First Lithium Signs Option Agreement with Newcastle Minerals for Mollie River Claims

First Lithium Resources Inc. has announced that it has entered into an option agreement with Newcastle Minerals Ltd. to acquire up to a 75% interest in their Mollie River claims, approximately 4 km from the western edge of Trelawney Mining and Exploration Inc.'s Chester Gold Complex.

Trelawney's drill programs have consistently intersected long intervals of gold mineralization. These results have been reported in their news releases and include their November 15, 2010 announcement of the following intercepts:

-- Hole E10-32 - 47.50 metres of 1.02 g/t gold--Hole E10-33(i) - 520.28 metres of 1.44 g/t gold (0.92 g/t cut) including 1.70 metres of 199.80 g/t gold

-- Hole E10-35 - 12.00 metres of 8.00 g/t gold and 187.55 metres of 0.61 g/t gold.

In additional press releases this year, Trelawney reported intersections of "8.2g/t Au over a 107.11 meter core length including 313.55 g/t over 2.56 meters" and "137.00 metres of 5.33 g/t gold within a larger envelope of 274.60 metres of 2.99 g/t gold".

Newcastle's three Mollie River claims, comprising 37 units, total approximately 1480 acres and are located in Benneweis Township, Porcupine Mining Division, mid-way between Sudbury and Timmins, Ontario. Each of the claims has excellent road access for exploration, including drill programs.

The Mollie River project was last drilled in 1971 by Texas Gulf Inc. as part of a base metal exploration program. Although no assays were reported, drill logs make reference to a number of structural zones with quartz-carbonate stringers and "above average" disseminated sulphides, including chalcopyrite within mafic and intermediate intrusions. The combination of mineralized and altered structures indicates the gold potential of this area has been overlooked and should be re-evaluated. Preliminary exploration work, including IP geophysical surveys and an interpretation report based on these surveys has been completed by Newcastle.

Subsequent to a review of integrated property geology, historic drill data and new IP results First Lithium has identified numerous drill targets. A drill team has been contracted, and the program will likely commence within days of TSX Venture approval.

To maintain the Option in good standing and to earn a 75% interest in the Property, the Company shall make cash payments, issue common shares to Newcastle and incur Exploration Expenditures as follows:

1. pay $15,000 and issue 500,000 common shares in the capital of the Company ("common shares") within five business days of the Company receiving Exchange approval of the transaction contemplated by the Agreement;
2. issue 500,000 common shares by the first anniversary of Exchange approval of the transaction;
3. issue 750,000 common shares by the second anniversary of Exchange approval of the transaction; and
4. incur Exploration Expenditures of an aggregate of $1,000,000 on the Property as follows:
   1. $250,000 by the first anniversary of Exchange approval;
   2. $250,000 by the second anniversary of Exchange approval; and
   3. $500,000 by the third anniversary of Exchange approval.

The Property is subject to a 3% NSR to a third party, 1/3 of which can be bought back for $1,000,000.

The contents of this release have been reviewed and approved by Mark Fedikow, P.Eng, P.Geo., C.P.G., a qualified person as defined by National Instrument 43-101.

Source: First Lithium Resources Inc.