AmeriLithium Secures $10 Million to Support Exploration Program

According to the terms of the deal, AmeriLithium receives a $10 million equity draw down facility. In exchange, the Investor receives AmeriLithium stock at an exercise price of 95% volume weighted average price (VWAP) calculated using the term of the past five (5) trading days. The Company also grants the Investor 100% warrant coverage at a warrant price of 150% of the price of the unit purchased (i.e., the 95% VWAP).

AmeriLithium’s 5,880-acre Paymaster Project is adjacent to the only US-based lithium producing plant, which is located in Nevada’s Clayton Valley, home of the highest lithium content found in any brines tested by the US Geological Survey (USGS) in southwestern US playas and basins.

In light of the Paymaster Project’s close proximity to the Clayton Valley production, an exploration program of surveys and drilling has been recommended to determine the potential of AmeriLithium’s holdings to tap the proven brine formations.

AmeriLithium’s ~664,049-acre Americana Property in Alberta, Canada overlies a potential extension of two formations identified by the Alberta Geological Survey (AGS) as containing formation waters containing potentially economic amounts of lithium.

The AGS recommended further analysis of the formation waters for lithium, stating that the lithium contents are similar to those of the only US-based lithium plant in Clayton Valley, Nevada (as mentioned above).

"We couldn’t be happier," said Matthew Worrall, CEO of AmeriLithium, in commenting on the financing agreement. "Not only has AmeriLithium gained the support and substantial financial backing of a forward-thinking backer, but through this investment we also find ourselves in the perfect position to immediately initiate our exploration program. While we have a lot of work ahead of us, we’re fortunate that both our projects are in regions with rich histories in mineral extraction. As such, the infrastructure, machinery and human expertise are already in place to get on with the job of further surveying and hopefully drilling."

Lithium is a lightweight metal used in a wide range of consumer products the world over: the medical industry uses lithium as an anti-depressant; industrial uses include glass, ceramic and porcelain enamel manufacture; the aviation industry uses lithium in alloys.

Of particular interest is the use of lithium for battery production, which has expanded significantly in recent years due to rechargeable lithium batteries being used increasingly in electrical tools and in the rapidly expanding portable electronics market. Furthermore, the next generation of hybrid and electric vehicles are being designed to use high-capacity lithium-ion batteries as environmentally-friendly fuel alternatives while the Obama administration has introduced $5 billion in funding and incentives for the development of a secure, domestic battery industry with special focus on lithium-ion batteries.

AmeriLithium is a publicly traded (NASD OTC BB: AMEL), mining company committed to progressively developing into one of the leading American players in the global lithium industry. The Company is headquartered in Lake Tahoe, NV. AmeriLithium has amassed a lithium portfolio consisting of ~710,000 acres, including a Nevada-based project adjacent to the only lithium producing plant in the US, a large project in Alberta, Canada, and a project in Western Australia.

www.amerilithium.com/