Canada Lithium initiates environmental impact study

TSXV: CLQ

TORONTO , Oct. 14 /CNW Telbec/ - Canada Lithium Corp. (TSXV: CLQ) announced today that it has awarded a contract to Genivar Inc. of Amos, Quebec , to complete an Environmental Impact Study (EIS) for the Company's Quebec Lithium Project. The EIS is anticipated to take approximately one year to complete and will outline all environmental concerns and constraints for the Company's proposed development of a 3,500-tonne-per-day lithium mining operation. The environmental study will be conducted in conjunction with the pre-feasibility study recently initiated by BBA Inc. of Montreal .

"The EIS is another key component in the list of pre-development projects that we anticipate will allow us to commence mine construction in 2011," said Canada Lithium President and CEO Peter Secker . The Company recently launched several initiatives, including the pre-feasibility study and a resource drilling program, to ensure that pilot plant metallurgical testwork, mine engineering and flow sheet design will commence in the first quarter of 2010. A final feasibility study is anticipated to be completed by late 2010.

The Quebec Lithium Project, with its 150-m-deep shaft and lateral workings on three levels, was a producer that manufactured and shipped lithium carbonate, lithium hydroxide and other lithium chemicals for the U.S. Government strategic stockpiles. The Company also produced lithium-bearing spodumene concentrates and feldspar for the glass and ceramics industries. Spodumene is an intermediate stage product in the processing chain. Alternatively, it can be further refined to battery-grade lithium carbonate for use in electric and hybrid/electric cars, consumer electronic products, rechargeable hand tools and so on. Recent metallurgical tests by SGS Lakefield of samples from the Company's Quebec Lithium Project produced battery-grade 99.6% lithium carbonate (see press release dated Sept. 29).

Canada Lithium is also integrating historical geological and metallurgical data with current studies and is engaged in mine-site infrastructure assessments.

Canada Lithium Corp. is a Canadian-based resource and exploration company trading under the symbol CLQ on the TSX-V. The Company plans to develop a former lithium mine near Val d'Or, Que., which operated from 1955 to 1965. It hosts an NI 43-101 non-compliant historical resource of 15 million tonnes grading 1.14% Li2O. Please note, a Qualified Person has not done sufficient work to classify the historical estimate as current mineral resources; Canada Lithium Corp. is not treating the historical estimate as current mineral resources; and the historical estimate should not be relied upon. Canada Lithium is also exploring the potential of several lithium brine deposits in Nevada.

    
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Forward-looking Information

The statements made in this press release may contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of Canada Lithium Corp. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of Canada Lithium Corp. management as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the Company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the Company. Canada Lithium Corp. disclaims any obligation to update information contained in any forward-looking statement.

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For further information: Peter Secker, President and CEO, [phone]; Olav Svela, Director, Investor Relations, [phone], [email protected]; Dan Symons, Renmark Financial Communications Inc., [phone], [email protected]; Or visit the Canada Lithium website at www.canadalithium.com. (Please note, the website is undergoing an update and re-design.)