Canada Lithium Produces 99.6% Battery-Grade Lithium From Test Samples at Quebec Project

Canada Lithium Corp. (TSXV: CLQ) announced today that metallurgical tests of sample material from its Quebec Lithium Project have successfully produced battery-grade lithium carbonate using standard flow-sheet processes.

The test samples, processed by SGS Lakefield, were designed to achieve the standard 99% lithium carbonate; however, the program exceeded initial design criteria and actually achieved a grade of 99.6% Li2CO3 (lithium carbonate). Additional polishing is expected to produce a higher grade product.

"As an initial trial run with this material, we were cautiously optimistic that we might at best approach the 99.5% threshold for battery-grade lithium," Company President and CEO Peter Secker said. "So we're very pleased that we have exceeded the benchmark at this stage of the project using conventional processing techniques."

The samples were processed and analyzed in several batches and consistent results were achieved. The processed material will be shipped to Mitsui and Co. Limited in Japan. Mitsui is an international trading house that signed a marketing agreement with Canada Lithium in April 2009, granting Mitsui exclusive rights to market lithium (produced from Canada Lithium’s Quebec Project) in Japan, Korea and China until April 2010. Mitsui retains an option to extend the agreement annually for six subsequent years.

As a result of this early success, Canada Lithium is working with SGS Lakefield to develop a pilot scale test, planned to commence in January 2010, to produce additional battery-grade material for pre-marketing purposes.

As noted above, test samples were processed by SGS Lakefield. Gary Pearse, B.Sc Geol Engineering, M.Sc Econ., is the designated QP within the meaning of the term in NI 43-101. Mr. Pearse has reviewed and approves the content of this release.

Canada Lithium Corp. is a Canadian-based resource and exploration company trading under the symbol CLQ on the TSX-V. The Company plans to develop a former lithium mine near Val d’Or, Que., which operated from 1955 to 1965. It hosts an historical resource (not compliant with NI 43-101) of 15 million tonnes grading 1.14% Li2O. Canada Lithium is also exploring the potential of several lithium brine deposits in Nevada.

For more information please contact:

Peter Secker, President and CEO (416) 361-2821
Olav Svela, Director, Investor Relations (416) 361-2821
Dan Symons, Renmark Financial Communications Inc. (514) 939-3989

Or visit the Canada Lithium website at www.canadalithium.com. (Please note, the website is undergoing an update and re-design.)

Corporate Office: 401 Bay St., Suite 2010, Toronto, Ont. M5H 2Y4

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.

Forward-looking Information

The statements made in this press release may contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of Canada Lithium Corp. The actual results of the specific items described in this release, and the company’s operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of Canada Lithium Corp. management as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the Company’s dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the Company. Canada Lithium Corp. disclaims any obligation to update information contained in any forward-looking statement.

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Canada Lithium Corp.
401 Bay St., Ste. 2010
Toronto Ontario Canada
M5H 2Y4

Tel: 416-361-2821
Email: osvela@canadalithium.com
Web: www.canadalitium.com

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Canada Lithium Corp

	DEVELOPMENT STAGE
	CODE : CLQ.TO

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Canada Lithium is a gold development stage company based in Canada.

Canada Lithium develops gold and lithium in Canada, and holds various exploration projects in Canada.

Its main asset in development is QUEBEC LITHIUM in Canada and its main exploration property is TULLY GOLD in Canada.

Canada Lithium is listed in Canada. Its market capitalisation is CA$ 86.9 millions as of today (US$ 66.6 millions, € 56.3 millions).

Its stock quote reached its lowest recent point on December 26, 2008 at CA$ 0.05, and its highest recent level on December 31, 2010 at CA$ 6.69.

Canada Lithium has 362 204 000 shares outstanding.

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