Li3 Energy Inc. is a company focused on identifying and acquiring lithium brine opportunities in the United States, Argentina, Peru and Chile. The company announced today that it has signed a letter of intent with a private company in Argentina to acquire lithium brine assets in the Puna region of northern Argentina.

The prospective location, known as the Rincon South Property, covers approximately 4,250 acres. It is comprised of 14 claims on the southern portion of the Salar de Rincon, located adjacent to an advanced lithium brine pumping and production project owned by Sentient. The proposed Rincon South transaction is subject to geological, engineering, legal and financial due diligence by Li3 Energy and is anticipated to be finalized before April 30, 2010.

Rincon Lithium has reported a proved plus probable reserve at their Rincon holdings adjacent to the Rincon South properties of 1.4 million metric tons of lithium and 50.8 million metric tons of potash. Given the known resources and relatively advanced state of development at Rincon, Li3 Energy management believes that this Rincon South project could potentially become the cornerstone of its lithium project portfolio in Argentina. The Salar de Rincon is located near other major successful lithium projects being undertaken by large companies including FMC Corporation and SQM SA. The locations all share a number of similarities in terms of altitude, geology and depositional environment.

Li3 Energy’s CEO Luis Saenz stated, “We believe this location is an excellent core project for rapid development. Given that previous works have included the establishment of roads, weather stations, a nearby pilot plant, evaporation ponds and homogeneity of lithium across the salar, we are confident that we can quickly begin implementing our strategic plans targeting realistic near-term production at Rincon South.”