from Federal Sustainable Development Program

.

cnw






TSX: CLQ; U.S. OTC: CLQMF


TORONTO, Feb. 15, 2013 /CNW Telbec/ - Canada Lithium Corp. (TSX: CLQ)
(U.S. OTC: CLQMF) announced today that the Company has been selected to
receive a grant of up to $6.5 million from the Government of Canada
through Sustainable Development Technology Canada (SDTC).


The grant was awarded to Canada Lithium to construct a pilot plant to
test the viability of refining lithium metal from the Company's lithium
products, soon to be produced from the new mine and process plant
currently being commissioned near Val d'Or, Quebec.


"Our Government is doing its part to encourage innovation and the next
wave of clean technologies to help protect our environment and create
high-quality jobs," said the Honourable Joe Oliver, Canada's Minister
of Natural Resources. "Investment in projects such as these
demonstrates our leadership in driving a vibrant clean technology
industry in Canada."


"It is an honor to be chosen for the SDTC program, which funds projects
aimed at creating jobs in Canada's dynamic cleantech sector," said
Canada Lithium President and CEO Peter Secker. "It also fits well with
our strategic goal to broaden our product offering, the core of which
will be lithium carbonate, but with higher-value downstream products
such as lithium hydroxide and lithium metal."


"As a component of electric-vehicle batteries, lithium is in high demand
worldwide and an important tool for the cleantech sector," said Dr.
Vicky Sharpe, President and CEO of SDTC. "The technology being
developed in this project has the potential to reduce total EV battery
costs, thereby increasing the rate of EV up-take. This represents an
exciting development for Canada's cleantech sector and an opportunity
to reach markets overseas."


Lithium metal is used as the cathode material for primary lithium
batteries, lithium metal polymer batteries and in the newly developed
lithium-air battery designs. In addition, it is increasingly used in
aluminum alloys in aerospace applications and for the production of
butyl lithium products. The current market price for 99.9% lithium
metal is quoted at over $60,000 per tonne by Metal Prices


The company is proposing to commence construction of a
200-tonne-per-annum pilot plant on the Quebec Lithium site towards the
end of Q3, 2013. The objective of the pilot plant is to produce
battery-grade, 99.95% lithium metal for metallurgical acceptance
testing in Quebec and Asia. The production of lithium metal consumes
significant quantities of electrical power; therefore, the location of
a new plant in Quebec relies upon utilising competitively priced
electrical power from Hydro-Quebec. If the pilot plant proves a
success, Canada Lithium could potentially commence construction of a
2,000-tonnne-per-annum lithium metal plant, perhaps as early as Q4,
2014.


Canada Lithium is nearing the end of the commissioning phase of its
$207-million open-pit mine and process plant. First shipment of
lithium carbonate is anticipated at the end of March, 2013. The
company has also completed designs for a lithium hydroxide circuit and
sodium sulphate circuit at the plant.


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 has
completed construction and is in the commissioning phase of an open-pit
mine and on-site processing plant with estimated capacity to produce
approximately 20,000 tonnes of battery-grade lithium carbonate
annually. Metallurgical tests have produced battery-grade lithium
carbonate samples. A five-year off-take agreement for a minimum of
12,000 tonnes per year was recently signed with Tewoo-ERDC, one of
China's largest commodities traders. A second off-take for up to 5,000
tonnes per year was recently signed with Marubeni Corp., a major
Japanese commodities trading company. 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.


About SDTC


On behalf of the Government of Canada, Sustainable Development
Technology Canada (SDTC) helps commercialize Canadian clean
technologies, readying them for growth and export markets. With a
portfolio of companies under management valued at more than $2B, SDTC
is demonstrating that cleantech is a driver of jobs, productivity and
economic prosperity. SDTC operates two funds aimed at the development
and demonstration of innovative technological solutions. The $590
million SD Tech Fund™ supports projects that address climate change,
air quality, clean water, and clean soil. The $500 million NextGen
Biofuels Fund™ supports the establishment of first-of-kind large
demonstration-scale facilities for the production of next-generation
renewable fuels.





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 cstewart@renmarkfinancial.com

Please visit the Canada Lithium website at >http://www.canadalithium.com/s/PhotoGallery.asp. You can also follow us on Facebook and Twitter. On our Home Page, there is also a link to a recent video that aired on Discovery Channel's Daily Planet program.

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