Chilean Authorities Approve Li3 Energy’s Maricunga Lithium Project

Li3 Energy, Inc., a US-listed and South America based global exploration company in the lithium and minerals sector, is pleased to announce that it has achieved the approval of the DIA (Environmental Impact Declaration) from the SEA (Chilean Environmental Authority). This is the first step necessary to complete the Environmental Impact Study on its Flagship Maricunga Project.

The DIA approval paves the way for the Company to initiate the necessary work to prepare a Feasibility Study which includes pump tests of the wells in the Company's properties and the hydrogeological monitoring of the Maricunga Basin. Li3 expects to begin this phase of the program in the 2^nd quarter of 2013. Despite the current situation with the lithium permitting process in Chile, the approval of our DIA coupled with the fact that the Company has the most advanced lithium project in Maricunga, strengthens Li3's plans to explore the synergies of "grandfathered" lithium properties in the area. On a parallel path, the DIA approval also allows Li3 to explore a potassium-only project should the current situation (lithium exploitation permitting) prevail. While the Company offers no assurances on the outcome of any of our initiatives, or its ability to obtain the necessary financing to fund them, Li3 is committed to pursuing a project in Maricunga and this accomplishment demonstrates our continued desire to unlock its potential.