Western Lithium Initiates Planned Lithium Demonstration Plant to Validate Low Cost Lithium Extraction From Its Nevada Deposit

Western Lithium Initiates Planned Lithium Demonstration Plant to Validate Low 
Cost Lithium Extraction From Its Nevada Deposit 
RENO, NEVADA -- (Marketwired) -- 02/13/14 -- Western Lithium USA
Corporation ("Western Lithium" or the "Company"),
(TSX:WLC)(OTCQX:WLCDF) is pleased to announce that it has received a
milestone payment of US$1.5 million pursuant to the Royalty Purchase
Agreement with Orion Mine Finance (Master) Fund I LP ("Orion"), the
Company's largest shareholder and a major New York investment fund,
to be put towards building the planned Lithium Demonstration Plant
expected to be operational in the fourth quarter of 2014. Western
Lithium intends to use the plant to collect design data for a
definitive feasibility study and to demonstrate the viability of
producing low cost lithium carbonate from its Kings Valley
lithium-rich hectorite clay deposit in Nevada (the "Project"). The
Company has received a USA patent for its proprietary process for
separating lithium and potassium byproduct compounds from
lithium-rich clays (see news release dated May 9, 2013). Based on its
NI 43-101 Prefeasibility Study, the Project is forecast to have a
comparably low first-quartile cost structure against new and
incumbent lithium producers, and to generate a net present value of
US$552 million at a discount rate of 8% (see SEDAR filing dated
January 27, 2012).  
"In 2014, we see potential for renewed interest towards the expansion
of the lithium sector, due to the rising adoption by mainstream
consumers of hybrid, plug-in and electric vehicles, and energy
storage devices that use lithium ion batteries. Lithium ion
technology is becoming ubiquitous in products ranging from lithium
battery powered bikes to garden tools. We are aggressively planning
to have the Lithium Demonstration Plant operational in Germany in the
fourth quarter of 2014, at a fully permitted facility complete with
utilities and laboratory support," said Western Lithium CEO, Jay
Chmelauskas. "We will invite potential strategic partners, investors
and stakeholders to visit the demonstration plant in Germany, where
we expect to be able to demonstrate the advantages and cost
competitiveness of producing lithium carbonate from our unique
lithium clay." 
Mr. Chmelauskas added that, "This summer, our HECTATONE(TM)
Organoclay Plant in Nevada is scheduled to begin making specialty
drilling fluid additives designed to provide viscosity, lubrication
and reduced pressure loss for drilling applications. The use of
directional drilling and fracking technology is opening up vast new
deposits of oil and gas throughout the world and is considered to be
at its early stages with tremendous potential global growth ahead for
the drilling sector. Our strategy that was first outlined in the fall
of 2012, to position the Company to benefit from two major investment
themes: the growth of oilfield fracking and offshore drilling
applications, and the growth of the lithium ion battery industry, is
now coming to fruition in 2014."  
Basic engineering for the Lithium Demonstration Plant was completed
by URS Corporation (Denver, USA) and K-UTEC AG Salt Technologies
(Germany) in conjunction with IBU-TEC Advanced Materials AG
(Germany). The design is based on running calcination and
crystallization on a 24-hour basis with the rest of the process on an
8-hour basis based on the equipment sizing. It is anticipated that
our lithium clay will be calcined at a rate of 12 tonnes per day and
battery grade lithium carbonate will be extracted at a rate of 60 kg
per day. During the operation, approximately 280 kg per day of
fertilizer grade potassium sulphate will also be recovered as a
byproduct. The plant includes all the key p
rocess equipment
envisioned for the commercial facility at a size that will allow easy
scale up to the commercial design.  
In preparing for the Lithium Demonstration Plant, Western Lithium has
conducted a verification large bulk test of approximately 1.5 tonnes
at IBU-TEC calcination facility in Germany to obtain the operating
profiles necessary for the calciner design. The operation was run for
three days at a maximum capacity rate of 1.2 tonnes per day and
indicated good correlation with the design criteria selected for the
Project's NI 43-101 Prefeasibility Study. The calcine test also
demonstrated good lithium extraction performance (85%-92% water leach
recovery) in-line with the Prefeasibility Study.  
The Lithium Demonstration Plant is intended to establish the cost
competitiveness of Western Lithium's technology and potential process
control advantages of extracting lithium from the lithium-rich clay,
in order to attract additional funding to build the Project.  
The US$1.5 million funding is part of the strategic investment by
Orion (see news release dated September 23, 2013). Additional funding
of US$4 million (for a total of US$22 million) remains available from
Orion, pursuant to the Royalty Financing, which funds are expected to
be drawn down in the next several months subject to the completion of
certain corporate milestones, including the advancement of the
HECTATONE(TM) Organoclay Plant located in Fernley, Nevada, which is
scheduled for commissioning in the summer of 2014.  
About the Company 
Western Lithium is pursuing the opportunity to be a supplier of
specialty drilling additive, HECTATONE(TM) and potentially other
organoclays for the oil and gas industry, and in particular, to
support the growth of high pressure high temperature, deep
directional drilling applications. The Company is also developing its
Kings Valley, Nevada lithium deposit into a strategic, scalable and
reliable source of high quality lithium carbonate. The Company is
positioning itself as a major U.S.-based supplier to support the
rising global demand for lithium carbonate that is expected from the
increased use of hybrid/plug-in and electric vehicles. Orion Mine
Finance (Master) Fund I LP is the Company's largest shareholder
holding a 19.9% interest. 
The scientific and technical information in this release has been
reviewed and approved by Dennis Bryan, Senior Vice President of
Development, a Qualified Person under the terms of NI 43-101. The
Company has prepared a NI 43-101 compliant technical report for the
Kings Valley project, entitled "Preliminary Feasibility Study Kings
Valley Lithium Project Humboldt County, Nevada", dated January 27,
2012, which is available under the Company's SEDAR profile at
www.sedar.com.  
Forward-looking statements 
Statements in this release that are forward-looking statements are
subject to various risks and uncertainties concerning the specific
factors disclosed here and elsewhere in the Company's periodic
filings with Canadian securities regulators. When used in this
document, the words such as "expected", "planned", "forecast",
"scheduled" "targeting" and similar expressions are forward-looking
statements. Information provided in this document is necessarily
summarized and may not contain all available material information. 
Statements in this release that constitute forward-looking statements
or information include, but are not limited to (i) the commencement
of HECTATONE(TM) product sales in 2014; (ii) the commencement and
completion of construction of the organoclay plant; (iii) the
completion of the Lithium Demonstration Plant; and (iv) securing
additional financing required for the completion, start-up and
operation of both organoclay plant and Lithium Demonstration Plant. 
All such forward-looking information and statements are based on
certain assumptions and analyses made by Western Lithium management
in light of their experience and perception of historical trends,
current conditions and expected future developments, as well as other
factors management believes are appropriate in the circumstances.
These statements, however, are subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the
forward-looking information or statements. Important factors that
could cause actual results to differ from these forward-looking
statements include those described under the heading "Risks Factors"
in the Company's most recently filed MD&A. Readers are cautioned not
to place undue reliance on forward-looking information or statements.
Contacts:
Western Lithium USA Corporation
Investor Relations
604-221-7982
info@westernlithium.com
www.westernlithium.com
 
 
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