Canada Lithium Project Update: Major Process Equipment Received; Full-Time Marketing Team Established In China

Canada Lithium Corp. (TSX: CLQ) (OTCQX: CLQMF) announced today that major components of the process plant are now on-site at its Québec Lithium Project near Val d'Or, Québec, and the project is on schedule for year-end commissioning.

Long lead-time items ordered in 2011 will be installed in July and August. This includes crushers, flotation cells, kiln, rod mill and ball mill, high voltage transformers, conveyors and other equipment.  Inside the process plant, the foundations and structural steel for the ball mills, rod mills and flotation circuit have been completed, and installation of the equipment will commence. The foundations for the hydrometallurgical kiln have been poured and welding of the kiln shell will begin. Foundations for the crusher circuit have been completed and the fine ore bin structure has been erected. In addition, high voltage transformers and switchgear have arrived on site and will be installed.

The mining fleet, composed of three 100-tonne mine trucks, hydraulic excavator, 992 front-end loader, grader and D9 dozer are on-site and operational. Pre-stripping of the deposit is scheduled to commence in late July.

As part of its focus on Asian lithium battery manufacturers, the Company has set up a marketing team in China, which will be opening a full-time marketing office in Shanghai in September to market battery-grade lithium carbonate products.  The lithium carbonate will be sold under the trade name "Québec Lithium™."

Commissioning of the  mine and spodumene plant is expected to occur late this year, while production of battery-grade lithium carbonate is anticipated to begin in the first quarter of 2013, building up to a 20,000-tonne-per-annum Li₂CO₃ capacity by the end of 2013.  Project construction is currently on-time and on-budget. Recent photographs from the site can be viewed at the Company's website: www.canadalithium.com. Select the button "Click to view Photo Gallery".

About Canada Lithium Corp.

The Company holds a 100% interest in the Québec Lithium Project near Val d'Or, the geographical heart of the Québec mining industry. The Company is in the midst of building an open-pit mine and processing plant on-site with capacity to produce approximately 20,000 tonnes of battery-grade lithium carbonate annually. Metallurgical tests have produced battery-grade lithium carbonate samples. The Company trades under the symbol CLQ on the TSX and on the U.S. OTCQX under the symbol CLQMF.

Cautionary Statement Regarding Forward-Looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".

Forward-looking information is based on reasonable assumptions that have been made by the Company as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company on to be materially different from those expressed or implied by such forward-looking information.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information.  Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information referenced herein, except in accordance with applicable securities laws.

SOURCE CANADA LITHIUM CORP.