The Energy Report

Lithium One Inc. TICKER: LI:TSX.V Visit Company Website Lithium One Inc. is a near-term producer of low-cost lithium and potash. Its flagship Sal de Vida Brine Project is one of the largest and highest-grade lithium-potash brine projects in the world, with a preliminary economic assessment that includes a 28% internal rate of return and a $1.066B net present value. The project is funded through feasibility in 2012 by a consortium that includes major end-user LG International, which provides product offtake and debt-financing security. The company's James Bay Pegmatite Project hosts a significant near-surface lithium resource and is funded through feasibility via a joint venture with Galaxy Resources.

The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.

Expert Analysis

Nick Morton, Stifel Nicolaus (2/16/12) "We are initiating coverage on Lithium One Inc. with a Buy rating and a CA$2.30 target price. . .its flagship Sal de Vida project has a large, good-grade lithium resource. The property has considerable promise as a future low-cost lithium brine mine and lithium-carbonate processing facility. . .[and it has an] experienced, motivated management led by Paul Matysek, a proven company builder."

The Energy Report Interview with Daniela Desormeaux (1/26/12) "Lithium One is in a very advanced stage of development, and it is very well ranked in our signumBOX ranking. One of its upsides is that it is located in Salar del Hombre Muerto. It's the only startup that actually is operating in Argentina. So it has really good prospects for the future." More >

Edward Otto, Cormark Securities (1/26/12) "Lithium One Inc. continues to advance its flagship asset, the Sal De Vida Lithium-Potash project, located in northern Argentina; the company has completed a preliminary economic assessment on the project and is working toward completing a feasibility study in H212 with the potential to start production in 2015. The project has the potential to be a 25,000 tpa lithium carbonate producer with significant potash credits. . .we view Lithium One as a favorable lithium developer, with high grades, significant potash by-product credit and is supported by a world-class joint-venture partner."

Matt Gowing, Mackie Research (1/25/12) "Lithium One Inc. released an updated NI 43-101-compliant resource report on the back of a 23-hole drill program at its Sal de Vida Lithium and Potash project in Argentina. . .the report showed a 30%+ increase in total resource, a reclassification of resource from Inferred category to M&I category, a ~10% increase in grade and consistently low level of impurities. . .we believe that the feasibility study will show that Lithium One has the potential to be one of the lowest cost producers of lithium, which should allow it to come on-line even in a volatile price environment for lithium."

Matt Gowing, Mackie Research (1/20/12) "Identified lithium and potash grades in [Lithium One Inc.'s Sal de Vida] program were approximately 10% higher than those of the NI 43-101 resource previously announced. These new drill results will contribute to a reclassification and expansion of the resource in a new resource estimate. . .the Sal de Vida lithium/potash brine project is on track to become one of the lowest-cost lithium projects in the world, with a meaningful potash kicker."

• Corporate Fact Sheet (1/9/12)
• Corporate Presentation (1/25/12)

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