Li3 Energy Inc – Advancing the Development of Lithium & Other Strategic Minerals

Overview

Li3 Energy, Inc. (OTCBB:LIEG) is a South America based global exploration stage public company in the lithium mining and energy sector. Li3 aims to acquire, develop and commercialize a significant portfolio of lithium brine deposits in the Americas. With its controlling interest in its Maricunga project (consisting of mining concessions covering an area of approximately 3,553 acres located in the Salar de Maricunga in northern Chile) and its other prospective strategic lithium and mineral holdings, Li3 Energy is focused on achieving commercializing of these assets in an accelerated manner by exploring the use of intensified evaporative and other advanced processing technologies. Li3′s goals are to: a) support the global implementation of clean and green energy initiatives; b) meet growing lithium market demand and c) become a mid-tier, low cost supplier of lithium, potassium nitrate, iodine and other strategic minerals, serving global clients in the energy, and specialty chemical industries.

Li3 is led by a management team of seasoned industry veterans with extensive exploration, mining, minerals, finance and commercialization expertise and a Board of Directors which includes global industry thought leaders who have advised, led and operated numerous mining entities.

Investment Highlights

• May 2011 – Closed acquisition of 60% Controlling Interest in Maricunga Project; Deemed “NI 43-101 Property of Merit” – by Hains Technology Associates.
• June 2011 – Maricunga identified as “Top 11 Lithium Project in the World” – signumBOX.
• August  2011- Signed agreements for Strategic Partnership with POSCO Canada Ltd., (POSCAN) a wholly owned subsidiary of POSCO (NYSE: PKX) which established an $18MM Exploration and Development program for Maricunga among other things.
• September 14th, 2011 – Closed $8 million Funding Tranche with POSCAN; Launched $8MM Phase One Exploration & Development Plan.
• December 2011 – Completed $8 million Phase One Development Plan.
• January 2012 – Executed agreement with R3 Fusion Inc. to explore enhanced evaporative technology in lithium process with a Pilot / Demonstration Facility.
• March 2012 – MOU with POSCO to construct Test Facility (advanced process technology).
• April 2012 – NI 43-101 Compliant Measured Resource Report; Maricunga to advance to Feasibility.

Key Property

Maricunga

The Maricunga Project is located in Region III of Atacama in Northern Chile, and is made up of the mining concessions Litio 1, 2, 3, 4, 5, and 6, respectively. The Salar de Maricunga is situated at an elevation of 3,760 meters above sea level, and is located in a world class mining region, close to strategic mining epicenters (Copiapo, El Salvador, Caldera Port, Caldera International Airport & Chaneral Mining Port) and is considered the 7th largest lithium brine resource in the world (Industrial Minerals Lithium Conference, January 2010). With its potentially competitive low cost of production versus other development projects, the property carries significant potential for development as a source of lithium, potassium and boron.

In December 2011, Li3 completed the $8MM Phase One Development Program (on time) and reported average concentrations of 1,240 mg/L Lithium, almost 9,000 mg/L Potassium and, confirmation of the brine chemistry. Initial drilling at the Maricunga Project estimated assay values as the 2nd highest quality deposit of lithium in Chile. Li3 believes Maricunga ranks amongst the most attractive brine development projects worldwide.

On April 2012, Li3 reported the completion of a NI 43-101 Measured Report, and key highlights include:

• Further exploration work and expenditures are warranted to advance the Maricunga Project to the feasibility stage;
• The property holds significant potential for development as a source of lithium, potassium, and boron;
• Exploration work indicates that the brines in the property are enriched in lithium and potassium and that the brine has a MG/Li ratio permitting lithium recovery;
• It is believed that through the application of proprietary technology developed by Li3’s strategic partners, lithium recovery from the Maricunga brine can be significantly enhanced and may increase from the conventional 45% to over 70% of the contained lithium in the recovered brine

Li3 believes that using conventional production methods, the Company would achieve 300,000 tonnes of recoverable Lithium Carbonate sufficient for a 20-year mine life at a rate of 15,000 tonnes per year of Lithium Carbonate production.

To view a summary of the report click here:
http://www.li3energy.com/news-media/news_pdfs/2012/Li3-MaricungaHainsTechresultsNI-43-101April2012Final.pdf

*To read the entire Maricunga 43-101 report, please click on the following link: http://www.li3energy.com/projects/ni-43-101/index.htm

With the NI 43-101 report complete, Li3 has begun to implement the necessary development work to advance the Maricunga project to the Feasibility Stage.

The property has demonstrated the potential to become a top ranking lithium underdeveloped project. Solid infrastructure and power networks are in place, with four established paved routes to support preliminary development.  The Company is in a competitive position as Maricunga was ranked amongst the top 11 underdeveloped lithium projects in the world in the signumBOX index ranking of more than 90 lithium projects as well as one of seven junior lithium projects expected to become a part of the future lithium supply.

Maricunga Estimated Project Timeline

• 2nd Quarter 2012 – R3 Technology Lab Demonstration.
• 2nd Quarter 2012 – Complete Preliminary Economic Assessment.
• May 2012 – Close $10 million second tranche of the POSCO Funding.
• 3rd Quarter 2012 – Begin construction of Pilot/Demonstration Facility.
• 4th Quarter 2012 – Complete Feasibility Study.
• 4th Quarter 2012 – Apply for Environmental Permits for Commercial Plant Construction.

Strategic Partnerships 

POSCO
In August 2011, Li3 Energy executed a Stock Purchase Agreement with POSCO Canada Ltd., a wholly owned subsidiary of POSCO, the world’s 3rd largest steel manufacturer to explore and evaluate a joint business opportunity utilizing brine, including the extraction of lithium and other useful resources. POSCO committed to a total investment of US$18 million of which Li3 closed on the first US$8 million tranche in September 2011.  The agreement calls for an additional US$10 million investment upon Li3 successfully obtaining a NI 43-101 Compliant Resource Report, the completion of initial work program, and obtaining the permits for the construction of a test facility in Chile.  In March 2012, Li3 executed a Memorandum of Understanding with POSCO to build test facility in Maricunga (none-dilutive) that would demonstrate the POSCO advanced process technology.

R3 Fusion
In January 2012, Li3 Energy executed an exclusive global agreement with R3 Fusion for the use of their technology in lithium brine processing.  R3 is a company focused on applying new and highly proprietary technology to address global challenges in environmental and water issues.  R3 has successfully demonstrated the capability of the technology to concentrate brine in a laboratory setting.  It was shown that the technology’s rapid evaporation capabilities, coupled with in-situ condensation and particle precipitation, have potential economic benefit for extraction and recovery of lithium from brine.  Li3 plans to deploy the technology in a Pilot/Demonstration Facility where it hopes to replicate these results in the field.  This would further demonstrate this technology would dramatically improve the methods and approaches used in lithium brine mining by significantly shortening the current natural (solar) evaporation cycle and in addition capturing substantial amounts of clean water from the brine which would otherwise be lost in the natural evaporation process. Li3 believes this could have significant economic benefits by reducing the amount of fresh water and water rights required at the site while also possibly satisfying initial environmental concerns associated with the lithium mining process.

Summary

Li3 Energy’s main goals are to support the global implementation of clean and green energy initiatives, meet growing lithium market demand and become a mid-tier, low cost supplier of lithium, potassium nitrate, iodine and other strategic minerals, serving global clients in the energy, fertilizer and specialty chemical industries. The company is in a competitive position as Maricunga was ranked amongst the top 5 underdeveloped lithium projects in the world in the signumBOX index ranking of more than 90 lithium projects. Initial drilling estimated assay values as the 2nd highest quality deposit of lithium in Chile.

Increased use of batteries for portable consumer electronics and a wide range of industrial applications could drive global demand for lithium. Li3 Energy contends that as production of hybrid vehicles and transitions to pure electric vehicles increase, global requirements for lithium used in the production of batteries may increase substantially. Some Fortune 500 companies have begun to partner with lithium exploration companies to secure a consistent, reliable source of lithium. Li3 Energy’s competitive position is strengthened with $18 million in equity funding by strategic partner POSCO Canada Ltd, a wholly owned subsidiary of NYSE listed, South Korean based POSCO.

Management

Luis F. Saenz – CEO, Director

Mr. Luis Saenz has over 18 years of corporate management experience in the mining industry.

He has held executive positions at the publicly traded Loreto Resources Corporation, Standard Bank’s investment banking unit, and Standard Americas, Inc. Mr. Saenz was responsible for establishing Standard Bank’s Peru representative office, led Standard’s mining and metals organization effort in the Latin America region, and later headed Standard’s mining and metals team in New York. Mr. Saenz was also a base metals trader for Pechiney World Trade before joining Merrill Lynch as Vice-President for Commodities in Latin America.

Mr. Saenz serves on the Board of Directors of Coronet Metals, a TSX listed advanced stage gold and silver exploration and mining company. Mr. Saenz graduated from Franklin and Marshall College with a bachelor’s degree in economics and international affairs.

Thomas Currin – COO

In addition to being Li3’s Chief Operating Officer, Mr. Thomas Currin is the founder and President of Limtech Technologies, Inc., a privately held company providing engineering services, lithium chemical products and recycling services to the lithium chemical industry. Mr. Currin served as Chairman of Limtech Carbonate, Inc., a privately held Canadian company, and also served in various capacities with FMC, Inc., a diversified chemicals, mining and machinery company, including as Division Planning Coordinator for FMC’s Lithium Division. Prior to that, Mr. Currin was Production and Process Engineer from of Reynolds Metals Company, an international mining and chemical company.

Mr. Currin has held memberships in the Combustible Metals Committee of the National Fire Protection Association, in the Metals Section Executive Committee of the National Safety Council and in the American Institute of Chemical Engineers. He has a bachelor’s of science in chemical engineering from North Carolina State University.

Eric Marin – CFO

Mr. Eric Marin’s has almost 20 years of professional experience as a management and information technology consultant. He has served as interim chief financial officer for Loreto Resources Corporation, and is currently President and CEO of Marin Management Ser-vices, a privately held consultancy firm offering management, financial, and information technology consulting services. From 2006 to 2009, Mr. Marin was vice president of Quorum Business Solutions, where he was responsible for building and managing client relations and overseeing operational budget, strategic planning, business development and organizational leadership services for Fortune 500 companies. Prior to that, Mr. Marin was founding president of Marin Medical Services LLC, a company providing front and back-office services to the healthcare industry. Mr. Marin was also a partner with Accenture Ltd., where he oversaw management and IT consulting services to For-tune 100 companies. Mr. Marin also served as project manager of Insource Management Group, where he managed IT consulting services for a number of companies in the public and private sectors.

Mr. Marin holds a bachelor’s degree in computer science from Texas A&M University and a master’s of business administration degree from the University of Houston in 1992.

Forward-Looking Statements

Any statements contained herein which are not statements of historical fact may be deemed to be forward-looking statements, including, without limitation, statements identified by or containing words like “believes,” “expects,” “anticipates,” “intends,” “estimates,” “projects,” “potential,” “target,” “goal,” “plans,” “objective,” “should”, or similar expressions. The Company gives no assurances the assumptions upon which such forward-looking statements are based will prove correct. Forward-looking statements involve risks, uncertainties and assumptions, and are based on information currently available to us. Actual results may differ materially from those expressed herein due to many factors, including, without limitation: results of due diligence and whether the Company is able successfully to negotiate the proposed New World acquisition; initial exploration results; satisfaction of conditions precedent to POSCAN’s additional investment; the Company’s ability to raise additional capital for exploration; development and commercialization of the Company’s projects; future findings and economic assessment reports; issuance of necessary government consents; the Company’s ability to identify appropriate corporate acquisition or joint venture opportunities in the lithium mining sector and to establish appropriate technical and managerial infrastructure; political stability in countries in which we operate; and lithium prices. For further information about risks faced by the Company, and its Maricunga Project, see the “Risk Factors” section of the Company’s Form S-1/A, filed with the SEC on March 6th, 2012. The Company undertakes no obligation to update any forward-looking statement contained herein to reflect events or circumstances which arise after the date of this release.