" Lithium One and KORES Announce Addition of LG International and GSCaltex to Development JV at Sal de Vida Lithium Brine Project,Argentina



BUENOS AIRES, ARGENTINA, Nov 12, 2010 (MARKETWIRE via COMTEX) --Lithium One Inc. (the "Company"), is pleased to announce that its partner, Korea Resource Corporation, ("KORES") hasfinalized a Korean Consortium ("KC") with LG International Corp. ("LGInternational") and GS Caltex Corporation ("GS Caltex"). The KCprovides for each of the 3 participant companies to share equally through a Korean special purposes company ("SPC") in the option toearn a 30% interest in the joint venture company to develop LithiumOne's Sal de Vida Lithium Brine Project in Argentina, as announcedJune 4, 2010.

LG International specializes in natural resources exploration anddevelopment projects and is the trading company for the LG Group. LGInternational operates its business through three divisions,including energy and raw materials, industrial materials and importand distribution.

GS Caltex is one of the largest energy companies in Korea and isjointly owned by the Korean conglomerate GS Holdings Corp andChevron. Over the past 40 years, GS Caltex has expanded its petroleum and petrochemical businesses to include city gas, electric power,exploration & production, convenience retail, e-business and New andRenewable Energy, to become a globally competitive total energyservice provider.

A delegation led by Mr. Kim, Shin-Jong, President & CEO of KORES, andincluding Mr. Park, Young Tae, Director of LG International, and Mr.Kim, Tai O, Managing Director of GS Caltex, met with Lithium Onemanagement in Buenos Aires, Argentina on November 11. Lithium One andKORES made a formal introduction of the Sal de Vida joint venture tosenior representatives from the federal government of Argentina andthe government of the province of Catamarca. The diverse Koreandelegation also included representatives from other leading Koreancorporations such as Posco, Hyundai Corporation, Aju Industry Co.Ltd., Kolon Industries Inc., Ecopro Co. Ltd., and KIET. The seniorleadership from the KC companies will be making their first officialvisit to the Sal de Vida project on November 12.

Lithium One President and CEO Patrick Highsmith commented on themeeting and the formal addition of the new partners to the jointventure: "It is an honor to formalize our partnership among KORES, LGInternational, and GS Caltex. As Argentina Mining Secretary JorgeMayoral remarked in his address, the partnership around our Sal deVida lithium and potash project highlights the synergies betweentechnology economies such as Korea and growing resource economiessuch as Argentina. In our landmark meeting, we discussed the Sal deVida Project from its current project status right through to thejoint venture's objective of being a supplier of high quality lithiumto Korean and Asian lithium battery makers."

KORES CEO, Mr. Kim, Shin-Jong, remarked today "The Sal de VidaLithium Project has brought together three of Korea's leadingcompanies, KORES, LG International, and GS Caltex, to join LithiumOne here in Argentina. We are very pleased with our progress at Salde Vida so far, and we look forward to visiting the project today."

Another member of the Korean delegation, Mr. Park, Young Tae of LGInternational spoke about his company joining its first lithiumproject, "The Sal de Vida Project has gotten off to a good start. Wehave a strong team to work with and a good mining jurisdiction. Atthe meeting on Thursday we heard important support for our projectfrom the province of Catamarca and the senior mining official in thenational government of Argentina. LG International is pleased to bepart of the consortium that is advancing Argentina's next lithiumproject to feasibility."

JOINT VENTURE

As announced on June 4, 2010, Lithium One and the KC will seek tojointly develop the Sal de Vida Lithium Brine Project. Lithium Onewill operate the joint venture. The KC will fund 100% of the budgetfor exploration, prefeasibility and feasibility studies up to US $15million. The earn-in period spans the forecast budget timeline ofapproximately 15 months required to deliver the feasibility study andis retroactive to project expenditures incurred by Lithium One sinceMay 7, 2010.

Upon delivery of the Definitive Feasibility Study, the parties willform a joint venture through an Argentina company (the "JV Company")with equity interests of 70% Lithium One, 30% the KC. The JV Companywill have a mandate to develop and operate a new lithium and potashmine at Sal de Vida. The operation of the JV Company will be governedby the terms of a shareholder agreement (the "Shareholder Agreement")that has been negotiated between the parties. The KC will provide aCompletion Guarantee for Lithium One's share of the debt portion ofthe capital development costs.

OFFTAKE AND MARKETING

The KC will have the right and obligation to purchase 30% of thelithium products produced from the Project at market prices. The KCwill also have a right of first offer to purchase an additional 20%of the lithium products from the Project.

Marketing of the lithium, potash and boron products from Sal de Vidawill be undertaken by the JV Company under a sales agency agreement.The KC will have the right to become the sole sales agent for lithiumproducts in the Chinese, Japanese and Korean markets, while LithiumOne will have the right to become the sole sales agent for potash andboron products worldwide."