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 
FOR: Western Lithium USA Corporation 
FEBRUARY 13, 2014 
Western Lithium Initiates Planned Lithium Demonstration Plant to Validate Low
Cost Lithium Extraction From Its Nevada Deposit 
RENO, NEVADA--(Marketwired - Feb. 13, 2014) - 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
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 process 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. 
Western Lithium USA Corporation
Investor Relations
INDUSTRY:  Manufacturing and Production - Mining and Metals 
-0- Feb/13/2014 13:30 GMT
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