Salares Lithium Inc. (fka SALZF)

[MadeBucksOnThis]

Salares Lithium Announces Significant Increase to Its Brine Bearing Reservoir Rock / Aquifer

VANCOUVER, BRITISH COLUMBIA, Jul 02, 2010 (MARKETWIRE via COMTEX) -- Salares Lithium Inc. (TSX VENTURE: LIT) (the "Company") is pleased to report the results of additional transient electromagnetic surveys ("TEM") completed at its 'Salares 7' project ("Project") in Region III, Chile. Additional surveys are now completed on and adjacent to Salar de Aguilar and Salar Grande. The Company has now completed TEM surveys on the northern portion of Salar de la Isla, Salar de las Parinas, Salar de Aguilar and Salar Grande.
The combined TEM results on the Project to date have identified a substantial increase in the volume of the brine bearing aquifer / reservoir rock. The cumulative survey results show a 31% increase, from 3.64 to 4.77 billion cubic metres, of the reservoir rock when a cut-off of 1 ohm/metre is applied. When the resistivity cut-off level is increased to 2 ohm/metres the reservoir volumetric increases 100% taking the calculated reservoir rock volume from 9.4 to 18.8 billion cubic metres.

TEM surveys are yet to be completed on Salar de Amarga and the southern portion of Salar de la Isla.

The TEM surveys have been carried out by Geodatos SAIC ("Geodatos") of Santiago, Chile. Previous work by Geodatos using TEM surveys has resulted in the confirmation of the presence of high conductivity, salt saturated brines. The TEM surveys are designed to define the size and extent of the reservoir rock and in-situ brine pool within the salares. The majority of the world's lithium production comes from salars, or salt lakes, where prospective lithium mineralization is generally hosted in brine horizons.

TEM Results from Aguilar and Grande

Using the results obtained from the survey (approximately 70 line km) on Salar de Aguilar and Salar Grande, Geodatos has constructed a three dimensional model of the distribution of the interpreted brine bearing horizons.

Using a resistivity cut-off of 1 ohm/metre (interpreted by Geodatos as probable brine), Geodatos has calculated the brine bearing horizon or reservoir rock to have an aquifer volume of 1.14 billion cubic metres. Using a resistivity cut-off of 2 ohm/metres (interpreted by Geodatos as possible brines) the calculated aquifer volume of this horizon is 9.4 billion cubic metres.

Cumulative TEM Results to Date for the Salare 7 Project

Using a resistivity cut-off of 1 ohm/metre (interpreted by Geodatos as probable brine), Geodatos has calculated the brine bearing horizon or reservoir rock within the surveyed portion of the Project to date to have an aquifer volume that has increased from 3.64 to 4.77 billion cubic metres. Using a resistivity cut-off of 2 ohm/metres (interpreted by Geodatos as possible brines) the calculated aquifer volume of the horizon substantially increases from 9.4 to 18.8 billion cubic metres. The cumulative results represent a 31% increase of probable brine and a 100% increase of possible brine when compared to the previous combined TEM results of northern la Isla and las Parinas.

"We are extremely pleased with the results of these additional surveys that have identified a substantial increase to our aquifer's reservoir rock or possible production zone. Based on the results and experience to date, we would expect that additional surveys to be completed could increase the known reservoir size", stated Todd Hilditch, CEO.

In order to determine the actual brine content and eventual resource of this host/reservoir rock, information relating to the porosity, permeability and grade will be required from drilling and sampling.

About Geodatos

The TEM geophysics programs are being carried out by Geodatos, a well known Chilean geophysics company with broad international experience. Pertinent to the Company's needs is that Geodatos has experience and has conducted surveys at the lithium rich Salar de Atacama, located approximately 200 kms north of the Company's Project.

About TEM

TEM uses electromagnetic impulse excitation to investigate the subsurface. It is a variation of the electromagnetic method in which electric and magnetic fields are induced by transient pulses of electrical current in coils or antennas instead of by continuous current. TEM surveys have become the most popular surface EM technique used in exploration for minerals and groundwater and for environmental mapping. Ohm is the unit of measurement of electrical resistance in a material. One ohm is the resistance in a circuit when one volt maintains a current of one amp.

The technical information in this release has been reviewed and approved by Luis Ignacio Silva P. (Ph.D and C.Eng.), Exploration and General Manager for Chile, as a 'qualified person', as defined by NI 43-101, Standards for Disclosure of Mineral Projects.

(Cautionary statement: At this stage there has been insufficient exploration completed such that a mineral resource may be calculated. The potential quantity and grade can only be established with further work, including sampling. It is currently not known if this additional work will result in identifying a mineral resource.)

Salares Lithium Inc.

Salares Lithium Inc. is a lithium explorer in Chile that controls the 'Salares 7' lithium project made up of seven salares (brine lakes that are prospective for sub-surface lithium and potassium) and the surrounding concessions in Region III, Chile. Five of the seven salares are clustered within 155 kilometres and are 100% owned by the Company and its Chilean partner.

For contact information please visit our web page at: www.salareslithium.com/

Forward-Looking Statements

Certain of the statements made and information contained herein are "forward-looking statements" within the meaning of Canadian securities legislation or "forward-looking information" within the meaning of the Ontario Securities Act and the Alberta Securities Act. This includes statements concerning the Company's plans at its mineral properties, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or forward-looking information. Forward-looking statements and forward-looking information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or forward-looking information, including, without limitation, the availability of financing for activities, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, metal price fluctuations, environmental and regulatory requirements, availability of permits, escalating costs of remediation and mitigation, risk of title loss, the effects of accidents, equipment breakdowns, labour disputes or other unanticipated difficulties with or interruptions in exploration or development, the potential for delays in exploration or development activities, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, expectations and beliefs of management and other risks and uncertainties. In addition, forward-looking statements and forward-looking information is based on various assumptions. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information or forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise.

Neither the 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.



Contacts:
Salares Lithium Inc.
Todd Hilditch
President and CEO
[phone]
www.salareslithium.com


SOURCE: Salares Lithium Inc.



CONTACT: http://www.salareslithium.com

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