Western Lithium USA Corporation

Western Lithium USA Corporation

September 11, 2008 08:30 ET

Western Lithium Provides Chairman's Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 10, 2008) - Western Lithium Canada Corporation ("the "Company" or "Western Lithium") (TSX VENTURE:WLC) provides the Chairman's message to the shareholders of the Company.

"As Chairman of Western Lithium Canada Corporation ("Western Lithium"), I would like to provide you with an update of our current activities, plans for the future, and welcome you as we develop the company into a supplier of lithium and associated metals for the emerging hybrid and electric automobile industry. The future for the development of radically new technologies to wean the world from its hydrocarbon addiction is almost unlimited. The resources we control in our company are of the same magnitude. Times are tough. Our company has been born into a turbulent market populated by nervous investors. We share their concerns and intend to manage our capital in a prudent manner with the goal of maximizing our shareholder's value.

The equity markets today are as difficult as I can remember, especially for junior resource companies. The lack of credit and liquidity has forced many investors to pull back from the market and this in turn has put some of the institutional funds who invested in Western Lithium in a situation where they have significant redemptions. Some of these funds might be forced sellers; some might be taking advantage of liquidity. Regardless of the reason, this scenario has expressed itself in a lower share price. I, for one, am not overly concerned with the situation as the fundamentals of the company speak for themselves.

Western Lithium is not an exploration company seeking to discover something of value. We control the largest known lithium deposit in North America. According to Chevron reports, their drilling program in the late 1980's identified approximately 24 billion pounds of lithium carbonate in a series of distinct mineralized zones within the McDermitt Caldera volcanic feature. (Note: This figure is not considered NI 43-101 compliant and should not be relied upon). Subsequent work by Western Lithium is supportive of this estimate. At today's prices, 24 billion pounds of lithium carbonate has a value in excess of $80 billion.

Chevron's report was completed long before technology realized the value of lithium carbonate and in particular the lithium-ion battery. Today the market for mass produced plug-in hybrid cars and electric cars powered by lithium-ion batteries looks extremely promising. The Japanese government recently announced that they were installing quick charge stations in the larger Japanese cities to facilitate the use of electric vehicles. If you watched the Olympics, you might have noticed ads for Chevy's new lithium-ion battery powered electric car, the Volt, now scheduled for mass production in 2010. Both Porsche and Mercedes have announced that they will be producing a hybrid vehicle powered by lithium-ion batteries. Today there are cars, motor scooters, boats and any number of electronic devices powered by lithium-ion batteries. The lithium-ion battery is clearly the choice for energy storage, both today and for the future.

The most difficult thing about change is predicting the rate at which it will occur. Three years ago, when we became aware of the Chevron data, the idea of mass produced electric cars or plug-in hybrids was almost science fiction. However, one thing that is certain is that markets for our product will grow and we have identified a resource base large enough to satisfy any possible future demand.

If, for instance, the lead-acid battery that is used in the vast majority of cars today were superseded by a more environmentally and technologically superior lithium-ion battery, your company would be worth multiples of our current value.

Today, Western Lithium has $5 million in the bank. This is sufficient to take the company well into next year based upon its current budget. The Company also benefits from available credit facilities from its sister company Western Uranium Corporation (Western Uranium Corporation currently has over $50 million in cash and is the owner of 30% of the outstanding shares of Western Lithium).

Western Lithium is currently hard at work developing a state-of-the-art processing concept and associated mining operation. In developing a process flow sheet, incorporating those results into a scoping study and moving rapidly to a feasibility study, the company is seeking to optimize the value of its asset as quickly and efficiently as possible. Our current project timeline envisions completion of a scoping study in mid-2009 in parallel with resource delineation and final metallurgical test work. This will lead to pre-feasibility and preliminary engineering design in late 2009. A bankable feasibility study, permitting and subsequent construction could lead to production in 2011. This time frame coincides with projections of growing demand for lithium-ion batteries in the auto industry. In conjunction with this technical work, Western Lithium has also begun canvassing a number of potential lithium-ion battery makers to develop marketing and off-take agreements. Its US address is also proving to be advantageous over foreign producers in respect to securing long term supply contracts.

As results are generated and progress is made, the value of Western Lithium's shares will increase. With a huge identified asset, a growing market, and a highly experienced Board and Management team, our future could not look brighter, nor our shareholder value more secure. Western Lithium can afford to be patient and ride out this current market malaise. We are excited about the future and what it holds for our Company. We appreciate your continued support and believe the future is bright for the lithium battery market which in turn will reward our share holders over the longer term."

On behalf of the Board of Western Lithium Canada Corporation

R. Edward Flood, Chairman

Western Uranium Corporation is a mineral exploration company with a focus on uranium. The company has exploration properties in Kings Valley, Nevada, Treeline, New Mexico and in the Thelon Basin, Nunavut and the Northwest Territories. The Company has its head office in Vancouver, Canada; and its executive management team is based in Reno, Nevada.

Western Lithium Corporation is a mineral exploration and development company with a focus on lithium. The company has an exploration property in Kings Valley, Nevada through a lease option agreement with a wholly owned subsidiary of Western Uranium Corporation.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved or disapproved of the contents of this press release.

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