CANADA LITHIUM PILOT PLANT PRODUCES 99.9% BATTERY-GRADE LITHIUM CARBONATE

TSX: CLQ; U.S. OTCQX: CLQMF

TORONTO, Sept. 21 /CNW Telbec/ - Canada Lithium Corp. (TSX: CLQ; U.S. OTCQX: CLQMF) announced today that pilot plant flotation, roasting and hydrometallurgical processing have been completed. The 99.9% lithium carbonate samples from the pilot-scale tests will be shipped to potential customers for further testing against specification standards on downstream products, such as lithium-ion batteries.

"The quality of this latest batch, as was the case with earlier runs of material, demonstrates that the Quebec Lithium Project consistently yields samples in excess of battery-grade standards set by international battery manufacturers," said Company President and CEO Peter Secker.

The Company was particularly pleased with the low levels of impurities, especially those of chlorine, sodium and magnesium, which were below standards required by international manufacturers of lithium batteries for electric vehicles.

"Lithium-iron-phosphate batteries, which are emerging as one of the front-runners in lithium-ion battery formulations, are particularly susceptible to levels of chlorine and sodium salts in the final lithium carbonate product. Based on the pilot plant results, lithium carbonate from the Quebec Lithium Project could be considered a premium product," he said.

The latest test samples produced a product grading 99.9% lithium carbonate, with impurities such as chlorine, magnesium, potassium, iron and manganese at acceptably low levels.

    
                 --------------------------------------------
                                               Assay
                 --------------------------------------------
                   Li2CO3       %       (greater than) 99.9
                 --------------------------------------------
                   Cl           %         (less than) 0.001
                 --------------------------------------------
                   Na           %         (less than) 0.012
                 --------------------------------------------
                   Ca           %          (less than) 0.07
                 --------------------------------------------
                   Mg           %        (less than) 0.0015
                 --------------------------------------------
                   S            %         (less than) 0.001
                 --------------------------------------------
                   Fe           %         (less than) 0.003
                 --------------------------------------------
    

To merit the "battery-grade" designation, lithium carbonate product must meet a minimum 99.5% level; material above this level usually attracts premium prices. Mr. Secker noted that test samples will be sent to end users in Asia, Europe and North America.

In addition, as part of the pilot plant test, marketing samples for two spodumene products have been produced. Samples at both 6.5% and 7.0% Li20 have been sent out to end users in the USA and Asia for market evaluation.

Metallurgical tests began last year and by November 2009, the first stage was completed on drill core samples to develop the initial flow sheet for the Pre-Feasibility Study (PFS). In addition, battery-grade lithium carbonate samples were sent to Japan for review and analysis by a number of battery manufacturers.

In March 2010, a pilot plant metallurgical test was run on a composite bulk sample from the deposit comprising resource drill core samples, surface bulk samples and metallurgical drill core samples. The bulk composite was run through a pilot plant flow sheet that was developed from the initial PFS flow sheet.

About Canada Lithium

Canada Lithium Corp. is a Canadian-based "clean tech" mine developer trading under the symbol CLQ on the TSX and on the U.S. OTCQX market under the symbol CLQMF. The Company is in the midst of a definitive Feasibility Study (FS) by engineering firm BBA Inc. of Montreal on its Quebec Lithium Project near Val d'Or, the geographical heart of the Quebec mining industry. A positive FS would lead to construction of an open pit mine and processing plant capable of producing by late 2012 approximately 43 million pounds per year of battery-grade lithium carbonate to meet the growing needs of the emerging global market for electric and hybrid electric vehicles. It has an agreement with Japanese metals trading firm, Mitsui and Co. Ltd., to market a portion of Canada Lithium Corp.'s product in China, Korea and Japan. Metallurgical tests from deposit samples have produced battery-grade lithium.

Please visit the Canada Lithium website at www.canadalithium.com.

For up-to-the-minute news on the latest developments from car and battery manufacturers around the globe committed to lithium-powered electric vehicles and hybrids, please visit our Home Page and click on "Latest News on Electric Vehicles."

Corporate Office: 401 Bay St., Suite 2010, P.O. Box 118, Toronto, ON. M5H 2Y4

Neither the TSX Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this release.

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, CEO and Director, [phone]; Olav Svela, Director, Investor Relations, [phone], (cell) (905)-442-8663, email [email protected]; Christine Stewart, Renmark Financial Communications Inc., [phone], email [email protected]