Canada Lithium Appoints Quebec-based GENIVAR Inc. to Manage EPCM Engineering Contract for US$202-million Quebec Lithium Project

TSX: CLQ; U.S. OTCQX: CLQMF

TORONTO, Jan. 24 /CNW/ - Canada Lithium Corp. (TSX: CLQ; U.S. OTCQX: CLQMF) announced today that it has awarded the contract for Engineering, Procurement, Construction and Management (EPCM) of its planned open-pit mine and processing plant to Quebec-based GENIVAR Inc. In addition, GENIVAR will be supported by Met-Chem Canada Inc., also based in Montreal, Quebec, for part of the process design and engineering stages.

"GENIVAR and Met-Chem are world-class engineering groups with the advantage of having deep roots and considerable experience in the development of Quebec's mining sector," said Canada Lithium President and CEO Peter Secker. "With this appointment, detailed engineering and design are now under way."

Mr. Secker also noted that the Company remains "firmly on pace to meet deadlines to begin site works by mid-2011 for the planned open-pit mine and processing plant."

Commissioning of the mine and plant is scheduled for late 2012, with full production expected in 2013, subject to financing and final permitting. Based on the final Feasibility Study completed in mid-December 2010, initial capital costs are estimated to be US$202.0 million and cash operating costs are estimated at US$2,600 per tonne of battery-grade lithium carbonate.

GENIVAR has significant expertise in the lithium-ion battery sector. It is currently building a state-of-the-art, lithium-based cathode material manufacturing plant for Phostech Lithium Inc. near Montreal. This cathode material is an essential element of the new, efficient and environmentally benign lithium-ion batteries coming on to the market.  In addition, GENIVAR has large engineering and environmental offices in both Val d'Or and Amos, in close proximity to the Quebec Lithium Project.

About GENIVAR Inc. and Met-Chem Canada Inc.

GENIVAR Inc. provides a comprehensive range of engineering and environmental services.  Its clients benefit from the expertise of skilled specialists with extensive experience in geology, feasibility studies, environmental assessments, mining development, mineral processing, mining infrastructure, engineering, design, project management, applied technologies and mining environments.

Met-Chem Canada Inc., headquartered in Montreal, Quebec, is a multi-disciplinary engineering group established in 1969. Originally mandated to provide all phases of mining, mineral processing and engineering services throughout the world, Met-Chem's expertise has grown to include the environmental sector and operations management. Met-Chem has completed numerous projects worldwide.  Recent projects include Bucko Lake in Manitoba and Duck Pond in Newfoundland.

About Canada Lithium Corp.

Canada Lithium Corp. is a Canadian-based "clean-tech" mine developer trading under the symbol CLQ on the TSX and on the U.S. OTCQX market under the symbol CLQMF. 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. The Company plans to begin construction of an open-pit mine and processing plant capable of producing by late 2012 approximately 44 million pounds per year of battery-grade lithium carbonate 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 from deposit samples have produced 99.9% battery-grade lithium carbonate.

Forward-looking Information

The statements made in this press release may contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of Canada Lithium Corp.  The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of Canada Lithium Corp. management as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the Company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the Company. Canada Lithium Corp. disclaims any obligation to update information contained in any forward-looking statement.


SOURCE CANADA LITHIUM CORP.

For further information:

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

Olav Svela, Director, Investor Relations (416) 361-2821 or (416) 479-4355; (cell) (905) 442-8663 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 St., Suite 2010, P.O. Box 118, Toronto, ON, M5H 2Y4

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CANADA LITHIUM CORP.

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