-ion battery sector.

"Our Hectatone™ products are getting recognized by the world's leading energy service and specialty chemical companies," said Jerry McNamara, Vice President Operations for Hectatone Inc. "I am thrilled to be part of a dedicated and experienced team as we bring our new and innovative products to the marketplace."

About Western Lithium

Western Lithium is developing its Kings Valley, Nevada, lithium deposit into a strategic, scalable and reliable source of high quality lithium products. The company is positioning itself as a major U.S.-based supplier to support the rising global demand for lithium that is expected from the increased use of hybrid/electric vehicles, consumer electronics, and consumer and industrial lithium battery storage applications. In addition, Western Lithium is pursuing the opportunity to be a supplier of specialty drilling additive, Hectatone™ and potentially other organoclays for the oil and gas and other industries.

Forward-looking statements

Statements in this release that are forward-looking information are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in the company's periodic filings with Canadian securities regulators. When used in this document, the words such as "expect," "believe," "planned", "scheduled," "targeting" and similar expressions is forward-looking information. Information provided in this document is necessarily summarized and may not contain all available material information.

Statements in this release that constitute forward-looking statements or information include, but are not limited to (i) the Western Lithium's ability to successfully market and sell Hectabind products, including the timing of production of its first shipment of Hectabind; (ii) the timing and ability of the company to develop clay and organoclay based products for other non-drilling markets; (iii) the further qualification of its organoclay drilling additive products as authorized products approved for use by industry participants; and; (iv) future product sales of Hectatone™ and the outlook for the drilling additive sector.

All such forward-looking information and statements are based on certain assumptions and analyses made by Western Lithium management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. These statements, however, are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information or statements. Important factors that could cause actual results to differ from these forward-looking statements include those described under the heading "Risks Factors" in the Western Lithium's most recently filed MD&A. The company does not intend, and expressly disclaims any obligation to, update or revise the forward-looking information contained in this news release, except as required by law. Readers are cautioned not to place undue reliance on forward-looking information or statements.

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