Li3 Energy, Inc., www.li3energy.com – the lithium mining and energy sector firm pursuing a strategy of identifying and obtaining a solid portfolio of lithium brine deposits in the Americas, reported execution of a stock purchase agreement (SPA) today with private equity funds (the Sellers) managed by Pacific Road Capital Management (PRCM) to acquire a Cayman-based company with 100% interest in the 6,670-acre Alfredo Project, a rich nitrate-iodine resource in northern Chile.

Booming demand for lithium from both battery manufacturers and the emerging clean/green energy sector puts LIEG in prime market position to capitalize on its strategy.

CEO of LIEG, Luis Saenz, described the ideal location of the Alfredo acquisition in terms of its proximity to both the Company’s target zone of activity (Argentina, Chile and Peru), northern Chile’s abundant caliche mines where SQM and ACF Minera have their iodine/nitrate factories, and the mining community of Pozo Almonte.

Saenz projected multiple downstream “chemical manufacturing synergies” for LIEG’s other lithium properties via the new acquisition, and noted that potassium nitrate and iodine production (as well as sodium sulfate byproducts) at Alfredo would generate substantial revenue for streamlining the Company’s forward momentum.

Saenz welcomed global mining industry-focused private equity firm PRCM as a significant shareholder and very strong potential strategic partner for growth initiatives.

Independent analysis of the Alfredo based on a 400×400 meter drill grid, at an average depth of 6 meters, covering 93% of the site and utilizing caliche deposit-standard NI 43-101-compliant protocols for drilling, sampling and geophysical data modeling, indicates:

• 63.5M tones of caliche ore containing:
• 4M metric tons of nitrate
• 12k metric tons of iodine (average grade of 6.3% nitrate with a 4% cut-off grade)

Issuance of an aggregate 10M shares of LIEG common stock to the Sellers and their designees, in exchange for the Alfredo property, has occurred as step one of the SPA, other details of which are as follows:

• 8.8M of the PPS issued are subject to an 18-month lock up period
• LIEG obligated for cash payments totaling $5.5M (continent upon milestones at Alfredo and subject to the Sellers discretion to choose, in lieu of cash, LIEG common stock valued at contemporary market price for all or any part of the payments)
• Sellers granted options to purchase additional LIEG common stock in Units (consisting of 100k shares of common stock and five-year warrants to purchase 100k shares at an exercise price of $0.50 per share)

1. Sellers may purchase from $2.5-10M in Units within 60 days of closing at $25k per Unit
2. Sellers may purchase, at a market-based price, shares of LIEG common stock up to an aggregate purchase price of $10M minus the value of any Units subscribed for pursuant to the aforementioned option (contingent upon LIEG’s completion of an NI 43-101 Inferred Resource Report on Alfredo and at least one Argentina lithium property)