AmeriLithium Secures $2.5 Million USD Equity Line Financing Agreement

According to the terms of the agreement, the Investor committed to purchase up to $2.5 million dollars of the Company’s common stock. The Company will sell to the Investor the common stock at a discount of 5% to the market price using a five day forward volume weighted average price. The amount and timing of each purchase is at the sole discretion of the Company. Each purchase may be up to the greater of 350,000 shares of the Company’s common shares or 200% of the average daily volume of shares of common stock traded during the five trading days immediately preceding the delivery of a notice to the Investor.

Of particular interest, neither the Investor nor its affiliates have an open short position in the common stock of AmeriLithium, and the Investor agreed that it will not, and that it will cause its affiliates not to, engage in any short sales of hedging transaction with respect to the Company’s common stock. The Investor agrees to sell no more than 25% of the weekly volume as reported by Bloomberg.

In a separate transaction, AmeriLithium received $250,000 in the form of a convertible promissory note.

Matthew Worrall, AmeriLithium’s Chief Executive Officer, commented: "We’ve taken on this finance agreement so we can utilize it to the best advantage of the Company and ensure the continued development of the Company’s asset base. In light of having begun the planning and permitting for a targeted drilling program on our four Nevada-based lithium brine properties, this financing agreement has come at just the right time. We now have both the data from our recently-completed geophysical exploration and the funding we need to move to the next phase of exploration for commercial lithium-bearing brine concentrations in Nevada."

Mr. Worrall also commented on the corporate financial strategy behind this agreement: "Having an equity facility available to the Company, such as the agreement with TCA, allows the company to transition towards a healthier, less debt reliant, balance sheet."

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.

www.amerilithium.com