On May 23rd, 2011 Li3 closed a transaction whereby they acquired 60% of Sociedades Legales Mineras Litio 1 a 6 de la Sierra Hoyada de Maricunga, a group of six private companies, which collectively own the Maricunga Project. Li3's Maricunga Project is located in the northeast section of the Salar de Maricunga (the "Salar") in Region III of Atacama in northern Chile, at an elevation of 3,760 meters above sea level. The Maricunga property is undeveloped and consists of permanent mining concessions Litio 1, 2, 3, 4, 5, and 6 that covers a total area of 3,553 acres (1,438 hectares). Maricunga grants the owner the right to exploit a potassium (K) and boron (B) ore deposit as the concessions are located outside the protected area of the Salar. In order to produce lithium (Li), the government of Chile needs to provide a special permit. The Salar is located approximately 230km from the international airport of Caldera, and approximately 250km from the mining port of Chañaral. All these facilities are connected to the Salar by paved roads that can be used throughout the year. Below is a map showing the location of Maricunga.

The Salar de Maricunga is the second largest basin in Region III and has a basin area of 3,045 km2. This basin is characterized by significant morphological, climatic and geological variations, which normally occurs with major river basins. The Salar de Maricunga has a net evaporation rate of 1,000 mm per year, which is lower than the Atacama Salar but similar to Salar de Rincon. In addition, The Salar de Maricunga is listed as the 7th largest Lithium Brine Resource, according to Keith Evan's presentation to the Industrial Minerals Lithium Conference (Las Vegas, January 2010) at 200,000 tonnes lithium. Maricunga also has facilities that do not occur in other Salars such as good connectivity, roads, and nearby ports and airports. The proximity to the Chañaral mining port gives the Project greater competitive industry costs as it would not have high costs for freight concepts.

Maricunga Project Satellite View		Maricunga Project Satellite Image of Recent Road Work		Maricunga Project Concessions

CORFO DATA

In 1980, the Chilean Agency of Development, CORFO, performed a sampling program at the Salar de Maricunga, and concluded mainly that exploitation at Maricunga is feasible and the preliminary resources were estimated at 1.7 million of metric tons (MT) of potassium and 224,000 MT of lithium as Li. Through a parallel resource and process development strategy, Li3 will plans to begin Potassium Nitrate (KNO3) and Lithium Carbonate (Li2CO3) Production within two years. To ensure a competitive manufacturing cost, Li3 will focus on maximizing co-product credits and securing low cost raw material sources.

• 224,300 tonnes of Li; or
• 600,000 tonnes of Recoverable Li2CO3 (utilizing a 50% recovery factor); or
• 30,000 tonnes per year of Lithium Carbonate for 20 years
• 3,274,000 tonnes of KCl (potash); or
• 2,300,000 tonnes of KCl (utilizing a 70% recovery factor); or
• 115,000 tonnes per year of KCl for 20 years or 96% or Alfredo Requirements