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Lithium One Issues NI 43-101 Mineral Resource Statement for James Bay Lithium Project

Lithium One Inc. (TSX VENTURE:LI), has reported that SRK Consulting Inc. has issued a NI 43-101 compliant mineral resource statement for the Company's 100% controlled James Bay Lithium Project in Quebec that includes indicated resources of 11.75 million tonnes grading 1.30% Li2O and inferred resources of 10.47 million tonnes grading 1.20% Li2O.

Highlights

  • 11.75 Million Tonnes Grading 1.30% Li2O in the Indicated Category

  • 10.47 Million Tonnes Grading 1.20% Li2O in the Inferred Category

  • Open-pit amenable

  • Potential to increase resources along strike and depth

The James Bay Lithium Project hosts a swarm of outcropping spodumene-bearing pegmatite dykes ranging in width from two to more than 50 metres over a corridor stretching almost five kilometres. This resource includes data from only the two kilometre span of dykes drill tested by Lithium One in 2008 and 2009.

The block model indicates that the resource is amenable to open pit extraction. Furthermore, there are opportunities to increase the grade and tonnage of the resources with additional drilling. The model and pit optimization indicate that the grade of the resources can be increased through the better definition gained by drilling the dykes at closer spacing. In addition, the entire resource occurs in pit shells that bottom at 220 metres, which is near the limit of the existing drilling. SRK therefore also reports that there is considerable potential to increase the tonnage with additional delineation of the dykes at depth.

Lithium One President and CEO Patrick Highsmith commented, "The James Bay Project hosts a considerable sized deposit with excellent infrastructure in one of the best mining jurisdictions in the world. This first resource statement, while conservative, supports our view that the James Bay Project has the potential to be a significant producer of high quality lithium products. We know from our metallurgical studies earlier this year that the James Bay deposit yields high quality spodumene concentrates that can be processed into lithium carbonate. These milestones add substantial value to the Company and we look forward to leveraging that value for our shareholders."

The resources are reported at a cut-off grade of 0.75 percent Li2O inside conceptual pit shells optimized using a lithium carbonate price of US$6,000 per tonne, metallurgical and process recovery of 70%, overall mining and processing costs of US$64 per tonne milled, and overall pit slopes of forty-five degrees. The optimization parameters were selected based on experience and benchmarking against similar spodumene projects.

Methodology

The construction of the mineral resource model for the James Bay Lithium Project was an interactive process involving Lithium One and personnel from SRK. The resource modeling used data from surface NQ core drilling samples collected by Lithium One in 2008 (eighteen holes) and 2009 (eighty-four holes) totalling 3,724 assay intervals from 13,475 metres of drilling. The sample database also includes forty-six diamond saw channel cuts collected by Lithium One in 2009 and 2010, totalling 540 assay samples. Samples were prepared by TJCM (Table Jamésienne de Concertation Minière) in Chibougamau and assayed by COREM in Québec City for Li2O.

SRK constructed three-dimensional wireframes of the pegmatite dikes on 50 metre sections provided by Lithium One as a guide. A total of thirty-one pegmatite wireframes were constructed and used as resource domains for constraining grade estimation; where applicable, each of these pegmatite domains was capped individually to remove high-grade outliers.

A block model with 10m blocks was generated using Datamine software; and Li2O grades were estimated using ordinary kriging. Block model quantities and grade estimates for the James Bay Lithium Project were classified according to the CIM Definition Standards for Mineral Resources and Mineral Reserves (December 2005). The specific gravity used was 2.70 gms/cm3 based on metallurgical testing completed by Hazen Research Laboratory in Denver.

The mineral resources are reported in accordance with National Instrument 43-101 and have been estimated in conformity with generally accepted CIM "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines. Resource evaluation work was completed by Mr. Sébastien Bernier, P.Geo (OGQ#1034, APGO#1847) an independent Qualified Person as defined by NI 43-101. Mr. Bernier has read and approved the content of this news release. A Technical Report compliant with NI 43-101 standards describing the resource estimation will be filed on SEDAR within 45 days of this release.

The contents of this press release have been reviewed and approved by Mr. A. James McCann. Mr. McCann is a licensed Professional Geologist in Quebec P.Geo (OGQ#332) and a qualified person as defined by NI 43-101.

About Lithium

Lithium is a light, highly reactive metal with use in a variety of industrial applications including ceramics, lubricants and pharmaceuticals. The fastest growing market for lithium is as lithium carbonate for use in batteries, including those in cell phones, computers and new generations of electric and hybrid vehicles. Lithium from spodumene is in silicate form and following mining and production of a concentrate, requires processing to be converted to lithium carbonate. Technology for the conversion of spodumene concentrate to lithium carbonate has been in use for over 20 years.

Source: Lithium One Inc.

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