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Quebec-Based GENIVAR Receives EPCM Contract from Canada Lithium

Canada Lithium Corp. (TSX: CLQ; U.S. OTCQX: CLQMF) announced today that it has awarded the contract for Engineering, Procurement, Construction and Management of its planned open-pit mine and processing plant to Quebec-based GENIVAR Inc.

In addition, GENIVAR will be supported by Met-Chem Canada Inc., also based in Montreal, Quebec, for part of the process design and engineering stages.

"GENIVAR and Met-Chem are world-class engineering groups with the advantage of having deep roots and considerable experience in the development of Quebec's mining sector," said Canada Lithium President and CEO Peter Secker. "With this appointment, detailed engineering and design are now under way."

Mr. Secker also noted that the Company remains "firmly on pace to meet deadlines to begin site works by mid-2011 for the planned open-pit mine and processing plant."

Commissioning of the mine and plant is scheduled for late 2012, with full production expected in 2013, subject to financing and final permitting. Based on the final Feasibility Study completed in mid-December 2010, initial capital costs are estimated to be US$202.0 million and cash operating costs are estimated at US$2,600 per tonne of battery-grade lithium carbonate.

GENIVAR has significant expertise in the lithium-ion battery sector. It is currently building a state-of-the-art, lithium-based cathode material manufacturing plant for Phostech Lithium Inc. near Montreal. This cathode material is an essential element of the new, efficient and environmentally benign lithium-ion batteries coming on to the market.  In addition, GENIVAR has large engineering and environmental offices in both Val d'Or and Amos, in close proximity to the Quebec Lithium Project.

Source:

Canada Lithium Corp.

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