Canada Lithium Announces Project Update

 TSX: CLQ; U.S. OTC: CLQMF  TORONTO, April 4, 2013 /CNW Telbec/ - Canada Lithium Corp. ("Canada Lithium"  or the "Company") (TSX: CLQ) (U.S. OTC: CLQMF) announced today that wet  commissioning and initial tests of most of the major hydrometallurgical plant  circuits have been completed successfully at its operations near Val d'Or,  Québec.  Plant Commissioning Update  Commissioning of the plant's "front end," which includes the crushing,  grinding and flotation circuits, is ongoing. During commissioning, the process  plant produced spodumene in January, February and March of 2013. During March  2013, the Company mined approximately 32,000 tonnes of ore at a head grade of  0.95% (as compared with the mineral reserve grade of 0.94%) and an estimated  400,000 tonnes of waste rock to complete Stage One of the Tailings Management  Facility (TMF).  The EPCM stage is now substantially completed and systems testing of the  plant's "back end," or hydrometallurgical circuit, is ongoing with the only  commissioning delay to date being with respect to the kiln, which converts  alpha spodumene (the end product of the crush/grind/flotation circuit) to beta  spodumene. Pre-heating of the kiln has been completed and it is now being  operated intermittently at medium operating temperatures for mechanical  testing. Final commissioning of the kiln is pending final inspection by  officials from the Canadian Standards Association (CSA Group), which the  Company had anticipated for the end of March 2013. The Company is actively  working with CSA Group to complete the inspection. CSA inspectors are  scheduled to be on-site early next week.  Commissioning of the plant's hydrometallurgical circuit is ongoing,  predominantly the lithium sulphate circuit, sodium carbonate circuit and the  various stages of precipitation, leaching, filtration and packaging. These  circuits are now operating and the first lithium carbonate product was  successfully produced using out-sourced lithium sulphate.  Commissioning of the project will continue through the upcoming months. The  Company's objective remains to meet its target of first carbonate shipments to  China in late April 2013 at an initial reduced level as commissioning tonnages  build. The Company continues to expend working capital to maintain the plant  in a ready state to commence processing and currently anticipates full ramp-up  to a production rate of 20,000 tonnes of battery-grade lithium carbonate per  annum by the end of the fourth quarter of 2013.  Representatives of offtake partner Tewoo were on-site last week to review  logistics and transportation strategies for the delivery of lithium carbonate  product in the coming months to the Ports of Vancouver or Prince Rupert.  Tailings Management Facility (TMF) Update  Golder Associates, the Company's TMF geotechnical consultant, has completed an  evaluation of the water discharge that occurred from the process-water cell of  the TMF on March 19, 2013, and is preparing a remedial action plan which is  anticipated to be completed by the end of this week and submitted to the  Ministère du Développement durable, de l'Environnement de la Faune et des  Parcs (MDDEFP) early next week. Canada Lithium anticipates that the  remediation work can be completed within 10 days of MDDEFP approval and  without affecting plant commissioning.  A diagram of the flow sheet is on the Canada Lithium website  www.canadalithium.com. Copy the link below into a web browser and scroll to  the flow sheet section: http://www.canadalithium.com/s/QuebecLithium.asp  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. It has completed  construction and is in the commissioning phase of an open-pit mine and on-site  processing plant with estimated capacity to produce approximately 20,000  tonnes of battery-grade lithium carbonate annually. Metallurgical tests have  produced battery-grade lithium carbonate samples. A five-year off-take  agreement for a minimum of 12,000 tonnes per year was recently signed with  Tewoo-ERDC, one of China's largest commodities traders. A second off-take for  up to 5,000 tonnes per year was recently signed with Marubeni Corp., a major  Japanese commodities trading company. Lithium carbonate is used in lithium-ion  batteries that power consumer electronics (laptops, tablets, etc.), power-grid  storage facilities and electric and hybrid vehicles. 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 Canadian securities legislation. Forward-looking information is based upon  the Company's beliefs, estimates and opinions as at the date of this press  release, which the Company believes are reasonable, but no assurance can be  given that these will prove to be correct. Furthermore, the Company undertakes  no obligation to update or revise forward-looking information contained herein  if these beliefs, estimates and opinions or other circumstances should change,  except as otherwise required by applicable law.  Forward-looking information relates to future events or to future conditions,  performance or results of operations and reflects current expectations or  beliefs regarding such matters including, but not limited to, information or  statements with respect to: (i) the amount of mineral resources; (ii)  exploration, development and production activities, including information  regarding the potential mineralization and resources; (iii) the amount of  future output over any period; (iv) net present value and internal rates of  return of the mining operation; (v) assumptions relating to capital costs,  operating costs and other cost metrics; (vi) assumptions relating to gross  revenues, operating cash flow and other revenue metrics; (vii) assumptions  relating to future price and demand for lithium and other macroeconomic  metrics; (viii) exploration and development plans, including anticipated costs  and timing thereof, time frames for completion, and anticipated time to  production; (ix) mine potential and expected mine life; and * sources of and  anticipated financing requirements.  All information other than matters of historical fact may be forward-looking  information. In some cases, forward-looking information can be identified by  the use of words such as "seek", "expect", "anticipate", "budget", "plan",  "project", "estimate", "assume", "continue", "forecast", "intend", "believe",  "predict", "potential", "target", "strategy", "goal", "may", "could", "would",  "might", or "will" and similar words or phrases (including negative  variations) suggesting future outcomes or statements regarding an outlook.  Forward-looking information is based upon certain assumptions by the Company  or its consultants and other important factors that, if untrue, could cause  the actual results, performances or achievements of the Company to be  materially different from future results, performances or achievements  expressed or implied by such information. Such information is based on  numerous assumptions regarding present and future business strategies and the  environment in which the Company will operate in the future, including the  price of lithium, anticipated costs and ability to achieve goals. Certain  important factors that could cause actual results, performances or  achievements to differ materially from those in the forward-looking  information include, but are not limited to: (i) required capital investment  and estimated workforce requirements; (ii) estimates of net present value and  internal rates of return; (iii) future demand and market prices for lithium;  (iv) receipt of regulatory approvals on acceptable terms within commonly  experienced time frames; (v) anticipated timelines for the commencement of  production; (vi) anticipated timelines for community consultations and the  impact of those consultations on the regulatory approval process; and (vii)  future exploration plans and objectives.  By its nature, forward-looking information involves known and unknown risks,  uncertainties and other factors which may cause actual results, performance or  achievements, or industry results, to differ materially from those expressed  or implied by such forward-looking information. Some of the risks and other  factors that could cause actual results to differ materially from those  expressed in the forward-looking information contained in this press release  include, but are not limited to, risks and uncertainties relating to: (i) the  interpretation of drill results, the geology, grade and continuity of mineral  deposits and conclusions of economic evaluations; (ii) results of feasibility  studies, and the possibility that future exploration, development or mining  results will not be consistent with the Company's expectations, (iii) the  outcome of litigation in which the Company is or may in the future become  involved; (iv) risks relating to possible variations in reserves, grade,  planned mining dilution and ore loss, or recovery rates and changes in project  parameters as plans continue to be refined; (v) mining and development risks,  including risks related to accidents, equipment breakdowns, labor disputes  (including work stoppages and strikes) or other unanticipated difficulties  with or interruptions in exploration and development; (vi) risks related to  the inherent uncertainty of production and cost estimates and the potential  for unexpected costs and expenses; (vii) risks related to future commodity  demand and price and foreign exchange rate fluctuations; (viii) the  uncertainty of profitability based upon the cyclical nature of the industry in  which the Company operates; (ix) risks related to failure to obtain adequate  financing on a timely basis and on acceptable terms or delays in obtaining  governmental approvals or in the completion of development or construction  activities; * risks related to environmental regulation and liability; (xi)  political and regulatory risks associated with mining and exploration; (xii)  risks related to the uncertain global economic environment; and (xiii) other  risks and uncertainties related to the Company's prospects, properties and  business strategy. Although the Company has attempted to identify important  factors that could cause actual results or events to differ materially from  those described in the forward-looking information, readers are cautioned that  this list is not exhaustive and there may be other factors that the Company  has not identified. Readers are cautioned not to place undue reliance on  forward-looking information contained in this press release. All  forward-looking information contained in this press release or incorporated by  reference herein is expressly qualified by this cautionary note.  Peter Secker, CEO and Deputy Chairman (416) 361-2821  Olav Svela, Director, Investor Relations (416) 361-2821 or (416)  479-4355 or  emailosvela@canadalithium.com  Christine Stewart, Renmark Financial Communications Inc. (416) 644-2020  or  emailcstewart@renmarkfinancial.com  Please visit the Canada Lithium website atwww.canadalithium.com or copy the  following link into your Web browser to view our Photo   Gallery:http://www.canadalithium.com/s/PhotoGallery.asp. You can also follow  us on Facebook and Twitter. On our Home Page,  there is also a link to a  recent video that aired on Discovery  Channel'sDaily Planet program.  Corporate Office: 401 Bay Street, Suite 2010, Box 118, Toronto, ON, M5H  2Y4  SOURCE: Canada Lithium Corp.  To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/April2013/04/c2433.html  CO: Canada Lithium Corp. ST: Ontario NI: MNG FIELD