Canada Lithium Corp fka CLQ

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CANADA LITHIUM ANNOUNCES CLOSING OF $15 MILLION BOUGHT DEAL PRIVATE PLACEMENT

Canada Lithium Corp. (TSXV: CLQ)(the "Company") is pleased to announce that it has closed its previously announced bought deal private placement with a syndicate of underwriters co-led by Cormark Securities Inc. and Blackmont Capital Inc. and including Northern Securities Inc., Byron Securities Limited and Primary Capital Inc. (the "Underwriters"). The Company issued an aggregate of 27,746,799 units ("Units") of the Company on a bought deal private placement basis at a price of $0.55 per Unit for aggregate gross proceeds of $15,260,739. Each Unit consists of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant is exercisable for one common share at a price of $0.80 per share for a period of two years following closing.

The Company paid the Underwriters a cash commission of $915,644 and issued broker warrants to acquire up to 1,664,805 Units at a price of $0.55 per Unit for a period of 12 months following the closing date.

The net proceeds of the offering will be for continued exploration and development of the Quebec

Lithium Project and the Nevada brines and for general working capital purposes.

The securities issued pursuant to the placement are subject to a four-month hold period. The private placement is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.

The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an

exemption from registration is available.

The Company also announces that it has granted an aggregate of 3,730,000 options to purchase common shares of the Company exercisable at a price of $0.55 per share for a period of five years, to certain directors, officers, consultants and employees of the Company. The common shares issuable upon exercise of the options are subject to a four month hold period from the original date of grant.

For further information, contact Peter Secker, President and Chief Executive Officer at (41...

or visit our web site at www.canadalithium.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the

TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward-looking statements. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

This news release includes certain "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding potential mineralization and resources and reserves, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.

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