unit of Tewoo Group, a 'Global 500' Company

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cnw






TSX: CLQ; U.S. OTC: CLQMF


TORONTO, Nov. 12, 2012 /CNW Telbec/ - Canada Lithium Corp. (TSX: CLQ)
(U.S. OTC: CLQMF), announced today it has signed a five-year lithium
carbonate offtake agreement with Tewoo-ERDC (Tianjin Products and
Energy Resources Development Co., Ltd.), one of China's larger
commodities traders, for a minimum annual commitment of 12,000 tonnes
of battery-grade lithium carbonate. The five-year agreement also
includes a provision for the formation of a Sino-Canadian marketing
joint venture (SFJV) to be incorporated as Tewoo Quebec Lithium CO.,
LTD. The agreement calls for Canada Lithium to deliver lithium
carbonate FOB to the Port of Vancouver or Port of Prince Rupert, B.C.,
beginning March 2013. Tewoo-ERDC is a wholly-owned subsidiary of Tewoo
Group, one of the world's top 500 companies in terms of revenue,
according to a Fortune Magazine 2012 ranking.


Delivery of the first 12,000 tonnes is scheduled to occur over the
course of calendar year 2013. Following 2013 and for the four years
thereafter, Tewoo has committed to import a minimum 12,000 tonnes per
year with a provision to increase the offtake volumes by as much as 20%
per year over the previous year's deliveries. In the event Tewoo
triggers the 20% clause in 2014, Canada Lithium could deliver up to a
maximum 14,400 tonnes during calendar year 2014. Prices will be
adjusted quarterly based on actual market prices. Canada Lithium's mine
and processing plant near Val d'Or, Quebec, currently approaching the
end of construction and scheduled to enter the commissioning phase late
this year, will have an annual capacity to produce approximately 20,000
tonnes of lithium carbonate.


"The agreement with Tewoo secures a market for a significant portion of
our annual production and demonstrates that China is the fastest
growing consumer of lithium carbonate products. Having a long- term,
strategic partnership with the Tewoo group will provide significant
support for our product sales and distribution in China," said Canada
Lithium CEO and President Peter Secker. "Negotiations with other
parties for additional lithium carbonate tonnages are ongoing."


The lithium markets remain robust with the current China spot price at
approximately $6,600 per tonne, according to Asian Metal, a global
commodities information company. The registration of the SFJV remains
subject to government approvals in China.


Project Update


The project continues to meet its budget and schedule milestones for
commissioning of the spodumene circuit by the end of 2012.
Pre-commissioning tests on the larger mechanical and electrical
equipment have started. Pre-stripping of the deposit and construction
of the first phase of the Tailings Management Facility (TMF) are
ongoing as scheduled.


About Canada Lithium Corp.


The Company holds a 100% interest in the Quebec Lithium Project near Val
d'Or, the geographical heart of the Quebec mining industry. It is in
the midst of building an open-pit mine and processing plant on-site
with estimated capacity to produce approximately 20,000 tonnes of
battery-grade lithium carbonate annually. Metallurgical tests have
produced battery-grade lithium carbonate samples. Lithium carbonate is
used in lithium-ion batteries that power consumer electronics (laptops,
tablets, etc.) power-grid storage facilities and electric and hybrid
vehicles. The Company trades under the symbol CLQ on the TSX and on
the U.S. OTCQX under the symbol CLQMF.




SOURCE: CANADA LITHIUM CORP.



For further information:

Peter Secker, President and CEO (416) 361-2821

Olav Svela, Director, Investor Relations (416) 361-2821 or (416) 479-4355 or email osvela@canadalithium.com

Christine Stewart, Renmark Financial Communications Inc. (416) 644-2020 or email cstewart@renmarkfinancial.com

Please visit the Canada Lithium website at >http://www.canadalithium.com/s/PhotoGallery.asp.

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Corporate Office: 401 Bay Street, Suite 2010, Box 118, Toronto, ON, M5H 2Y4