Mr. Kirill Klip reports

INTERNATIONAL LITHIUM CLOSES PRIVATE PLACEMENT OF CONVERTIBLE SECURITIES

International Lithium Corp. has closed the previously announced private placement of convertible securities to raise proceeds of $700,000 from a non-arm's-length party, being a significant shareholder of the company, TNR Gold Corp. The convertible securities bear interest at the rate of 15 per cent per annum, payable Jan. 31 of each year, and have a maturity date of Jan. 31, 2019. The lender may convert at any time, all or a portion of the principal into common shares of the company at a price of 14 cents per common share. The company has the right to repay the convertible loan, at any time on the last business day of the month, upon 10 days notice to the lender.

The proceeds of the private placement will be used for general working capital purposes. All private placement securities will be restricted from trading for a period of four months from closing.

The issuance of private placement securities to a non-arm's-length party constitutes a related-party transaction under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. Because the company's shares trade only on the TSX Venture Exchange, the issuance of securities is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority approval requirements of Section 5.6 of MI 61-101 pursuant to Section 5.7(b). The postclosing ownership in ILC by TNR, before conversion of the debenture, is 9,252,390 shares, equivalent to approximately 10.1 per cent of the outstanding common shares of the company. Should the convertible debenture held by TNR be exercised, its holdings would be 14,252,390 shares, equivalent to approximately 14.8 per cent of the issued common shares. The company did not file a material change report 21 days prior to the closing of the private placement as the details of the participation of insiders of the company had not been confirmed at that time.

We seek Safe Harbor.