Mr. Marc Morin reports

ULTRA LITHIUM COMPLETES FIRST TRANCHE OF FINANCING

Ultra Lithium Inc. has closed the first tranche of its previously announced private placement with Beijing Guofang Mining Investment Co. Ltd. (BGMI). The company issued 10 million units to BGMI at a price of five cents per unit for gross proceeds of $500,000. Each unit consists of one common share of the company and one common share purchase warrant, with each warrant entitling BGMI to acquire one additional common share of the company at 10 cents per share at any time until July 9, 2014. The securities issued under the private placement are subject to a four-month hold period expiring Nov. 10, 2012.

In the second tranche, BGMI and associates will subscribe an additional 10 million units at a price of five cents per unit for gross proceeds of $500,000. Upon completion of the second tranche, BGMI will become an insider of the company and will hold 10.47 per cent of the issued and outstanding common shares of the company on an undiluted basis, and up to 17.84 per cent of the common shares of a fully diluted basis.

A finder's fee of $40,000 is payable on this tranche of the private placement.

On April 18, 2012, the company and BGMI entered into a framework agreement pursuant to which BGMI and its associates agreed to invest $1-million in units of the company. BGMI also agreed to finance up to $3.5-million of approved exploration expenditures on the company's Balkans property in the Republic of Serbia, to be incurred within a period of three years. BGMI will earn a 5-per-cent equity interest for each $500,000 of approved expenditures incurred and up to a 35-per-cent equity interest once the entire $3.5-million of qualified expenditures has been incurred. The company and BGMI continue to explore the Balkans property in a joint venture.

We seek Safe Harbor.