RENO, NEVADA--(Marketwire - Dec. 15, 2010) - Western Lithium USA Corporation ("Western Lithium" or "WLC") (TSX VENTURE:WLC)(PINKSHEETS:WLCDF) and Western Uranium Corporation ("Western Uranium" or "WUC") (TSX VENTURE:WUC)(PINKSHEETS:WURNF) have reached an agreement in principle for the purchase, by WLC, of Western Energy Development Corporation ("WEDC"), a wholly-owned subsidiary of WUC that holds royalties and titles for substantially all of the Kings Valley mineral property holdings in Nevada. The parties have agreed that WLC will pay to WUC Cdn$6.85 million in WLC shares as consideration for the transfer of WEDC.

The transaction is designed to transfer all of the lithium properties out of WUC's portfolio, and represents the culmination of a spin-out process that started when WLC was initially formed as a subsidiary of WUC. WUC will now be able to focus more fully on growth through acquisitions and mergers, investments, and exploration globally and with more of a diversified commodities approach.

As a result of this transaction, the existing lease and royalty arrangements between the two companies on the King's Valley property, including a Net Smelter Return of 1.5% and Net Profits Royalty of 3.5% on any lithium project that WLC developed, are eliminated. WLC gains full control of the Kings Valley property claims, excluding the Albisu gold exploration target noted below and a proposed royalty to be granted to Cameco Global Exploration II Ltd. ("Cameco") solely in respect of uranium as described below, thereby improving the corporate structure for WLC to develop its Stage I lithium deposit. The agreement also eliminates the need for continuing future lease payments by WLC of US$4 million.

Details of the Transaction