Canada Lithium Completes $110 Million "Bought Deal" Financing

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TSX: CLQ; U.S. OTC: CLQMF    

TORONTO, Jan. 31 /CNW Telbec/ - Canada Lithium Corp. ("Canada Lithium" or the "Company") (TSX: CLQ; U.S. OTC: CLQMF) is pleased to announce that it has closed its previously announced bought-deal equity financing for aggregate gross proceeds of approximately $110.0 million.  A syndicate of underwriters, co-led by Scotia Capital Inc. and Macquarie Capital Markets Canada Ltd., and including Casimir Capital Ltd., Cormark Securities Inc., Dundee Securities Corporation and Jacob Securities Inc. (collectively, the "Underwriters") purchased 73,350,000 common shares of Canada Lithium at a price of $1.50 per common share (the "Offering Price").  The Underwriters have an option to purchase up to an additional 11,002,500 common shares at the Offering Price until 30 days after the closing of the offering for additional gross proceeds of up to approximately $16.5 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. 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 has an agreement with Japanese metals trading firm, Mitsui and Co. Ltd., to market a portion of the Company's product in China, Korea and Japan. Metallurgical tests from deposit samples have produced 99.9% battery-grade lithium carbonate.

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained herein constitute forward-looking statements, including statements concerning the anticipated size of the offering and the anticipated use of proceeds. 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. Closing could be delayed if the Company cannot obtain necessary regulatory approvals within anticipated timelines and will not be completed unless certain conditions customary for transactions of this kind are satisfied. 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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