Canada Lithium Corp fka CLQ

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Canada Lithium Enters Into Marketing Agreement With Japanese Trading House
Tue Apr 28, 2009 6:28pm EDT



TORONTO, ONTARIO, Apr 28 (MARKET WIRE) --
Canada Lithium Corp. (TSX VENTURE: CLQ) (the "Company") is pleased to
announce that it has entered into a marketing agreement with a large
Japanese trading house. The agreement gives the trading house the
exclusive marketing rights for Japan, Korea and China for one year, until
April 2010, for the lithium products from the Company's Quebec Lithium
Project. After one year, the trading house has the option to renew the
marketing right annually for up to six subsequent years. Canada Lithium
Corp. will commence shipping lithium carbonate samples to the trading
house in the second quarter of 2009.

The marketing agreement is instrumental in the advancement of the
Company's Quebec Lithium Project through feasibility. The trading house
is experienced in marketing and sales in these countries and will exert
its efforts to solicit and obtain orders for Canada Lithium Corp.

Canada Lithium Corp. recently announced that it has materially advanced
its lithium carbonate metallurgical process and has produced lithium
carbonate that is comparable to the battery market specifications that
are widely accepted by the industry. Canada Lithium's product
significantly exceeds specifications with respect to aluminum and iron
which are considered deleterious.

Canada Lithium Corp. is the 100% owner of the Quebec Lithium Project
located 60 km northwest of Val d'Or, Quebec. The project is a large
lithium spodumene deposit with excellent infrastructure and favourable
metallurgy.

Quebec Lithium was an underground mine, surface concentration plant and a
refinery from 1955 to 1965 which produced 272,000 tonnes of ceramic grade
and chemical grade spodumene concentrates, lithium carbonate, lithium
hydroxide monohydrate as well as a small quantity of lithium chloride and
feldspar. At the time of the suspension of mining operations the ore
reserve was 15 million tonnes at a grade of 1.14 % Li2O calculated down
to the 150m level. The actual recovered grade during the ten years of
production was 1.25% Li2O.

Canada Lithium Corp. is working in conjunction with SGS Lakefield
Research to complete metallurgical test-work for the production of
spodumene concentrate, lithium carbonate as well as high grades and
purities of lithium carbonate. Metallurgical processing test-work has
resulted in the production of a spodumene concentrate grading 7.17% Li2O
with an 80% recovery and production of lithium carbonate that is
comparable to the battery market specifications that are widely accepted
by the industry. The Company will continue to optimize its lithium
carbonate processing methodology and will start continuous process for
metallurgical purposes in the third quarter of 2009.

In conjunction with optimizing the metallurgical processing activity, the
Company is evaluating project economics including capital and operating
costs, as well as downstream market off-take and pricing. The most recent
industry forecast for lithium demand is a four-fold increase over ten
years from the 2007 market demand of 100,000 tonnes of lithium carbonate
equivalent (Li2CO3).

The previous reserve is being treated as a historical resource and is not
National Instrument 43-101 compliant as it was completed prior to the
implementation of these requirements. However, given the quality of the
work completed, and the fact that the operation was a going concern over
a decade, the Company believes the historical resource to be relevant and
reliable. In addition, a qualified person has not done sufficient work to
classify the historical resource as a current mineral resource and the
issuer is not treating the historical resource as current. Hence, the
historical resource should not be relied upon. Mitch Lavery (P.Geo), is
the Company's qualified person as required under NI 43-101 and has
reviewed the technical information contained in this press release.

Canada Lithium Corp. would also like to thank board member Kerry Knoll
for his contribution to the Company. Kerry Knoll has stepped down from
the board of directors to pursue other interests.



The TSX Venture
Exchange has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.

Contacts:
Canada Lithium Corp.
Judy Baker
President and CEO
[phone]
[e-mail]
www.canadalithium.com

Copyright 2009, Market Wire, All rights reserved.

http://www.reuters.com/article/pressRelease/idUS270163+28-Apr-2009+MW20090428