Canada Lithium Announces Closing of $16.5-million Over-Allotment Option

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TSX: CLQ; U.S. OTC: CLQMF

TORONTO, Feb. 4 /CNW/ - Canada Lithium Corp. ("Canada Lithium" or the "Company") (TSX: CLQ; U.S. OTC: CLQMF) is pleased to announce that it has completed the sale of an additional 11,002,500 common shares at a price of $1.50 per common share for additional gross proceeds of approximately $16.5 million, pursuant to the full exercise of the over-allotment option granted in connection with the Company's bought-deal equity financing which closed on January 31, 2011. The exercise of the over-allotment option brings the total number of common shares sold by the Company pursuant to its bought-deal equity financing to 84,352,500 and the total gross proceeds to approximately $126.5 million.

The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws.  This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Canada Lithium Corp.

Canada Lithium Corp., a "clean-tech" mine developer, is anticipated to emerge as the world's next significant fully-integrated lithium carbonate producer. The Company has completed a definitive Feasibility Study (FS) on its Quebec Lithium Project near Val d'Or, the geographical heart of the Quebec mining industry. Its planned open pit mine and processing plant should be producing an annualized 44 million pounds by late 2012 to meet the growing needs of the emerging global market for electric and hybrid electric vehicles. It has an agreement with Japanese metals trading firm, Mitsui and Co. Ltd., to market a portion of Canada Lithium Corp.'s product in China, Korea and Japan. Metallurgical tests have produced battery-grade lithium carbonate from deposit samples. The Company trades under symbol CLQ on the TSX and on the U.S. OTCQX under the symbol CLQMF.

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained herein constitute forward-looking statements. The Company believes that the expectations reflected in the forward-looking statements are reasonable but no assurance can be given that such expectations will prove to be correct and such forward-looking statements included herein should not be unduly relied upon. The forward-looking statements included in this press release are made as of the date of this press release and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.


SOURCE CANADA LITHIUM CORP.

For further information:

Peter Secker, President and CEO (416) 361-2821

Olav Svela, Director, Investor Relations (416) 361-2821 or (416) 479-4355 or email osvela@canadalithium.com

Christine Stewart, Renmark Financial Communications Inc. (416) 644-2020 or email cstewart@renmarkfinancial.com

Please visit the Canada Lithium website at www.canadalithium.com.

Corporate Office: 401 Bay Street, Suite 2010, P.O. Box 118, Toronto, ON, M5H 2Y4

Profil de l'entreprise

CANADA LITHIUM CORP.

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