Mr. Michael England reports

PRELIMINARY RESULTS OUTLINE A PATH TO LOW-COST LITHIUM EXTRACTION AT AGUA FRIA, MEXICO (LITHIUM AUSTRALIA 49%, ALIX RESOURCES 51%)

Alix Resources Corp. is providing the following news release issued by its joint venture partner, Lithium Australia ML, with regard to the continuing program at the Agua Fria lithium project located in Sonora, Mexico.

Highlights:

• Mineralogy suggests there is potential to significantly beneficiate Agua Fria mineralization;
• Most lithium liberated rapidly at ambient temperature;
• No expensive reagents required;
• No roasting required;
• Montmorillonite is thought to be the main lithium-bearing mineral.

Background

Drilling is progressing at Agua Fria, where Lithium Australia and Alix Resources operate a 49/51-per-cent joint venture.

The Agua Fria prospect is part of the Electra project, which is focused on volcanogenic sediments hosting widespread lithium mineralization. The sediments occur within the same geological sequence as Bacanora Minerals Ltd.'s La Ventana deposit, which is currently being evaluated for production.

La Ventana is the largest documented lithium clay deposit. Agua Fria has a similar geological footprint and lies to the south of La Ventana deposit. Early indications are very promising, with significant drill intervals having average values exceeding 1,000 parts per million lithium.

Preliminary metallurgical results

Metallurgical test work is being undertaken by Kappes Cassiday and Associates in Reno, Nev. (United States). Mineralogical characterization (using sample from surface trenching) has been evaluated with quantitative X-ray diffraction (XRD) and yielded the results shown in the attached table.

          QUANTITATIVE XRD OF TRENCH COMPOSITE SAMPLES AT AGUA FRIA

Mineral                                               Ideal formula    Composite 1

Quartz                                                         SiO2              2
K-feldspar                                                 KAlSi3O8             18
Plagioclase                                  NaAlSi3O8 -- CaAlSi2O8             13
Analcime                                              NaAlSi2O6 H2O             12
Ankerite -- dolomite          Ca(Fe 2+, Mg, Mn)(CO3)2 -- CaMg(CO3)2             23
Calcite                                                       CaCO3              1
Anatase                                                        TiO2              1
Montmorillonite, model         (Na, Ca)0.3(Al, Mg)2Si4O10(OH)2 nH2O             30
Total                                                                          100

Interpreted mineralogy

Quantitative XRD analyses were performed on a composite sample assembled from trench samples at Agua Fria. The XRD suggests the main lithium-bearing phase is montmorillonite, a lithium clay mineral similar to hectorite. The other minerals forming the clay sample are dolomite, quartz, plagioclase feldspar and analcime.

Acid extraction of lithium at ambient temperature

Preliminary sulphuric acid shaker tests were carried out at room temperature for a period of four hours on the samples containing up to 950 parts per million Li. Lithium extraction attaining 85 per cent was observed. These are excellent results given the fact these sighter tests were performed at low temperature and with a relatively short residence time. The tests indicate no thermal pretreatment of the material is required. A moderate increase in temperature and residence time is expected to improve kinetics and drive the lithium extraction greater than 90 per cent.

Beneficiation potential

Montmorillonite is thought to be the main lithium-bearing mineral. It accounts for only 30 per cent of the sample mass. Efficient separation of the montmorillonite from gangue minerals has the potential to produce a concentrate with significantly higher lithium grades than the bulk material subject of the characterization work.

Separating montmorillonite from the acid-consuming dolomite and calcite by the application of desliming or flotation will significantly reduce the quantity of acid used.

Lithium Australia managing director Adrian Griffin stated:

"These results are a great start to our metallurgical evaluation program and clearly show the potential to produce a valuable concentrate from the host volcanogenic sediments. The acid solubility of the lithium is of greater importance. The ability to leach the lithium in very short periods of time, at ambient temperature, and without the requirement of pretreatment may have profound effects on the economics of Agua Fria, the next major lithium clay deposit."

The technical contents of this release were approved by Dr. Michel Boily, PhD, PGeo, a qualified person as defined by National Instrument 43-101. The property has not been the subject of a National Instrument 43-101 report.

About Alix Resources Corp.

Alix Resources is a junior mining exploration company focused on seeking and acquiring world-class lithium projects globally. Alix continues to evaluate suitable prospects that fit the mandate of the company.

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