Mr. Peter Secker reports

CANADA LITHIUM ANNOUNCES $21.1 MILLION CONVERTIBLE DEBENTURE BOUGHT DEAL FINANCING

Canada Lithium Corp. has entered into an agreement with Dundee Securities Ltd. on behalf of a syndicate of underwriters including Primary Capital Inc., as co-lead underwriter, and Jones, Gable & Co. Ltd. to purchase, on a bought-deal private-placement basis, 21,110 convertible unsecured subordinated debentures of the company which will be issued at par at a price of $1,000 per debenture for gross proceeds to the company of $21.11-million. The company intends to use the net proceeds from the offering for working capital and general corporate purposes.

The debentures will mature on June 30, 2018, and pay a coupon of 11.0 per cent per annum from the closing date, payable semi-annually in arrears on the last day of June and December of each year commencing on June 30, 2013. The first interest payment will be made on June 30, 2013, and will consist of interest accrued from and including the closing date to June 30, 2013. Subject to specified conditions, the company may elect, from time to time, subject to applicable regulatory approval, to satisfy its obligation to pay interest on the debentures, on the date it is payable (i) in cash; (ii) by delivering sufficient common shares of the company to the trustee under the indenture governing the debentures, for sale, to satisfy the interest obligations in accordance with the indenture in which event holders of the debentures will be entitled to receive a cash payment equal to the interest payable from the proceeds of the sale of such common shares; or any combination of (i) and (ii) above.

The debentures will be convertible at the holder's option into common shares of the company at any time prior to the close of business on the earlier of the maturity date and the business day immediately preceding the date fixed for redemption of the debentures. The debentures will convert at a conversion price of 72 cents per common share, being a ratio of 1,388.89 common shares per $1,000 principal amount of debentures, subject to adjustment in certain events including dividend protection for the declaration of dividends. Holders converting their debentures will receive accrued and unpaid interest thereon, up to, but excluding, the date of conversion. The conversion rate may be adjusted upon the occurrence of certain events, pursuant to standard anti-dilution provisions as will be set out in the indenture governing the debentures.

The debentures will not be redeemable before June 30, 2016. On and after the first call date and prior to the maturity date, the company may, at its option, at any time and from time to time, subject to providing not more than 60 and not less than 30 days prior notice, redeem the debentures, in whole or in part, at par plus accrued and unpaid interest provided that the weighted average closing price of the common shares on the Toronto Stock Exchange during the 20 consecutive trading days ending five trading days preceding the date on which the notice of redemption is given is not less than 130 per cent of the conversion price.

The debentures will rank subordinate in right of payment of principal and interest to all senior obligations of the issuer.

In connection with the offering, the underwriters will receive a cash commission equal to 5 per cent of the gross proceeds raised under the offering. The closing date of the offering is anticipated to occur on or about May 15, 2013, and is subject to the receipt of applicable regulatory approvals including approval of the Toronto Stock Exchange.

We seek Safe Harbor.