The closing of the Maricunga acquisition is subject to financing of the cash purchase price and work commitment by Li3 and other customary conditions.

The non-binding letter of intent previously executed in December 2010 was to expire on February 28, 2011, but has now been extended for thirty days after the execution of the binding offer. Such extension is set to expire on March 24, 2011.

Li3 will pay $6m and issue a number of shares of Li3 common stock to the companies equal to 30 percent of the outstanding Li3 stock on a post-transaction basis.

Li3 will issue additional shares upon exercise of any options and warrants outstanding at the time of closing, in proportion to the sellers' percentage ownership as of closing. In addition, Li3 will be committing to invest a total of up to $5m in work programs on exploration and studies to advance Maricunga towards the feasibility study stage.

In addition, Li3 is in the process of preparing an application to list its common stock on the Toronto Stock Exchange and has engaged Gowling Lafleur Henderson LLP as legal counsel to assist with the listing process.

Luis Saenz, CEO of Li3, said: “We are very pleased to have signed a binding offer to acquire the Maricunga asset. This brings us one step closer to consolidating our portfolio and becoming a value added industrial minerals producer.”

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