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Press release from Marketwire

Talison Lithium Reports Record First Quarter Production Results

Monday, October 18, 2010

Talison Lithium Reports Record First Quarter Production Results09:41 EDT Monday, October 18, 2010PERTH, WESTERN AUSTRALIA--(Marketwire - Oct. 18, 2010) - Talison Lithium Limited ("Talison") (TSX:TLH) is pleased to provide the following first quarter production results for its Greenbushes lithium mine (the "Greenbushes Lithium Operations") in Western Australia.Greenbushes Lithium Operations - First Quarter 2011 Financial Year Production ResultsThe following highlights are for the Greenbushes Lithium Operations for the first financial quarter ended September 30, 2010: -- Lithium concentrate production of 80,729 tonnes (approx.12,000 tonnes lithium carbonate equivalent ("LCE")), representing a 24% increase over the first quarter of 2010; and -- Lithium concentrate sales of 52,524 tonnes (7,800 tonnes LCE), representing a 6% increase over the first quarter of 2010. The lithium concentrate production for the first quarter of 80,729 tonnes exceeded sales of 52,524 tonnes as a result of timing differences between product shipment schedules and production schedules. Talison continues to produce at capacity and sell 100% of its production.In addition to record first quarter production, the Greenbushes Lithium Operations also produced and sold a special parcel of 17,333 tonnes of crushed ore into the Chinese market. Due to the high grade of Talison's ore, it can be converted directly into lithium carbonate by its Chinese customers without intermediate processing. Sales of crushed ore are a short term measure to meet market demand until Talison completes the Stage 1 expansion of lithium concentrate production capacity. The Stage 1 expansion remains on schedule for completion in early calendar 2011.The strong production results are attributable to a successful process improvement program that continually targets de-bottlenecking both the technical and chemical grade plants. In addition, high quality ore delivered to both plants positively impacted on processing efficiency during the first quarter.Talison expects annual production for the 2011 financial year will exceed the annual budget of 43,000 tonnes LCE.Demand for both Talison's technical and chemical grade lithium concentrate continued to increase during the first quarter as markets continued to demonstrate significant signs of recovery.First Quarter Financial Results Release Date and Conference CallTalison will release its 2011 First Quarter Financial Results after the close of the market on Friday, November 12, 2010. Peter Oliver, Chief Executive Officer and Managing Director of Talison will host a conference call on Monday, November 15, 2010 at 9:30 a.m. EDT (6:30 a.m. PDT) to discuss the results.The call is being webcast by Thomson Reuters and can be accessed at Talison's web site at www.talisonlithium.com or from www.earnings.com. Teleconference call details will be provided prior to the call.Historical Greenbushes Lithium Operations Financial Statements and MD&A on SEDARTalison has filed on SEDAR the historical Greenbushes Lithium Operations carve-out financial statements and management's discussion and analysis ("MD&A") for the financial year ended June 30, 2010. These financial statements and MD&A relate to the Greenbushes Lithium Operations prior to the August 2010 reorganization under which Talison acquired the operations from its predecessor Talison Minerals Pty Ltd. The reorganization is more fully described in the MD&A which together with the financial statements are intended to provide investors with additional information regarding the recent operating and financial performance of the Greenbushes Lithium Operations.About TalisonTalison is the leading global producer of lithium. Talison mines and processes the lithium bearing mineral spodumene at the Greenbushes Lithium Operations in Western Australia. In addition, Talison explores for lithium at the Salares 7 lithium project made up of seven salars located in Chile. Talison also has an extensive, well established global customer network and a leading position in the growing Chinese market. Cautionary Note Regarding Forward-Looking StatementsThis release contains "forward-looking statements" which reflect the current expectations of Talison. When used in this release the words "will", "anticipate", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements reflect Talison's management's current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements involve significant known and unknown risks, uncertainties, factors and assumptions. Accordingly, readers should not place undue reliance on forward-looking statements. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this release.The forward-looking statements contained in this release are expressly qualified in their entirety by this cautionary statement. Although the forward-looking statements contained in this release are based upon what Talison believes to be reasonable assumptions, Talison cannot assure investors that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and Talison does not assume any obligation to update or revise them to reflect new events or circumstances.FOR FURTHER INFORMATION PLEASE CONTACT: Talison Lithium Limited Todd Hilditch Investor Relations Director 604 443 3831 Todd.Hilditch@talisonlithium.com www.talisonlithium.com The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release and the information contained herein.