Chengdu Tianqi subsidiary acquires stake in Talison Lithium

TORONTO, Nov. 12, 2012 /CNW/ - Chengdu Tianqi Industry Group Co., Ltd. 
("Tianqi") today announced that its wholly-owned subsidiary Windfield Holdings 
Pty Ltd. ("Windfield") has acquired, and agreed to acquire, an aggregate of 
17,143,422 ordinary shares ("Shares") of Talison Lithium Limited ("Talison"), 
representing 14.99% of the issued and outstanding Shares, calculated on a 
non-diluted basis. This is made up of 11,343,522 Shares already owned by 
Windfield and a further 5,799,900 Shares, representing 5.07% of issued Shares 
(calculated on a non-diluted basis), which are the subject of an agreement 
that Windfield has entered into for the purchase of such Shares at a price of 
C$6.50 per Share, subject to certain price adjustments and subject to the 
condition that Windfield, or a related party, announces an intention to make 
offers under a takeover bid for, or a proposal for a scheme of arrangement to 
acquire, Shares in Talison at a price higher than C$6.50 per Share. 
Windfield acquired the Shares and entered into the agreement to acquire such 
further Shares in connection with its current intention to submit a proposal 
to Talison under which Windfield would acquire all of the Shares that it does 
not already own by way of a scheme of arrangement. Windfield may acquire 
additional Shares prior to submitting any such proposal. It is intended that 
such proposal would be submitted to Talison prior to the Talison shareholder 
meeting to consider the proposed scheme of arrangement involving Rockwood 
Holdings, Inc. (the "Rockwood Scheme"). While Windfield has not yet 
finalised the price under any such proposal, if the proposal is made, the 
price would be higher than contemplated under the proposed Rockwood Scheme. 
Any proposal may be subject to certain conditions, including necessary 
regulatory approvals, financing on appropriate terms, satisfactory 
confirmatory due diligence and entry into a definitive scheme implementation 
agreement with Talison. There can be no assurances that a proposal will be 
submitted to Talison or, if submitted, that its conditions will be 
satisfied. This announcement does not constitute an offer for or 
solicitation of Shares in any jurisdiction. 
Tianqi, via its subsidiary Sichuan Tianqi Lithium Industries, Inc ("Tianqi 
Lithium"), is the world's largest hard rock lithium converter. With over ten 
years experience in the research, production and sales of lithium chemicals, 
Tianqi Lithium offers a diverse portfolio of products ranging from carbonate 
to lithium metals, in order to meet almost all kinds of raw material demands 
from battery producers. Tianqi Lithium holds a significant market share and is 
one of the most important raw material providers for the clean energy industry 
in China. 
Tianqi has enjoyed a strong and mutually beneficial relationship with Talison 
and its predecessors since 1997. Tianqi (through subsidiaries) currently 
purchases approximately 40% of the chemical grade lithium concentrate produced 
by Talison and is the sole distributor in China of Talison's technical grade 
lithium concentrate. 
An early warning report will be filed on SEDAR and will be available for 
review at under Talison's profile. 
Tianqi's financial adviser is RedBridge Grant Samuel and its legal advisers 
are Linklaters in China, Allens in Australia and Stikeman Elliott in Canada. 
Further Information About Tianqi: 
Tianqi is a privately held Chinese company founded in 2003. Its business 
activities are primarily conducted through the following subsidiaries: 

    --  Sichuan Tianqi Lithium Industries, Inc. - a Chinese company
        listed on the Shenzhen Stock Exchange, engaged in the
        production of lithium carbonate and other lithium products from
        chemical-grade lithium concentrates sourced from Talison;
    --  Sichuan Tianqi Industry Co., Ltd. - a distributor of technical
        grade lithium concentrates, as the sole distributor for Talison
        in China;
    --  Chengdu Tianqi Machinery - provides spare parts and accessories
        for machinery and electrical equipment used in the
        construction, packing and agriculture sectors; and
    --  Chengdu Sendasun Agricultural Machinery Co., Ltd. - undertakes
        research, development, manufacturing and sales of agricultural

Tianqi and its subsidiaries conduct their operations mainly from China, but 
have customers, business partners and suppliers in various countries around 
the world, including Europe, Australia, the United States and Japan.

More information about Tianqi is available from the following website:

Australia Greg Baxter Kreab Gavin Anderson +61 2 9552 4499 +61 419 461 368

Canada Joshua Goldman-Brown Kreab Gavin Anderson +1 646 490 2767

SOURCE: Chengdu Tianqi Industry Group Co., Ltd

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CO: Chengdu Tianqi Industry Group Co., Ltd
ST: Ontario

-0- Nov/12/2012 12:00 GMT

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