Canada Lithium Provides Project Update

Toronto, January 31, 2013 – Canada Lithium Corp. (TSX: CLQ) (U.S. OTC: CLQMF) announced today that commissioning of the mineral processing sections of the process plant continues as scheduled with spodumene production being achieved on a regular basis and final electrical work and software programming being undertaken on the lithium carbonate circuits.

There will be a number of site visits by our off-take partners and various battery manufacturers as we approach the first shipment of lithium carbonate under the five-year Tewoo off-take agreement at end-March 2013. The 20,000-tonne-per-annum lithium carbonate processing plant is scheduled to complete ramp-up to full production by Q4, 2013.

The Company expects the final drawdown, in the amount of $25M of the $75M debt facility from the banking syndicate, to occur during February-March, 2013.