Lithium Exploration Group Inc. (fka LEXG)

[Jerry70]

$ LEXG. Lithium Exploration Group CEO Distributes December 2014 Newsletter.

Dec 08, 2014 (eTeligis.com via COMTEX) -- SCOTTSDALE, AZ, United States, via ETELIGIS INC., 12/08/2014 - - Lithium Exploration Group Inc. (OTC Pink: LEXG) (PINKSHEETS: LEXG), CEO Alex Walsh discusses ongoing business activity in his December 2014 newsletter:

Dear Shareholders,

In this last installment of my shareholder letters for the year, I want to wish everyone a safe and happy holiday season and to thank all of our staff, service providers, shareholders, and partners for all of their efforts over the past few years.

We have a lot of initiatives that we plan to complete between now and the end of the year, but I want to take a moment to review what we are presently working on and to give a few updates:

Technology Initiative:

We are continuing discussions with the additive company that we met with on our trip to Texas a few weeks ago. The goal right now is to complete some testing so that we can ascertain the competitive advantage of this additive in the Western Canada market, at which point we can commit resources to a joint venture with the owner for distribution and use of the product in Canada. We are planning a final testing run on the additive with oil next week and, assuming those tests go as planned, we should be in a position to start drawing up a contract at the beginning of the year. We just need to be sure that the product has potential before we commit any resources to it.

We have approached one other oilfield technology company and have been approached by another through a contact in Calgary. We have spent four years understanding all of the needs of the western Canadian oilfield market and where the holes exist for new technologies to exploit. We are excited to look at all types of technologies to assist with breaking into the very exciting Canadian market.

Increase Owner ship in Tero Oilfield Services:

We are finalizing the paperwork for the acquisition of the additional 25% of Tero Oilfield Services, to close effective January 1, 2015. The capital is ready to fund this and the paperwork is already outlined in our original transaction from March, so this should be a relatively seamless process.

Oil Unit Testing at Tero :

As announced last week, we are making preparations to receive the oil treatment unit from Texas at Tero next month. These are really just operational logistics: who will run the unit and how the testing data will be collected so it will not interfere with existing operations. We are very excited to have this begin in Q1.

Partner for Morinville Class 1a Project:

A few months ago we began looking for a financial or strategic partner for the Morinville facility. I had hoped that we would be in a position to raise the development capital for the project, but at present we need to keep our capital focused on the cash flow at Tero and the commercialization of the ultrasonic technology.

We are in discussion with both financial and strategic partners at present. I expect we will be able to make a final decision on a direction in the first quarter of 2015. We are fortunate to have a lot of options and each one is being discussed. These range from taking on a working interest partner to fund the 'go-forward' project needs to selling our entire disposal company to a private equity group. The latter would involve a partnership with our team at Tero to develop Morinville and look at other acquisitions. As long as we get a reasonable price for the assets and have the ability to continue testing and using our technology, we are open to any and all options. However, I don't want to give the impression that we are for sale; the reality is that, for us to take the disposal business forward, we need more capital to spend on development, expansion, and acquisitions. Our stock's performance is not making that possible right now -- but the silver lining is that we have a lot of value built up in the disposal business that we can put back on our own books in the form of cash and will have a lot of capital to put into technology initiatives from there.

We will be busy closing out the quarter and look forward to updating you on developments on all of these initiatives in the New Year.

Sincerely,

Alex Walsh

CEO

Lithium Exploration Group

About Lithium Exploration Group

Lithium Exploration Group is a US-based exploration and development company focused on the acquisition and development potential of lithium brines and other precious metals that demonstrate high probability for near-term production. Currently the company is focused on its Western Canada lithium assets, testing its Ultrasonic Generator Technology and the acquisition of oil and gas related assets in Western Canada. Lithium Exploration Group is a fully reporting company traded on the OTCQB under the symbol LEXG. Website: www.lithiumexplorationgroup.com.